Page 46 - Foundations of Marketing

Customer-Driven Strategic Marketing | Chapter 1 13

Entrepreneurship in Marketing

Build-a-Bear Entrepreneur Creates Innovative Way to Enable Children’s Creativity

Maxine Clark, CEO of Build-a-Bear Workshops, has always The store was a success that enabled room for
been an entrepreneur at heart. After conquering the retail growth throughout the country and the world. Currently,
industry as president of Payless ShoeSource, Clark natu- the company operates in 19 countries and is continually
rally wondered what was next. One day while shopping, looking for further expansion. The operation grew from
she conceived a business idea that would enable children bears and clothes to shoes, accessories, and additional
to take a hands-on approach at using their creativity. The options for other animals. The company is consistently
idea would allow children to choose a stuffed bear, stuff it, focused on their customers and their experiences,
and even give it a heart. After formulating a business plan which has built a loyal following globally with more than
c
and acquiring capital through investors, Clark began to $ 390 million in revenue.
work on opening the first store in the St. Louis Galleria.

© iStockphoto.com/CRTd

own, or it will not stay in business long. The overall objectives of a business might relate
to increasing profits, market share, sales, or a combination of all three. The marketing
concept stresses that an organization can best achieve these objectives by being customer
oriented. Thus, implementing the marketing concept should benefit the organization as
well as its customers.
It is important for marketers to consider not only their current buyers’ needs but also
the long-term needs of society. Striving to satisfy customers’ desires by sacrificing society’s
long-term welfare is unacceptable. For instance, there is significant demand for large SUVs
and trucks. However, environmentalists and federal regulators are challenging automakers
to produce more fuel-efficient vehicles with increased mpg standards. The question that
remains is whether or not Americans are willing to give up their spacious SUVs for the good
of the environment.

Evolution of the Marketing Concept
The marketing concept may seem like an obvious approach to running a business. However,
businesspeople have not always believed that the best way to make sales and profits is to
satisfy customers.

The Production Orientation

During the second half of the 19 th century, the Industrial Revolution was in full swing in
the United States. Electricity, rail transportation, division of labor, assembly lines, and mass
production made it possible to produce goods more efficiently. With new technology and new
ways of using labor, products poured into the marketplace, where demand for manufactured
goods was strong.

The Sales Orientation

While sales have always been needed to make a profit, during the first half of the 20 th century
competition increased and businesses realized that they would have to focus more on selling
products to buyers. Businesses viewed sales as the major means of increasing profits, and
this period came to have a sales orientation. Businesspeople believed that the most important
marketing activities were personal selling, advertising, and distribution. Today, some people
incorrectly equate marketing with a sales orientation.

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