The process in which we know the need and want of customer, make offerings for their need and want and build profitable relation in order to capture value from the customer.
Understanding the market place and customer needs: Know we know the marketing process, first we Understand the Need of customer. The customer needs a product, service or experience from which he/she is deprived. Wants it is human need which has cultural and social background over the human need. When we need something and that product is backed by purchasing power become our Demand. When we understand the needs and wants of customer we provide them different Market Offerings (Product, services, Ideas and Experiences) to fulfill their need and wants.
Customer Value and Satisfaction Customer has a lot choices in the market to fulfill his need. Customer will only buy that good which is higher value of expectation from his thinking if the expectation is low it will lose five more customer of the firm. Exchange and Relationship Exchange is the process in which one party give offerings in return they get reward of it. Relationship is the key build of marketing. Company make good relationship with their targeted customer buy giving them offerings (product, service, experiences)
Designing a Customer Value-Driven Strategy Now we understand our customer after that we will decide to whom we serve our product and services. For that we target our market to whom we serve and how to create profitable relationship.
For this we should know about to whom we serve and Value proposition. Selecting Customer to Serve is dividing the market into segments and this segmentation leads to the target market by selecting one segment to which we serve. Value Proposition is the process in which one firm differentiate and positioning their product from the rest of the competitors. Value proposition is a promise to deliver benefits to consumer to satisfy their needs. Marketing Management Orientation the management decide market strategy to serve their target market and build profitable relationship.
Company has five market given strategies; Production, Product, Selling, Marketing and Social Marketing Concept. Production is a concept in which customer prefer those product and services which are highly available in the market. The company should focuses on production and distribution channel. Product the concept in which customer is interesting in Product quality and its modern features. These are commonly luxuries goods. The company should focuses on improving product features. Selling the concept in which the company made large selling to customer and promotion of the product.
Marketing is a concept in which the marketer should know about the need and want of a customer and build strong customer relationship with them and provide him/her satisfactory product other than competitors do. Societal Marketing Concept in which short term need and wants are fulfill of the customer and ignore long term equity of a customer and societal. The marketing manager should see both the aspects short term needs and want of customer and long term customer equity. Customer Relationship levels and tools Companies build customer relationship in any level with its target market. It depend on nature of target market. Basic Relationship is a low-margin customer to a company. Company not call him personally instead company make interaction by advertising, marketing and company website. Full partnership is a highly-margin customer, company build full partnership with its key customers. Frequently Marketing Program is a tool in which company reward customer who frequently buy or buy in large amount. Club Marketing Program is a tool that offer members special benefits and make community.
Customer Equity it is the total number of life time customer of company as well as potential customer who want to buy from the company.
Building Right Relationship with right customer.
1) Butterflies is a highly profitable customer but not loyal.
2) True friend is profitable and loyal they are special customer for the firm.
3) Stranger it is not profitable nor loyal
4) Barnacles is a customer who is highly loyal but not profitable company should convert him in profitable relationship.