Definitions Of Customer Centric And Market Driven Marketing Essay

With the increasing tempo of commercialization of economy, international and local market environment has altered dramatically-the termination of seller's market and lack economy, the appearance of buyer's market and surplus overall economy. Consumers have become the leading role within exchange romantic relationship. Companies must free no efforts to please consumers, provide consumers with reasonable products. Nowadays, related to corporate marketing theory, there are customer centric and market motivated. Idea of customer-centric and market-driven may appear to share the same so this means. However, according to some academics, there are some differences between both of these concepts. To be able to identify these distinctions, this article will firstly collect relevant definition of these two principles. Then, analyze the dissimilarities and similarities between them, and the importance of these. Finally, this article will discuss the detriments of choosing both of these approaches.

2. 0 Meanings of Customer Centric and Market-Driven

2. 1 Explanations of Customer Centric

Ray and Robbert (2003) said, Customer centric refers that "the venture takes the fulfillment of customer demands and the increase of customer value as business starting place". It pressured that the organization should avoid separating the genuine demand from customers and subjective assumptions of the marketplace.

Hsing Kenneth Cheng, Kstsal Dogan (2008) said, customer centric, "an approach to doing business in which a company focuses on setting up a positive consumer experience at the idea of deal and post-sale". A customer-centric way can add value to an organization by differentiating themselves from opponents who do not provide same experience.

Robert G. Mix, Ashutosh Dixit (2005) said, Customer centric means the modern marketing concept that "create a long-term and steady business relationship through provide customers more value and improve client satisfaction". Customer centric is a marketing school of thought which regards customer-oriented desires and needs as its direction.

2. 2 Explanation of Market Driven

Kohli and Jaworski (1993), the idea of market powered is defined through three measurements: "customer demand for current and future generation of market cleverness; market information dissemination in the organization; organization of the market intellect activities and replies". Because this meaning focuses on specific marketing activities, more affluent functional, and thus this concept is generally cited, and becomes one of the authoritative description of market influenced.

Narver and Slater (1994) proposed a marginally different perspective. The definition of these operationalization definition includes the competition' information and coordination between your various functions. In this is of Narver and Slater, they suggest that "a market driven company contain three conducts - customer orientation, competition orientation, inter-functional coordination; two decision

criteria - long-term concern and interest profits". To be able to maximize long-term achievements, enterprises must build and keep maintaining long-term mutually beneficial relationship between customers. From the point of view of competitive benefits, market driven is the organizational culture which can reach this relationship most effectively.

Weerawardena and O'Cass (2004) think, market-driven is "the integration of customer centric and rival orientation". The idea of market-driven is based on customer centric and supplemented by competitor orientation. Company applying market-driven always completely satisfies customer demand and gives close attention to changes in competitive environment.

3. 0 Analysis of differences and similarities of the principles of market-driven and Customer Centric

According to Part Two about this is of customer centric and market motivated approach, we can find, customer centric and market influenced approach both respect finding and reaching consumer demand and enhancing customer satisfaction as the center of the marketing concept. Under buyer's market and surplus market, the consumer is just about the middle of business competition. Many business principle as "customer is God" signify that if companies achieve success in the market, they should attach importance to customers. Therefore, both customer centric and market driven approach are no longer only focus on their products, like product orientation. Enterprises connect importance to consumer demand rather than the products.

From these description of the idea of market driven, the idea of market driven comes from customer centric and beyond it. Market motivated differs from customer centric, and market driven is the mixture of customer centric and competitor oriented. Customer centric is a fundamental orientation. Each business must follow it, but following it does not mean the company can be successful. Businesses have to pay close attention to the changing competitive environment, enhancing operations, enhancing their competitive capacity, and build-up the concept of competition - spot the attempt of rivals and make an effort to estimate correctly our very own durability as well as our opponents. Therefore, the customer and the competitor is an crucial part of today's marketing. Customer orientation is the building blocks, if not follow the customer centric, it will lose the competitive talk about and the certification and opportunities to success. Competitor orientation is additional. Market driven concept requires the company not only give attention to the customers but also the competitive environment. Therefore, we should be take customer as the guts, also look at the competitor.

4. 0 Briefly analyze the importance of customer-centric and market driven approach

4. 1 The need for customer centric

The origins of customer centric is the fact that product-oriented company invests too much on product development, while ignoring the needs of customers, which often ends up with mismatching of product value and customer's real needs. "Product-oriented company will easily get 'marketing myopia'" (Landry & Ozment, 2000), making an organization deviate from the market, loss market show, be in the poor place in competition, then eventually being eradicated by the market. In order to avoid these results, companies adopt a person centric strategy and take client satisfaction as the goal in order to improve the current market share. In addition, customer centric way can improve customer satisfaction. Customer centric business can make full use of the reputation, business relationship and programs built previously to sell other products, which can reduce obstacles for market entrance, increase profits.

