2011
| ESLSCA 34C, 3rd Semester, Strategic Management | By: Ahmed M. Adel |
Q1. Analyze the differences between a marketing orientation and a sales orientation and identify the effects of not considering both in developing a business strategy.
What are the differences between sales orientation and marketing orientation:
Sales Orientation | Marketing Orientation | * A business approach or philosophy that focuses on identifying and meeting the stated or hidden needs or wants of customers. See also product orientation and sales orientation. | * A business approach or philosophy that focuses on promoting sales of whatever a company makes or supplies, through marketing and sales calls. See also market orientation and product orientation. | * The firm focuses on the skills of selling rather than on the needs of the buyer. | * The firm tries to get the company to produce what the customer wants. | * Is an emphasis on "moving" your product via advertising and/or salesforce. The product and production capacity preceded the consumer. There is a lot of emphasis on image. It worked for many years (and still works), but in more competitive environments started to fail. | * The company tries to satisfy a consumer need (a felt deprivation). The product and production activity follows consumer research. A segment of the market is chosen. The system is molded to fit the consumer. There is an emphasis in "positioning" (Image + high Ranking as a solution). |
1. a. Corporate Strategy
Before analyzing Wal-Mart’s corporate strategy, it is important to decide what business it is in. For example, if Wal-Mart is in the business of selling consumer goods such as TV’s, sheets, clothes, etc then it is pursuing a concentric strategy by entering the food business. However, this changes depending on how you analyze what business Wal-Mart is in. Wal-Mart is in the business of selling everything