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BUMK5902 Marketing Management || Customer Value and Value proposition of Supermarkets.

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Customer value—the value the organisation provides customers; and Value proposition—in brief, that bundle of ‘things’ that an organisation provides its customers (segments) that encourages customers to buy more, be loyal and recommend its products/services. There is another customer value concept but it’s from an organisation’s perspective, i.e. the financial value the customer generates for the organisation. In this course, we will only touch on this concept rather than delve into it as it is worthy of a specialised course by itself. If marketers c...

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Question Preview:

Customer value—the value the organisation provides customers; and Value proposition—in brief, that bundle of ‘things’ that an organisation provides its customers (segments) that encourages customers to buy more, be loyal and recommend its products/services. There is another customer value concept but it’s from an organisation’s perspective, i.e. the financial value the customer generates for the organisation. In this course, we will only touch on this concept rather than delve into it as it is worthy of a specialised course by itself. If marketers can identify the correct target segments and have a deep understanding of these customers, e.g. what value they seek, then they should be able to construct an appropriate value proposition so that the firm develops, communicates, prices and delivers the value its customers are seeking. Being able to consistently deliver the desired value, above and beyond what competitors provide will give rise to a competitive advantage, and ultimately, to far better financial returns (profits and/or shareholder value).

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Solution Preview

In this report, we are going to discuss the importance of customer value and how it differs from the customer value proposition. The report will identify the critical success factor for an organization and how the customer value proposition is one of them. It will identify the major differences between customer value and value proposition based on various factors such as their impact, the benefit to the business, etc. Apart from that, based on the study conducted on four different supermarkets in the UK, which include Tesco, Sainsbury, ASDA and Waitrose supermarkets and the report will identify the managerial implications of customer value proposition and how it can be used for delivering better satisfaction and experience to the customers visiting supermarkets.

In the study, we identified the importance of customer value and customer value proposition and how they differ with each other. The study also highlighted the importance of both the terms for supermarkets in the UK and how customer value propositions can help supermarkets to perform their business efficiently. Based on the study of four different supermarkets known as ASDA, Sainsbury, Tesco and Waitrose, the report delivered how the management of these supermarkets can identify the requirements of the customers and deliver better services as compared to their rivals.

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