Customer Value Marketing Essay

This newspaper based on the conduct of guest Value Marketing starts with introduction section. We energize mentioned the contents of the train in objectives of the musical composition section. The methodology section deals with the means of preparation of this report and the processes that we boast followed. Then the report describes the theoretical aspects of the study in the belles-lettres review. This section in the main consists of brief description about diametric all important(p) topics about client grade selling. Finally in the last section, the report is concluded with findings, bibliography and appendix over the topic. The appendix section contains some internationalistic daybooks on guest regard as trade.INTRODUCTIONTodays trade process is extremely client focused. It is all about creating node quantify and building profitable client relationship. nodes argon at the center of trade process. The main theme of marketing is to create client honour a nd to take over appraise from customers in return. The goal of every marketer is to create more(prenominal) apprise for customers. Customers usually face a broad array of products and function that might satisfy a given need. Among these products or helps, customers have to take the products that give them optimum repute and satisfaction. That is why creating customer value is considered to be the around important task to be performed by marketing today.The marketers do it through customer value delivery outline, a carcass which is made up of the value chains of a company and its suppliers, distributors and in conclusion its customers who work together to deliver value to customers. To deliver superior value to customers the marketers have to design a customer driven marketing dodge. The meet murder of this strategy will give customers a perceive value, therefore, satisfaction. go get a product or service, a customer is buying satisfaction. Highest value is derive d when a customer is fully satisfied with his or her purchase. Today, value is considered to be an important constituent of relationship marketing and the ability of a company to provide superior value to its customers is regarded as one of the most successful competitive strategies for business. Hence, todays marketing need to be based on the concept of customer value.OBJECTIVES OF THE revealThis report mainly discusses the following subjectsCustomer ValueCustomer Value dodgeCustomer Value Positioning positionThe implementation of Customer Value StrategyHypothesis Regarding Customer valuePropositions on Customer ValueMethods of Customer Value AssessmentCustomer lifetime ValueMETHODOLOGY OF THE REPORTThe report in this study is basically a descriptive one. Here, both the primary and the secondary data ar been used. The primary data has been unruffled from lectures given on this topic in the classroom. The secondary sources of data argon our textbooks, conglomerate internation al journals & different websites.LITERATURE REVIEWCustomer value strategyCustomer value strategy is doing things differently from the competitors and transferring different value to the customers. There are six principles of strategic positioning. They are Strategy should have the right objectives.The value of positioning should be distinguished from the competitors. Strategic thinking should be reflected from the unique value chain. In order to pursue the singularity in certain areas, we must give up some of the another(prenominal) characteristics of products, services or activities. Strategy should enable the strong integration of mingled activities. Strategy should have sustained direction.Customer Value Positioning ModelA Successful business is always based on its infusion of the target customers for value positioning. Customers dirty dog be roughly divided into troika types, but for different customers have different types of value positioning re lookative Customers ar e interested in up-to-dated, modern product. Organizations which meet the need of these customers go off orient the value on product leadership. For example, Microsoft, Hp.Customers prefer efficient products and services. They prefer convenient purchase and high shade service. The organizations which aim at this target conclave of customers orient the value on operational morality. For example, Wal-Mart, Fed-Ex.Customers want to get exactly what they need, even if they have to pay a higher cost or wait a little longer. Companies which take care these types of customers are committed to improving customer intimacy. For example, Honda, British Airways.The implementation of Customer Value StrategyOnce the customer value strategy is established, the company must fit the implementation of the strategy by committing everyone in the workplace to its objectives and building support system for it. For this the business must ensure the followings1.Strengthening direction for core com petencyThe practice of a strong counsel system is a prerequisite for achieving customer value. A dynamic management system is needed so that the value strategy can be effectively implied.2.Establishing culture of the company based on customer value In order to achieve the strategic objectives of a company, it is infallible to organise a culture based on customer value so that the idea of customer value is deep in the heart of everyone in the workplace.3.Establishing a highly integrated value systemA highly integrated value system means companys self-reinforcing system of various activities.4.Establishing an effective performance measuring systemWhile implementing customer value strategy, companies continuously measure the performance with goal. Therefore, company should have an effective performance measuring system so that any deviation can be analyzed carefully.5.Establishing the communicate marketing systemWith the help of network