What is the center of traditional business strategy?

The traditional business strategy is product-centered, while the modern business strategy is market (customer)-centered.

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

Kotler put forward five marketing concepts in the historical development of marketing philosophy: production concept, product concept, promotion concept, marketing concept and social marketing concept.

The above five market management concepts can be merged into two categories: one is the traditional management concept, including production concept, product concept and marketing concept; One is a new management concept, including marketing concept and social marketing concept.

These two business concepts are qualitatively different in content; The starting point of the former concept is products, centering on the requirements of sellers (enterprises) and aiming at selling products for profit, which can be considered as a "producer-oriented" business concept; The starting point of the latter concept is consumer demand, centering on the requirements of buyers (customer groups), and its purpose is to obtain profits from customer satisfaction. This can be considered as a "consumer-oriented" or "market-oriented" business concept.

Because of this, there are differences between the two ways to achieve the goal; The former mainly depends on increasing production or strengthening sales promotion, and enterprises focus on "what am I good at producing"; The latter is to organize the overall marketing activities with marketable products as the axis, and the first consideration for enterprises is "what consumers (users) need".

Attachment: Evolution of market management concept

(A) the concept of production

1. The content thinks that consumers like products that are available everywhere and have low prices.

2. Production conditions Under the seller's market conditions, this kind of thinking will occur. Under this concept, as long as there is production, there must be a market. Win by quantity.

3. Enterprise Management Center Enterprises focus on increasing production and selling whatever products they produce. The central task of an enterprise is to organize all resources, concentrate all efforts, increase output, reduce costs and improve efficiency. There is no need to consider different market demands, so it is impossible to carry out market research activities.

4. In the early stage of industrialization and a period after the Second World War, due to the shortage of materials and strong demand, many products in western capitalist countries were in short supply, so the concept of production was very popular in the business community. This concept prevailed in the early days of China's reform and opening up.

(2) Product concept

1. Content consumers like products with high quality, good performance, distinctive features and reasonable prices. As long as the product quality is improved and the product is cheap, there will definitely be a good market response, and customers will automatically come to the door without making great efforts to engage in promotional activities. Win by quality and low cost.

2. Enterprise Management Center The core of enterprise management lies in products, not consumer demand. It is easy to produce product narcissism, that is, marketing myopia and fall into the trap of the best mousetrap. The higher the quality, the better. Durable, genuine products may not sell well (forever).

3. Conditions of production It is more competitive than the concept of production. When the supply is not too short or too wide, it is easy to produce sub-concepts.

(c) selling ideas

1. Content companies believe that if left unchecked, consumers will generally not take the initiative to buy too many products from their own companies. Therefore, enterprises attach great importance to the use of promotion and advertising, and vigorously carry out promotion and promotion work in order to overwhelm competitors, increase market share and obtain relatively rich profits.

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

3. Conditions of production It comes into being when enterprises are not worried about not being able to produce in large quantities, but are worried about not being able to sell them all. But starting from the existing products, the essence is still what to produce and sell.

(D) Marketing Concept (Marketing Concept)

1. Enterprises should produce and sell any products that meet the needs of consumers. The logical order for enterprises to consider is not from the existing production, not from the existing products to attract customers, but on the contrary, from the consumer demand of the market, according to the needs and desires of target customers to organize production and sales.

2. Two orientations: consumer orientation and competitor orientation.

3. Business Center Under the guidance of this concept, enterprises attach great importance to market research, constantly find those unmet market needs in the dynamic changes of consumer demand, concentrate all resources and strength, and do everything possible to adapt to and meet this demand, so as to continuously expand market sales in customer satisfaction and obtain relatively rich profits for a long time.

4. Conditions of production After the Second World War, especially since the 1950s, the management ideas of western advanced enterprises have developed from the concept of promotion to the concept of marketing. On the one hand, this revolutionary evolution is due to the emergence of the buyer's market situation; The oversupply of many products has further developed, the frequency of demand changes has further accelerated, and the market competition has become more intense, forcing enterprises to change their ways; On the other hand, it is also the result of summing up and accumulating the practical experience of capitalist enterprise management. Because this management concept conforms to the basic principle that production is for consumption and helps to alleviate the basic contradictions inherent in capitalist economy, it has been widely concerned and has become the main line in contemporary marketing research.