Production, Selling, Marketing Approaches

Production, Selling, Marketing Approaches

Production approach:

  • Focus on the production of goods and services; if business has a better product then customers will want it.
  • Emphasis on quantity and reducing costs.

Sales approach:

  • Emphasises selling because of increased competition.
  • Businesses think of customer only after the product is made.
  • Emphasis on selling and advertising.

Marketing approach:

  • Focuses on finding out what customers need/want—through market research—and then satisfying that need.
  • Emphasis on customer satisfaction, quality, safety.

Customer orientation: business centres its activities on the customer, aiming for customer satisfaction.

Relationship marketing: strategies to build long-term relationships with valued customers (and important stakeholders e.g. suppliers, distributors). Repeat business is cheaper than the cost of seeking and establishing new customers.

Extract from Business Studies Stage 6 Syllabus. © 2010 Board of Studies NSW.