marketing system companies can understand cus tomers needs in a better way and thus can intone the implementation of customer value strategy.HypothesisRajagopal (2006) has established some shot regarding customer value. They are as follows Higher perceived value acquired by the customer help consumers to determine their buying decision on the non-conventional products of strange labels in the market.The brand value of the product is enhanced by evolution the communication tools effectively by the firm which help augment the customer value by marginalizing the gap betwixt consumer perception and product attributes.The brand value, quality of the product, competitive advantage and price along with other relative variables determine the customer value.The product attractiveness combined with the effective informational sharing and retailing services help augmenting by providing competitive advantage.Here are some other hypothesis by Weinstein and Abratt (2009) There is a evidential correlation between service received fro m a professional service and customer retention. There is a significant correlation between quality received and customer retention. There is a significant correlation between the image of a professional service and customer retention. There is a significant correlation between the prices charged and customer retention. There is a significant correlation between overall value received from a professional service and customer retention.PropositionsAndreassen (1997) has made some propositions on customer value. They are Perceived quality is believed to have a positive move on value Perceived quality and value are believed to have a positive impact on customer satisfaction.Methods of customer value assessment pile, Dipak & Pradeep (1993), introduced some methods for assessing customer value. They are as followsInternal technology assessmentField value-in-use assessmentIndirect survey questionsFocus group value assessment.Direct survey questionsConjoint analysisBenchmarksCompositional ariseImportance ratingsCustomer Lifetime Value correspond to Phillip, Mark & Robert (2004), Customer Lifetime Value is the present value of the future cash flows attributed to customer relationship. Therefore, Customer Lifetime Value (CLV), also known as Lifetime Customer Value (LCV) or Lifetime Value (LTV) is the net present value of the cash flows recognized from the relationship with a customer. This is a logical argument to determine exactly how much a customer is worth in monetary terms and therefore exactly how much a marketing department should be willing to spend to acquire each customer.According to Jason, Ashutosh and Roberto (2010), CLV makes it possible to explicitly link long-term monetary returns to marketing actions. They think that CLV has been gaining significance for two reasons First, many traditional marketing metrics are not sufficient to evaluate return on marketing investments. Second, customers are not equally profitable. So, it is necessary to understand customer value at individual(a) level which can be make with the help of CVL. CLV is typically used to calculate the cost of acquisition of a customer. For example, if a new customer costs 50000 TK to acquire and his or her lifetime value is 60000 TK, then the customer is considered to be profitable.FINDINGS1.Customer value helps to amplify & manage customer relationship 2.Customer expectation and customer satisfaction are closely related with customer value 3.There are some principles of strategic positioning which can be applied in doing things differently from the competitors and transferring different values to the customers 4.Success in business depends on selection of the target customers for value positioning. 5.The practice of a strong management system is needed for achieving customer value.6.Developing a culture based on customer value is necessary to achieve the strategic objectives of a company. 7.A highly integrated value system & effective performance measuring sy stem is important for the implementation of customer value strategy. 8.Network marketing system helps to understand customers needs in a better way 9.Some hypotheses established by various scholars are helpful for delivering superior customer value. 10. Important methods should be followed for assessing customer value 11.Customer Lifetime Value explicitly links long-term financial returns to marketing action. It also helps to understand customer value at individual level.BIBLIOGRAPHY1.Komulainen Hanna Mainela Tuija Tahtinen Jaana Ulkuniemi Pauliina (2004) Exploring Customer Perceived value in a Technology intensifier Service Innovation, volume 20, paginate 27. 2.Ravald Annika Gronroos Christian, (1996),The Value Concept and birth Marketing, volume 30, page 12.3.Lia Chia Chi(2003) The role of Customer perceived value in Generating Customer Satisfaction An E-business perspective volume 5, page 15. 4.Lam Shun Yin Shankar Venkatesh Erramilli and Murthy Krishna Bvsan, (2004), Customer value, Satisfaction, Loyalty and Switching cost An illustration from a Business to Business Service Context, volume 32, page 20. 5.Rajagopal, (2006), shuffling value, Preferences and Customer value effect of Non-conventional utility products An experimental analysis in Mexican market, page 23. Weinstein Art and Abratt Russel(2009) Marketing Intelligence & readying Volume 27 No. 5 page 19, 2009 6.7. Andreassen Tor Wallin (1997) The International ledger of Service Industry Management, volume. 8, No 4, rapscallion 33Anderson James C. Jain Dipak C. & Chintagunta Pradeep K.(1993), Journal of Business to Business MarketingVolume 1(1) , paginate 29Pfeifer Phillip E., Haskins Mark E. & Conroy Robert M. Journal of Managerial Issues (2004) page 25Zhang Jason Q. , Dixit Ashutosh and Friedmann Roberto (2010), Journal of Marketing Theory and Practice Volume 18 no. 2, Page 13 7.8.www.wikipidia.com