Customer perceived value

Our premise is that customers will buy from the firm that they see as offering the highest perceived value. 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.Total customer value is the perceived monetary value of the bundle or economic, functional, and psychological benefits customers expect from a given market offering. Total customer cost is the bundle of costs customers expect to incur in evaluating, obtaining, using, and disposing of the given marketing officering.

Marketing in new economy

The changes in technology and economy are eliciting a new set of beliefs and practices on the part of business firms. Let’s look at the major business beliefs in the old economy and how these beliefs are shifting to the new economy. The new economy is affecting both, the way business and marketing are conducted. Let us start by analyzing how business practices are changing.

E – Marketing

Have you observed the vegetable vendor doing brisk business in the evening? He continues to interact with the customers while he is taking orders from others on cell-phone. The cell phone gives him a hands free approach and he can attend to more customer by taking orders on it, for home delivery. His business has almost doubled due to cell phone. And think of the customer, who can get most of his requirements sitting at home. In Bangalore, one of the “panwallahs” (Beatle leaf vendors) has started selling his wares through internet.

Selling vs Marketing

In general we use ‘marketing’ and ’selling’ as synonyms but there is a substantial difference between both the concepts. It is necessary to understand the differences between them for a successful marketing manager. Selling has a product focus and mostly producer driven. It is the action part of marketing only and has short – term goal of achieving market share. The emphasis is on price variation for closing the sale where the objective can be stated, as “I must somehow sell the product”. This short – term focus does not consider a prudential planning for building up the brand in the market place and winning competitive advantage through a high loyal set of customers. The end means of any sales activity is maximizing profits through sales maximization.