Customer Value in Marketing - What is this value all about in marketing? Value is the most important term in marketing I call it the V factor you already know V is the victory factor and the same is the case in marketing as far as value is concerned.
If you understand the value you will be victorious in marketing for becoming a good market where you need to understand what kind of value you are providing to the customers. Let us look at a quotation given by Robert Dolan he said the central role of marketing in the enterprise stems from the fact that marketing is the process by which a foam creates value for its chosen customers thus marketing revolves around value if you go through the AMA definition of marketing then also you understand that marketing is tied in with making conveying and trading contributions that have an incentive for clients partners and society at large value in marketing is also known as customer perceived value and we also talked in terms of customer value and it is all the same.
So whether you talk about the value you talk about customer value or you talk about the customer perceived value it is all the same but before I go on explaining the term at few examples you are in the market to buy a smartphone and you have got so many choices you have got Apple you have got Samsung you have got Micromax you have got lava you have got carbon so many choices are there now which brand provides more value to you now that is a question let us take one more example you want to buy a car you have got choices ranging from Mercedes to afford to a Maruti Suzuki now the question is which provides more value to you now comes the next question if Maruti provides more value to the customer then why does a consumer buy a Mercedes or even BMW or why are you more interested in buying an apple than a Micromax for answering the same.
You need to understand what is valuable and you need to remember all these companies are successful in the market it means they are providing right kind of value to their customers in the market and that is why they are very very successful. One more thing you need to understand that value is subjective and these companies are providing value to their segment of customers now we need to understand. What is the value?
Value is very simple to understand value means benefits versus cost value may be expressed as a straight forward relationship between benefit versus the cost that is the perceived benefit and the perceived cost now the ratio between consumers perceived benefits and the resources used to obtain these benefits will define what kind of value is provided by the company.
Now benefits may be economic functional or psychological and resources include the money you pay in rupee or dollar terms and the time and effort you expend in the process of buying now value in marketing can be defined by both qualitative and quantitative measures on the qualitative side value is the perceived gain composed of individuals, emotional, mental and physical condition plus various, social, economic, cultural and environment factors now on the quantitative side, value is the actual gain measured in terms of financial numbers percentages and dollars or rupees that's why Mark is so Yuki food as well as Mercedes or BMW provide value to the our customers while the price may be ranging from three lakhs rupees to one crore rupees depending upon the market segments these companies are providing value to the customers .
One more thing you need to remember value is dynamic in nature the value proposition of your product or service may change in accordance with the changes in the competitor's product or service offerings as the perceived value from the customers perspective may change thus the value creation done by the company is an ongoing process.
The company needs to sustain this process over a period of time then only they can be successful in the market that's why you need to be aware of the market situation and your value is also affected by your competition that's why you need to understand the competition better so that the company's marketing strategy should look at creating the value on a sustainable and continuous basis and that's why it is said that value is created by meeting customer needs and thus a foam must define itself not by the product it sells but by the customer benefits provided.
If you understand the value you will be victorious in marketing for becoming a good market where you need to understand what kind of value you are providing to the customers. Let us look at a quotation given by Robert Dolan he said the central role of marketing in the enterprise stems from the fact that marketing is the process by which a foam creates value for its chosen customers thus marketing revolves around value if you go through the AMA definition of marketing then also you understand that marketing is tied in with making conveying and trading contributions that have an incentive for clients partners and society at large value in marketing is also known as customer perceived value and we also talked in terms of customer value and it is all the same.
So whether you talk about the value you talk about customer value or you talk about the customer perceived value it is all the same but before I go on explaining the term at few examples you are in the market to buy a smartphone and you have got so many choices you have got Apple you have got Samsung you have got Micromax you have got lava you have got carbon so many choices are there now which brand provides more value to you now that is a question let us take one more example you want to buy a car you have got choices ranging from Mercedes to afford to a Maruti Suzuki now the question is which provides more value to you now comes the next question if Maruti provides more value to the customer then why does a consumer buy a Mercedes or even BMW or why are you more interested in buying an apple than a Micromax for answering the same.
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| VALUE IN MARKETING |
You need to understand what is valuable and you need to remember all these companies are successful in the market it means they are providing right kind of value to their customers in the market and that is why they are very very successful. One more thing you need to understand that value is subjective and these companies are providing value to their segment of customers now we need to understand. What is the value?
Value is very simple to understand value means benefits versus cost value may be expressed as a straight forward relationship between benefit versus the cost that is the perceived benefit and the perceived cost now the ratio between consumers perceived benefits and the resources used to obtain these benefits will define what kind of value is provided by the company.
Now benefits may be economic functional or psychological and resources include the money you pay in rupee or dollar terms and the time and effort you expend in the process of buying now value in marketing can be defined by both qualitative and quantitative measures on the qualitative side value is the perceived gain composed of individuals, emotional, mental and physical condition plus various, social, economic, cultural and environment factors now on the quantitative side, value is the actual gain measured in terms of financial numbers percentages and dollars or rupees that's why Mark is so Yuki food as well as Mercedes or BMW provide value to the our customers while the price may be ranging from three lakhs rupees to one crore rupees depending upon the market segments these companies are providing value to the customers .
One more thing you need to remember value is dynamic in nature the value proposition of your product or service may change in accordance with the changes in the competitor's product or service offerings as the perceived value from the customers perspective may change thus the value creation done by the company is an ongoing process.
The company needs to sustain this process over a period of time then only they can be successful in the market that's why you need to be aware of the market situation and your value is also affected by your competition that's why you need to understand the competition better so that the company's marketing strategy should look at creating the value on a sustainable and continuous basis and that's why it is said that value is created by meeting customer needs and thus a foam must define itself not by the product it sells but by the customer benefits provided.
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