Customer-Based Marketing

While some companies are "production-oriented"(example- company sells what it can make)

, others are "market-oriented"(they make what they can sell). Marketing orientation uses market research to find new opportunities, to apply new technology, and to satisfy customer needs, which is obviously more customer-oriented. It also focuses on customer convenience and customer service, in order to attract and retain loyal customers. (Walker, Boyd, Mullins, and Larreche-"Marketing Strategy"4th edition, 2003). More and more companies are also learning the value of rewarding customers after purchases have been made, in order to encourage their continued loyalty.

Long before customers make purchases, however, companies do market research to find out what the new product demands are, as well as reasonable price ranges, and other factors. Companies also look at three factors in order to make decisions (same source as above):

Market segmentation - subsets of customers with similar needs.

Target marketing- evaluating the potential of various segments.

Positioning- creating a positive image in the customer's mind.

Notice that market orientation is about more than just fulfilling customer needs. It's also about maintaining a positive image in the customer's mind. That can be done first, by providing him/her with a product that he/she needs or wants, in a way that's affordable and convenient. Next, the company must be able to provide courteous service and follow-up. And finally, it must give the customer a reason to stay, which is where rewards come in, because a customer goes through his/her own process too.

The "customer experience" process begins with communicating his/her needs and wants to the seller. After that, he/she goes through the processes of product awareness, purchase, and delivery. After this, the product may need service and/or support, possible upgrading, and then eventual disposal (same source as above). So there's no guarantee that customers will return to the same company, unless there's additional reason to remain loyal. Hence, the need to offer rewards for customer loyalty because "nothing lasts forever," that is, unless there's some incentive.

Customer-Based Marketing

By: Lenny Williams

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