Marketing orientation
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A marketing oriented firm (also called the marketing concept, or consumer focus) is one that allows the wants and needs of customers and potential customers to drive all the firm's strategic decisions. The firm's corporate culture is systematically committed to creating customer value. In order to determine customer wants, the company usually needs to conduct marketing research. The marketer expects that this process, if done correctly, will provide the company with a sustainable competitive advantage.
The concept of marketing orientation was developed in the late 1960s and early 1970s at Harvard University and at a handful of forward thinking companies. It replaced the previous sales orientation that was prevalent between the mid 1950s and the early 1970s, and the production orientation that predominated prior to the mid 1950s. Since the concept was first introduced in the late 1960s, it has been modified, repackaged, and renamed as "customer focus", "the marketing philosophy", "market driven", "customer intimacy", and "the marketing concept".
Application of the concept
This consumer focus can been seen as a process that involves three steps. First customer wants are researched, then the information is disseminated throughout the firm and products are developed, then finally customer satisfaction is monitored and adjustments made if necessary.
Techniques that firms use to understand the customer include:
- Quantitative marketing research - such as; surveys and questionnaires
- Qualitative marketing research - such as; focus groups and advisory panels
- Market research and industry research - such as; Porter 5 forces analysis
- Face-to-face meetings with customers
- Face-to-face meetings with frontline staff - sales reps, clerks, and receptionists
- Customer complaints department
- Customer hotlines - Web and telephone
- Visits to customers' facilities
- Frequent user programs and databases
- User groups - Beta testing
- Conferences
A marketing oriented firm will typically show the following characteristics:
- Extensive use of various marketing research techniques
- Broad product lines
- Emphasis on a product's benefits to customers rather than on product attributes
- Use of product innovation techniques, such as; brainstorming, concept testing, and force-field technique.
- The offering of ancillary services like credit availability, delivery, installation, and warranty
- Customer satisfaction and complaint monitoring procedures, including; exit interviews, customer complaints database, and Web and telephone information hotlines.
- Organizational structure in which the marketing manager reports directly to the CEO.
See also
- marketing
- sales orientation
- production orientation
- personal marketing orientation
- marketing research
- marketing management
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