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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 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 [url=http://www.mansmanifesto.com]doudoune moncler[/url] success in their business operations, companies must be customer-cultivating. A customer-cultivating company is set up to serve customers and customer segments. In such [url=http://www.eracorrect.com]mulberry sale[/url] companies, communication is two-way and individualized or may be targeted at specific segments. They seek to build long-term relationships 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 competitive, firms ought to reinvent their marketing departments to customer [url=http://www.msc-sahc.org/moncler.asp]moncler pas cher[/url] 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 flow of customer information throughout [url=http://www.rtnagel.com/airjordan.php]jordan pas cher[/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 [url=http://www.gotprintsigns.com/uggpascher/]ugg pas cher[/url] 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 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 or provide services [url=http://www.achbanker.com/home.php]www.achbanker.com/home.php[/url] that customers do not [url=http://www.vivid-host.com/barbour.htm]barbour uk[/url] want. Furthermore, companies can use the knowledge from the article to [url=http://www.mansmanifesto.com]www.mansmanifesto.com[/url] transform their marketing departments to customer departments.
References
Anderson, J. C., Narus, J. 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. Harvard Business Review, 94-101.
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