1. Value & The Consumer Value Framework Chapter 2

2. Consumer Value Framework Consumer Value Framework Consumer Value Framework What is it? What is it? See slide See slide Relationship Marketing/Management Relationship Marketing/Management Relationship quality Relationship quality

3. Consumer Value Framework Internal Influences Internal Influences AKA Psychological AKA Psychological External Influences External Influences Social & Situational Social & Situational Decision-making Process Decision-making Process

4. Source: http://business.latech.edu/~bbabin/MKT530/CVF.jpg

6. Value Definition Definition Can vary, depending on product Can vary, depending on product Value of fast food: Value of fast food: Value of Wal-mart: Value of Wal-mart: Value = Benefits – Costs Value = Benefits – Costs Benefits Benefits Costs Costs Source: http://latimesblogs.latimes.com

7. Utilitarian v. Hedonic Value Utilitarian Value Utilitarian Value What is it? What is it? Examples: Examples: Hedonic Value Hedonic Value What is it? What is it? Examples: Examples: Source: http://www.southlaketahoe.com

8. Marketing Strategy & Value Strategy Strategy “Planned way of doing something” “Planned way of doing something” Marketing Strategy Marketing Strategy Corporate Corporate Business unit Business unit Department/Functional Department/Functional

9. Marketing Strategy & Value Total Value Concept Total Value Concept Looks at EVERYTHING Looks at EVERYTHING Augmented Product Augmented Product Ferrari Ferrari Benefits: Benefits: Costs: Costs: Source: http://www.gothamdreamcars.com

10. Market Characteristics Target Markets Target Markets Market Segmentation Market Segmentation Types of segmentation Types of segmentation Product differentiation Product differentiation

11. Product Positioning Product positioning Product positioning Perceptual map Perceptual map Ideal points Ideal points Source: http://www.wikipedia.org

12. Customer Lifetime Value If you are close to ideal, you provide value!! If you are close to ideal, you provide value!! Customer Lifetime Value Customer Lifetime Value 80/20 rule 80/20 rule