In recent years, Marketing Orientations have evolved and shifted overtime through different market orientations. Saren (2006, p.10) states that business orientations can categorized into 4 groups which are shifted from Production, Product and Sales Orientations to the Marketing Orientations. Firstly, Production Orientations aim to maximise profits and reduce costs by mass production through Economies of Scale. Secondly, Product Orientations are focus on product itself such as packaging which will help to improving its products. Thirdly, Sales Orientations are simply concentrate on sales. Lastly, Marketing Orientations also called as Consumer Centric Approach which aims to put consumers at the heart of business, all activities of the organizations must base on customers. Managers will take account into the needs and wants of consumers before making any decisions. As customers had become more knowledgeable, therefore, most markets are moving towards a more marketing orientated approach. This essay aims to outline and explore the importance of a Consumer Centric Approach in Marketing, this paper will separate into 3 parts, first part is to explain how internal and external factors may link to this approach, second part is to evaluate theoretical concept of relationship marketing in this approach and the last part is to analyse the fit of marketing offering in this approach. As Market Orientations Marketing are basis on consumer first, therefore, Saren (2006, p.12) states that
The purchasing goods & services have throughout the years begun to lead to a new perception of consumer relationship and in ways businesses conduct their operations. Not only is a business concerned with the buying and selling of goods & services but to further maintain that relationship with their customers to correlate between both parties. As this being the prime functionality of businesses, each business must differentiate themselves with other businesses offering different and wholesome services, which overwhelms their competitors, thus adding their own individualistic value to the marketing
3.) Transactional marketing, in the perspective of luring the customer for a one off purchase, focuses strongly on price and short term benefits and product performance, with limited service. Relationship marketing is all about generating repeated sales and customer interactions, thus focusing on bringing value to the customer, and assuring long term performance and service, all aspects of quality become major concerns. Relationship marketing brings customer centricity to the spotlight. This vision has
To define customer orientation in respect to the philosophy underlying The Marketing Concept (May, 2014) is to
In the article Marketing is Everything, the author Regis McKenna emphasizes the significant of managing strategic marketing. He also highlights that the transformation process of marketing and several important marketing elements that lead originations toward success. First and foremost, McKenna compares two periods of companies. Before technology developed, most companies concentrated on sale or product driven. In other words, during that time, products were displayed as the first priority in corporations rather than being customer oriented. Instead of researching customers’ desires and customizing new products for them, manufacturers and sellers did not pay attention to their customers’ needs and only tried to alter their minds to match products.
“Marketing strategies can have a broad impact on the business in terms of instilling a marketing orientation among all those in the firm: the way of thinking or philosophy of the whole organization. However, marketing strategies can alternatively be seen as dealing only with the development of competitive advantages directly associated with the marketing function such as customer loyalty and distribution channel control. In the latter case, the domain is sometimes even further restricted by sole attention to the various element of the marketing mix rather than the more general issues of customer and channel relationships. There are two key
A business with a marketing orientation is essentially led by the needs of its customers.
To be successful in business, "a consumer does not buy a whole of physical components of the product but it is usefulness, function, satisfaction of consumer's needs, solving the problem, etc" (Dubrouski, , p.1). "That is why the product is a whole of tangible and intangible components which means satisfaction of consumer's needs and desires, solving the problem"(Dubrouski, p.1). Companies and managers must learn to utilize marketing research, as well as, strategy skills to fulfill customers' satisfaction. Management has to focus on exclusive marketing challenges presented by the new era of the 21st century. Management has to be able to utilize inventive, dominant, and cost effective marketing techniques that will support the future success of the organization. Companies must meet,"the increasing importance of services as part of a product (offer, offering package) which cannot be neglected" (Dubrouski, p.1). Exploring the purpose of market research, as well as, evaluating the importance of such research, facilitates managers in realizing the importance of marketing to an organization's success and to be globally competitive.
