Question

b. Illustrate each of your definitions (of sales-oriented and market-oriented) with marketing examples. 8.Customer Relationship Management: a. Define customer relationship management (CRM). b. Illustrate your definition with a marketing example. 9.What is the Firm’s Primary Focus given: a. The sales-oriented organization: i. Define ii. Illustrate your definition with a marketing example b. The market-oriented organization i. Define ii. Illustrate your definition with a marketing example

Answer 1

Market oriented view of the customer:

In case of market oriented view of the customer, identifying the target customer by the companies seems to be the most important goal for the organization. The product must be filled with high quality product or service being offered making sure that the products or services will satisfy the customer tastes & wants. Hence in this type of market, customers ensure that the product or service offered satisfy their requirements rather than purchase of outstanding product. For example, when a customer purchases a laptop, the product must meet their expectations or satisfy them.

Sales oriented view:

In case of sales oriented view of the customers, the feel that company would focus on selling as many products or services as possible & doesn’t worry about the target audience. Pricing of the products depend on the value the customers will assign to the product. For example, in luxury items have a high value which means that the price for these goods can be higher than normal goods & still have demand.

CRM:

Customer relationship management is company’s approach to manage interaction with current & potential customers. It uses data regarding customer’s history in order to improve business relationship with the customers specifically focusing on customer retention & ultimately driving the sales growth. For example, Amazon uses CRM to implement personal greetings, collaborative filtering & more for the customers. They also use CRM for training the employees & see up to 80% of the customers repeating.

Sales oriented & market oriented organization:

Sales oriented companies are those where sales force is considered to be an important asset for the organization & is considered to be the main driver for its success & profitability. The major expenses of sales oriented organization are salary, commission & the bonus hat they pay their sales force. Example: online internet marketing company that attempts to sell huge number of products to the consumers. These are based on the assumption that product will meet the needs of individual or business whether or not they have expressed a need for the product.

Market oriented companies:

Market oriented companies are those that are vibrant, communicative & find ways to understand their customer wants & create products specifically for those customers. The amount of effort that is taken on marketing decides whether a company is successful or has failed. Apple is example of market oriented company where it will understand what will make its customers happy & then delivers. When the customers prefer for sleek design, apple responds with beautiful designs that are eye catching.