Marketing Mix Strategies - Capturing Customer Value through Pricing – Assignment Example
The paper "Marketing Mix Strategies - Capturing Customer Value through Pricing" is a great example of a marketing assignment.
The underlying concept of modern marketing strategy is the creation of customer value. What this means is that marketing strategy elements like price, product, place, and promotion have to be based on capturing the customer's expectation, need and satisfaction. While organizations are clearly motivated by profits, customers are motivated by satisfaction. This can only be achieved if the organization understands the customer’s needs. The organization needs to integrate the four P's into the marketing mix strategy. The organization must also realize that profits will come after customer satisfaction (Kotelnikov, Web).
There are various marketing strategies that the organization can develop to increase customer value. Some of these can include public relations, marketing leadership, innovation, integrated marketing, or buzz marketing etc. But what matters most is that the focus is on providing the customer value, to exceed the customer's expectation by the price offered. If the price of a product, for example, is more, the customer is likely to find it expensive. But if the product is of high quality or comes with the guarantee to satisfy the customer then the customer would not mind the high price. This is called brand equity or brand value. A brand may have a high price but it is attached with the promise to deliver a high-quality product. Customer value does not end with the purchase of the product but it continues long after that. Thus the focus of the marketing strategy is to combine the four P's to ensure the customer returns and buys the same product again because he/she is satisfied (Kotelnikov, Web).