Product-Centric Approach Of Marketing Strategy

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

This infers that the organisation will be divided according to the product being produced. However, in customer-centric companies, the force will need to work together in order to assess and identify what the customer’s request. It is stated customer-centric organisations are usually looser structure. Customers are also involved from the beginning to the end of the process. Another example of this is Innocent Drinks and Google. This highlights the difference in organisational structure of the company.

It can be argued that both the customer-centric and market-driven marketing are more sustainable than product-centric marketing. This is due to the ability of the companies within those marketing structures to respond to changes in demand. Product-centric companies face uncertainty when introducing a good in the market. It is unclear whether a good introduced will be successful. This makes this structure unsustainable due to the uncertainty. For instance, if the item is unsuccessful, this makes if difficult for the company to adjust and bounce

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