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PRODUCTION ORIENTATION The Industrial Revolution began in the mid -18th century, and was well underway by the middle of the nineteenth century, fuelled by steam technology and the development of the railways, electricity, scientific management principles and the division of labour, automation and factory processes. A limited form of mass production was possible for the first time. This was an age of inventors, engineers and innovative production processes. It was also a time when the levels of goods demanded exceeded their supply. The output of the new industrial age was demanded by the new workers; the consumers were those who had moved to the new towns and cities looking for employment in the new mills and factories. These new consumers evidenced a strong new demand for manufactured goods in a time of scarcity. West College Scotland 2013 1|Page
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MARKETING ORIENTATION Following on from the 1960s, we again saw a shift in emphasis- albeit a gradual and almost imperceptible one at first. 4|Page
They began to accept that it made sense to first of all determine what customers wanted. Production could then be geared up to produce goods for which there was a demand, rather than waste time and money in producing goods without reference to customers, or spend scarce resources trying to persuade them against their will that they should buy. A more sophisticated approach to managing the exchange process had arrived! It was one which recognised that, although price is an important determinant of demand for many products, it is seldom the only one and often not the most important. Consumers had grown up. In market economies like ours, they brought many needs to bear on their purchasing behaviour. Companies which understood the complexities of what motivated consumers were positioned to be the most powerful and successful. Companies, weaned on the need to achieve economies of scale, had become bigger as a result, and were no longer in direct contact with their customers. Manufacturers relied on retailers to sell their goods for them, resulting in long chains of distribution which separated manufacturers from the ultimate buyers of the goods they produced. Market research techniques developed to bridge that gap, to allow the manufacturers to speak to and consult with consumers, to maintain relevance in their product ranges. 5|Page
Marketing-oriented companies MANAGE THE RISK of trading in highly sophisticated markets. They do this by: analysing and assessing markets incorporating the consumers views and opinions into the business process, to highlight customer BENEFITS rather than production processes paying attention to and reviewing all aspects of product policy, from branding, packaging, and new product development to product withdrawal when needs change (PRODUCT) pricing according to market knowledge, earning profit through reducing risk and ACTIVE competition (PRICE) distributing goods by the most appropriate channel(s) to match end user need (PLACE) selling and promoting products in a way which emphasises the benefits of ownership for the consumer and avoiding manipulation and hard sell approaches (PROMOTION)
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The assessment you will undertake for Music Industry Marketing 1 outcome 1 part 1 will be a closed book in class test. The test will not feature any areas that have not been fully explored in class-time and as such these notes have been provided as reference material for you prior to the assessment date.
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