Pillsbury on the bsis of vilbility of high-qulity whet nd proximity of wter power. Mjor concern ws with mnufcturing-not mrketing. ccording to compny executive, compny philosophy in the er of mnufcturing dominnce might be stted s follows: "We re professionl flour millers. Blessed with supply of the finest North mericn whet, plenty of wter power, nd excellent milling mchinery, we produce flour of the highest qulity. Our bsic function is to mill high-qulity flour, nd of course (nd lmost incidentlly), we must hire slesmen to sell it, just s we hire ccountnts to keep our books."
The second er ws one of sles orienttion. In the 1930's, competition hd become more significnt nd the problems of reching the mrket hd grown much more complex. Compny officils becme somewht wre of consumer wnts nd needs, nd formed commercil reserch deprtment to develop fcts bout mrkets. More ttention ws given to strengthening the distributing orgniztion, consisting of wholesle nd retil grocers. Compny philosophy in this er is described s follows: "We re flour milling compny, mnufcturing number of products for the consumer mrket. We must hve first-rte sles orgniztion which cn dispose of ll the products we cn mke t fvorble price. We must bck up this sles force with consumer dvertising nd mrket intelligence. We wnt our slesmen nd our delers to hve ll the tools they need for moving the output of our plnts to the consumer."
third er of mrketing orienttion did not begin until the erly 1950's. The compny hd experienced substntil post-World Wr II sles growth in new products, principlly cke mixes. It relized tht it could produce hundreds of new products, nd fced the necessity of selecting the best ones. It ws considered essentil to build into the compny orgniztion new function which would coordinte the heretofore seprte compny responsibilities of selling, dvertising, mrketing reserch, nd product plnning, nd provide guidnce for other res. This function ws clled "mrketing," nd mrketing developed the criteri for determining which products to mrket. Emphsis shifted from mnufcturing nd mere sles considertions to determintion of which products would best fit the needs of the compny's customers. Compny policy for the 1950's ws stted s follows: "We mke nd sell products for consumers."
mrketing oriented firm is now defined s n "orgniztion culture tht most effectively cretes the necessry behviors for the cretion of superior vlue for buyers nd, thus, superior performnce for the business." (Nrver nd Slter, 1990, p. 21) This definition implies tht the firm needs to understnd buyer needs nd competitive cpbilities nd weknesses, nd it needs to perform ctivities gered to chieving superior customer stisfction. The firm's corporte culture is systemticlly committed to creting customer vlue. The rtionle is tht the more compny understnds nd meets the rel needs of its consumers, the more likely it is to hve hppy customers who come bck for more, nd tell their friends. This process cn entil the fostering of long term