Customer value
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The document discusses the concept of creating, communicating, and delivering value to customers at a profit (CCDVTMP). It outlines four steps in the value providing process: value selection, value creation/delivery, value communication, and value enhancement. The goal is to provide benefits that exceed costs for customers in order to increase their satisfaction and build competitive advantage.
Customer value
- 1. Creating ,communicating and delivering value to target market at a profit(CCDVTMP)
- 2. Value. • Reflects the sum of the perceived tangible and intangible benefits and costs to customers qsp QUALITY SERVICE PRICE
- 3. Benefit--- Value---Cost----Satisfaction Value is subjective and relational
- 4. Value can be enhanced • Increasing the functionality of the product. • Reducing the price • Giving better service support • Giving the customer easy access to the product • Offering beneficial communication
- 5. 4 steps in value providing process • Value selection • Value creation/ value delivery • Value communication • Value enhancement
- 7. Value selection • Marketing planning • Buyer analysis • Market segmentation • Market targeting
- 8. Value creation/ value delivery • Product development • Manufacturing • Service planning • Pricing • Distribution • Servicing
- 9. Value communication • Making a value proposition • Communicating the value proposition
- 10. Value enhancement • Marketing research • Marketing control CUSTOMER SATISFACTION
- 11. CUSTOMER PERCEIVED VALUE TOTAL CUSTOMER COST TOTAL CUSTOMER BENEFIT Monetary cost Time cost Energy cost Psychological cost Image benefit Personnel benefit Service benefit Product benefit
- 12. MODERN CUSTOMER- ORIENTED ORGANISATION CHART CUSTOMERS Front line people Middle management Top management C U S T O M E R S C U S T O M E R S
- 13. VALUE CHAIN popularized by Michael Porter in 1985, Competitive Advantage: Creating and Sustaining Superior Performance.
- 14. A value chain is a set of activities that an organization carries out to create value for its customers
- 15. • The value that's created and captured by a company is the profit margin • Value Created and Captured – Cost of Creating that Value = Margin • The more value an organization creates, the more profitable it is likely to be. And when provide more value to customers , the company build competitive advantage.
- 16. • Porter's Value Chain focuses on systems, and how inputs are changed into the outputs purchased by consumers. Porter described a chain of activities common to all businesses, and he divided them into primary and support activities.
- 17. Michael Porters -Value chain
- 18. Primary Activities • Inbound logistics • Operations • Outbound logistics • Marketing and sales • Service
- 19. Support Activities • Procurement (purchasing) • Human resource management • Technological development • Infrastructure
- 20. • Companies use these primary and support activities as "building blocks" to create a valuable product or service.
- 21. Core business processes • The market sensing process • The new offering realization process • The customer acquisition process • The CRM Process • The fulfillment management process
- 22. • A customer value chain is a business concept that represents the creation of value for a customer • Customer value chain puts the emphasis on steps taken to retain existing customers. Result in existing customers recommending the product and manufacturer to friends and colleagues. • Customer value chain analysis involves breaking down every step that contributes towards the end satisfaction of the customer • customer value chain is to concentrate on the steps that lie between the finished product and the customer.
- 23. • Customers will choose a product based on their perceived value of it. Satisfaction is the degree to which the actual use of a product matches the perceived value at the time of the purchase. A customer is satisfied only if the actual value is the same or exceeds the perceived value