Customer Relationships And Value Of Marketing

The essence of marketing is value creation, where the goal is a long-term satisfaction by building relationships and attracting new customers by offering better value than the competition. Because marketing is based on exchanges where the objective is for all parties in the exchange to feel satisfied and gain some kind of value (Jobber and Ellis-Chadwick, 2013).

Customer Value is ‘the performance characteristics, features and attributes, and any other aspects of goods and which customers are willing to give up resources’ (Robbins, Bergman, Stagg and Coulter, 2012). This broad definition highlights the fact that there are multiple aspects that contribute to create a sense of value within the customer.

Losing a customer means a lot more than losing a sale, it means losing the entire future stream of purchases that the customer would make over a lifetime of patronage. There are a number of reasons why a customer may stop buying from a company; very often though that reason is linked to poor customer service as opposed to something inherently wrong with the brand itself. Customer relationships give companies a competitive edge based on the merit that if consumers are happy more often than not those consumers will continue to do business with said company. A recent study conducted by TD Canada’s customer loyalty poll asked consumers which form of appreciation are

Zeithaml (1988, as cited in Smith & Colgate, 2007, p. 8) defined customer value as

Marketing is a management function which involves creating, communicating and delivering value for an organisation’s customers (Kotler, Brown, Burton, Deans & Armstrong (2010). Although many earlier academics define marketing as merely a process of satisfying customer needs in order to gain profits, more recent developments of the definition include its inherent connection with delivering superior value to customers in order to maintain ongoing relationships (Webster, 1992).

In current consumptive environment, most people tend to spend billions on expensive and luxury products either in physical store or online. However, what drives buyers continually purchase such excessive amounts of money on these goods and services? Therefore, every marketing strategy likely to increase intangible value of its products as it is important to either profit-seeking companies or non-profit organization. Intangible value itself means value that is incapable of being perceived by touched or cannot be seen. Accordingly, by adding intangible value on their products, it intends to assure customers – either individuals or organizations - what they spent on goods and services are profitable.

This report aims to find out the relationship between customer value and marketing. In particular, it focuses on the necessity of marketing and the composition of customer value, research on the connection between these two concepts. In particular, it indicates four elements of a market, which are price, place, products, and promotion (4Ps). The other vital part of a market is customer value, it has been divided into instrumental value, hedonic value, expressive value and cost value. Customer value and marketing connect to each other through the supplier help people do better- buying decision and improve products through the customer value.

For an organization to beat the competition, they need to understand what the consumer wants. Marketing concepts are based upon consideration on what the organization’s customers need and nourishing these needs better than the

ANSWER:MARKETING AND CUSTOMER VALUE Marketing involves satisfying consumers’ needs and wants. The task of any business is to deliver customer value at a profit.

In today’s modern era, the world is moving faster than ever, every organization is running a race of gaining maximum market share, and so as the customers, for their organization’s long-term growth but only those companies who transform themselves according to the need and requirement of the customers are able to achieve success and profit they desire and that’s what exactly said by Theodore Levitt (Head of the Marketing area at the Harvard Business School) in his article “The Marketing Imagination”.

This paper aims to explain the relationship between marketing and customer value and their relevance when promoting and ensuring customer satisfaction. It will discuss marketing as a business philosophy and its importance in organisations. The concept of customer value will also be examined and its significance to the success of a product. Throughout the paper, the Apple Watch will be drawn on to further explore the concepts and to put them into context.

The process of communicating the value of a product or service to customers, for the main purpose of selling that product or service is known as marketing. The science of choosing target markets through market segmentation and analysis, and understanding consumer behavior while providing superior customer value to the customers is termed as Marketing Management. It can be looked at as one of the most important of the organizational functions and a set of processes for creating, communicating and delivering the value to their customers or potential customers, and a customer relationship management that benefits the organization in a variety of ways.

Value is considered to be an important constituent of marketing and the ability of a company to provide superior value to its customers. The essential idea of marketing is offering customers superior value (Doyle, 2008). By adding more value to commodity, companies seek to improve customer satisfaction so that bonds are strengthened in order to achieve customer loyalty. The most frequently used definition of value is that value is relationship between what one sacrifices and what one benefits (Ravald, Gronroos, & Annika, 2011). The set of the activities designed to inform, communicate with and motivate the target consumers about the company’s product or service.

Why many firms fail to recognize the importance of customers until they are faced with a crisis?

Recently, I have read two pieces of article related to a services marketing issue. One is titled “Relationship VS. Traditional Marketing” by Murad Ali and the other one is “Relationship Marketing” posted by Margaret Rouse. In “Relationship VS. Traditional Marketing”, Murad Ali introduces the definitions of relationship marketing and traditional marketing, displays the differences between them and analyzes the advantages and disadvantages respectively. Murad Ali thinks that it is a good choice to combine the relationship marketing with traditional marketing when companies practice in the real world. The former one can expand the market and attract new customers and the latter one can retrain them as long as possible. (Murad, A., 2007) In “Relationship Marketing”, Margaret Rouse considers that relationship marketing is a kind of strategy whose goal is to make the best use of customers’ behaviors such as the word-of-mouth promotion and collect customers’ information making contributions to building a good image of the company. She makes a contrast between relationship marketing and traditional transaction marketing. Besides, she introduces CRM and marketing automotive software to implement the relationship marketing strategy. (Margaret R., 2014)