Marketing is all about creating, communicating and delivering value to the customers. Customer value is the difference between what customers get in exchange of the price they pay. The customers will be delighted if the value is positive, satisfied if it is neutral and unhappy or dissatisfied if it is negative. The value triad (triangle of customer value) explains that customer value is determined by quality, service and price. Quality and service have positive correlation with customer value while price has negative correlation. This means customer value increase with increase in quality and service and decrease in price (Kotler & Keller, 2016). However, customer value is all about subjective perceptions that can only be influenced not controlled.
Relationship marketing is one of the components of holistic marketing that is related with creating long-term and sustainable relationship with customers, vendors, suppliers, bankers and financial institutions. Relationship marketing helps in creating value for the customer and firm by building trust, loyalty and commitment. The concept of relationship marketing supports the argument that value is co-created by company and customers. Customers are likely to purchase the product with highest customer value amongst the offerings available and relationship marketing can influence customers’ perception of value. A customer may compromise and buy a product because of the relationship with supplier even though the product does not matches exact requirement. In addition they also tolerate occasional inferior performance because they value the relationship. So value creation is not all about product offered but also about relationship maintained (Gronroos & Ravald, 1996) .
In order to give continuity to the customer relationship, the company should take the responsibility to offer products and services that match the expectations of customers. If there is relationship marketing, people will feel safe and secure while buying products from the company and the repurchase rate is also high. It is profitable for both customers and company. So the essence of marketing these days is not only on producing products but on maintaining customer relation to create and sustain a loyal customer base for growth and sustainability of the business.
References
Gronroos, C., & Ravald, A. (1996). The Value Concept and Relationship. European Journal of Marketing.
Kotler, P., & Keller, K. L. (2016). Marketing Management. Boston: Pearson Education Limited.
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Marketing is all about creating, communicating and delivering value to the customers. Customer value is the difference between what customers get in exchange of the price they pay. The customers will be delighted if the value is positive, satisfied if it is neutral and unhappy or dissatisfied if it is negative. The value triad (triangle of customer value) explains that customer value is determined by quality, service and price. Quality and service have positive correlation with customer value while price has negative correlation. This means customer value increase with increase in quality and service and decrease in price (Kotler & Keller, 2016). However, customer value is all about subjective perceptions that can only be influenced not controlled.
Relationship marketing is one of the components of holistic marketing that is related with creating long-term and sustainable relationship with customers, vendors, suppliers, bankers and financial institutions. Relationship marketing helps in creating value for the customer and firm by building trust, loyalty and commitment. The concept of relationship marketing supports the argument that value is co-created by company and customers. Customers are likely to purchase the product with highest customer value amongst the offerings available and relationship marketing can influence customers’ perception of value. A customer may compromise and buy a product because of the relationship with supplier even though the product does not matches exact requirement. In addition they also tolerate occasional inferior performance because they value the relationship. So value creation is not all about product offered but also about relationship maintained (Gronroos & Ravald, 1996) .
In order to give continuity to the customer relationship, the company should take the responsibility to offer products and services that match the expectations of customers. If there is relationship marketing, people will feel safe and secure while buying products from the company and the repurchase rate is also high. It is profitable for both customers and company. So the essence of marketing these days is not only on producing products but on maintaining customer relation to create and sustain a loyal customer base for growth and sustainability of the business.
References
Gronroos, C., & Ravald, A. (1996). The Value Concept and Relationship. European Journal of Marketing.
Kotler, P., & Keller, K. L. (2016). Marketing Management. Boston: Pearson Education Limited.