Marketing Orientation - Coursework Example

COVER PAGE Essay Marketing Orientation Submitted by: Submitted to Marketing February 25, Marketing Orientation .  Constant changes in the economy brought about by developments in technology, globalization, and communication have introduced the concept of customer-centric marketing. This strategy that focuses on the strength of consumer relationship keep consumers in coming back for repeat dealings thus making business sustainable. Importance of consumer relationship could not be discounted because it helps marketers to a make better plans and strategies to achieve better results. Customer-centric marketing Customer-centric marketing (CCM) is the newer approach in marketing. It starts in understanding customer behavior then deciding which customer to target. It focuses on knowing the needs and wants of customers and not of the business owner. CCM assumes that identifying the concerns of potential customer would lead to a long business relation. Sale, in CCM process is a result of firm relationship built on listening, and not forcing the buyer to buy.(Hennessy, Bob.2015) Dunkin Donuts, Ernest & Young, banks, insurance and specialty stores are some examples of businesses in CCM. CCM is linked to both internal and external factors. Internal factors are manageable events that occur within the organization (Mckinney, Paul, 2003). Some of these events are management changes, employee morale, and financial issues. Management changes are developed during the planning process involving the group effort of specialists who work on strategies to reach each customer segment target. This requires cooperation of employees, changing of management culture, from product centered to customer centered, and financial resources needed to modify product attributes to satisfy clients. In creating a CCM, management must provide excellence in service, marketing, and operation. This strategy is a well-rounded approach of reaching the target customer segment. CCM is also linked to external environmental factors that take place outside of the organization. Environmental factors are also said to be harder to predict and control. (Mckinney, Paul, 2003). Accordingly, some of these features are changes to the economy, threats from competition, socio-economic factors, political factors, government regulations and the industry itself. Threats from competition could be thwarted by knowing who they are. This will allow the business to compare prices and offerings. Understanding customers require a research on the socio-economic factors and concerns of the target market as well as its economic ability to meet the expense of buying the product. Socio-economic factors are the culture, attitude and values of an individual. Political and government regulations are the rules and laws company have to bear with in operation of the business. In order to link with outer environment, some vehicle of information is needed like social media. Social media could be a meaningful way to reach customers; it is also a practical way to watching trends, moods and movements of people. Social media is observed to be an effective means of what to know about customers, what they buy, their preferences, etc. This has been proven by PWC, who claimed that 53% of US CEO say social media users influence their business strategy. To the PWC, customer-relations marketing is about aligning and transforming the organization’s structure to customers’ reactions, what they want, and what they need. In understanding customers, information should be broken down as to how do they use the product of the company, and how do they engage the services. In real meaning they are developing a need-response relation that is what CRM is all about. Why should we focus on the consumer? There is a need to focus on consumer because in business, I believe consumer is the king. No business can survive without a customer and in order to gain one, business has to understand consumer differences, needs and its decision process so the marketing efforts are correctly directed. My idea of consumer differences is brought principally by culture. Culture encompasses beliefs, values, attitude, and orientation of an individual. Consumer ideologies differ geographically. The need to focus on these ideologies is contingent with globalization and the CCM approach. According to Ahmed El-Khatid. 2011, who made a study on culture differences, found that consumers on developing country tend to have higher brand loyalty and consider the price-quality factors important. Consumers in developed countries are more health conscious, individualistic, possess high western culture, and conscious of differentiated advertising. The study further showed that consumers in developing countries are “ethnocentric” than those in developed one. This means consumers perceive that products coming from western countries have western values that might be harmful to their society and local workforce. Business might find it interesting to note that buyers in developed countries consider price, quality, durability, and other related product-related aspects to be major influencing factors of their purchasing decision. Lack of Culture understanding is also one of the causes that strategies of companies fail. A study conducted by the American Management Association and the Institute for corporate Productivity as cited by Brooks (2014) found out that once companies fail to focus on customers’ culture, its strategy of pleasing customer is destined to be unsuccessful. Study goes on to say that the best-performing organizations understand being customer-focused requires a blend of attraction, engagement and satisfaction, collaboration and retention. (Brooks, Chad, 2014). Stages of decision process Decision of consumers to purchase goes into a process. As designed by Perner, Lars, a professor of Clinical Marketing, decision process goes into several stages, wherein motivation of consumers to purchase a product