This report aims to find out the relationship between customer value and marketing. In particular, it focuses on the necessity of marketing and the composition of customer value, research on the connection between these two concepts. In particular, it indicates four elements of a market, which are price, place, products, and promotion (4Ps). The other vital part of a market is customer value, it has been divided into instrumental value, hedonic value, expressive value and cost value. Customer value and marketing connect to each other through the supplier help people do better- buying decision and improve products through the customer value.
The Marketing Concept The marketing concept has evolved over the last years, marketing reflects to a key approach to doing business. An organisations objective is to make profit, to do this they have to consider the marketing concept, in order to satisfy customers. For an organisation to be successful should divert its attention away from particular products and towards the interest of the customers. Customers changing their needs and wants influence an organisations strategies and plans. Meeting customer’s needs is the main key in marketing.
The concept of marketing has evolved over time. Whilst in today’s business world “the customer is king”. In the past this was not the case, some businesses put factors other than the customer first. Product focused companies define themselves by their products. For example Kodak originally defined its self as being in the photo processing business. This definition impact the culture of the company in a way that hamstrings thinking and creates impediments for action. When the shift to digital cam Kodak resisted this because of the impact on its “products photo processing”.
The segments in the market can be divided in retailer buyers, householder buyers, first-time buyers and workplace managers. The retailer buyer wants the brands and the products that they think that they can sell the most. The most important thing for them is the market and what their consumers want to buy and the trends on the market. They want to be first with the new appliances and wants the popular products in stock. So the relationship to the company is important for them.
Businesses can develop new products based on either a marketing orientated approach or a product orientated approach. According to Jaworski and Kohli (1993), marketing orientation is ‘the organization-wide generation of market intelligence pertaining to current and
Another important thing is trust. There has to be a belief in the other partner’s trustworthiness that results from the expertise, reliability or intentionality of that partner. Futhermore, it views trust as a behavioural intention or behaviour that reflects reliance on the other partner and involves uncertainty and vulnerability on the part of the trustor. Relationship marketing is still in its infancy as a mainstream marketing concept, although it has established itself as an underlying paradigm in modern industrial marketing and services marketing. Its importance is recognized to a growing extent. However, Philip Kotler concludes in a recent article that “companies must move from a short-term transaction oriented goal to a long-term relationship-building goal”. Market communication is a central means of reaching customers, and the focus on relationship building leads to an interest in emphasizing dialogues and creating, for example, advertising campaigns that facilitate various types of dialogues with identified customers. The major problem with the marketing mix and its Four Ps has been their position as the major, and in many situations as the only, acceptable marketing paradigm. Relationship marketing must not become such a straitjacket. However, developing enduring customer relationships and achieving exchanges in such
Marketing orientation can be defined as a strategy that is utilized by a business or company to enhance its position in order to meet the needs of its customers. There are various marketing management orientations with varying mechanisms for creating, producing, and marketing products i.e. strategic marketing, selling, production, social marketing, and product orientations (Roberts, n.d.). The production marketing orientation is the only one that does not apply to Avon since the firm focuses on a sales orientation rather than product adaptation in its global operations. The applicability of product orientation is evident in the Avon’s modification of its products to meet certain needs of customers. The strategic marketing orientation is evident in Avon’s modification of its distribution technique,
Marketing is one of the main the fundamentals of a successful business in the sense of profitability. It is the concept of selling your product or service to the market in the industry that specific business is competing. However, marketing involves a complex process beyond just letting people know about the products or services that a company has to offer. It is a tool that projects the business 's image to the public as a form of strategic approach to outperform the desired business plan. The field of marketing entails a wide variety of concepts, and as the communication has changed over time, it has also brought a whole new set of implications in the subject mattered. Marketing in the 21st Century is mainly focused on delivering a customer experience, customers are not as easily amused when it comes to new products, we are on a constant search for new, better and easier to use products, and with this, the marketing strategies have been keeping up with the changes as well.