Creating Value For Customers Marketing Essay

Creating Value For Customers merchandise EssayMarketing has often been be in terms of satisfying customers needfully and wants. Critics however maintain that market placeing goes beyond that and creates needs and wants that did non exist before, According to these critics, marketers encourage consumers to spend more money than they should on goods and services they really do not need.Marketing process canister be explained as creating value for customers and building customer alliance by doing this the boldness makes profitThe various elements of marketing process can be classified as followUnderstanding the market place and customers needs and wants.Design a customer driven marketing strategyConstruct marketing program that delivers superior valueBuild profit fitted relationships and create customer delightCapture value to create profits and customer equityFig 1Understanding the market place and customers needs and wants is achieved through in-depth market research and in that locationby identifying a product gap or needs gap. This go away involve trends , how to make things easier , comfortable, better and user friendly. In the early 80s there were few or no roving recollects. A thorough market research has created the need for wandering(a) phones, then came the massive first generation mobile phones. This were later followed by smaller ones and this days we can see the smart phones with in built cameras, clock online movies and saucys ability to actual work from your mobile Samsung note to the new tablets. Every day specialist market research companies, innovators, technicians and scientist all work hand on hand to create a new niche market or brand that makes our lives much more comfortable. Even the pay as you go concept became appargonnt as people could not continue to pay the incredible eminent cost then been charged by manufacturers who were looking at ways to cover the cost of their research and development. So the critics may not b e far from the truth but the ideal is marketers coming with ways and products that makes our lives easy.Design a customer driven marketing strategy. Marketing strategy is a long term means of achieving a corporate objective. If we take the mannequin of the mobile phone industry where the likes of Samsung, IPhone, Nokia are in weighty competition each as to design a marketing strategy to capture a share of the market. Like a military personnel will define the art of going to warfare. Subhash C. Jain in his book marketing , planning and strategy said within a given environment, marketing strategy deals essential with the interplay of three forces known as the strategic three Cs the customer, the competition and the corporation. He says marketing strategies focus on ways in which the corporations can differentiate itself from its competitors, capitalizing on its distinctive strengths to deliver better value to its customers. He hike up concluded that a good marketing strategy shoul d be characterized by (a) clear market definition a good match between corporate strengths and the needs of the market and (c) superior performance , relative to the competition, in the primal success factors of the business.1Construct marketing program that delivers superior value This refers to the marketing combine that is the 4ps theUsually referring to E. Jerome McCarthys24 P classifications for developing an effective marketing strategy, which encompasses product, price, lieu (distribution) and promotion? When its a consumer-centric marketing mix, ithas been extended to includethree more Ps people, process and physical evidence, andthree Cs cost, consumer and competitor. Depending on the industry and the print of the marketing plan, marketing managers will take various approaches to each of the four Ps.The benefits and cost of marketing orientationMarket orientation is the get winding of customers requirement and human race of marketing mix which will meet these needs. Market driven means the firms capability to understand, attract and keep valuable customersG. Armstrong and P. Kotler define marketing as societal and managing processby which the individuals and groups procure what they need by creating and exchanging values with others.3A market-oriented company is in a position to achieve competitive advantagethank to its unique innovative approach to customers. In addition to this,according to the opinion of P. R. Dickson, a competitive advantage should beunderstood in the sense of dynamics of competition. He expresses disagreementwith the standpoint of neoclassic theory of market equilibrium and claimsthat the main characteristic of the market is its disequilibrium. He sees marketingas a acquisition and skill of creating changes (disequilibrium) in the market inthe manner that would provide for the changes that are beneficial for the company.Various responses of salespersons and customers to changes in supply anddemand, thinks Dickson, create possibilities that could be used by the companythat understands market. He underlines the importance of adjusting companyto the market occurrences.4Benefits and cost of market orientationFigure 2 Customer relationship groupsSource G. Armstrong, P. Kotler, Marketing An Introduction, 7. ed., Pearson/Prentice-Hall, upper berth Saddle River, NJ, 2005, p. 25.The above summaries the benefits and cost of market Orientation other advantages are advantagesResponding to DemandBuilding Customer ValueDisadvantagesExtensive and Expensive Research and increase Value Increases CostMicro and Macro environmental factors that affect marketing finaleThe micro environmental factors are factors that can be controlled by the organisation and relates directly with the business these are considered using the factors in fig 3Micro Environmental factorsFig 3Fig 4 shows how different domain affects organisation. The public that affect the marketing decision of the yet they can be controlled and are regarde d as micro are the relation with the following members of this public eg pecuniary public this is based on say for example the organisations annual returns.Fig 4Macro Environmental FactorsThe Target market for mobile phones companies and IT companies are more likely to be the high income earning spectrum of the society or the new graduates and the city bankers and young people in the top echelon of society who will be able to afford the integrated packages that are about to be launched into the market very soon The package will include home entertainment, office package, security package, phone and video calls and financial/banking package all launched as one integrated hand held device.Market segmentation, and Target is followed by positioning, this should be developed and implemented by creating an image for the product, profiling the target market,High Tech gadgets like this integrated hand held device will be bought based on the technical judicial admission what comfort or eas e of doing a task it provide.Buying Behavior is the way and act of people involved in buying and using products. To understand we need to considerwhy a buyer will make a purchase.what factors influence will influence a buyer to buy a certain product.Buying Behavior refers to how people will behave when buying a certain product.A firm needs to consider and study buying behaviour and peoples reactions to the organisation marketing strategy has this will have great impact on the firms success.The marketing concept show how a marketing mix (MM) that satisfies (gives utility to) customers, hence it important to understand the what, where, when and how consumers buy.Stages of the Consumer Buying ProcessThere are Six Stages to the Consumer Buying Decision Process (For complex decisions).Problem deferred paymentInformation searchThe evoked set.Evaluation of AlternativesPurchase decision-Post Purchase decisionBuying behaviour is often determined by the level of consumer battle in the purch ase decisions, the importance and level of interest the consumer decisions is determined by the motivation to seek information about the product or service. High exponentiation purchase such as buy a luxury car or other expensive items. Also the element of risk involved in the use of the product that is the social risk and the sparing risk.The four type of consumer buying behavior areRoutine Response/Programmed BehaviourLimited Decision MakingExtensive Decision Making/ComplexImpulse buyingRoutine Response/Programmed Behavior this are low involvement very little(a) or no decision effort is required E.g. A can drinkLimited Decision Making This are product bought occasionally example are like clothing but not brandsExtensive Decision Making/Complex This involves unfamiliar, expensive and infrequently bought goods. It involves a high degree of economic performance, and psychological risk. e.g. cars, homes, computers, it also involves a lot of time seeking information and deciding. an d consumers will go through all six stages of the buying process.Impulse buying, this are purchase which are unplanned it like buying chewing gum in the conner shop without actually thinking about it. Also prices at time lead to impulse buying. They are usually low valued items.Ethan Lyon,(http//sparxoo.com/2009/06/18/how-to-define-your-market-position/) said The goal of market positioning is to find the ideal opportunity in the market based on customer needs, market forces and financial and strategic considerations. Once the market opportunity is identified then the organisation can further develop its product and elevate its brand to deliver outstanding value. To clarify the market position, the firm will need to find an overarching theme, then define the details. cross Idea-The idea is an aspirational concept it defines the idea of what the company.For eample the Samsung note goes with the concept of designed for humanValue Proposition- A customer or a consumer buyers the Samsung note they see high value and high qualityDifferentiating Attributes-Samsung has distinguished itself from apple by targeting the main stream yet providing quality and comparable or better phones than those provided by Apple