Link between Benefits-customer value-cost-satisfaction, concept of value

 PART TWO

              So, In the first part we discussed extensively on the different concepts of doing business, The MARKETING concept, also understood that MARKETING IS ALL  ABOUT VALUE CREATION FOR CUSTOMERS, CUSTOMER SATISFACTION.

Now the question is : What is the mechanism through which a firm puts the marketing concept into practice....THE SECOND PART DEALS WITH APPLICABILITY OF MARKETING CONCEPT.

The concept of value

            As per psychology....

 human mind always seek the maximum usability of a product, and this very nature influence their purchase decision. 

           The buyer select a product basis on the maximum usability of the product or service, he or she is partnering with. In other words the buyer seeks a mix of benefits in the product. This very benefits are customer value.

Link between Benefits-customer value-cost-satisfaction

         It is natural that through its market offering a firm extends the benefits sought by the customer. The customer assigns different weightage to all benefits from the offering of the firm and assigns a value in totality, as the buyer  perceives. Now to acquire the value , a buyer has to pay a certain cost. If the Value in the form of product and benefits exceeds the cost he/she paid. The customer delighted , which leads to customer satisfaction.

       This is how the linkage between benefits-value-cost-satisfaction works. It is implied that a firm must achieve the best possible configuration of above four ingredients that appeals most to the customer.

         In actual practice arriving to such a configuration is a challenging exercise. The entire job of marketing management commencing with planning and strategy formulation, and controlling the marketing efforts. This exercise concerned purely with this task----- Arriving at the wining configuration of benefits-value cost-satisfaction.