is aroused by a need or by recognizing a problem first. Next, consumer goes to information search such as alternatives on ways to solve the need or problem. Information search may come from internal or external sources. Internal sources are information kept in memory, while external sources are those coming from internet, brochures, referrals of friends, etc. Research on external sources is done for purchases of high value like buying a car, home, vacation, etc. Third, is the actual purchase, and fourth, is the post-purchase stage. In all of the above stages, motivation is the biggest factor to consider, such that marketing strategy is relevant. In advertising a house for example, picture of satisfied and comfortable family living in it will do more good than just showing picture of the house. Theoretical concepts in relationship marketing The theory involved in relationship marketing is network of relationship (the inter-firm, individuals and firms). Relationship marketing subscribes to a developing a long-term connection with customers with on-going business. (Learn Marketing). The theory suggests that the organization must exceed customer satisfaction in order to develop long term relationship with customers. For example, a satisfied customer may refer the company to friends and associates and would cite satisfaction as a point. To have a continuous relation with customer, business can use social media, e-mail, surveys and feedbacks. Given that our economy is undergoing constant change; company should make it a policy to monitor customer satisfaction regularly as their wants and needs also changes. Strategy towards the proper balance of marketing mix should also reflect what customers want and should be reviewed often. Marketing mix is about how company combines policy in coming out with the product that customer need, prices they can afford, a promotion directed to particular segment and place where consumer can buy the good conveniently. Place could either be physically present or through on-line stores. CRM is all about customers’ satisfaction, so that understanding their needs puts the company ahead of competition, and spells profitability for business. Importance of customer loyalty Customers are the backbone of success of any business organization and the most important people in marketing. Customers are essential because they help to provide revenue and sustainability of the business, and because of that, organizations are dependent on them. For that reason too, company must develop customer loyalty and satisfaction so as not to lose them. In this sense, putting a retention program would assist company attain customer loyalty. An unknown author said that customer satisfaction is the heart of selling process, and that it cost five times more to attract new customers than to keep existing one. (Business case studies co. uk.) A loyal customer spreads the word around, and will refer the business to others. A loyal customer keeps coming back for repeat orders. If a customer is dissatisfied, he/she can easily go to competitor who is willing to receive them willingly. Customer retention means keeping promises because undelivered promises cause negative impression to consumer. Loyal customers would be happy to receive gifts and rewards from company as a way of appreciation. Fit of marketing offering Product or market fit has been defined as the point in time wherein the product has evolved to the point when the target market finds it attractive so that the company can grow the product. (Carlos Eduardo Espinal, 2015). Product fit, accordingly, is an approach that allows the company growth rather than on spending money for the product to find it. Conditions for a market fit are: definition of the viable customer, a well-thought positioning strategy, a marketing strategy that tests the product vs. the chosen positioning strategy. Marketing mix aptly describes a market fit as it encompasses price, place, product and promotion. It is echoed in a value proposition or a statement why consumer should buy a product or use a service. The value proposition should convince the potential consumer that the company’s product will solve his/her problem. The proposition should give smart choices since consumers want products that meet its unique needs. Sometimes promotions are needed to value propositions like ad boosters e.g. “Free shipping, free installation”, and other freebies to attract consumers. . Advanced technology, and information ushered to the growth of empowered consumer, so that there is a need for companies to adopt and adjust their marketing strategies. Recent economic events leads to the need for adopting the new marketing concept, and that failure to do so would mean an end to business. Brooks, Chad, 2014. Want to Be a Successful Business? Focus on Your Customers. Available from [Accessed 24 Feb. 2015] “Why customers are important”, n.d. Available from http://businesscasestudies.co.uk/business-theory/marketing/why-customers-are-important.html#axzz3Se3iTMSc [accessed 24 Feb. 2015] El-Khatid Ahmed. 2011. 10 Consumer Behavior Differences between Developed and Developing Countries. Available from http://wearedevelopment.net/2011/11/01/10-consumer-behavior-differences-between-developed-and-developing-countries/ [Accessed 24 Feb. 2015] Espinal, Carlos Eduardo. 2015. The Product Market Fit cycle. Available from [accessed 24 Feb. 2015] Hennessey, Bob, 2015. Customer-centric marketing – no selling required. Available from [Accessed February 24 February, 2015] Learn Marketing.com. Relationship Marketing. Available from [Accessed 24 Feb. 2015] Mckinsey, Paul. 2013. External and Internal Environments of Business: Lesson & Quiz. Available from http://education-portal.com/academy/lesson/internal-and-external-environments-of-business-lesson-quiz.html [accessed 24 February 2015] PWC.com. 2009. How to build a customer-centered organization to gain competitive advantage . Available from [accessed 24 February, 2015] Read More