4. 2 The importance of market driven

Market driven (Langerak, 2003) is "favorable towards business's long-term competitive benefit". At exactly the same time, market driven approach can prevent an business from being passive on the market and subject to the customer's changing needs. Market driven model requires companies take the initiative to investigate the potential customer demands in order to take the preemptive opportunities. Furthermore, market powered model requires companies matter about market styles and opponents. Today, the market overall economy are maturing, ever more competitive market, if companies aren't worried about changes on the market and the opponents, they will not end up being the industry innovator.

5. 0 Discuss the way the detriments to be customer centric

Although the concept of customer centric has been much better than the product-oriented, there are still some shortcomings.

Customer centric requires the businesses pay attention to consumer needs, however, a precise definition of the customer should be split into two categories: external customers and interior customers. An external customer refers to the ultimate consumer, and an internal customer means the shareholder, director and employee. Customer centric business gives too much focus on exterior customer while overlook interior customer's needs, that will damage employee inspiration and affect long-term viability.

As long as there is a market demand, companies will spend great attempts to acquire such information, to adopt various options to meet up with the market demands, regardless of the number of competitors on the market and countermeasures. They scarcely seem to realize that other opponents could also obtain these market sources through market research, but also take up the same means to share the marketplace. Because of this, it happens that there are many similar products on the market and the marketing approaches adopted by businesses are also astonishingly similar. Customer centric will easily lead to "'homogeneity competition' situation" (Conduit & Mavondo, 2001). As the product identical, as the total market demand is bound, their market talk about is relatively narrow. Their market talk about declines, that may lead to all businesses and companies within the industry gains decline. For instance, North american Delta Airlines serve the clients who take their planes regularly a lottery-ticket called "triple mileage" (Tan & Chan, 2010). With the superficial level, this type of ticket can entice the consumer's attention, however in practice, because of its high imitability, its opponents such as American Airlines, United Airlines joined up with your competition and also issuing the lottery tickets. As a result, not all enterprises reap the benefits of this tickets, but to improve the industry's operating costs.

Customer centric "does not have universal request" (Widmier, 2002). For an business, when it is in different stages of industry life pattern or different periods of venture life cycle, should take up different orientation strategies. Customer centric is mostly ineffective, because the customers don't realize new product and therefore no demand. Quite simply, customer centric inhibits business development. But in the long term, customer centric marketing account for a significant energy of the company, which will make company "ignore the innovation from competition market, and lose the initiative into the future market" (Anderson & Jolly, 2007) So, we have to choose different marketing techniques in line with the actual period of industry life cycle.

6. 0 Discuss the way the detriments to be market driven

Enterprises provide products to meet current customer needs, and develop new products to meet the future needs of customers. However, the price of market-oriented marketing impressive is high, as a result, makes this kind of marketing business facing risk. For instance, Toyota is one of the companies who take up market-driven approach as their marketing theory. Given that they have spent way too many resources on product development to meet customers' needs, their operation costs are correspondingly high. Toyota introduces cost likely to control the expenses. Cost Planning (Kumar & Scheer, 2000) is the basic concept which starts off from the merchandise development period to creation; in order to lessen costs and ensure income requires a company to implement the many management activities. So, as Beverland & Lindgreen (2007) say, market driven gets an venture jammed in "resource allocation dilemma".

Market motivated marketing undermine the existing level of success of enterprises. Regarding about the near future customers needs have an impact on the capability to meet current customer needs, and the investment of potential market will keep the venture in "low cash flow difficulty" (Vandermerwe, 1995). While concerning about the current customers, in the current market there's a high cash flow, but the future demand can't be met and no cash flow in the foreseeable future market. Therefore, managers of enterprises must rationally allocate resources to accomplish current and future balance.

7. 0 Conclusion

Business marketing is the integration of customer centric and market powered. The development of every organization cannot just focus on the current market needs of customers, but also consider the potential needs of customers. Customer centric is a short-term tendencies of business marketing, which helps an organization adapt to the market by the satisfaction of the immediate needs of customers. But it addittionally inhibits the enterprise's development. However, the market driven strategy is more useful in the foreseeable future market than customer centric methodology. Therefore, the use of these two methods should be in accordance with the various marketing emphasis in different stages of business development so that the allocation of corporate and business resources is rational.

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