Why has more progress been made on customer value differentiation than customer needs’ differentiation?
Contemporary marketing has become customer-centric; however, the success of marketing depends on how a company differentiates its customers. Value differentiation focuses on how customers are categorized based on the value they provide to the company, while needs differentiation entails categorization based on needs. In most cases, value differentiation has proved more effective because it categorizes customers based on their purchasing powers. Customers are rarely interested in a product’s functionalities and specific features; their main interest is what to do and achieve with the product solution. The value is a greater influencer than the need because it is what the customer does with the product after buying. For instance, a consumer can be interested in buying a cloth, but the decision to purchase will depend on the value of the cloth. Jobber and Ellis-Chadwick (2019) note that marketing principles include determining customer value and delivering the value through differentiation and segmentation. Value is the priority of marketing; it shows customers’ perception of a product compared to other products. Although value can mean different things to customers, quality performance and emotional benefits are crucial. Marketing should afterward focus on value proposition, where the marketer promises value to the targeted consumer.
Is it possible to meet individual needs? Is it feasible? Can you describe three examples where has it been profitable?
Yes, it is possible and feasible to meet individual needs. Customer needs are influential factors that trigger them to buy products or services from a specific seller. Understanding the customer needs require one to determine the reason behind purchase decisions. In most cases, identifying needs and selling proposition depends on segmentation strategy and industry attributes. Meeting the customers’ needs will depend on effective market research. Through market research, marketers use surveys, interviews, trend assessments, and social listening to determine customer needs. After successfully identifying customer needs, marketers must distribute responsibilities across the right departments and teams for implementation. Next, the team tailor products that meet the consumer expectations as per the research findings. After taking the product into the market, the marketer should perform regular customer feedback to assess the level of satisfaction. Additionally, regular assessments help in product improvement as it modifies and changes to meet consumer expectations.
The feasibility of meeting customer needs depends on the effectiveness of customer needs analysis. Deep research and regular customer communication increase the chances of identifying and satisfying customer needs—the strategy of segmentation help in understanding the customer and their personalities. The lack of information on personality might derail the effectiveness of the research since personalities affect purchase decisions. Through surveys, researchers should understand consumers’ main interests and expectations. Additionally, interaction through social listening helps marketers identify gaps and limitations of existing products and services. Journey maps and touch point maps help in unearthing hidden satisfiers and dissatisfiers. They also reveal methods of being relevant to customers’ needs. Additional analyses that marketers can undertake include predictive analysis and adaptive conjoined analysis. Most importantly, predictive analysis help in discovering unmet customer needs, while adaptive conjoined analysis reveals the value of the customer. Customer needs analysis might require additional finances, making some firms more capable than others. Therefore, businesses should focus on markets that they can effectively analyze.
Different companies have effectively implemented consumer needs analysis. According to Morgan (2019), companies have realized that customers are getting more personalized in their needs, forcing most businesses to be customer-centric in their marketing approaches. The 2019 report by Forbes on the top 100 customer-centric companies reveals cases where individual need analysis has been successful (Morgan, 2019). The first case is Wegmans, a chain grocery store, which won the Temkin Experience Rankings as the most loved retail company in the United States (Morgan, 2019). Customer satisfaction is high, and the company has happy and engaged employees. The second example is Ally Bank, which scored high in the Forrester CX Index because of its digitally-minded strategies and end-to-end customer solutions. Customers receive quality services and conveniently engage with the company. The final success of individual need satisfaction is One Medical, an affordable healthcare facility that has transformed medical offices into relaxing and comfortable suits. Customer-centric organizations are more productive because they understand the needs and values of their consumers.
For each of the following product categories, name a branded example, then hypothesize about how you categorize customers by their different needs.
Automotive: the branded example is Ferrari, which is one of the luxury automotive brands. Customers purchasing the brand can be categorized as rich; most are above 40 years old, entrepreneurs, and most have Ph.D.
Airlines: the branded example is Emirates, which is appealing more to middle-class consumers by introducing premium economy cabins. Business classes are becoming less profitable because willing consumers prefer affordable tickets.
Toothpaste: the branded example is Sensodyne, a whitening and sensitive toothpaste—the product appeal to the rich and people with dental carries and other disorders. With the growing cases of dental disorders, there are higher chances that customers of this product will increase.
Hotels: the branded example is Wyndham Destinations, which appeals to affluent luxury consumers traveling to different countries. Its consumers prefer leisure, and it appeals to rich consumers. Its global presence makes it have regional segmentation and serve consumers worldwide.
Connecting the example to Keller’s work
Wyndham Destinations continue to attract more travelers compared to InterContinental hotels. The revenue for the two hotels in 2022 was 4.043 billion and 3.892 billion, respectively, despite the two international hotels providing similar services (Southam et al., 2022). The difference between the two is service and product values and the ability to meet such customer values. According to Keller (2014), work design is important in inspiring employees. Workers need to find pleasure in what they are doing because God created things perfectly, and we need to find positive aspects of every issue. The two hotels provide value differently, similar to the example of the Louis Vuitton handbag. Although the two products and services meet consumers’ needs, the value incorporated in them differs. Wyndham Destination has diversified its product to meet the growing gap of generations. Airbnb’s emergence poses a threat to many hotels; therefore, it has modified its business model to attract millennials. Rebranding and including the vacation ownership arm show that it has diversified its products and services to meet consumer needs. The incorporated programs included vacation exchange programs, travel tech businesses, and membership travel. Subscription travel services are increasing in demand, forcing hotels and restaurants to adopt them. The customer needs that Wyndham Destination offers include product prices, product features, and product effectiveness. Although the company focuses on high-income earners, its product diversification emphasizes meeting demand for other consumers. The prices are affordable, and there are diverse products to select. Service providers in the hotel have demonstrated work ethics and improved service delivery. Similar to Keller (2014), employees have demonstrated passion towards work. Having an empathetic attitude and providing transparent information has effectively worked for the hotel. Besides, employees provide necessary information to customers, showing that they value them. employees are finding passion in their work as stipulated in New International Version Bible (2011), Hebrews 13:5 “Keep your lives free from the love of money and be content with what you have, because God has said, “Never will I leave you; never will I forsake you.” Money should not be the only inspiration.
Christians should provide customer value by changing their design of work. Instead of working for money, they should work to support the organization’s object. Being passionate about work increases employees productivity and sustains customers’ interests.
References
Jobber, D., & Ellis-Chadwick, F. (2019). EBOOK: Principles and Practice of Marketing, 9e. McGraw Hill. https://books.google.com/books?hl=en&lr=&id=IMovEAAAQBAJ&oi=fnd&pg=PR1&dq=Jobber+and+Ellis-Chadwick+(2019)+&ots=4Q4pSfu4Hi&sig=x2UKrMTE2q793pxSyv_ZRT0ZUFM
Keller, T. (2014). Every good endeavor: Connecting your work to God’s work. Penguin. https://timothykeller.com/books/every-good-endeavor
Morgan, B. (2019) 100 of the most customer-centric companies. Forbes. https://www.forbes.com/sites/blakemorgan/2019/06/30/100-of-the-most-customer-centric-companies/?sh=5ec9317763c3
New International Version Bible. (2011). Zondervan. (Original work published 1978).
Southam, C., Raybould, M., Winkler, M., & Poi, J. (2022). Wyndham Destinations Asia Pacific: Acquisition and appraisal of Resort Frontier Co. Ltd. and Management of Sundance Resort Club Japan. https://research.bond.edu.au/en/publications/wyndham-destinations-asia-pacific-acquisition-and-appraisal-of-re
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