Customer value

CUSTOMER VALUE & BENEFITS :

Maggie is the highest sold noodles in India .It is manufactured by the world player Nestle. Maggi took a while to be adopted and now loved by the Indian market. The value proposition of Maggi did not get along with the Indian psyche where housewives did not feel satisfied if the dish was ready in just two minutes. It was perceived more as showing less care and unfulfillment of duties than as convenience .A kind of moral was attached to the preparation of traditional breakfasts in the authentic way. Thus the value perceived by the customers was different. Marketers must connect with customers - informing, engaging and may be even energising them in the process.

When value derived by Customer exceeds the cost the customer pays, the product or service is called the high value product. Creating loyal customers is at the heart of every business. The marketing experts Don Peppers and Martha Rogers say that the only value that a company will ever create is the value that comes from customers, both the present as well as future customers .Businesses succeed by getting ,keeping and growing the customers. Maggi is a pioneer in this field as its 25 years old journey has been based on not only creating new customers but also retaining the old customers. It manages to grab the budding interests and result is the introduction of many variants latest being the healthy oat noodles.

 

Customer perceived value(CPV): is the difference between the prospective customer’s evaluation of all the benefits and all the costs of an offering and the perceived alternatives i.e. CPV = (Total customer benefit+ product benefit+ services benefit+ personnel benefit+ image benefit)-(Total customer cost+ monetary cost+ time cost+ energy cost+ psychological cost

Nowadays the customer is well aware. Customers tend to be value maximizers within the limitations (of knowledge, budget and mobility).

Total customer benefit: These comprise attributes and all the inputs of the customer, the performance level he is looking for

INTRODUCTION :

My marketing diary product is none other than everyone’s favourit "Maggi". The purpose of doing this exercise is to understand marketing in totality in reference to a product .It is an extension of our classroom teachings and brings in an element of application of the learnt concepts. Maggi has stood the test of time and sustained, developed, revamped itself over the number of years to such an extent that instant noodles by other brands also are often referred to as Maggi.

The reason of the choice of this product is its success and constant innovation to grip the market over the years. It is an awe inspiring feat to reach the top and maintain that position since its inception.

The definition of marketing by AMA (2007) “Marketing is an activity, set of institutions and processes for creating, communicating, delivering and exchanging offerings that have value for customer, clients, partners and society at large”

To break it down to simpler terms (according to my understanding), marketing is the exchange of goods and services in return of something which might not be monetary.