Marketing Oriented Approach Essay Example | Topics and Well Written Essays - 1000 words

Marketing Oriented Approach - Essay Example To this end it is useful to compare and contrast between firms that lie at two ends of the spectrum: the marketing oriented firms versus the production oriented. A marketing oriented approach is a ‘reactive’ approach in that companies produce new products/services based on customer needs and wants (Kotler, 2007). However, it goes further than that in that it aims to establish long term profitable relationships with the customer (Jeff, 2009). The aim of such firms is not just delivering a product has profitable customer demand but also establishing long term association with them by exceptional customer service. Such service may be in the form of superior after sales service and/or consultation services provided by salespeople (Jeff, 2009). Kotler elaborates on the concept of marketing orientation by claiming that holistic marketing orientation is essentially a process that enables companies to capture customer lifetime value. The concept of building long lasting relation ships with customers enhances the company’s ability to understand the customer and retain him for a lifetime. Thus, the Pareto rule that 20% customers bring in 80% of the revenue is very well recognized by this approach which aims at capturing a customer and retaining him for life. Companies that therefore drifted away from the idea of offering low prices towards offering a brand experience. Today’s customer is no longer price conscious; infact, contemporary trends have made the customer of today pressed for time with multiple claims on an individual’s scarce time. Hence, convenience and satisfaction is the need of the hour. Thus, rather than competing on cost, companies today are competing on attempts to provide a pleasurable brand experience to its customers. On the other hand, the production oriented approach is a ‘proactive’ approach in that the company first produces the product/service that is most feasible for the company in terms of its comp etitive priorities (cost, quality, delivery, flexibility) and then makes an effort to sell it to the customers. Thus, production oriented firms are inclined towards mass production of goods that they are able to produce at the lowest cost due of economies of scale (Jeff, 2009). Perhaps, an obvious difference then is that companies adopting marketing oriented approach are able to offer differentiated, innovative and unique products as opposed to production oriented firms that offer standardized, low cost items at several locations (Jeff, 2009). Hence, the fundamental difference between the two is that in the former the ‘customer’ is the driving force behind a new product whereas in the latter, the ‘company’ is the driving force. Furthermore, in production oriented companies the role of the sales force also changes; from that of prior consultation to ‘pushing’ the product to the customer once it’s produced (Jeff, 2009). Hence, the marketin g oriented companies adopt what is known as a ‘pull’ strategy (that is having the customer buy the product he/she wants) as opposed to the ‘push’ strategy of production oriented firms (that push the product it develops based on low costs to the customer) (Kotler, 2007). Although both have successfully co-existed since a long time, it has been realized that most successful

Legal Aspects of Business - Law of Contract Assignment

Legal Aspects of Business - Law of Contract - Assignment Example The first and foremost thing essential for the formation of an agreement and then a contract is an offer. Offer indicates one’s willingness to do something or abstain from doing something with an intention to obtain the assent of the other. This proposal is meant for entering into a legally binding agreement. Acceptance means the approval of the other party to whom the offer has been made. In the given assignment, John is the ‘offeror’ and Kathryn is the acceptor. The offer of John to sell a brand I-Mobile for â‚ ¬300 was accepted by Kathryn though with certain changes in the actual offer. Another essential element of a valid agreement and contract is the proper communication regarding offer and acceptance. As Miller and Gentz (2010, 208) point out, two parties can enter into an agreement only through the communication of the proposal or offer and its acceptance. Such a proposal made by one party to the other is called an offer. Once the other party to whom the offer is given accepts it, it becomes a promise. Acceptance is the consent of the other party to the invitation of the first party to do something or abstain from doing something (ibid). An assent or consent to the offer is termed as an acceptance. To make the communication of offer and acceptance more meaningful, the parties in a contract must have agreed upon the subject matter of the contract in the same sense and in the same manner (ibid). A mere mental resolve on the part of the offeree to accept the offer does not amount to acceptance due to lack of manifestation of the intension to do so. There should be an oral or written communication between the offeror and the acceptor regarding the acceptance or denial of the same. Here, no such offer has been made by John to Kathryn. What John has made is just a statement that he is ready to sell his last year model mobile phone