BUSINESS MARKETING Understando what customer value

A detailed Summary of BUSINESS MARKETING Understando what customer value

"Everything is worth what its purchaser will pay for it." This phrase was said many centuries ago and is still worth today. Any time customer, in fact these customers whose costs are driven by what they purchase, increasingly look to purchasing as a way to increase profits and thus pressure suppliers to reduce prices. A good example beside the one in the article is when you are going to buy a car and you start searching about what car dealer is the best for you to buy yours. How can you decide which of the dealers it's the best for you, it is a good question. A growing number of suppliers have created a customer value models, that is no more than data-driven representations, of the worth in monetary terms, of what the suppliers are going to could do for its customers.

I have been talking about values, but what they are and what values are in business is what I'm going to explain right now. In business market values are the worth in monetary form of the technical, economic, service and social benefits any customer receives in exchange for the price it pays for a market offering. An example of value in monetary term is dollars per unit, guilders per liter, or kroner per hour. On the other hand, benefits are no more than i

Field value assessments that is the most commonly and accurate method used to build customer value models. This value is used to collect data about customer value models. However, if the field value does not work suppliers use direct and indirect survey question and focus groups. As everything in our life, the first time you do something is the most difficult. To get started with the customer value model the first thing a supplier need to do is to put together the right kind of value research team. In this team should be included the people with the product, engineers in the specified field, and people with marketing experience. This last option is very important because it is really important to have people who know the customer way of thinking. The next step is to know the right market segment. Knowing this, the suppliers create a base with at least twelve customers to build an initial value model. Then it is a good time to generate a comprehensive list of value elements. These elements will be the one that affects the costs and benefits of the offering in the customer's business. The elements could be technical, economic, service or social in nature and will vary in their tangibility. But suppliers have to be very carefully on checking which elements left out, especially those that might make the suppliers' market offering look unfavorable next to the next-best-alternative offering will undermine the projects credibility. By knowing as many elements as possible the team will be able to determine more accurately the difference in functionality and performance its offers prov

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