Outline and explore the importance of a consumer-centric approach in marketing.
In this essay the importance of consumer centric approach will be discussed through several points. Firstly what its consumer centric approach , follow by the effect of internal and external factors may lead to this approach. Then why we focus will be examined along with relationship marketing approach and the fit of marketing offering in such approach. At last the various point will be summarised and evaluated.
The term market orientation can be defined as “ the degree to which the product offered by the firm and the customer related behaviour of the firm correspond to customer need and competitive argument.”(hamburg kuester) this definition is also agreed by
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The very first idea is production orientation , where the focus is on manufacturing such as increase production and cost control and not on customer needs. This lasted until late 19th century. (F.Brassington) Due to in some customer are only interested in the price of the product than the difference between product because in some undeveloped country disposable income and wages are low for a majority of people. A real good example of this is a country like conservative china because there is a large population as well as regulation limiting outside …show more content…
A customer relationship management is a process that acquire, keeps and grows customer through delivering superior customer value and satisfaction.(nigel pericy) one of the concepts used is the loyalty program, the unlimited goal of the program is to increase profit revenue and market share(Stephan a). Moreover the use of loyalty program has three main advantages for customer orientation approach. The most significant one is to enable firm to build long term relationship with customer, in order to obtain a lifelong demand for a specific product produce by firm. The second advantage is a side effect caused by the first , where satisfied loyalty program member advertise to other people through the word of mouth. Hence this could increase the number of customers joining program as well a reduction and cost of firm to advertise therefore it slightly achieves its three main ultimate goals. And the final significant advantage it is that it provides firm with a database which enable them to predict future need to maintain market share and compete with other firms. Also this would reduce cost of market research, which is generally hard to obtain. For example data on customer purchases. Moreover firm that have use this concept and have a positive effect are TESCO, Starbuck and etc… However firm must maintain quality of good and service in order to maintain customer satisfaction which can lead to
High levels of customer satisfaction will not guarantee future sales, but are more likely to result in repeat future sales than indifferent or poor customer service. Moreover, satisfied customers are more likely to try out other products/services in the firm’s range, or recommend it to friends and family. Build on customer loyalty Customer loyalty is valued highly by most businesses and can be
A characteristic of the marketing concept is customer orientation. Business activities are mostly engaged to produce a satisfied customer. They are there to Stress on the desires and wishes of a customer this keeps businesses on track with their target market. The best marketing decisions are completed on the foundation of making a massive impact in the market and towards customers. The consumers/people
E., Brodie, R. J., Danaher, P. J. and Johnston, W. J. (2002). "How Firms Relate to Their Markets: An Empirical Examination of Contemporary Marketing Practices." Journal of Marketing, Vol 66, No 3, pp. 33-46.
Marketing oriented companies are ones that allow the wants and needs of consumers and potential customers to drive the firm's tactical decisions.
While many people with sing the praises of loyalty programs and their advantages, there always remains a certain ambiguity about whether or not the programs will actually be sustainable and profitable to a company’s business model. Can small rewards be enough to sway a customer to favor one company over another? Such as the Walgreens Balance Rewards program offers higher rewards for more money spent, retailers need to understand the actual value of knowing what a consumer spends in their stores. “The more a consumer spends in the store, the more information the store is collecting about consumer tastes and shopping habits, allowing it to direct more relevant rewards toward such loyal customers.” (Corstjens and Lal, Six Myths About Customer Loyalty Programs) It also is necessary to offer substantial rewards in order to generate loyalty and one well received approach in doing so, is to offer tiered rewards like the Walgreens Balance Rewards program which stimulates customers into achieving the next level of reward by increasing their purchasing amounts.
