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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 priorities 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 Cobber 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. ” Revulsion, 013) 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 Subways customer focused strategy, Burger kings focus is more on their product.
Burger king is a product orientated business because in their mission statement they exhibit how they emphasis on their (Farman, 2014) “commitment to premium ingredients” and “signature recipes” opposed to Subway who priorities their customer’s satisfaction through They focus on the “perceived or real benefit” (Farman, 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 ND Quality they include the “family-friendly dining experience” which they would through their service provide for the customer. (Farman, 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 laity 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 company strategies and processes. This is because market orientation assumes the customers interests and trends towards buying, whereas Product Orientation assumes customers are interested in higher quality products and more features comprised in the sale. In contrast to both there is Sales
Orientation, (Tunnel, 2014) which would be defined as focusing on the selling of the product. This prioritize the selling of the product above the customers’ satisfaction. This orientation relies on the sales team in the pushing of the product or service using aggressive sales techniques to achieve high profits. Here the assumption that sale prices that are high in value equate to substantial profit. In comparison with customer orientated corporations where the customers’ needs and wants are met, the firm will focuses a lot less on the satisfaction of the customer as it is presumed that high value equals satisfaction. So the customer will get high value but that might not necessarily be what the customer is looking for.
This is where the sales teams’ responsibility lies; they need to sell using aggressive sales techniques. Cold calling about PIP (EPISODICALLY, 2014) claims would be an example where a service is promoted for free to claim money for you, the value lies in the fact it’s free but it’s a service not many people need. If they fail to see what the customer wants it’ll in the long term ultimately lead to customer dissatisfaction, loss of customer, loss of profit, and Leading the firm ultimately to bankruptcy. Production Orientation is closely elated to product orientation, (Compeller , 2014) where one has to do with the quality of the product in specific, the other concentrates on the process of production.
It is more of a manufacturing concept because it deals with the raw materials transforming into the core product in comparison with customer orientation where subway orders all the ingredients in to make the product to give the customers their options, a company such as Sunroof (BLOOM, 2008) is all about how the drinks method of purifying improved though the infusion of flavors and filtering through charcoal, the product is purified more and made stronger thus enhanced, they assume this is what the customer wants, resulting in increasing volume of sales (Cannon, 2014) profiting due to sales increase and profit. The Marketing Mix is a fundamental concept in marketing, consisting of the key factors that are crucial marketing tools for decision making. Cobber and Chadwick, 2013) The four key areas of any business whether it’s being a sole trader or a private limited company are: Product, Price, Place and Promotion.
As the title states every business has a different mix of these four primary marketing ingredients as every business as different goals and objectives. As previously mentioned the focus of the companies’ orientation can affect the strategy, the process and the objectives and goals that a company wants to achieve. Every mix has its own way of achieving customer satisfaction. As the four key areas within themselves have mixes as well. (khan, 2014) the importance of the knowledge that the blend of all four areas is necessary for a productive and thriving business. (Genii & Waylay, 2007) As previously discussed the marketing mix is a fundamental concept consisting of the original four key marketing areas.
In a customer orientated firm the mix is less centered on the product and more on the customer and communication between the business and the customer. So product wouldn’t be the most emphasized or focused on ingredient in the marketing mix. (May, 2014) Whole foods market for example will sell fresh food the strength being a loyal customer base that enjoys fresh food. The weakness is the product is tangible and has a short life span, meaning if not sold it would go to waste. A threat would be that if the weather was bad people wouldn’t be able to come, and the food goes to waste. A great opportunity lies in exporting the fresh food. Price Cobber and Chadwick, 2013) is also an ingredient that won’t be the main focus of whole foods markets.
The strength of fresh food and the fact we have a loyal customer base is that the products lifestyle is seasonally thriving every year. A weakness would be the marketing strategy is more difficult to practice as it needs to be in harmony with the marketing mix, (Cannon, 2014) A threat could be macroeconomic event occurring such as inflation causing all the prices to go involuntary; decreasing GAP (Gross Domestic Product) (Begs, 2014)this means a crease in household surplus income. In this case an opportunity would be that even though luxury purchases would drop fresh food is more of a necessity than a luxury product so the decrease would be very limited. Place will be one of the more focused upon ingredients in the marketing mix.
This because the channel of distribution will be crucial, selling it in whole foods market’s own shops so that they can create an ambiance to attract the customers is a strength. To be able to improve information will need to be gained on these premises. The staff will need to be trained to be ready for customer contact. Intensive sales strategy Cobber and Chadwick, 2013) will make it easier to make a profit. The weakness and threat would lie in the transporting and warehousing of the fresh product. And the major opportunity lies in the fact that whole foods market directly deals with their product being able to analyses the trends and react to them. The concept in the marketing mix that will be priorities will be Promotion Cobber and Chadwick, 2013).
As the communication between the customers and business is key to their success, this is also what it means to be a Customers orientated company using the marketing mix. Whole Foods Market has a list of core values that explain how they go through “extraordinary lengths to satisfy, delight and nourish customers” and as well “Want to serve our customers competently, efficiently, knowledgeably and with flair. ” (wholeheartedly, 2013) this emphasizes how the customer is the center of their marketing mix, as they want to satisfy their customer with their service and product. They want to gain a close relationship with their target market to achieve this.
This is beneficial because the staff will take the satisfaction of the customer as he fresh produce can’t adapt to the consumers trends, the service and dcore can. To conclude this essay explored how customer orientation centers the customers and focuses the marketing mix on them in order to profit. In respect to the marketing concepts the staff will take on the satisfaction of the customers for example in Subway they give the customer the options that will keep them satisfied and returning. This is achieved through a close relationship the promotion gives the customer and the business through communication via the correct channels of distribution.