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Suppliers understand the term value proposition in three different ways which are all benefits, favorable points of difference and resonating focus. The first value proposition is made up of all the benefits that customers get from a market offering. The all benefits proposition answers the customer question of why they should buy the supplier's offering. It requires that the supplier has knowledge of their own market offering. This proposition [url=http://www.osterblade.com]moncler outlet[/url] has the disadvantage of the possibility of leading to benefit assertion by the supplier. Benefit assertion occurs when the supplier stresses an advantage which the customer does not view to be important. Another disadvantage is that many of the things which the supplier views as benefits to the customer may be points of parity with the next best alternative. This could dilute the effect of [url=http://www.jeremyparendt.com/jimmy-choo.php]jimmy choo paris[/url] the few real points of difference (Anderson, Narus, & van Rossum, 2006).
In the favorable points of difference value proposition, the supplier highlights all the positive points of difference that a market offering has in comparison to the next best option. It answers the customer question of why they should purchase the supplier's offering instead of their competitors. Suppliers using this value proposition should have knowledge of their own market offering as well as the next best alternative. The favorable point of difference value proposition has the potential downside of leading to value presumption. This occurs when the supplier assumes that what they view [url=http://www.teatrodeoro.com/hollisterde.php]hollister[/url] as favorable points of difference are also valuable to the customer.
Stiff competition in the business world has forced companies to rethink their business strategies and shift their focus to maximizing customer lifetime value as opposed to the current common practice of driving transactions. To ensure success in their business operations, companies must be customer-cultivating. A customer-cultivating company is set up to serve customers and customer segments. [url=http://www.osterblade.com]moncler sito ufficiale[/url] In such companies, communication is two-way and individualized or may be targeted at specific segments. They seek to build long-term relationships [url=http://www.thehygienerevolution.com/hollister.php]hollister france[/url] with customers by promoting the company's products that are most valuable to the customer at any given time. On the other hand, traditional companies are designed to push products and brands. Communication is one-way and is aimed at pushing a product to many customers (Rust, Moorman, & Bhalla, 2010).
To remain [url=http://www.par5club.com/louboutin.php]louboutin pas cher[/url] competitive, firms ought to reinvent their marketing departments to customer departments. They should replace the chief marketing officer with a chief customer officer. The chief customer officer will make the organization more customer-centric while also removing the barriers to the [url=http://www.tagverts.com/barbour.php]barbour online shop[/url] flow of customer information throughout [url=http://www.tagverts.com/barbour.php]barbour deutschland[/url] the company. They might achieve this by getting the company's leaders to interact with their customers. This helps management better understand their customer's concerns. In addition, companies should make their brand and product managers subservient to customer managers. The customer managers are responsible for identifying customers' product needs. They then direct the brand managers to produce products that satisfy those needs. Such changes would shift the company's focus from product profitability, current sales, brand equity and market share to customer profitability, customer lifetime value, customer equity and customer equity share.
Conclusion Companies can apply the knowledge from the article to improve their marketing practices which will in turn increase their profitability. Firms can use this knowledge to improve their customer relationships to increase [url=http://www.rtnagel.com/airjordan.php]jordan pas cher[/url] customer loyalty. They can also know what areas to concentrate their resources especially in the areas of marketing research and research and development. Such measures also increase the company's cost savings since they will not produce goods [url=http://www.giuseppezanottipaschere.com]giuseppe zanotti sneakers[/url] or provide services that customers do not want. Furthermore, companies can use the knowledge from the article to transform their marketing departments to customer departments.
References
Anderson, J. C., Narus, J. [url=http://www.jeremyparendt.com/Barbour-Paris.php]barbour pas cher soldes[/url] A., & van Rossum, W. (2006). Customer Value Propositions Business Markets. Harvard Business Review , 91-99.
Rust, R. T., Moorman, C., & Bhalla, G. (2010). Rethinking Marketing. [url=http://www.sandvikfw.net/shopuk.php]hollister sale[/url] Harvard Business Review, 94-101.
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