Creating Customer Value Essay

1341 Words Oct 7th, 2015 6 Pages
Marketing Assignment: How does an organization create customer value?

Description Marketing is one business function that deals with customers. Creating customer value and satisfaction is at the heart of modern marketing thinking, concepts and practice. This can be

attributed to the fact that customers are the lifeline of any business and serve as the source of

current profits and future growth of an organization. Hence, in a hypercompetitive economy,

where customers are more aware and
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This company is built on

genuine passion for sports and Nike is sports”.

Customer Value, Satisfaction and Quality

In an era of intense consumerism, customers or consumers are faced with an array of

various products, services and buying needs. In the current competitive economy, the

customers are more aware of what their needs are and what products they are buying.

In an order to serve this class of well informed customers, marketers have to be very careful of

what they are selling. Honesty and integrity on the part of the marketing firms become very

important because tall and false claims would not create a satisfied and long term customer. Customers often do not judge product values and costs accurately but instead act on

perceived value. In other words, customers go by brand images and perceptions while making a

buying decision. An example here would be Fed Ex and US Postal Services. Fed Ex provides

fast and reliable services to its customers, however, the downside is the higher prices that

FedEx charges for its services. On the other hand, USPS argues that its express service is

comparable to FedEx and the prices are much lower. (Kotler P. and Armstrong G, 2007)

However, judging by market shares customers perceive otherwise and prefer to send their

packages via FedEx. Statistics

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