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Marketing Management

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24 views

Marketing Management

Uploaded by

vermamuskan338
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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MARKETING

MANAGEMENT

By Mukesh Sehrawat
Customer Value
• Customer value is the customer’s perception of the
worth of your product or service.
• Customer value refers to the perceived benefits and
advantages that a customer receives from a product or
service in relation to its sacrifices.
• It is the expected satisfaction a customer expect s as a
result of using a particular product or service,
considering both the tangible and intangible aspects.
Customer Value Equation
• The customer value equation is a way to quantify the perceived value that customers derive
from a product or service. While there isn't a single standardized formula for calculating
customer value, various approaches exist. One common representation is:

Customer Value = Benefits - Sacrifices


• Here's a breakdown of the components:
• Benefits: This includes both tangible and intangible advantages that customers gain from
using a product or service. It encompasses features, quality, performance, convenience, and
any other positive attributes associated with the offering.
• Costs: These are not just the monetary costs but also the effort, time, and any other
sacrifices that customers make to acquire and use the product or service. It includes the
purchase price, installation costs, learning curve, and ongoing expenses.
• So, the greater the benefits and the lower the costs, the higher the perceived customer
value.
• Additionally, customer value is subjective and can differ from one customer to another.
Understanding the factors that contribute to both benefits and costs is crucial for businesses
aiming to optimize customer value and enhance customer satisfaction.
Value Delivery Process
Value Chain Model by Michael Proter
Competitive Advantage
• Core competencies are the unique capabilities and resources that distinguish a company
from its competitors and contribute to its long-term success. These competencies serve as
the foundation for developing and delivering products or services. There are three main
conditions that help define core competencies:
1.Relevance to the Market:
1. A core competence must be relevant to the needs and preferences of the target market. It should
enable the company to create products or services that customers value and are willing to pay for.
2. The competence should provide a competitive advantage by allowing the company to offer
something distinctive or superior compared to competitors.
2.Hard to Imitate or Replicate:
1. Core competencies should be difficult for competitors to duplicate or imitate. This uniqueness creates
a sustainable competitive advantage.
2. The difficulty of replication can arise from a combination of factors, such as specialized knowledge,
proprietary technologies, unique organizational culture, or exclusive access to key resources.
3.Ability to be Leveraged Across Products and Markets:
1. A true core competence is versatile and can be applied across different products, services, or
markets. This flexibility allows the company to leverage its core strengths in various ways.
2. The ability to transfer and apply core competencies in different contexts is crucial for adapting to
changing market conditions and exploiting new opportunities.
Elements of Marketing Mix
• 4 P’s

• Product
• Price
• Place
• Promotion
Consumer Buying Behavior
• Consumer buying behavior refers to the decisions
and actions people undertake to buy products or
services for personal use. In other words, it’s the actions
you take before buying a product or service, and as you
will see, many factors influence that behavior. You and
all other consumers combine to make up the consumer
market.
Stimulus-Response Model
Factors Influencing Consumer
Behavior
Buying Roles
• We can distinguish five roles that people might play in a buying
decision. An initiator first suggests the idea of buying the product or
service. An influencer is the person whose view or advice influences
the decision. A decider actually decides whether to buy, what to buy,
how to buy, or where to buy. A buyer makes the actual purchase,
while a user consumes or uses the product or service.
Types of Consumer Buying Behavior
Types of Consumer Buying
Behavior
• Complex buying behavior occurs when you make a significant or expensive
purchase, like buying a new car. Because you likely don’t buy a new car frequently,
you’re highly involved in the buying decision, and you probably research different
vehicles or talk with friends or family before reaching your decision. By that time,
you’re likely convinced that there’s a significant difference among cars, and you’ve
developed your own unique set of criteria that helps you decide on your purchase.
• Dissonance-reducing buying behavior occurs when you’re highly involved in a
purchase but see little difference among brands. Let’s say you’re replacing the
flooring in your kitchen with ceramic tile—another expensive, infrequent purchase.
You might think that all brands of ceramic tile in a certain price range are “about
the same,” so you might shop around to see what’s available, but you’ll probably
buy rather quickly, perhaps as a result of a good price or availability. However,
after you’ve made your purchase, you may experience post-purchase dissonance
(also known as buyer’s remorse) when you notice some disadvantages of the tile
you purchased or hear good things about a brand you didn’t purchase.
Types of Consumer Buying Behavior
• Habitual buying behavior has low involvement in the
purchase decision because it’s often a repeat buy, and
you don’t perceive much brand differentiation. Perhaps
you usually buy a certain brand of organic milk, but you
don’t have strong brand loyalty. If your regular brand
isn’t available at the store or another brand is on sale,
you’ll probably buy a different brand.
• Variety-seeking buying behavior has the lowest
customer involvement because brand switching is your
norm. You may not be unhappy with your last purchase
of tortilla chips, but you simply want to try something
new. It’s a matter of brand switching for the sake of
variety rather than because of dissatisfaction with your
previous purchase.
Consumer Decision Process

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