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Customer Value Measurement - Essay Example
In pursuit of continuous improvement, quality, time and cost should be the focus of contemporary organisations (Anthony et al. 2002, p.1). In a study by Anthony et al (2002 cited Deming, 1990; Juran, 1989) Customer satisfaction lies at the heart of all modern thinking on quality and business management…
New ways are needed to achieve an edge and to stand one step ahead of others (Keller 2003).
In the phase of increasing competition, many corporate mission statements set customers as the focus of an organisation's business activities, and key thinkers have defined the quality of goods and services with reference to how well they satisfy needs and expectations of the customer base (Johnson et al 2005). At the other end, some companies are paying performance premiums. According to Aaker & Keller (1990) delivering superior value to carefully targeted customers seems to be the generally accepted path to sustained profitability (Keller 2003).
In the light of the above, this essay essay is an attempt to clarify how developing a customer orientation affects the profitability of firms by referring to the fundamental elements of a customer driven marketing strategy: segmentation, targeting and positioning. It also presents a comprehensive understanding of the customer and the customer value imperative by using relevant examples.
As competition grows bigger, more and more organisations try to maximize customer value in order to achieve their full potential and get a competitive edge. ...