Consumer orientation

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Consumer orientation is a strategic concept of the company, consisting in focusing primarily on the customer (buyer) and his needs and preferences (S. Nwankwo 1995, pp. 5). In this concept, particular attention is paid to providing satisfaction to the consumer so that the company can count on his loyalty and money. Consumer orientation assumes optimisation of all production, promotion and distribution activities to ensure customer satisfaction. In terms of its expectations and preferences, the range of services and assortment is selected, depending on the needs of the buyer (S. Nwankwo 1995, pp. 5-6). Consumer needs are a key element in consumer orientation. Meeting these needs requires precise identification. Consumer orientation also uses the creation of new needs that require the purchase of new services and products that suddenly seem necessary and desirable to the customer (M. Brännback 2011, p. 1-2).

Differences between consumer orientation and marketing orientation

Consumer orientation, sometimes mistakenly referred to as marketing orientation, consists in considering the needs, desires, preferences and possibilities of the consumer as the starting point for shaping the overall management strategy in the undertaking (A.Lammerts, et all, 2001, p.13 ). In this case, the term 'marketing strategy' refers not to marketing as a function, but to targeting in accordance with the rules of the 'marketing concept'. The alternative use of the terms 'consumer orientation' and 'marketing orientation' may therefore cause confusion, since the latter may refer not only to the situation in which the marketing concept is the most important, but also to the active market development measures themselves (A.Lammerts, et all, 2001, p. 13-15). As a result, the consumer priority principle is interpreted differently. For some, it means caring for the best possible satisfaction of the identified, real needs of the final buyer (consumer, user, industrial consumer) and thus gaining their loyalty and recognition (V. Filipović, et.all, 2000 pp. 9-16.). For the latter, consumer orientation assumes, first of all, the necessity to create customers by creating new needs and related demand. In the first case, we are indeed dealing with the orientation towards the consumer, in relation to whom marketing plays an auxiliary role. In the second case, on the contrary, the most important is marketing, as a set of activities creating a customer, which is an effect, and not a starting point of marketing activities (N. AbtahI 2014, p. 655-661). In this sense, marketing orientation is fundamentally different from consumer orientation. In fact, it is one of the functional internal orientations, characterized by the concentration of attention and resources on decisions and activities related to active marketing creating a market (H. Gebauer, Ch. Kowalkowski 2012, pp. 527).

Types of consumer orientation

The market comprises in a broad sense the various players involved - consumers, prosumers, users, competing bidders and traders, wholesalers and retailers. It is therefore important to distinguish between consumer orientation and customer orientation (M. Brännback, 2011, pp. 5-8). These are alternative orientations, i.e. each of them, depending on the specific possibilities and conditions of operation, can be considered as the best by a given company. From the point of view of the nature and scope of the marketing strategy, the types of consumer orientation can be identified by answering the following questions (M. Brännback, 2011, pp. 5-8):

  • Whose needs, preferences and expectations are most important to the company?
  • Who are the target customers of the company?
  • Who is the company trying to reach through the distribution channels?

The answers to these questions allow us to determine the type of consumer orientation. It can take the form of a consumer orientation: Consumer/prosumer orientation Towards commercial customers orientation Towards trading companies orientation Supplier-orientation As practice shows, strong, dynamic enterprises most often adopt a consumer orientation, and weaker or very narrowly specialized enterprises focus on trade customers, in extreme cases producing products only on order and under the brand name of a trade company (H. Gebauer, Ch. Kowalkowski 2012, pp. 535-537). In turn, in the case of trading companies unable to create their own effective marketing strategy, an alternative to consumer orientation may be to focus on a specific supplier for whom the company performs the ordered distribution services (H. Gebauer, Ch. Kowalkowski 2012, pp. 535-537).

Application of customer orientation

Customer orientation works best when the purchase is not a one-time purchase - the customer is able to return to the company. Then good customer relations are more important than short-term profit on sales (R.T. Frambach,et. all 2016, p. 1436). It is also important to ensure that the product or service can be tailored to the customer - if we do not have this option, the identification of the customer's needs will not do much good if we cannot adapt our service to it (R.T. Frambach,et. all 2016, p. 1436). Therefore, customer orientation is used where it is possible to choose from several options (if the company produces one thing, then customer orientation does not make much sense). unless it's a returning customer. Customer orientation also works best in cases where the customer has to make a decision to purchase a product for himself completely new and unfamiliar to him (R.T. Frambach,et. all 2016, p. 1436).

Conditions for costumer orientation efficiency

There are following conditions for customer orientation efficiency:

  • Determination and involvement of management staff

Customer orientation - everything begins with the Management Board and directors. They are the brains of the organization, they determine and implement the company's strategy. Their attitude and involvement determine whether employees believe that costumer orientation is important in the organization (S. Nwankwo 1995, pp. 5-15.). A top management example cannot be replaced by any internal policies, processes, communication, an experienced consultant advising the organization, or a large CEM budget. The role of the management is to communicate the CEM strategy to the employees, to support the team responsible for managing the customers' experiences in their daily work, to support process changes towards better customer experiences, efficient and sincere internal communication concerning customers and the CEM programme, and finally to set the customer at the centre of the organisation as an example (S. Nwankwo 1995, pp. 5-15).

  • Efficient internal communication in the company

Without well-organised internal communication, the idea of consumer orientation cannot be disseminated efficiently throughout the company. The company must have an effective communication plan, which should include the following elements (S. Nwankwo 1995, pp. 5-15):

  1. The broadcasters of messages,
  2. Addressees of messages, groups,
  3. The content of the communication,
  4. Forms of communication,
  5. Communication tools,
  6. Frequency of communication,
  7. Content Acceptance Pathways.

