Traditional business strategy is centered on what

Traditional business strategy is product-centered, modern business strategy is market (customer) centered.

Product-centered is the product concept, customer-centered is the marketing concept.

Kotler put forward the marketing philosophy of the historical development of the emergence of five kinds of market business concepts: the concept of production, the concept of product, the concept of sales promotion, the concept of marketing and the concept of social marketing

The above five kinds of market business view can be summarized into two categories: one is the traditional concept of business, including the concept of production, the concept of the product and the concept of sales promotion; a new type of business concepts, including the concept of marketing, the concept of social marketing. marketing concept, social marketing concept.

The two types of business concepts in the content of the qualitative difference exists; the former type of concept is the starting point of the product, is to the seller (enterprise) requirements as the center, the purpose is to sell the product to obtain profits, which can be regarded as a kind of "producer-oriented" business concept; the latter type of concept is the starting point of consumer demand, is to the buyer (customer) as the center, which can be considered a "producer-oriented" business concepts. Demand, is the buyer (customer base) requirements as the center, its purpose is to obtain profits from customer satisfaction, which can be regarded as a kind of "consumer (user) oriented" or "market-oriented" business concept.

Because of this, the two to achieve the purpose of the method or way is also different; the former mainly rely on increased production or strengthen the sales promotion, the enterprise focuses on the consideration of "I am good at producing what"; the latter is the organization of the product is marketable as the axis of the overall marketing activities, the enterprise is the first to consider the "What do consumers (users) need".

Attachment: the evolution of the concept of market management

(a) the concept of production

1. content that consumers love those who get everywhere, inexpensive products.

2. The conditions arising in the conditions of the seller's market, will produce this idea, in this concept, as long as there is production, necessary to have sales. To win by volume.

3. Center of business operations Enterprises to improve and increase production as the center of what products are produced to sell. The central task of the enterprise is to organize all the resources, focus all the efforts to increase production, reduce costs, improve efficiency, there is no need to consider different market demand, and therefore can not talk about market research activities.

4. The period of Western capitalist countries in the early stage of industrialization and a period of time after the Second World War, due to the shortage of materials, demand is strong, many products in short supply, and thus the concept of production is very popular in the business community. This concept was prevalent during the early period of China's reform and opening up.

(2) product concept

1. Content Consumers like those high-quality, good performance, distinctive, reasonably priced products, as long as we do to improve product quality, to achieve good value for money, it will produce a good market response, customers will automatically come to us, without spending a lot of effort to carry out sales activities. To quality, cheap win.

2. Business Center The core of business operations lies in the product, rather than consumer demand. It is easy to produce product narcissism, that is, marketing myopia, and fall into the trap of the best mousetrap. Quality is not as good as higher quality. Long-lasting and durable, genuine products don't always (always) sell.

3. Generative conditions It is more competitive than the idea of production. In the conditions of supply is not too tight or a little wide conditions tend to produce sub-concept.

(3) sales concept

1. Content Enterprises believe that if you let nature take its course, consumers generally will not take the initiative to buy too many of the enterprise's products, therefore, the enterprise pays close attention to the use of sales and advertising techniques, vigorously carry out sales and promotional efforts, in the hope of overpowering competitors to increase market share, to achieve a more lucrative profits.

2. The center of business operations The center of business operations lies in marketing and promotion, not consumer demand. Marketing refers to selling what is produced, and marketing refers to producing what can be sold.

3. Conditions of emergence It was created in a situation where companies were not worried about not being able to produce large quantities, but were worried about not being able to sell them all. However, it still starts from the established products and essentially still produces what it sells.

(D) Marketing Concept

1. Content What consumers need, the enterprise should produce and sell what products. Enterprises consider the logical order is not from the existing production, not to the existing products to attract customers, but just reversed, from the reaction of the market consumer demand, in accordance with the needs and desires of target customers to organize production and sales.

2. Two orientations: consumer-oriented and competitor-oriented.

3. Business Center Under the guidance of this concept, the enterprise attaches great importance to market research, in the dynamic changes in consumer demand and constantly find those who have not yet been satisfied with the market demand, and focus all resources and efforts to adapt to meet this demand, in order to be able to continue to expand the market in the customer's satisfaction, and long to obtain a relatively large profit

4. Conditions after the Second World War, especially since the 50s, the Western advanced business ideas from the concept of sales development into the concept of marketing. This revolutionary evolution, on the one hand, is due to the emergence of the buyer's market situation; the oversupply of many products to further develop, the frequency of changes in demand further accelerated, the market competition is more intense, forcing enterprises have to change course; on the other hand, it is also the result of the practical experience of the management of capitalist enterprises to summarize and accumulate. As this business concept is in line with the basic principle of production is for consumption, help to alleviate the basic contradictions inherent in the capitalist economy economy, and therefore, once put forward to cause the main extensive attention, and become the main line of contemporary marketing research.