University of Lincoln
Discuss what is meant by the term “customer orientation”. Illustrate with examples how companies demonstrate their customer orientation by reference to at least two elements of the marketing mix.
BA(Hons) Business and Management
Dr. Clair May Seminar group: I
Marvin Taria (14474868)
Word count: 1700
This essay will start to explore and define the meaning of customer orientation in depth. The marketing concept and the marketing mix will help discover after what it means to be a customer focused firm. This will occur through the scrutiny of the term in respect to product, price, place and promotion.
To define customer orientation in respect to the philosophy underlying The Marketing Concept (May, 2014) is to
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In contrast to both there is Sales Orientation, (Dunnett, 2014) which would be defined as focusing on the selling of the product. This prioritizes the selling of the product above the customers’ satisfaction. This orientation relies on the sales team in the pushing of the product or service using aggressive sales techniques to achieve high profits. Here the assumption that sale prices that are high in value equate to substantial profit. In comparison with customer orientated corporations where the customers’ needs and wants are met, the firm will focuses a lot less on the satisfaction of the customer as it is presumed that high value equals satisfaction. So the customer will get high value but that might not necessarily be what the customer is looking for. This is where the sales teams’ responsibility lies; they need to sell using aggressive sales techniques. Cold calling about PPI (PPICLAIMSADVICE, 2014) claims would be an example where a service is promoted for free to claim money for you, the value lies in the fact it’s free but it’s a service not many people need. If they fail to see what the customer wants it’ll in the long term ultimately lead to customer dissatisfaction, loss of customer, loss of profit, and Leading the firm ultimately to bankruptcy.
Production Orientation is closely related to product orientation,
The 'Customer orientation' is almost common orientation used in modern marketing. It includes a firm primarily basing its marketing plans throughout the marketing concept, and thus supplying products to satisfy new consumer taste. Also it’s the mostly used by organizations
* Marketing orientation – Ensuring that you are marketing your design toward the correct audience. This could mean taking into consideration your audience when designing and making sure the design is appropriate.
The main thing behind marketing in a business is finding the customer’s needs and produce the product/ services to satisfy their needs, this way the customer can choose what they would want included in their product/ service. A business that follows this rule is market-orientated.
“Companies with a marketing orientation focus on customer needs as the primary drivers of organizational performance”
The purpose of this essay is to compare and contrast selling orientation and content marketing. Selling Orientation is an organizational operating structure which focuses on the needs that are required for selling to the market. The company is centered on selling efficiency rather than customer needs and wants. Content marketing is a strategic marketing approach focused on creating and distributing valuable, relevant, and consistent content to attract and retain a clearly-defined audience — and, ultimately, to drive profitable customer action.
According to Voon (2006), the organization who has provide services without doing much research through market orientation has less impact on customer satisfaction and customer loyalty as compare to the organizations who provides service-driven market orientation. Another researcher also deduce that the there is always very strong relationship between market orientation and service quality. The company which provides their services to the customers after doing proper market orientation, their performance in the market will improve and the company earns huge reputation among the
Marketing is a big concept that is difficult to define or know the meaning of one side or a specific angle because of the company's reliance on it in many aspects and complex issue for successful company strategy. There are several and many different definitions and meaning of the concept market and one of that definition is marketing is including the management of the relationship of customers in a way that benefits the company and stakeholders, it is a section inside the company where they create communication and evaluate the value of customers.(American Marketing Association,2004). Marketing orientation is a concept that focuses on techniques, including the usual management of strategic design, which is to build a comfortable
Market orientation has three behavioral components( Narver and Slater (1990) customer and competitor orientation and interfunctional co-ordination. And also on two decision criteria;s long term profitability and focus. Deshpande´ et al. (1993) define customer orientation as set of belief that puts customer interest first . George Day (1994) also define market orientation as it represent superior skills in understanding and satisfying customers. The concept of market oriented culture is important to all level of the organizations (Day, 1990; Deshpande´ and Webster, 1989; Narver and Slater, 1990; Shapiro, 1988). Narver and Slater (1990) finding is that there is positive relationship between market orientation and profitability . and also they conclude that the business in which there are highest degree of market orientation is the business that associated with highest profitability . Slater and Narver (1994) says that market oriented business are understand revenues and cost dynamics of not only current but also future target customers. This is achieved by spending considearable time on meeting and talking with customers formally and informally. Market driven business
LO1.1: Marketing: is defined as a ‘business orientation whose target is to satisfy consumers’ needs or wants at standard levels of revenues and costs’ (Loudon et al., 2010, p.2) (Dudovskiy, 2014).
In recent years, with the economy era full challenge, marketing theory and practice are accelerating the pace of innovation. Marketing not only has widely exploited in the economy and society field, but also more and more enterprises constantly innovate new performance, new competitive, new brilliance in unprecedented enthusiasm. Therefore, diverse strategies are adopted by most firms to discover and meet the needs and desires of its customers (Jobber & Fahy, 2009). Marketing orientation is one of the most successful strategies, such as the Apple company, it put to use and reap significant profit. Some specialists argue that product orientation can be used in all firms, while others debate that marketing orientation is more suitable for all products. However, several obstacles are faced by firms when they intend to move from a product to a marketing orientation. This essay will briefly describe that definition of the marketing orientation and product orientation, examples for some firms use marketing orientation and product orientation respectively as well. Furthermore, it mostly discusses key obstacles for if a firm moves from product to marketing orientation and give some reasonable solutions.
The first half of the assignment deals with the adoption of market orientation as a key principle for guiding
Market orientation a term used by marketers as indicator of the degree to which firm implements its marketing concept (Komppula and Reijonen, 2010). A market oriented firm has a greater ability in achieving higher performance compared to non-market oriented firm (Agarwal et al., 2003). The concept of market orientation has received a great deal of consideration since the topic was re-introduced by Kohli and Jaworski (1990) and Narver and Slater (1990). The relationship between market orientation and firm performance is extensively highlighted and contended that
Market Orientation is a company’s philosophy focused on discovering and meeting the needs and desires of its customers through its product mix. Unlike past marketing strategies that concentrated on establishing selling points for existing products, market orientation works in reverse, attempting to tailor products to meet the demands of customers. In essence, market orientation can be thought of as a coordinated marketing campaign between a company and its customers. As was proved in the recent history of the automobile industry, the idea that companies can create a product and sell its features to an eager buying public is no longer concrete. With an increasingly global economy and more and more choices for consumers, companies must be
Marketing orientation means a company emphasizes the needs and wants of customers in all facets of operations. Products and services are developed specifically to meet the needs of the targeted customers.
The Marketing concepts have evolved a lot since the early ages with different orientations in different stages worldwide. The major focus of the Companies in earlier times were on the production technique thus being able to achieve economies of scale, but it had to be coupled with high demand for the product or service in addition to some certainty that the taste of the customers won’t change rapidly, this was called the “Production orientation”. The production orientation went on until the 50’s, until the suppliers figured out that if their product is of high quality then the consumers would buy and consume it, this was called “product orientation”. During those times “Sales Orientation” also occurred in which the focus of the companies was on maximizing the sales of an already existing product through promotion techniques without taking into consideration the needs