Customer Value in Marketing


By
Saji M S
2nd Semester MBA
Institute of Management in Kerala
Thiruvananthapuram, Kerala
E-mail:
sajikdl@yahoo.co.in
 


Your product cannot succeed in market even if it is of superior quality than that of your competitors but it heavily depends on the efficiency and effectiveness of your sales personnel and service personnel. More than 70% of lost customers hit on the road not because of price or quality issues but because they didn't like the human side doing business with the prior provider of the product or service, and this factor gains all the more importance when it comes to direct marketing.

I am quite sure that you are eager to know how direct marketing is different from conventional marketing. Direct marketing is demassified marketing, it deals with customers as a one-to-one basis. In conventional marketing, the marketer sells to a multitude of customers treating them as a mass he uses mass production, mass communication and mass distribution devices. In contrast, in direct marketing, the marketer approaches the customers individually, communicates with them on a one-to-one basis and even offers products data qualified to suit the requirements of the chosen customers. Direct marketing relies on customized production, individualized distribution and individualized communication.

Without mentioning the term "Relationship Marketing" we cannot move ahead. The concept of relationship marketing has been gaining ground in recent times. As the market place gets more competitive, product clutter more prominent and customers more discerning, it is only through devices like relationship marketing that the marketer can acquire a competitive advantage. The marketer has to now lay emphasis on customer retention more than customer attraction.

In this context, I like to mention the case of "Johny Sagarika Tea", recently launched in Kerala State. It is a new brand and their business in Film industry and Music industry. They have launched their new product (Tea) with and innovative marketing strategy they are giving a free offer of one audio cd of new film for every purchase of tea packet!!! Using this new strategy, of course they can attract new customers but the question is "Will they be able to retain the customers???"

Direct marketing should facilitate customer retention and it helps the marketer stay closer to the customer. The process of direct marketing starts with: The marketer sells to the customers directly; He reaches out to them directly, communicates with them directly and and also delivers the product to them directly. The marketer knows his customer and has on his hands a specific profile each individual customer.

American Management Association has changed the meaning of marketing by "Marketing is an organizational function and a set of process for creating, communicating and delivering value to customers and for managing customers' relationships in ways that benefit the organization and its share holders. From this we can know the value of a customer in marketing. Only through satisfying the existing customers, a company can do business.
 


Saji M S
2nd Semester MBA
Institute of Management in Kerala
Thiruvananthapuram, Kerala
E-mail:
sajikdl@yahoo.co.in
 

Source : E-mail February 24, 2005

 
 
 

 

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