Value for the customers

Value for customers is created through the manipulation of the “marketing mix” – a set of tools available to the organization to deliver the intended solution to the target audience. Central to the mix is the product or service, the element which has the basic functionality sought by the customer.

In order for the functionality to be effective, however, it must be made available in the right place at the right time. This may require investment in distribution. The company must ensure that there are processes and networks in place, both now and in the future, which enable customers to gain access to its products and services.

There is a need for information about the product and how it can be obtained to be conveyed to the target audience. In some circumstances, there may be a need for some persuasion (promotion or marketing communications).

There is always a price to be paid to participate in or benefit from the goods or services on offer. The price is usually, but not always, financial. It is important to understand how customers perceive price and the implications for their ability to pay it. Successful delivery also involves the effective management of people, processes and physical evidence.

In return, value from customers is achieved from the revenues generated by their willingness to pay for the value they have received. This customer value is turned into profit by the organization’s ability to capture and manage the associated costs.

Outcomes of a value-based relationship

An organization that focuses on creating value will generate benefits for itself and its customers.

Outcomes for the customer include:

• improvements in efficiency, and therefore costs;

• more effective problem-solving;

• proactive value creation;

• early access to innovation;

Benefits for the seller include:

• greater customer loyalty;

• purchase decisions less influenced by price;

• marketing programs are generally more effective (greater return on investment);

• more focused product/service development;

• more flexible response to change with respect to customers.

Exercise 9. Read the text once again and express the contents of every passage

In one sentence.

Exercise 10. Fill in the gaps in this passage with the words under the line; learn all the new words to expand your vocabulary on the topic.

Pricing

Before the company can quote a price for goods, they must take into account all their costs: the production …, shipping, insurance etc. The total of all these … is called the overall cost. The costing is usually done before a model is produced, so the company must calculate their … costs in advance. From these figures they can … the cost of each model (the unit …).

costs, overall, costs, price, calculate

The company also takes into … their profit. It will usually allow a …margin of at least 10%. So, calculating a price, the company must build into the price their overall … and profit…. Good price can help the company sell the product ….

margin, profit, consideration, costs, successfully

Exercise 11. Make the presentation on the importance of creating value for the customers using the information of the text. Use the stages of the presentation from Unit 1.

Exercise 12. Write a letter to your trainee who is preparing the report about the importance of creating value for the customers.

Exercise13. Read the agenda and minutes (протокол) of the board meeting and write your own one. Remember:

Дата добавления: 2015-11-14