Value & The Consumer Value & The Consumer Value FrameworkValue Framework

Chapter 2Chapter 2

Consumer Value FrameworkConsumer Value Framework

Consumer Value FrameworkConsumer Value Framework What is it?What is it?

See slideSee slide

Relationship Marketing/ManagementRelationship Marketing/Management Relationship qualityRelationship quality

Consumer Value FrameworkConsumer Value Framework

Internal InfluencesInternal Influences AKA PsychologicalAKA Psychological

External InfluencesExternal Influences Social & SituationalSocial & Situational

Decision-making ProcessDecision-making Process

Source: http://business.latech.edu/~bbabin/MKT530/CVF.jpg

ValueValue

DefinitionDefinition Can vary, depending on Can vary, depending on

productproduct Value of fast food:Value of fast food: Value of Wal-mart:Value of Wal-mart:

Value = Benefits – CostsValue = Benefits – Costs BenefitsBenefits CostsCosts

Source: http://latimesblogs.latimes.com

Utilitarian v. Hedonic ValueUtilitarian v. Hedonic Value

Utilitarian ValueUtilitarian Value What is it?What is it? Examples:Examples:

Hedonic ValueHedonic Value What is it?What is it? Examples: Examples:

Source: http://www.southlaketahoe.com

Marketing Strategy & ValueMarketing Strategy & Value

StrategyStrategy ““Planned way of doing something”Planned way of doing something”

Marketing StrategyMarketing Strategy CorporateCorporate Business unitBusiness unit Department/FunctionalDepartment/Functional

Marketing Strategy & ValueMarketing Strategy & Value

Total Value ConceptTotal Value Concept Looks at Looks at EVERYTHINGEVERYTHING Augmented ProductAugmented Product

FerrariFerrari Benefits:Benefits:

Costs: Costs:

Source: http://www.gothamdreamcars.com

Market CharacteristicsMarket Characteristics

Target MarketsTarget Markets

Market SegmentationMarket Segmentation Types of segmentationTypes of segmentation

Product differentiationProduct differentiation

Product PositioningProduct Positioning

Product positioningProduct positioning Perceptual mapPerceptual map Ideal pointsIdeal points

Source: http://www.wikipedia.org

Customer Lifetime ValueCustomer Lifetime Value

If you are close to ideal, you provide value!!If you are close to ideal, you provide value!!

Customer Lifetime ValueCustomer Lifetime Value

80/20 rule80/20 rule