Link between marketing and customer value

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Marketing and customer value Introduction

Creating a satisfied customer and giving them higher value is considered as the primary objective of any business. However, this marketing concept is seen less on practice in managing business. Business philosophy is a marketing concept whereas market orientation is the implementation of the marketing concept. An organization first need to identify the needs and demands of customer and design a product or service that caters to their need and satisfy those needs (Heines, 2000). Identifying and delivering customer value can be the key to success and long term survival of the organisation. Customer value is centrally related to the marketing concept and has recently been added in the definition of marketing by the American Marketing Association (Graf et al. 2008)

Discussion

Marketing is commonly confused with advertising and selling, but marketing is a very diverse field and involves many different aspects from identifying customers need and want to catering these needs and wants satisfactorily. The marketing and its different activities are discussed and is linked to the core values that marketers develop to satisfy its customer.

What is marketing?

The American Marketing Association defined marketing as the process to create exchanges and achieve organizational goals through planning and executing the conception, pricing, promotion and distribution of ideas and goods and services. The marketing is the science of applying the marketing concepts and to target customers and to attain, retain and expand customers through making, providing and sharing superior customer value (Kotler, 2001).

The marketing process

The marketing process is a five step model created to build strong customer relations with the customer and create superior value for the customer, and in return they also attain value from a customer in the forms of high sales and profit. The first four steps are concentrated on understanding customers' needs and wants, designing a marketing strategy that creates superior customer value, creating a marketing program to deliver the superior value and try and build profitable long term relationship with the customers. The final step of the marketing process is attaining value from a customer for higher sales and profitability (Kotler, 2001)

Why marketing is important?

Marketing helps to build better value for your customer in your product and service. Marketer needs to make sure that the customer perceive that their product gives them value and benefits. A customer who gains value from the product or service will buy the product again. If a marketer do not pay much attention to the benefits that a product or service has to offer, then it may lead them to marketing myopia. Properly planned and executed marketing activities helps in building customer relationship which keeps in retaining the existing customer. For an organisation acquiring new customers is three times more costly than retaining a customer, so marketing helps in building customer relationship so to keep existing customers. For any organisation, marketing also helps in building their product or service brand image. Customer perceives your brand ...