Chapter 2 Being Customer Oriented

1. Chapter 2 Being Customer Oriented Market Orientation Customer Orientation

2. Customer Commitment: How Market Leaders Do It Through masterfully creating and delivering value to their highly satisfied and loyal customers Greatness in marketing and customer services becomes a function of attitude, not resources.

3. The Traditional Marketing Concept Customer satisfaction at a profit

4. Relationship Marketing Concept (RMC) Evolved due to highly competitive global service markets 2 objectives: Maintaining and upgrading customer relationships (retention strategies) Growing business by finding new customers and creating long-term value

6. The Marketing Continuum

7. Market Orientation A market orientation provides impetus for building an organizational culture which: Puts customers first Creates superior value for customers Leads to increased overall business performance Employees of marketing oriented companies become value-adders Employees of marketing oriented companies know how to listen to and respond to customers

8. Market Orientation Constructs and Models Narver & Slater: Customer Orientation Competitor Orientation Interfunctional Coordination Kohli & Jaworski: Intelligence Generation Intelligence Dissemination Responsiveness

9. The Market Orientation Process Market orientation involves learning about customers and competitors Firms operating in a competitive industry are most likely to benefit from a market orientation Market orientation inputs are valuable for formulating an initial definition of your market and for staying �in touch� with your customer base

10. Market Driving Vs. Market Driven Companies Market driving companies go beyond accepting given market structures and behaviors Market driving firms shape or change markets/ sectors by eliminating, adding, or modifying the players in markets and their functions Market driving companies rewrite industry rules and compete in new market arenas

11. Market Driving Vs. Market Driven Companies � cont�d Market driving companies have unique business systems and ideas Market driving companies deliver large leap in customer value

12. Developing a Customer-Oriented Organization Customer-centric marketing emphasizes understanding and satisfying needs, wants, and resources of individuals and customers rather than those of mass markets/segments (Sheth, et al., ) Table 2-2 Contrast of New Customerization Framework and Old Marketing Model

13. Becoming Customer Oriented A customer oriented business culture: Top management�s values Employee input Interdepartmental dynamics Organizational systems Responses to environment Dual customer and competitive emphases Long term view of business/value

14. Regis McKenna�s Marketing Philosophy Marketing is the responsibility of everyone in the organization Customer orientation equals organizational function rather than departmental as in marketing department A customer orientation is a service organization practicing Japanese style marketing Okyaku-sama � �honored customer� or the �customer is God

15. What Customers Require From Companies Today�s customers are quite smart and sophisticated and looking for companies that:: Create maximum value for them based on their needs and wants Demonstrate that they value their customers� business

16. Characteristics of New Value-Seeking Customers Choice-seeking Demanding Knowledgeable Believe that loyalty must be earned Price conscious Environmentally aware Convenience-oriented

17. Market Myopia Organizations must avoid market myopia (forgetting customer needs) by: � Overcoming complacency � Staying relevant in the marketplace/space � Be creative in programs and processes

18. Market Myopia - cont. Organizations must avoid market myopia (forgetting customer needs) by: � Adapt and be flexible � responsive/proactive to market conditions and tastes � Use a Kaizen philosophy � continuous Improvement

19. The Bias for Action Continuum

20. Marketing Approaches to Achieve Customer Focus Customer oriented organizations build on the marketing concept (market orientation is the firm�s implementation of the marketing concept); � Designing customer-driven processes and programs � Establish a strong marketing information system � Segment and target markets � Hire the best talents � Stress operational efficiency � Continually measure and fine-tune their customer focus

21. Trigger Points of Customer Value Company/customers (marketing mix)

22. Customer-Oriented Marketing Approaches