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Customer Concept

The customer concept is the new marketing concept. It is a management orientation which maintains that firms establish relationships with selected individual target customers with whom superior customer values are designed, offered, redefined and realized in close cooperation with other partners in the marketing system such as suppliers and intermediaries, in order to realize long-term profits through customer satisfaction and partner- and employee satisfaction. 

Today many companies are moving beyond from the marketing concept to the customer concept. While many companies are practicing the marketing concept to work at the level of customer segments, a growing number of today’s companies are now shaping separate offers, services, and messages to individual customers. These companies collect information on each customer’s past transactions, demographics, psychographics, and media and distribution preferences. They hope to achieve profitable growth through capturing a larger share of each customer’s expenditures by building high customer loyalty and focusing on customer lifetime value.


The ability of a company to deal with customers one at a time has become practical as a result of advances in factory customization, computers, the internet, and database marketing software. Yet the practicing of one-to-one marketing is not for every company: The required investment in information collection, hardware, and software may exceed the payout. It works best for companies that normally collect a great deal of individual customer information, carry a lot of products that can be cross-sold, carry products that need periodic replacement or upgrading, and sell products of high value.

Source : Philip Kotler’s 11th Edition Marketing Management 

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