What Is Customer and Competitor Orientation?

Customer and competitor orientation are two different marketing strategies used by businesses, as stated by Openview Venture Partners. Customer orientation focuses on customers while competitor orientation focuses on competing with major competitors in the same business field.

Customer-oriented marketing is a strategy preferred by many businesses, as stated by the Reference for Business. The theory is that companies build up a loyal customer base that will continue to purchase products for years. This focus can lead to stagnation as companies become afraid of making dramatic changes and companies lose sight of what competitors are doing.

Competitor-oriented marketing focuses on competing with other businesses by offering the same services, similar products and offering lower product and service pricing. The dangers of a competitor oriented strategy include getting locked into an ongoing competition and spending resources on competing instead of innovation, losing sight of the customer.