Value for the customers

Value for customers is created through the manipulation of the “marketing mix” – a set of tools available to the organization to deliver the intended solution to the target audience. Central to the mix is the product or service, the element which has the basic functionality sought by the customer.

In order for the functionality to be effective, however, it must be made available in the right place at the right time. This may require investment in distribution. The company must ensure that there are processes and networks in place, both now and in the future, which enable customers to gain access to its products and services.

There is a need for information about the product and how it can be obtained to be conveyed to the target audience. In some circumstances, there may be a need for some persuasion (promotion or marketing communications).

There is always a price to be paid to participate in or benefit from the goods or services on offer. The price is usually, but not always, financial. It is important to understand how customers perceive price and the implications for their ability to pay it. Successful delivery also involves the effective management of people, processes and physical evidence.

In return, value from customers is achieved from the revenues generated by their willingness to pay for the value they have received. This customer value is turned into profit by the organization’s ability to capture and manage the associated costs.