Marketing: Real People, Real Choices 9th Global Edition by Greg W. Marshall Solution manual

 
 
 
 
 
 
 
 
p. 40
 
 
 
 
 
 
 
 
 
p. 41
 
 
 
 
 
 
3.   the VALUE OF MARKETING AND THE Marketing of
      Value
One way to look at value is to think of it as a ratio of benefits to costs— customers “invest” their time and money to do business with a firm, and they expect benefits in return.
 
3.1  Value from the Customer’s Perspective
The value proposition includes the whole bundle of benefits the firm promises to deliver, not just the benefits of the product itself.
 
Marketers then communicates these benefits to the customer in the form of a value proposition, a marketplace offering that fairly and accurately sums up the value that the customer will realize if he or she purchases the product. The challenge to the marketer is to create an attractive value proposition. A big part of this challenge is convincing customers that this value proposition is superior to others they might choose from competitors.
 
3.2  Value from the Seller’s Perspective
Value from a seller’s perspective can take many forms such as money, prestige or pride in their competitive advantage. 
 
Smart companies today understand that making money from a single transaction does not provide the kind of value they desire. In recent years, many firms have transformed the way they do business. They now regard consumers as partners in the transaction rather than as passive “victims.”
Brandfests are events hosted by companies to thank customers for their loyalty.
 
It is more expensive to attract new customers than it is to retain current ones</emphasis>. Companies that calculate the lifetime value of a customer look at how much profit they expect to make from a particular customer, including each purchase he or she will make from them now and in the future. To calculate lifetime value, companies estimate the amount the person will spend and then subtract what it will cost to maintain this
relationship.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

p. 42
►METRICS MOMENT How do marketers measure value? Increasingly, they develop marketing scorecards that report (often in quantified terms) how the company or brand is actually doing in achieving various goals. We can think of a scorecard as a marketing department’s report card. Throughout this book, we will give you the opportunity to “get your hands dirty” as you calculate ROI using various kinds of scores, or metrics.
Apply the Metrics
1. Using Table 1.4 as a template, develop a scorecard for customer
    satisfaction with your marketing class. You will need to develop your
    own relevant items for satisfaction measurement.
2. Then have the students in your class complete the scorecard now and
    again in the middle of the semester.
3. Summarize, interpret, and present the results.
 
Table 1.4 An Example of a Customer Service Scorecard

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3.2.1 Provide Value through Competitive Advantage
How does a firm go about creating a competitive advantage? The first step is to identify what it does really well. A distinctive competency is a firm’s capability that is superior to that of its competition.
 
The second step in developing a competitive advantage is to turn a distinctive competency into a differential benefit—one that is important to customers. Differential benefits set products apart from competitors’ products by providing something unique that customers want. Differential benefits provide reasons for customers to pay a premium for a firm’s products and exhibit a strong brand preference.
 
Effective product benefits must be both different from the competition and from things customers want. A firm that delivers these desired benefits provides value to its customers and other stakeholders.
Table 1.5 How Some Firms Achieve a Competitive Advantage with a Distinctive Competency
 
 
 
 
 
 
 
 

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