Part A & B: Activities Completed, Self-Reflection/Discussion
Week 3: Content Review - Creating Value and Competitive Advantage
- Consumers have mixed needs; their level of satisfaction is comprised by the Functional and Psychological attributes of the product.
- Perception is key, buyers make choices depending on a products perceived value, influenced by quality, information, competing products and its overall 'fairness'.
- Relationship marketing is key in capturing and retaining customers, there are several levels of relationships which can take form depending on the company's desired relationship tie with the customer.
- Creating a point of difference to other competitors is key in marketing, these competitive advantages usually take
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Additionally, Kaufland offers its own brand, and effectively represents the market as a whole (e.g caters for vegans, small minorities etc.).
- In the future Kaufland could potentially become wholesalers, perhaps mediators between the farmers and perhaps the small restaurant's/cafes.
This tutorial was challenging in attempting to apply marketing concepts to our personal experiences along with to our assigned business, Kaufland. Covering the topic of 'Creating Value', this tutorial highlighted several gaps in my understanding.
Despite being briefly discussed, I struggled to understand the applications, and the practicality of how businesses deliver value, and create relationships with customers; so, I undertook some research to reach a better understanding.
In terms of 'Creating Value' for consumers R. Woodruff presents the notion that Customer value can be examined at different levels. Firstly, customer value can be viewed as the attributes of a product that a customer perceives to receive value from. At a higher level, customer value can be viewed as the emotional payoff received from these attributes (Woodruff,
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There are two stages at which customers assess value; before (perceived value) and after they purchase a product or service (actual derived value).
2. Since value is perceived at various levels; therefore, value needs be delivered at various levels.
3. An understanding of what customers value is a key step in delivering customer value (Shanker, 2012).
From a personal interpretation I'd suggest that for example, when purchasing a can of Coca-Cola an individual may perceive that it will quench their thirst, be refreshing etc. However, once purchased it may have a disappointing derived value, that the individual found the drink to sugary, making them feel lethargic. This example shows the distinction between the two levels at which consumers may value products/services.
For the way businesses build relationships with customers it was important to analyse the material covered in this week's lecture; highlighting the three ways organisations create ties with the consumer.
1st Relationship Tie: Financial Benefits
- Financial benefits are one method that can be used to assist in developing closer relationship levels with consumers.
e.g Flybuys: An organisation which rewards loyalty by offering discounts, or money-off products of services from a variety of