Submitted by: Submitted by ethelyn46
Views: 259
Words: 810
Pages: 4
Category: Business and Industry
Date Submitted: 01/30/2013 08:23 PM
Describe a value proposition and provide an example. How important is value to the consumer?
Value reflects the sum of the perceived tangible and intangible benefits and costs to customers. Value is a central marketing concept.
The value proposition describes why people will be compelled to buy the products or services being offered by the business. It provides the basis for its marketing plan and strategy. For this reason it must be well thought out and defined. People buy what products and services do for them. They buy solutions to problems and that is how they measure value. If your business exists to solve problems for your customers, your value proposition must begin with the identification of the customers you intend to serve. Since your customers buy solutions to their problems, you must understand the problems they are encountering. Your customers’ perception of the importance of this problem determines their eagerness to buy products or services that will solve it. In the end value could be considered a measuring tool of the likelihood that the consumer will become a repeat customer providing ongoing business for the company. An example of value is when you go to a restaurant that offers “buy one item and get the second item free or at equal or lesser price. Value provides customer satisfaction and reflects the benefits to customer and also offers as profitable marketing strategy to the restaurant.
How would you describe relationship marketing? Why are these relationships so important to successful marketing? (Points : 5)
Relationship marketing is a strategy designed to gain customer loyalty and customer retention. Relationship marketing is established to create strong connections with customers by providing them with information suited to their needs and interests and open communication. This results in increased word-of-mouth activity, repeat business and a willingness on the customer’s part to provide information to the organization....