Join Your Exam WhatsApp group to get regular news, updates & study materials HOW TO JOIN

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

Value and Satisfaction for Marketing Management MCOM Sem 2 Delhi University : A marketing strategy is a written plan that includes marketing topics like product development, promotion, distribution and pricing approach. It identifies company’s marketing goals and explains how company can achieve those goals. Marketing strategies help in identifying strengths and weaknesses of the company and that of its competitors. Marketing strategy helps to identify the areas on which the company has to focus its marketing tactics.

Customer value is the bundle of benefits that customers expect from a given product or services. Customers buy products they perceive to offer the highest customer delivered value. They are value maximizers . Value reflects the perceived tangible and intangible benefits and costs to the customer. It can be seen as a combination of Quality, Service and Price. Kotler calls it as the customer value triad (QSP). Value increases with quality and services and decreases with price. Value is a central marketing concept. Marketing can be seen as the identification, creation, communication, delivery and monitoring of customer value. 

Value is fundamental to the marketing process. It is what the customer thinks is value and not the company. Hence customer analysis is vital for a company in finding out what is the value to the customer. Customer often judge perceived value rather than judge value and cost accurately and objectively. “Customer perceived value is the customer’s evaluation of the difference between all the benefits and all the costs of a marketing offer relative to those of competing offers.” – Philip Kotler Customer perceived value refers to the bundle of benefits that are tangible as well as intangible which the customer considers/imagines in a product/offer. 

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

FEATURES OF CUSTOMER VALUE

1. Customer perceived: Value is what the customer thinks is value and not the company. Many a times company face downslide in its market share due to wrong assumption on the part of the company. For example P& G’s Pringles (potato chip) did not create any customer value though the company assumed that the customer would be delighted with better product attributes- better shelf life and no breakage. The customer perceived these attributes to be of less significant value. They were reluctant to pay a price premium of 10 percent. As a result Pringles venture failed when they introduced the product for the first time in the market.

2. Customer analysis: Creating customer Value needs in-depth customer analysis. It is useful in marketing to find out what is of value to the customer. Customer survey identifies customers’ perceptions of the product performance. It is essential to undertake customer’s survey that indicates customers’ perception towards performance rather than just relying on the need to improve the business/product performance.It is essential to find out what attributes customers considers as significant value. Identify the importance of these attributes to the customers and the extent to which the product deliver on these attributes. These should be subsequently included in the market offer to enhance value.

3. Identifying right attributes: It is essential to find out what attributes customers considers as significant value. Identify the importance of these attributes to the customers and the extent to which the product deliver on these attributes. These should be subsequently included in the market offer to enhance value.

4. Tangible or/and intangible: Value reflects the perceived tangible and intangible benefits. Tangible benefits may be in the form of improved product quality, better price etc. intangible benefits may take the form of better services.

5. Central marketing concept: Value is essential in marketing process as the marketing programs arc developed considering the perceived customer value. Value facilitates in developing marketing program. The success of the marketing program (marketing mix) depends on the whether the product creates customer value.

6. Developing pricing strategies: While pricing, the product, companies need to know the customer value perception and according fix the price. Price of the product should not be based only on the cost of the product but considering customers value is essential.

7. Customer satisfaction: Customer satisfaction index acts as an important tool to find out the customers perception of value delivered to him. After using the product the customer would be able to judge whether the product actually delivered has created the value as perceived by him. In short it is simply comparing the performance of the product with the expectation. 

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

CREATING CUSTOMER VALUE

Customer value can be perceived either from customer’s perspective or from firm perspective. The conventional model of value creation process is highly firm oriented where emphasis is laid on innovation to gain competitive advantage. The contemporary model places importance to customer in the whole value creation process to gain competitive edge. The new dynamics of value creation goes beyond the conventional method. Creating customer value has to be necessarily perceived from customer’s point of view. Developing customer’s value centers on creating a value system wherein all business partners-the suppliers, customers, dealers, and allies work jointly to create value.

