Describe the process that results in "underwhelmed" customers and shareholders

Question

What will be an ideal response?

Answer 1

A business with a weak marketing orientation has only a superficial or poor understanding of customer needs and competition. This little or no customer focus translates into an unfocused value proposition and minimal customer satisfaction. This results in low levels of customer loyalty because customers are easily attracted to competitors. Marketing efforts to hold off customer switching are expensive, as is the cost of acquiring new customers to replace lost customers. Low levels of customer loyalty and higher marketing costs contribute to disappointing business profits. In response, short-term sales tactics and accounting maneuvers are used to bolster short-run financial results. However, investors and Wall Street analysts are able to see through this facade, and shareholder value generally stagnates. Management is now under even greater pressure to produce short-run profits. This means that there is not the time, the inclination, or the motivation to understand customer needs and to unravel competitors' strategies, so the vicious circle of poor performance continues.