Customer value—the value the organisation provides customers; and Value proposition—in brief, that bundle of ‘things’ that an organisation provides its customers (segments) that encourages customers to buy more, be loyal and recommend its products/services. There is another customer value concept but it’s from an organisation’s perspective, i.e. the financial value the customer generates for the organisation. In this course, we will only touch on this concept rather than delve into it as it is worthy of a specialised course by itself. If marketers can identify the correct target segments and have a deep understanding of these customers, e.g. what value they seek, then they should be able to construct an appropriate value proposition so that the firm develops, communicates, prices and delivers the value its customers are seeking. Being able to consistently deliver the desired value, above and beyond what competitors provide will give rise to a competitive advantage, and ultimately, to far better financial returns (profits and/or shareholder value).
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