CUSTOMER VALUE

What is value
Defines the relationship between what the
customer pays and what he or she receives
in return
Benefits/Sacrifices
Customer Perceived Value
 Value Delivery Process
Market assessment
Assessment of needs, wants, market research
Choosing value
STP/branding
Designing value
Decisions related to product and the price
Delivering Value
Distribution and access
Communicating Value
Promotion
The Value Chain
Achieving customer value
Value Delivery Strategies
Customization
Avoiding a ‘one size fits all’ approach
Providing additional benefits
Product service bundling
Free warranties
Service Level Agreements
‘At your place’ maintenance
Free returns
Branding
Service Quality
Symbolic Value

How I see
Typical User
myself

How I Want to
be seen by
Others
Value FROM customers
Cultivationof committed relationships with
consumers/customers
Repeat patronage
Cross selling
Brand extensions
Database marketing efforts
Regular information sharing
Development of trust
Satisfaction
Pleasure or disappointment in comparing the
expectations and outcomes
Expectations not met: Disappointment
Expectations met: Satisfaction
Expectation exceeded: Delight
Reid & Taylor
OR?
For example
Another example
Dealing with Competition
Dependent on whether the company is the
market leader or not
Market leader expands its presence in the
market
OR
Market leader seeks to defend its position as
the market leader
Market Challenger Strategies
Market Follower strategies
How to deal with the leader?
Frontal attack
Attacking on all aspects
The one with greater resources wins
Flank Attack
Identifying shifts which cause gaps and fill those
gaps
Niche Marketing (Nicher strategy)