EM

Chapter 1 - Customer Value - In class

  • Being a marketer looks at both the consumer and producer side. Both have different wants, needs and perspectives

  • What is value?

    • Everyone has different values and this has to be taken into account when creating a place. Choices are important, what are we willing to give up to get

  • Saying going to a bar, everyone has a different expectation and values of what they want. People have shared values but its not all the same.

  • Typical customers are hard to find because everyone has different values

  • Customer value: the benefits outweigh the sacrifice

    • Buying gourmet cookies rather then regular cookies. To do this it would be more expensive but taste better and satisfies a want. The fancy cookie could be fancier and have a greater variety/unique cookies.

  • Value Equation

    • Value = Benefit/Cost

      • Cookie/Cost

      • This fancy cookie gives a fancier experience then a regular cookie.

  • Adding value though customer loyalty

    • Stamp cards. Buy 12 get 1 free

    • Giving up 1/13 of profit to create value for his products

  • Corporate Social Responsibility can create value

    • A cookie company could use ethically and sustainably sourced ingredients

    • Buying local can add value when buying a gourmet cookie rather then a random box of cookies

    • Gourmet cookie guy will add value by offering 10% off for immigrants as he himself is an immigrant and has gone though those experiences. This is 10% off of his personal profit to help people.

  • Adding value though building relationships

    • Having friendly service, saying hello and good bye. Efficient service, small places with good vibes.

  • Profitability

    • Revenue must outweigh costs while still adding value

    • It should be cost effective to have stamp cards and giving 10% off

  • Need Imbalance

    • Current state (taking the bus) enhanced state (driving a car).

    • Wanting for something that you do not currently have