2. The origin of customer centricity
This section describes the development of the marketing-concepts over time with prime focus on the origin of customer centricity.
Fig-1 : Growth of Customer-Centric Marketing , source (Sheth et al., 2000 )
Product orientation concept talks about launching new standardized products in the market for mass consumption. The emphasis is on products rather than market or customer. The concept focuses on adapting existing product to needs of different customers , rather than developing products by identifying the unmet customer needs. As a result of this focus they are taking on an inside-out perspective. Product-oriented firms mostly organized in functional silos around products, with product teams …show more content…
Market orientation has been developed from the philosophy of marketing concept given by Levitt (1960). The shift from product orientation to market orientation has led many changes in the organization structure as firms started organizing around market and segment and business strategy started evolving around smaller and smaller segments including niche segments (Sheth et al., 2000 .) Marketing orientation has emphasized on the need for market intelligence to get and analyze market insights, not only about customers’ current needs and wants but also of the future Lamberti, (2013), Kohli & Jaworski (1990). Furthermore, the importance of intelligence being shared and used across organizational functions is emphasized when addressing market orientation (Kohli & Jaworski,1990). Also, market intelligence is a broader concept , as identified by Kohli & Jaworski (1990) , and also focuses on monitoring competitors, government, regulatory rules , technology and all factors that constitute the …show more content…
Definitions of customer centricity
Different authors have adopted different definitions of customer centricity and hence the literature is currently missing a concise definition of customer centricity. The following table highlights some definitions of customer centricity as identified in various literatures
Author Definition
Sheth et al. (2000) customer-centricity is concerned with the satisfaction of customers’ needs and wants on an individual level. A customer-centric organization should plan and begin their processes in line with the voice of the customer
Gailbraith (2002) Customer-centricity is a strategy that integrates products, services and experiences from within and beyond the boundary of the firm to provide solution to complex needs of customers
Wagner & Majchrzak (2007) collaborating with customers across all channels to facilitate knowledge creation with customer
Ross 2009 customer centricity as an enterprise-wide strategy to fully leverage consumer insights to drive integrated strategies – across marketing, merchandising and operations – aligned to priority
This section describes the development of the marketing-concepts over time with prime focus on the origin of customer centricity.
Fig-1 : Growth of Customer-Centric Marketing , source (Sheth et al., 2000 )
Product orientation concept talks about launching new standardized products in the market for mass consumption. The emphasis is on products rather than market or customer. The concept focuses on adapting existing product to needs of different customers , rather than developing products by identifying the unmet customer needs. As a result of this focus they are taking on an inside-out perspective. Product-oriented firms mostly organized in functional silos around products, with product teams …show more content…
Market orientation has been developed from the philosophy of marketing concept given by Levitt (1960). The shift from product orientation to market orientation has led many changes in the organization structure as firms started organizing around market and segment and business strategy started evolving around smaller and smaller segments including niche segments (Sheth et al., 2000 .) Marketing orientation has emphasized on the need for market intelligence to get and analyze market insights, not only about customers’ current needs and wants but also of the future Lamberti, (2013), Kohli & Jaworski (1990). Furthermore, the importance of intelligence being shared and used across organizational functions is emphasized when addressing market orientation (Kohli & Jaworski,1990). Also, market intelligence is a broader concept , as identified by Kohli & Jaworski (1990) , and also focuses on monitoring competitors, government, regulatory rules , technology and all factors that constitute the …show more content…
Definitions of customer centricity
Different authors have adopted different definitions of customer centricity and hence the literature is currently missing a concise definition of customer centricity. The following table highlights some definitions of customer centricity as identified in various literatures
Author Definition
Sheth et al. (2000) customer-centricity is concerned with the satisfaction of customers’ needs and wants on an individual level. A customer-centric organization should plan and begin their processes in line with the voice of the customer
Gailbraith (2002) Customer-centricity is a strategy that integrates products, services and experiences from within and beyond the boundary of the firm to provide solution to complex needs of customers
Wagner & Majchrzak (2007) collaborating with customers across all channels to facilitate knowledge creation with customer
Ross 2009 customer centricity as an enterprise-wide strategy to fully leverage consumer insights to drive integrated strategies – across marketing, merchandising and operations – aligned to priority