Marketing Customer Value and Interconnection (Research Paper Sample)

Marketing, customer value and interconnection
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Marketing
As Kotler & Armstrong (2010) points out, marketing involves the process of creating and communicating the value of a product or service to customers with the purpose of selling goods or services, increasing demands or promoting enduring relationship with the customers. It involves production, delivery and management of customer relationships in a manner that is beneficial to the organization. The purpose of marketing is to present the seller’s concepts of value to the customers .In turn; it determines the overall benefits acquired by developing a product or a service.
Vital features are communicated and service quality presented in concise and cohesive information for those who are involved in carrying out and creating value. It aims at promoting greater-than-anticipated demand for services and products by ensuring that quality-minded customers would buy more. Manufactures provides an opportunity to launch new products and services. Most of the firm’s competencies are developed through marketing and efforts that increase the number of purchases and distribution. It is a way of forming or rejuvenating relationships with customers by creating competitive offers over its rivals (Varadarajan, 2010).
Marketing establishes a brand or a service concept by establishing its credibility. It is an initiative that reaches decision-makers and influencers. Different marketing strategies serves can be used as long as they are suitable to the purpose. However, there are optimal channel that can offer a business a unique point and share. In most cases, marketing tactics happen continuously and quickly and particularly in complex organization and businesses that has wide-range of products or keep new fashions in its product line. At other times, a business may work with trial and error marketing tactics and when they work, they are later improved. The marketers’ then fine tunes the strategies that are efficient and effective to keep the customers aware and attract new ones. For established product or a service, there are specific qualities that are promoted and communicated according to the known desires of customers or through business intention to include tastes that will eventually attract more customers (Kotler & Armstrong, 2010).
Customer value
According to Flint, Blocker & Boutin Jr (2011), customer value involves the benefit a customer gets from the offered product or a service compared to its cost. Customer value has to be realized by the customer so that they can sacrifice for it. Realization is what makes a customer to get out of the routine and identify something unique in the product or services among the purchases. In turn, the customer willingly pays for the service or the product. As Blocker, Flint, Myers & Slater (2011) observes, a product or service quality can mean a lot to the customer. To some, it might mean prestige, mark status and uniqueness. Manufacturers, designers and sellers of different products and services acknowledge the specialized needs of some of their customers. In turn they respond to their tastes by offering customized products or services to these group of customers.
As Gallarza, Gil‐Saura & Holbrook (2011) points out, customer value defines and offers the reasons why a customer buys a good or uses a service. It is specifically targeted towards potential customers to give them value for their money and a reason why they should buy from a specific supplier or manufacturer. In addition marketing serves a purpose of convincing customers about particular product or service and its greater value than others in the competitive market. To devise an effective customer value, a business must understand the market. Actually, most elements are designed for customer value realization, enhance decision-making and to attract customers. This can be achieved by offering products or services qualities that are not readily available in the market. Often, these added values are little services that are rare in that particular product or service. For example, the benefit may include a customer service value that involves access to customer support personnel. Sometimes the benefit is measured in terms of monetary aspects like when a service saves customer’s money.
Customer value must fill an existing gap about a product or a service like having customized items and services. Customer value must something about a product or a service that is recognizable among customers. It tends to create a sense of community for customers who purchases the product or a service. At times, it is seen as a way in which sellers develop reputation among its reliable customers by delivering the required or more than-expected services on time. The value is developed with the target market in mind and particularly focusing on active consumers. The product or service unique characteristics may appeal to a demographic group of successful individuals, well-educated, single or raising families or groups. Customers value focus on a group of customers that are status-oriented and like to be associated with high-quality services or products. In turn, the customers are likely to part with a premium price for certain service or brand. Customer value may target customers or household with higher incomes. At the same time, customer value is positioned with price consciousness to those customers that consistently seek value or lead active lifestyles.
A good example is Village "Gold Class" Cinemas that optimizes for luxury cinema format at some Village locations. In addition to a better cinema room layout, they also have a cloakroom where customers hang outwear or cloaks when entering the building. The customers’ coats and bags are stored securely in the room. The services are meant to enhance customer’s comfort when in Cinema room unlike in other cases where customers have to hang their cloaks on the back of a chair. Gold Class Cinema rooms are equipped with reclining armchairs or sofas that recline and extend or can be adjusted to suit the comfort of the customer. Its footstool also adjusts by the weight and the angle of a user to maximize comfort. For those in need of refreshments, they get them at the comfort of their own chair as customers are also served at their sitting point by butlers (Kirby, Kirby & Burke, 2009).
Link between customer value and marketing
According to Fifield (2012), marketing fills the gap of realization in that, it communicates or promotes messages about the superior quality, enhanced services and better offer distinct to a particular product or service in comparison to the rest. Promotion aims at linking value to the price. In marketing, customers’ value and needs are considered. The sum total of benefits such as price, quality, delivery, relationship between the customer and the supplier should be communicated in interesting ways for customer to take them into account. Successful marketing based on customer value promote success to a business and endear long-lasting customer relationships.
As Grönroos (2011) points out, there are different marketing strategies used for launching or promoting sales. Firstly, product strategy focuses on improving quality of the items or services. For products, they can bear the brand’s logo, slogans; incorporate a popular color or giving them names that customers can enjoy. It might also involve an expansion of product or service line by including customized products or service. In turn, customers select products or services that represent their needs. The strategy communicates fresh concepts and variations in a product or services. Secondly, marketing may focus on distribution strategy where products and services are marketed through regions and locally specified shops. Marketing attempts to respond to varying demand in different seasons. Marketing provides information to customers about industry trends in various geographical areas and outlets. They guide customers to store outlets where they can order or purchase services and develops relationships (Schmitt, Skiera & Van den Bulte, 2011).
Thirdly, marketing act as a promotional strategy by communicating with customers in various ways. Information ab...