Customer Value Marketing Essay

This underwrite base on the study of node Value Marketing starts with instauration class. We make up mentioned the contents of the study in objectives of the report section. The methodology section deals with the means of preparation of this report and the processes that we have followed. Then the report describes the metaphysical aspects of the study in the literature review. This section mainly consists of brief verbal description about unalike important topics about client c ar for selling. eventu wholey in the last section, the report is concluded with findings, bibliography and accompaniment over the topic. The appendix section contains or so International ledgers on client nurture marketing. innovationTodays marketing process is highly guest focused. It is all about creating node entertain and building profitable customer consanguinity. customers be at the center of marketing process. The main theme of marketing is to pretend customer survey and to capt ure esteem from customers in return. The goal of every marketer is to create more survey for customers. guests usually face a broad array of increases and service of processs that might satisfy a stipulation need. Among these products or services, customers have to choose the products that gift them optimum range and satisfaction. That is why creating customer prize is considered to be the most important task to be performed by marketing today.The marketers do it through customer prise livery governance, a governing body of rules which is made up of the rate manacles of a caller-out and its suppliers, distributors and ultimately 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 strategy. The proper execution of instrument of this strategy will give customers a perceived value, therefore, satisfaction. While buying a product or service, a customer is buying s atisfaction. Highest value is derived when a customer is fully satisfied with his or her acquire. 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 avocation. Hence, todays marketing needs to be based on the concept of customer value.OBJECTIVES OF THE REPORTThis report mainly discusses the following subjects customer ValueCustomer Value strategyCustomer Value Positioning ModelThe death penalty of Customer Value dodgeHypothesis Regarding Customer valuePropositions on Customer ValueMethods of Customer Value AssessmentCustomer sprightliness ValueMETHODOLOGY OF THE REPORTThe report in this study is basically a descriptive one. Here, both the primary and the secondary data are been used. The primary data has been collected from lectures given on this topic in the classroom. The secondary sources of data are ou r textbooks, various international journals & axerophthol distinguishable websites.LITERATURE REVIEWCustomer value strategyCustomer value strategy is doing things differently from the competitors and transferring different values to the customers. at that place are sise principles of strategical locating. They are Strategy should have the right objectives.The value of positioning should be distinguished from the competitors. Strategic designateing should be reflected from the unique value chain. In order to pursue the uniqueness in certain areas, we must(prenominal) give up some of the other characteristics of products, services or activities. Strategy should enable the effective integration of various activities. Strategy should have prolong direction.Customer Value Positioning ModelA Successful business is always based on its selection of the target customers for value positioning. Customers earth-closet be roughly divided into three types, but for different customers have different types of value positioning model Customers are interested in up-to-dated, modern product. Organizations which meet the needs of these customers pot point the value on product leadership. For example, Microsoft, Hp.Customers prefer cost-effective products and services. They prefer convenient purchase and high tone of voice service. The organizations which aim at this target group of customers orient the value on operational excellence. For example, Wal-Mart, Fed-Ex.Customers want to get but what they need, even if they have to pay a higher cost or wait a little longer. Companies which serve these types of customers are committed to improve customer intimacy. For example, Honda, British Airways.The implementation of Customer Value StrategyOnce the customer value strategy is established, the company must operate the implementation of the strategy by committing everyone in the workplace to its objectives and building confine system for it. For this the business must en sure the followings1.Strengthening management for core expertnessThe practice of a strong management system is a undeniable 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 make the strategic objectives of a company, it is necessary to develop 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 compound value systemA highly integrated value system means companys self-reinforcing system of various activities.4.Establishing an effective execution measuring systemWhile implementing customer value strategy, companies continuously mensuration the performance with goal. Therefore, company should have an effective performance measuring system so that any deviation can be analyzed carefully.5.Establishing the cyberspace marketing systemWith the spo nsor of network marketing system companies can understand customers needs in a interrupt way and thus can strengthen the implementation of customer value strategy.HypothesisRajagopal (2006) has established some supposition regarding customer value. They are as follows Higher perceived value acquired by the customer religious service consumers to take care their buying decision on the non-conventional products of unfamiliar brands in the market.The brand value of the product is enhanced by developing the communication tools effectively by the firm which help augment the customer value by marginalizing the scuttle amid consumer perception and product attributes.The brand value, quality of the product, competitive returns and price along with other relational variables go down 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 significant correlation in the midst of service received from a master copy 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 tinge on value Perceived quality and value are believed to have a positive impact on customer satisfaction.Methods of customer value assessmentJames, Dipak & Pradeep (1993), introduced some methods for assessing customer value. They are as followsInternal engineering assessment field of force value-in-use assessmentInd irect survey questionsFocus group value assessment. lead survey questionsConjoint analytic thinkingBenchmarksCompositional approachImportance ratingsCustomer liveliness ValueAccording 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 ( 155), 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 parameter to determine exactly how much a customer is worth in financial terms and therefore exactly how much a marketing section should be willing to spend to acquire each customer.According to Jason, Ashutosh and Roberto (2010), CLV makes it possible to explicitly link long financial returns to marketing actions. They think that CLV has been gaining significance for two reasons First, many traditional marketing rhythmic pattern are not suffici ent to evaluate return on marketing investments. Second, customers are not equally profitable. So, it is necessary to understand customer value at individual level which can be done 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 lifespan value is 60000 TK, then the customer is considered to be profitable.FINDINGS1.Customer value helps to develop & 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 necess ary to achieve the strategic objectives of a company. 7.A highly integrated value system & effective performance measuring system 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 engine room Intensive Service Innovation, book of account 20, rascal 27. 2.Ravald Annika Gronroos Christian, (1996),The Value image and Relationship Marketing, volume 30, rogue 12.3.Lia Chia Chi(2003) The role of Customer perceived value in Generating Customer S atisfaction 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 simile from a craft to Business Service Context, volume 32, page 20. 5.Rajagopal, (2006), Brand 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 information & Planning Volume 27 No. 5 page 19, 2009 6.7. Andreassen Tor Wallin (1997) The International Journal of Service Industry Management, volume. 8, No 4, foliate 33Anderson James C. Jain Dipak C. & Chintagunta Pradeep K.(1993), Journal of Business to Business MarketingVolume 1(1) , Page 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 praxis Volume 18 no. 2, Page 13 7.8.www.wikipidia.com