Creating and Capturing Customer Value
Philip Kotler, S.C. Johnson & Son Professor of International Marketing at the Kellogg School of Management, Northwestern University, Evanston, Illinois (http://www.kellogg.northwestern.edu/faculty/directory/kotler_philip.aspx), provides us with this genius description of what marketing is. Creating and capturing customer value is the core issue at hand when thinking about marketing, and is essential for a company to be successful.
Marketing management is the art and science of choosing target markets and getting, keeping and growing customers through creating, delivering, and communicating superior customer value.-Philip Kotler
Creating customer value and satisfaction is essential to success, because it causes customers to come back, and better yet, it causes them to spread the word of how good the product or service is. Companies often try to create mottos to help customers understand the value they are to expect and want. KFC’s “It’s finger lickin’ good”, Walmart’s “Save money. Live better.”, Porshe’s “There is no substitute”, Nike’s “Just do it” and Subway’s “Eat Fresh” (http://www.hongkiat.com/blog/77-catchy-and-creative-slogans/) are all examples of how companies promote slogans in order to create value for target markets.
Once the target market’s value is created, it is time to capture that value from the customer (Kotler and Armstrong). This comes as the customer becomes loyal to the brand, and becomes free advertisement due to the frequent purchases and strong passion developed through the value created. The advertisement comes from word of mouth and, depending on the product or service, visual display, and often times results in a larger market share and customer retention (Kotler and Armstrong).
Other than slogans and mottos, companies may use frequent purchase benefits, design memberships where promotions and sales are exclusive, and other methods of customer relationships to get customers connected with the company. In the online world, this connection comes from the personalization of websites, advertisements and suggestions due to individual activity on the internet.
On a personal note, it scares me to think that every move I make in the digital world provides companies all over information about what I am interested in, what I purchase, and what prices I spend. It allows marketers to reach into consumers brains and receive the information they need to tell us what we need and want.
Key terms: Customer Relations, frequency marketing program, club marketing program, customer value