Costric Approach And Customer-Centric Marketing

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There are vast contrasts between the customer-centric approach and the product-centric approach of marketing. The first significant differences between the approaches are the perspective of the organizations. Product-orientated organisations take the mass market; this means that the company produces on a large scale to anyone who is willing to purchase the product. This means in this structure they fail to meet the specific needs of stakeholders. Dissimilarly, market-orientated companies cater to niche segments that are specific, smaller set of people. Similarly, customer-centric organisations target the individual customer. Another difference is the orientation of the organizations. Product-centric approach begins with the orientations of…show more content…
An example of these is Kumar et al. Kumar et al conducted an investigation regarding the performance implications of adopting a customer-focused sales campaign. Results concluded there is a significance and from adopting the method. It was believed that marketers that give 50% of their time for advancement of customer-centric marketing processes in turn achieved 30% greater return on investment (Kumar, Venkatesan and Reinartz, 2008). This incident highlights there is a relationship between customer-centric marketing with revenue generation. There is a positive correlation highlighted from the time for advancement of customer centric marketing and return investment. Sheth, Sisiodia and Sharma (2000) also stated customer-centric marketing enhances productivity by focusing on profitable customers and reducing the subsidization of unprofitable customers. This is, as firms will not have to markdown their products in order to increase their number of…show more content…
This has been as a result as new technologies available to assist companies in reducing their costs and an increase in market diversity. Although it can be argued that to decide which approach is the most superior depends on the circumstances. The benefits of customer-centric behaviour are evident. These include advantages such as efficiency. This is key to any firm. As mentioned in the essay, one of the reasons customer-centric firms successful is because they cater to the demands of customers. They prioritise what matters. They do not need to subsidise their products in order to boost sales in comparison to a product-centric firm who may need to introduce a sale in order to shift their goods. Customer trust and loyalty gained through the market structure reduces the marketing costs of such firm. A result of the firm’s customer’s bond with the company is assisting the brand with promotion through word-of-mouth advertising. These are one of the many benefits of this structure. I believe companies that thrive in a competitive modern market must have an intimate understanding of their consumers. This includes being able to adapt to the changing demands of a customer. These are all features a customer-centric aspect of marketing has, therefore positioning the theory as superior

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