Marketing management principles and practices

Marketing Management

Customer perceived value is the term given to a customer's perceived valuation of a good, service or product offering including its benefits and costs relative to other alternatives. Essentially, this is the value that a customer thinks an offering is worth based on his or her own personal preferences, demand elasticity and analysis of other suitable alternatives. Total customer value refers to the monetary value a customer ascribes to an offering. Total customer value is based on functional and physiological benefits a customer expects to receive from acquiring and utilizing the offering. The total customer cost a consumer expects to incur in the full life cycle of using a product which includes evaluation, obtaining, using, and finally, disposing of a product or service. The perceived benefits of an offering measured against the cost of an offering shape how customers perceive the offering. In other words, the customer asks themselves "Is this a good deal or not?" If the customer perceives the total benefit outweighs the total cost and is able to pay for the offering, her or she is most likely buy; if not the customer will pursue other alternatives.

Attracting and retaining new customers in always a business's Achilles heel, as it is not as simple as it may seem and there is no one sure fire formula to ensure success. Two ways that ensure businesses can attract and retain customers are collecting voice of the customer data and using social networks to engage current and potential customers. I expound on this in the paragraphs to follow.

Voice of the Customer

A business should never assume they know what a customer wants. Collecting voice of the customer data allows a business to hear directly from the customer what their wants and needs are. Once a business understands their customers' needs they are able to tailor their offering accordingly. Needs change, a business that does not meet customer needs will not attract or keep customers. Feedback helps businesses learn what they are doing well and which areas they can improve. Customer feedback may help spur new products or a new service offering and give the business valuable information.

Use Social Networks to Engage

Businesses must engage customers using social networks. While there are quite a few social networks available, a business does not have to use them all, but use the best one(s) that will help them reach and stay in contact with their target audience.

The five stages of the buying process are:

1. Identifying a need or problem -- Refers to the realization by the customer that they have a desire and/or a need for specific product or service.

2. Searching for solution to need/problem -- Once a problem or need is identified the customer begins to search for a viable solution to help remedy the problem.