TOPIC 1B

CUSTOMER VALUE
How does marketing
affect customer
value?
 CUSTOMER VALUE
• C V - is the ratio of • Creating customer
benefits to the sacrifice value is the core
necessary to obtain business strategy of
those benefits many successful firms

Marketers create customer value by doing the following:

a. offer products that perform

b. give customers more than what they expect
c. avoid unrealistic pricing
d. give buyers facts
e. offer good service commitment and after sales support
 MARKETING AND CUSTOMER VALUE

The Value Delivery Process

The
Choosing Providing Communicating Value
(or identifying) (or delivering) superior value Delivery
Process
TWO VIEWS OF THE VALUE DELIVERY
PROCESS
 Why Value
Creation and
Delivery Process?

In a hypercompetitive economy with

increasingly rational buyers faced with
abundant choices, a company can win
only by fine-tuning the value delivery
process and choosing, providing, and
communicating superior value.
MARKETING AND CUSTOMER VALUE
The Value Chain

• A tool for
identifying key activities that
create value and costs in a specific business.
• A tool to identify ways
to create more customer value.
 Examine costs &
performance in
each activity and
improve it

The Generic Value Chain

MARKETING AND CUSTOMER VALUE
Core Competencies
• Outsource less critical resources if can have
better quality or lower cost
• Own resources & competencies that make
up their core business

Eg: Nike does not manufacture own shoes

Asian firms more competent
Nike’s 2 core competencies
- shoe design & merchandising
MARKETING AND CUSTOMER VALUE

Core Competencies
3 Characteristics:
1. Competitive advantage
2. Applications in many markets
3. Difficult for competitors to imitate
 MARKETING AND CUSTOMER VALUE
Core Competencies

Asian companies –
core competence:
• Expand quickly to capture global market
opportunities
• Become asset light by using intangibles
 MARKETING AND CUSTOMER VALUE
Holistic Marketing
Orientation &
Customer Value

3. Value delivery –
1. Value exploration deliver more
– new opportunities efficiently?
2. Value creation –
new offerings?