Value The Consumer Value Framework Chapter 2

Value & The Consumer Value Framework Chapter 2

Consumer Value Framework n What is it? n n See slide Relationship Marketing/Management n Relationship quality

Consumer Value Framework n Internal Influences n n External Influences n n AKA Psychological Social & Situational Decision-making Process

Source: http: //business. latech. edu/~bbabin/MKT 530/CVF. jpg

Value n n Definition Can vary, depending on product n n n Value of fast food: Value of Wal-mart: Value = Benefits – Costs n n Benefits Costs Source: http: //latimesblogs. latimes. com

Utilitarian v. Hedonic Value n Utilitarian Value n n n What is it? Examples: Hedonic Value n n What is it? Examples: Source: http: //www. southlaketahoe. com

Marketing Strategy & Value n Strategy n n “Planned way of doing something” Marketing Strategy n n n Corporate Business unit Department/Functional

Marketing Strategy & Value n Total Value Concept n n n Looks at EVERYTHING Augmented Product Ferrari n Benefits: n Costs: Source: http: //www. gothamdreamcars. com

Market Characteristics n Target Markets n Market Segmentation n Types of segmentation n Product differentiation

Product Positioning n Product positioning n n Perceptual map Ideal points Source: http: //www. wikipedia. org

Customer Lifetime Value n If you are close to ideal, you provide value!! n Customer Lifetime Value n 80/20 rule