Customer Centrality

Table of Contents

Introduction2

Definition of Customer Centrality2

Market Orientation3

History and Background4

Need of Current Product5

Future Requirement5

Desires Level of Pricing6

Need of Information6

Availability of the Product7

Literature Review7

Theories7

Motivators9

Recognizing the Growth Opportunities9

Growing Customer Satisfaction10

Making Unique Experience10

Building Share and Profit11

Barriers to Customer Centrality11

Obstacles12

Financial Expenditure12

Non-Equal Customers13

Non-Awareness of Customers13

Non-Loving Customers13

Applications15

Conclusion18

References20

Customer Centrality

Introduction

Definition of Customer Centrality

The customer centrality is considered as the view point in which the needs, wants and predisposition of the customer are the initial starting point for the management or decision makers of the company. The main idea behind this term is that customers are at the center for everything for the organization and driving force for the marketing planning are the customers. When the organization starts to think about their marketing planning, customers or consumers are the first thing that they consider for marketing. The customers or consumers are considered the same person on few cases, but they are not same in all conditions. The true meaning of customer centrality is that organizations should always seek to build value for the customer's and this should not be done for humanity instead, the organizations should understand the fact that if they create value for the customers, they will in return give value to the organization in form of the money.

Market Orientation

Alfa Laval stated that big ideas are made for big markets and the economic system sets the bounds for company's autonomy to contrive. It has been observed that after the changes of the rules, all the individual firms and branches redefine their ideas of business. The European playing field is dependent on the four freedoms that are free of people, freedom of services, freedom of capital and freedom of goods (Hennig-Thurau, 2004, p. 465). The business ideas of the companies are realized by marketing, but Hunt stated that the marketing scope is broad unquestionable. Neither has it narrowed with different approaches for specialized situations in the recent years while various regulated markets have taken their departure in micro-economic theory or other concepts of order processing.

The term customer centrality is to find the needs and filling them instead of manufacturing products and selling them in the market (Blythe, 2009, p. 45). Placing the customers as the first priority is the easiest idea to understand which means that it has become obvious that providing poor product or service to the customer will entice the organization to spend more money on other aspects, but this is difficult to apply practically. For example, there are some companies that reserves best space for car parking for their special customers as this car space is usually reserved for the senior management of the companies. Similarly, organizations reveal their annual result in their annual reports for the advantage of the customers instead of discussing customer loyalty, satisfaction, and retention (Dickinson et.al, 1986, p. 20).

History and Background

The concept of customer centrality has been given by Peter Drucker who stated that all the people working in the organization are marketers and the basis function of every business is to make ...