Managers and middle managers working with frontline employees on a daily basis play a key role in the effective implementation of the customer orientation principles in the company. Their daily support, explanations, and finally the practical example of action are the driving force behind the correct attitude of employees (S. Nwankwo 1995, pp. 5-15). Without the involvement of middle managers, the management guidelines and customer orientation strategy can remain a good-looking plan, but unfortunately not implemented in reality. The role of the board of directors and middle managers is to involve middle managers in real customer orientation activities and to keep them convinced that this topic is one of the key issues in the company. The role of the middle management is to cascade down the customer orientation strategy and to encourage employees to be pro-client and active, as well as to enable them to communicate with customers or information about customers (S. Nwankwo 1995, pp. 5-15.).

  • Effective and customized Customer Experience Management (CEM)

Properly planned CEM strategy gives the company the opportunity to gain a competitive advantage in the industry. Thanks to the design and implementation of processes and rules of operation that provide customers with unique and positive experiences, the organization becomes more customer-friendly (S. Nwankwo 1995, pp. 5-15). The CEM program should specify the goals the company strives to achieve in the area of Customer Experience, define the target customer experiences it wants to provide, express the credo/mission of Customer Experience consistent for the entire organization. At the operational level, the programme should also include the organization-specific rules for measuring customer indicators (NPS, satisfaction, retention, etc.), methods of customer segmentation, creating descriptions of typical customer personas, rules of working with customer information, CEM communication and many others (S. Nwankwo 1995, pp. 5-15).

  • Consistency and patience

From the beginning of the company's journey towards customer orientation to the first successes, improvement of NPS indicators and satisfaction, it takes a lot of time, usually at least a year. Of course, it is worth implementing small changes along the way, which will give the company "quick wins", while working on the attitudes of employees and middle management requires both time and consistency in action (R.T. Frambach,et. all 2016, p. 1436).

See also:

Examples of Consumer orientation

  • Providing personalized customer service: Companies that are focused on consumer orientation strive to provide personalized customer service. This means tailoring services to the individual needs of each customer, addressing their individual needs, and providing support and advice to help them make the best buying decisions.
  • Offering flexible payment options: Companies that are consumer-oriented often offer flexible payment options to their customers. This can include payment plans, discounts, and other incentives to make the purchase process more convenient and cost-effective for customers.
  • Utilizing feedback and surveys: Companies that are consumer-oriented often utilize feedback and surveys to get a better understanding of their customers’ needs and preferences. This helps them to better understand their target market and make decisions that are informed by customer feedback.
  • Creating loyalty programs: Companies that are consumer-oriented often create loyalty programs to reward their customers for their loyalty. This can include discounts, special offers, and other incentives that help to build customer relationships and encourage repeat purchases.
  • Listening to customer feedback: Companies that are consumer-oriented are always listening to customer feedback and using it to improve their products and services. This can mean making changes to product design, changing pricing, or adding new features based on customer feedback.

Advantages of Consumer orientation

One of the major advantages of consumer orientation is that it allows companies to increase customer loyalty, obtain a competitive advantage and improve their financial performance.

  • Firstly, by focusing on the customer, the company will be able to provide a better service, ensuring customer satisfaction and loyalty. A satisfied customer is more likely to return and recommend the business to others, and this can lead to increased profits.
  • Secondly, by understanding the needs and preferences of the customers and adjusting the range of services and products accordingly, the company can gain a competitive advantage over its rivals in the market.
  • Thirdly, as customer satisfaction increases, so too does the company’s financial performance. Satisfied customers are more likely to spend more, leading to increased profits. Moreover, the company will be able to reduce its costs by focusing on the customer and optimizing its activities to meet their needs.

Limitations of Consumer orientation

One of the limitations of consumer orientation is that it can be difficult to accurately determine customer needs and preferences. This can lead to costly mistakes if the company fails to accurately predict customer behaviour. Additionally, consumer orientation requires a great deal of resources and dedication from the company, as they must continually adapt their products and services to meet customer needs and preferences. Furthermore, consumer orientation can be expensive, as the company must invest in research and development to identify customer needs and preferences and develop the necessary products and services. Finally, consumer orientation can be difficult to sustain, as customer needs and preferences are constantly changing and companies must remain flexible and responsive to ensure customer satisfaction. *

Other approaches related to Consumer orientation

To further clarify the concept of consumer orientation, other approaches related to it can be explored, such as:

  • Customer value - this approach focuses on establishing and delivering customer value as a competitive advantage (R. T. Rust, et al. 2004, pp. 22-23). That is, building a competitive advantage by offering more value to customers than competitors do.
  • Customer focus - this approach is aimed at understanding the needs of customers and striving to meet those needs (R. T. Rust, et al. 2004, pp. 22-23). It involves understanding the customer environment, understanding customer preferences and expectations, and adapting to customer feedback.
  • Customer intimacy - this approach involves establishing a close relationship with customers, understanding their needs, and delivering tailored solutions to meet those needs (R. T. Rust, et al. 2004, pp. 22-23).

In summary, consumer orientation is a strategic concept that focuses on understanding customer needs and delivering value to them. Other approaches related to consumer orientation include customer value, customer focus, and customer intimacy.


Consumer orientation — recommended articles
Concept selling — Goals of marketing — Customer driven — Selling process — Route to market — Sales target — Innovative marketing — Strategic position — Retail strategy

References

Author: Kinga Zmarzły

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