Marketing is the study of markets, which essentially consist of an exchange between two parties. Any exchange counts, and money need not be transacted.
Marketing then, can actually mean different things depending on different aspects of the market. Here are four marketing approaches that companies generally focus, and as you will see, their business environments are pretty distinct.
1. Production Orientation
- Create generic products
- Aim for lowest cost of production
- Profit from increasing market share
Semiconductors, hardware OEM for smartphones are typical examples.
2. Marketing Orientation
- Create differentiated products and services
- Aim for high quality and service level
- Profit from increasing customer loyalty and customer share (share of customer’s wallet)
Breakfast cereals, energy drinks, sport shoes are some examples.
3. Experience Orientation
- Prioritise customer experience
- Aim for customers to co-create the desired product or service
- Profit from generating buzz and increased referrals
We often see this in hipster cafes, yogurt outlets and the like.
4. Trust Orientation
- Build relationships and create genuine value
- Aim to build trust overtime
- Profit from discipline and consistency over the long term
I could only think of Traditional Chinese Medicine practitioners, but I guess wealth managers and insurance agents also fall into this category.
A company may be focused on a few of the above orientation but it is near impossible to be good in all orientations. Large corporations may have different business units focusing on different orientations (think Samsung).
(Reference: Coursera Wharton Online Introduction to Marketing)