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1. Customer Analysis

2. Customer Feedback

Specific value judgments

Satisfaction and unhappiness with purchase

Choice decisions

3. Customer: Competitive Advantage

What values are they seeking?

How well do we perform compared to our
competitors?

What are the sources of perceived differences?

4. Step 1: Identify the customer

Who is the customer?

Customer and Consumer

Decision Making Roles
− Initiator
− Influencer
− Decider
− Buyer
− User

5. Step2: Determining customer value

What are the attributes that create value?

Core and augmented product.

Dissecting the value equation

Identifying if perceived benefits exceeds total costs

Customer's perceived benefits – Customer's Cost of
product or service = Perceived value.

6. Value is the Ratio of
Perceived Benefits to Price
Value
Economic
Value
Perceived
Value
Willingness/Ability
to-pay
Price
Costs
Product (centric)
differentiation increases
economic benefits of
the offering
Marketing (customer- &
brand-centric)
differentiation tends to
increase the perceived
value of the offering
Cost leadership
decreases the costs
(& price) of the
offering
Price
Costs
Price
Costs

7. Step 3: Customer comparison to
competitor
Concentrate here Keep up the good
work
Low priority Possible overkill
parity superior
inferior
high
low
Importance of
product attributes
parity superior
inferior
Customer ratings of our product relative to competitors

8. Step 3: Positioning Maps
Class
car/distinctive
Practical car
affordable
Conservative
looking
appeals to
Older people
Spirited
Performance
Appeal to
young people
BMW
Porsche
Toyota
Chevrolet
VW
Ford
Mercedes
Cadillac
Chrysler
(Source: Chrysler 1984 survey)

9. Step 4: What are the sources of
advantage?

Customers may be lost

Gaps in price range, features or functions

Gaps in coverage

Merchandise or customer contact gaps.

10. Step 4: What are the sources of
advantage?

Customers may be lost

Gaps in price range, features or functions

Gaps in coverage

Merchandise or customer contact gaps.