marketing 3

• Customer Value is the relationship between benefits and the costs including money, stress, and time to sacrifice that is necessary to get those benefits
• To ensure maximum customer value and satisfaction, marketer must

  1. Balance product or service quality and price

  2. Establish consistency among product availability, level of customer service, and efficiency

  3. Create a buying atmosphere and deliver purchase convenience
• Customer Value Proposition is a comparison of the benefits offered by a company’s products to its customers in relation to the amount it is asking customer to pay
• Marketing strategies enhance a product’s customer value proposition by


  Emphasizing key attributes of the brand in relation to competitor’s brands and communicating to customers
• Relationship Marketing is a strategy designed for customer loyalty, interaction, and long-term engagement
• Levels of relationships that can be formed with customers who have purchased a company’s product

  • Basic
  • Reactive
  • Accountable
  • Proactive
  • Partnership
• Characteristics of Relationship Marketing

  • It focuses on the long-term rather than the short-term
  • It focuses on partners and customers rather than on the company’s products
  • It puts more emphasis on customer retention and growth than on customer acquisition
  • It relies on cross-functional teams rather than on departmental-level work
  • It relies more on listening and learning than on talking
• Benefits in developing and implementing customer relationship


  • Consistent customer experience
  • Customer Feedback
  • Customer Profitability
  • Customer advocate
  • Innovation
• Benefits of Relationship Marketing

  • Understanding customer characteristics
  • Delivery and meeting expectations
  • Repeat Business
  • Prevents negative transition
  • Word-of-mouth marketing
  • Reduced marketing costs
  • Identification with the company
  • Product market expansion
• Satisfied existing customer is 100% more likely to recommend a product/service to a prospective customer
• Relationship marketing in business helps prevent customers from turning to competitors
• Word-of-mouth marketing


  • A satisfied existing customer is 100% more likely to recommend a product/service to a prospective customer
• Reduced marketing cost


  • Every 5% increase in customer retention can increase a company’s annual profits from at least 25% to as much as 125%, while simultaneously leading to a reduction of 10% in marketing costs. An existing customer will spend 33% more than a new customer to buy a company’s product/service
• Identification with the company

  • Helps customers identify more with the company, keeping communication lines open and making customers feel valued, leading to customer retention and building brand equity
• Product Market Expansion


  • Company’s employees must be ready to deliver beyond the company’s boundaries on customer demand
• 9 Relationship Marketing Strategies and Tools

  • Networking
  • Cherish Each Customer
  • Listen to Your Customers
  • Build a Brand Identity
  • Give Your Customers Free Information
  • Loyalty Rewards
  • Communicate Often
  • Special Events
  • Face-To-Face Time