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 explain their theories. A Customer orientated business (May, 2014) places the customers’ needs and satisfaction at the centre of all their decisions. Its prioritised goal is to collect and research customer information to design their strategy and process to fit their customers’ needs and wants to profit. (Cross, 2014) Akin to The Marketing Concept (Jobber and Chadwick, 2013) which is described as corporate success coming from satisfying customer needs, customer centrality. This is achieved through integrated efforts of the all staff, accepting responsibility for directly or indirectly creating customer satisfaction. (Cross, 2014) Both notions view the customer as their priority for success and to achieve their corporate goals and profit. This is why customer orientation can also be called market orientation. A Case showing this business strategy would be Subway whose mission statement states that their success depends on “consistently offering value to consumers through providing great tasting food that is good for them and made the way they want it.” (Jurevicius, 2013) This shows that the customer’s value perception of subways food is their main priority. Their main focus is to satisfy their customers’ needs and wants. So their product, price, place and promotional successful decisions will be composed around their customer satisfaction and value perception. (May, 2014) The way Subway gives the customer what they want, need and reason to return is through good value, healthy and nice tasting Sandwiches on top of giving the customer a wide array of options literally tailoring the sandwich so the design of the sandwich satisfies the customer. In contrast with Subway’s customer focused strategy, Burger king’s focus is more on their product. Burger king is a product orientated business because in their mission statement they exhibit how they emphasise on their (Farfan, 2014) “commitment to premium ingredients” and “signature recipes” opposed to Subway who prioritises their customer’s satisfaction through “value”. They focus on the “perceived or real benefit” (Farfan, 2014) in terms of benefiting peoples health, , afterwards the actual quality which would be the premium taste to Burger Kings’ meals that uses the previously mentioned “premium ingredients”, after the Benefits and Quality they include the “family-friendly dining experience” which they would through their service provide for the customer. (Farfan, 2014) The difference in the focus of both franchises affects them differently. For example Subway will design their sandwiches more to fit the customers’ value perception and satisfaction, so they might not focus as much on quality. Burger King on the other hand will focus more on the quality of the products and features’, presuming that is what the customer will want. The risks would be that Subway could lack quality, and Burger King could make quality products that not many people would be interested in. This risk is an opportunity cost of they will have considered, so to be successful educated decisions need to be made accordingly to cover the weaknesses, and regularly assess the decisions advantages and disadvantages. Customer Orientation and Product Orientation both affect...
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