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Marketing environment is constantly changing over time. A famous marketer Philip Kotler (2003, cited in Taupau and Boscor, 2011, p.51) once insisted that a successful company should focus on its products and profits. But now, marketers tend to regard satisfying customer needs as one of the key elements of achieving success under contemporary marketing environment where is filled with fierce competition. This indicates that many firms nowadays always attempt to identify customer needs and concentrate its production and strategies on customer demand in order to survive in the market. This essay will firstly clarify the reasons behind the trend, which is followed by discussing the merits and demerits of an organization put an emphasis on…show more content…
It is unquestionable that the customer-oriented marketing strategy made Tesco a leading corporate in retailing industry.

However, according to Miranda Brookins, there are both merits and demerits for organizations becoming customer-focused. As for advantages, in the first place, ‘it helps organizations create loyalty among consumers’ (Brookins, M., 2013). In the second place, it will increase referrals. That is to say that as customers become loyal, they will be more willing to mention the company as well as products and services during the communication between them and their friends and families. This WOM (word-of-mouth) will reduce a considerable amount of publicity cost for the company. Nevertheless, there are still disadvantages. The first one is that if the strategy of a company only relies on customers’ needs, it will become less innovative in terms of bringing forward new ideas which will slow down the pace of its development. Secondly, ‘the needs of customers are ever-changing’ (Brookins, M., 2013). Thus, those customer-focused companies have to change their plans ceaselessly to keep pace with consumers’ wants, which requires lots of resources ranging from financial to human. It is not only costly but also time-consuming.

Although it is more likely for an organization like Tesco who sticks to the customer-focused strategy to obtain success in the market, there are still challenges for such organizations to face. First of all, the
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