1. Chapter 2 Being Customer Oriented
Market Orientation
Customer Orientation
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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
Stresses conquest marketing (getting new business)

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

5. Becoming Marketing Oriented
Marketing Variables
Sales Oriented
Market Oriented
Starting Point
Organization
Target markets
Marketing Focus
Product/service
Customer needs
Customer Focus
New business (attraction)
Existing customer base (growth and retention)
Competitive Edge
Lowest delivered cost
Superior quality or service
Product Strategy
Generic product
Augmented product
Promotional Strategy
Selling/advertising
Integrated marketing communications (IMC)
Pricing Strategy
Maximizing profit margins
Profitable use of resources
Marketing Objective
Sales volume
Customer satisfaction
Planning Approach
Reactive
Proactive
Time Perspective
Short term (tactical)
Medium and long term (strategic)

6. The Marketing Continuum
Market Driving
Market Driven
Sales
Product
Production

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. Organizations must avoid market myopia (forgetting customer needs) by:
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
Non-responsive
Reactive
Responsive
Proactive
Anticipatory
(Adapted from Barrett H. (1996)

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)
Employees/customers (service providers)
Technology/customers
(e-marketing mix)

22. Customer-Oriented Marketing Approaches

23. The E-Marketing Mix Taxonomy
Product
Price
Place
Promotion
Sales Promotion
Personalization
PRIVACY
Community
Site
S e c u r i t y
Customer Service
Adapted from Kalyanam, K. and McIntyre, S. (2002) The e-marketing mix: a contribution of the e-tailing wars, Journal of the Academy of Marketing Science, 30 (4), pp