Delivering Customer Value

Topics: Marketing, Customer service, Customer relationship management Pages: 2 (537 words) Published: May 30, 2012

According to Phillips Kotler, any organization in the product or service industry should strive to meet the needs of its current and potential customers because that is the only way it will succeed in an increasingly competitive market. One of the ways of doing that is by trying to achieve the main goals of marketing which are mentioned below;

Figure 1
(Philip Kotler, Kevin Lane Keller, 2006)

Apple’s I phone faces a lot of competition from other organizations in the same product market such as BlackBerry, Nokia and Samsung so it is vulnerable to customer defection. In order to deliver good customer value and to improve loyalty among its current and potential users, Apple will have to adopt the following strategies and apply them effectively;

Reduce the rate of customer defection| Customer defection defines the loss of clients or customers. Apple should try and reduce the rate of customer defection they face because it would have a negative impact on the company’s revenue and long term success. It is also a known fact that the cost of retaining an existing customer is far less than that of acquiring a new one so the company should try and build a long lasting business relationship with its customers by satisfying their needs and making them come back for more.|

Increase longetivity of the customers relationship| |
Enhance share of wallet| This statement simply refers to the total amount of the customer's spending that a business captures in the products and services that it offers. Increasing the share of customer's wallet a company receives is often a cheaper way of boosting revenue and it also provides value for the customer as well because they get a greater variety of products from one company. This can be done by cross-selling and/or up-selling.|

Terminate low profit customers| Apple can afford to...
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