Customer value


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Customer value

  1. 1. Creating ,communicating and delivering value to target market at a profit(CCDVTMP)
  2. 2. Value. • Reflects the sum of the perceived tangible and intangible benefits and costs to customers qsp QUALITY SERVICE PRICE
  3. 3. Benefit--- Value---Cost----Satisfaction Value is subjective and relational
  4. 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. 5. 4 steps in value providing process • Value selection • Value creation/ value delivery • Value communication • Value enhancement
  6. 6. Value selection • Marketing planning • Buyer analysis • Market segmentation • Market targeting
  7. 7. Value creation/ value delivery • Product development • Manufacturing • Service planning • Pricing • Distribution • Servicing
  8. 8. Value communication • Making a value proposition • Communicating the value proposition
  9. 9. Value enhancement • Marketing research • Marketing control CUSTOMER SATISFACTION
  10. 10. 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
  11. 11. 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
  12. 12. VALUE CHAIN popularized by Michael Porter in 1985, Competitive Advantage: Creating and Sustaining Superior Performance.
  13. 13. A value chain is a set of activities that an organization carries out to create value for its customers
  14. 14. • 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.
  15. 15. • 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.
  16. 16. Michael Porters -Value chain
  17. 17. Primary Activities • Inbound logistics • Operations • Outbound logistics • Marketing and sales • Service
  18. 18. Support Activities • Procurement (purchasing) • Human resource management • Technological development • Infrastructure
  19. 19. • Companies use these primary and support activities as "building blocks" to create a valuable product or service.
  20. 20. Core business processes • The market sensing process • The new offering realization process • The customer acquisition process • The CRM Process • The fulfillment management process
  21. 21. • 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.
  22. 22. • 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