Ninety percent of Canadians are enrolled in at least one loyalty program. Market research has shown that loyalty programs are growing to be very popular in today’s market. A loyalty program is a program offered by a company to customers, who make frequent purchases. Loyalty programs are of benefit to both the consumers and the business. The consumers benefit by receiving coupons, special access to sales and new products whereas the company benefits by gaining an abundance of knowledge about the consumers, through their purchasing habits. Loyalty programs have proven to be very successful for several companies such as Target, Starbucks, and Shoppers Drug Mart. The senior management in sales and marketing believe that initiating a loyalty program
The key aspect of a market orientation is listening to customers by including their desires and concerns into the company’s decisions. While businesses have varying degrees of interaction with their customers, all create a product or service to market to a customer. Consequentially, this business orientation can lead to multiple benefits for an organization to include “increased customer satisfaction and loyalty, higher finical performance, and improved new product creativity” (Reed, Goolsby, & Johnston, 2016b, p. 3591). Ultimately, the goal of a market orientation is to gain a competitive advantage over competitors, A market orientation has been proven to lead to a higher
Marketing is a process of determining a consumer’s needs, devising a product or service to satisfy those needs, and trying to focus customers on the goods and services you are offering. Marketing is extremely important, and a fundamental building block for business growth. A marketing team is given the task of creating customer awareness through a variety of different marketing techniques. If a business does not pay close attention to their consumer demographic and needs, they will eventually fail over time. Two important aspects of marketing include acquiring new customers, and the preservation and growth of relationships with current customers. Marketing has always been viewed as a creative outlet, which encompassed advertising, distribution, and the selling of goods and services. Marketing staff will also try to anticipate what customers will want in the future, often being accomplished with market research. In summation, a good marketing plan should be able to create a favorable proposition or series of benefits that a customer can value through goods or services. The marketing mix is normally described as the strategic positioning of a product or service in the marketplace, using the specification of the four Ps. During the early 1960’s, Professor E. Jerome McCarthy of Harvard Business School stated that a marketing mix contains four elements. The four key points are product, pricing, promotion, and placement. It is recognized that all these aspects must be present to ensure a successful business model within a given industry. We will now take a thorough look at the four marketing mix points.
With the rise of the economy, consumers have become more and more knowledgeable on selecting their favourable product as a result the organization cannot focus on what it sells but on the side focus on what the customer wants to buy.
Understanding consumer behaviour allows companies to engage in relationship marketing techniques. Relationship marketing is a key element in E-CRM strategy. There are many tangible benefits to a company; reduces price sensitivity, there is a lower need for price discounting and it creates market referrals.
For a marketing orientated business, the findings from any research will be put to use primarily to aid the business in satisfying the needs and wants of its customers; this type of business has become more popular since 1970, where prior to this business’ were production orientated (until the 1950’s) where the business was concerned with improving its distribution methods, and product orientated (until the 1960’s) where the business’ main concern was the product rather than the satisfaction of the customer. The idea of a marketing orientated business has been explored by Fahy and Jobber (2012) who concurred that a market orientated business is one that considers its customers and the external environment to be an intricate part of the business; This type of business will explore the different aspects of the external environment, and take from its observations ways in which it can continue to trade in an effective, profitable way. A marketing orientated business will also use its findings to help it take advantage of any opportunities in a market and to lessen any threats that could be...
Customer relationship management is a cross-functional process to achieve a continuing dialogue with customers, across all their contact and access point, with personalized treatment of the most valuable customers and to ensure customer retention and the effectiveness of marketing initiatives. It is also provide the chance for customers to interact with the brand.
VARGO, S. L. & LUSCH, R. F. 2004. Evolving to a New Dominant Logic for Marketing. Journal of Marketing, 68, 1-17.
Customer relationship management has become the marketing buzzword of the past two decades with business-to-business firms jumping in, many without really being certain of what they hope to achieve from it, and oftentimes being disappointed with the results.
It is essential to have a customer relationship management program in place for a business to be successful. Managing customer relationships effectively and efficiently is made possible by having a customer management relationship solution in place. Being able to track customer data is critical to an organization, this allows them to develop targeted and effective marketing campaigns and accurate sales reports. Interacting with customers frequently is a very important part of a business and by having a customer relationship management program in place supports that and makes this possible. CRM makes it easier for businesses manage a large supply of customer information and supports customer loyalty. The editors of CRM Magazine also point out, “Once thought of as a type of software, CRM has evolved into a custome...