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

Creating customer value involves the following areas :

1. Product and Service quality : Creating customer value requires company to produce products that satisfies customer needs. Conformance to quality involves delivering the products as promised. It Includes emphasizing on marketing quality along with production quality which will help in creating customer value. In short it is the product quality as well as service quality which should be given importance. Each marketing activity such as marketing research, sales training, advertising and so on must be performed to high quality standards. This will create a positive image in the customer’s mind.

2. Customer satisfaction : Customer satisfaction is prerequisite in creating customer value. It is the person’s feelings of pleasure resulting from comparing products perceived performance in relations to the expectations. The success of any business largely depends on the satisfaction of its customers. A satisfied customer is an asset to the firm and an unpaid sales ambassador of a company. Understanding the needs of customers is essential for customer satisfaction and retaining them.

3. Quality and value relative to competition: Developing a set of product specifications and standards for services that meet customer needs better than competitors helps in creating customer value. The customer pays for the perceived quality rather than the quality the company wants customer to believe in. Marketing perceived quality will help the firm in creating customer value thereby ensure repeat purchases, stronger customer loyalty and improved market share. In order to face competition and form a formidable defense against competitors and create customer value, the firm need to understand customer perception of competitors, build up customer’s value chain or supply chain, personalize experiences and so on.

4. Customer value management: Managing customer value is equally important as creating them. The customer should be willing to pay for the purchase and consumption of services. The perceived value in offer should be perceived as superior and relevant by the customer. The firm should constantly try and create and deliver value to the customer through frequent interactions with its customers i.e. customer relationship management.

5. Other areas:

  • Innovations
  • Convenience in product acquisitions
  • Convenience in product usage
  • Value for money propositions
  • Brand image

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

COMPONENTS OF CUSTOMER VALUE

Components of customer value can be classified as tangible (quantifiable values) and intangible (non quantifiable and psychological values).

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

A. Tangible Values Tangible values include :

1. Functional Values refer to the core aspect of the product and the ability of the product to satisfy a given need of the customer. Marketers often use factors such as reliability, usefulness, durability, performance, resale value, maintenance to enhance their functional values.

2. Aesthetic /Sensory Values refers to artistic, visual aspect of the product which the appeals to the customer.

3. Convenience values refer to easy availability, usability, application of the product. The success of Microsoft was due to the windows software which was considered to be quite customer friendly as perceived by the users.

4. Economic values are values perceived to benefit the customer based on the price advantage. 5. Service Values refer to perceived value relating to the promptness and quality of service. Maintaining good customer relationship enhances the service value of customers.

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

B. Intangible Values Intangible Values Include :

1. Social Values refer to value in a product that reflect socially desirable and acceptable product. Environmentally friendly products normally reflect social value.

2. Status Values refer to product ability to meet the customers’ sense of esteem, prestige. Most of the products catering to luxury segment emphasize on the status value of the product to enhance customer value.

3. Sentiment Values refer to a product’s capacity to stimulate some feelings, emotions, nostalgia while using the products.

4. Belief Values refer to the values which the product reflects in tune with the customer belief and sentiments. Anchor toothpaste with its ‘vegetarian’ proposition enhance belief in the minds of the customers. Both the tangible value and intangible perception are equally important in the process of creating customers perceived value. 

Value and Satisfaction for Marketing Management Mcom Sem 2 Delhi University

TO DOWNLOAD SYLLABUS CLICK HERE DU MCOM SEMESTER 2 SYLLABUS

TO DOWNLOAD PDF CLICK BELOW

For more on Value and Satisfaction for Marketing Management MCOM Sem 2 Delhi University log onto www.cakart.in

YOU CAN EVEN DOWNLOAD PDF CHECK HERE MARKETING STRATEGIES AND PLAN book

CAKART provides India’s top MCOM faculty video classes – online & in Pen Drive/ DVD – at very cost effective rates. Get MCOM Video classes from CAKART.in to do a great preparation for your exam.
 
Watch MCOM first year sample video lectures  visit www.cakart.in
Watch MCOM Second year sample video lecture  visit www.cakart.in
Watch MCOM Third year Sample video lecture  visit www.cakart.in

Leave a comment

Your email address will not be published. Required fields are marked *