MRKT 310

3

Strategic Marketing & Value for Customer

Francesca Bodunrin

MRKT 364

Strategic Marketing and Value for Customer

Introduction

Creating and delivering more excellent customer value tends to be essential for organizations that operate in the modernized environment. It is necessary for all organizations, whether working virtually. There is a need for understanding the purpose of value creation and broader opportunities within the market by choosing exclusive value to create and deliver efficiently. Strategic management usually positions an organization in achieving sustainable competitive advantage.

Customer Value and Role in Mission

Marketing is a process or approach of any organization and business to acquire a competitive edge by understanding the customer needs and wants. Customer value is described as the customer perception of the worth of a product or service, including other possible alternatives. The worth or value explains whether the customer feels satisfied and confident about what he/she paid for the product. Customer value is simplified as benefits minus the cost. The costs refer to all payment types ranging from cash, cheque, or even interest, not forgetting the non-price terms such as effort, energy, or inconvenience. The benefits summarize the advantages of the product or service rendered by the seller. It also includes the experience, values, and success one gains from associating with the product Payne & Eggert et al., 2017).

Creation of Value

Value creation is achieved through focusing on processes and systems set aside in running the business or organization or can refer to the business culture. The business culture and right mindset help in bringing success to the company. Value perception is brought in during the purchasing process that entails shopping, installation, buying, and even during re-sale, where there can be a customer need change. By creating customer value, generally increases the customer experience. The creation of customer value increases the satisfaction level and the

Customer satisfaction. By achieving customer value, positively influences the market share. Increased customer loyalty, stable prices boost efficiency and reduces errors, leading to greater profits.

The creation of value entails understanding customer perception of value and how they change with needs over time. It requires getting the customer feedback to analyze and determine what suits the customer best and improve on. Products and services that are of value tend to attract competition since most people prefer buying the product. The creation of value also focuses on customer buying decision whether the price is important or the benefits, can the customer wants to be satisfied on the agreed cadre (Sheth et al. 2019).

In creating customer value, a variety of factors have to be considered, such as giving a reasonable price for the benefits he or she is getting that is much more of the cost than offers from competitors. Convenience allowance for the customers allows them to have options on where to buy, ow he wants to buy, and payment modes, producing products that fit customer preference and satisfaction—also appreciating customers through giving feedback to customer concern and questions. Attending to customers by guiding them and welcoming them, sharing the company contacts that assure the customer of sincerity and reliability in case of any misunderstanding or inconvenience the company can be contacted.

Nordstrom store's mission is to give customers the most compelling shopping experience possible. The mission statement focuses on its intended customers by providing opportunities that serve customers best and relevant in their lives and strengthen the relationship. The mission statements highlight their focus on serving the customer to give possible best services, selection, value, and quality. Including the customer in the company, mission tends to build the customer confidence in receiving good quality products and services. It also brings a sense of importance to the customers (Nwachukwu & Žufan et al., 2017).

The customer's purpose in the company mission is to build customer confidence in shopping with them and attracting new customers who feel they can be served better. It also positions the company in a competitive advantage by attracting more customers by putting them at the center of their value through giving their services in their best interest. It shows the company's commitment to serving its customers.

SWOT Analysis

Nordstrom's SWOT analysis outlines its organizational strength, weaknesses, opportunities, and threats currently facing its business environment. Nordstrom is among the leading firms in the fashion industry. The company maintains its prominent position through frequent evaluation and critical analysis of the business, both internal and external. The assessment is done by using the SWOT analysis is highly interactive and requires a lot of observation and effective communication within the various departments such as the sales and marketing sector, finance, and strategic planning in carrying out the analysis (Gürel & Tat et al. 2017).

The framework facilitates the organization in assessing the internal factors such as strengths and weaknesses and the external factors comprising opportunities and threats. The SWOT analysis's primary purpose is to explore and determine which strategies the company can utilize to improve on its weaknesses and maintain the already existing strength. It also explores strategies that can use external opportunities and counter the arising threats within the business environment.

Strength-weakness-opportunities- threats

The company is among the leading brands in the market. It entails numerous strengths that have put it on the competitive edge in the market and help penetrate new markets. The strengths include a high customer satisfaction level, a strong distribution network and good returns on capital expenditure, and product innovation. The significant weaknesses comprise a shortage of new technology and a gap range of products being sold by the company. The Nordstrom opportunities consist of a decrease in transportation cost and the emergence of the online market. Simultaneously, the threats include the rising of new technologies and changes in customer preferences and tastes.

SWOT Analysis Table

Swot Analysis	Issue	implication
strength	Customer satisfaction	It helps in retaining the customers.
weakness	Shortage of new technologies	The shortage can reduce the company productivity and decreasing product quality leading to loss of customers.
opportunities	The emergence of the online market	Through adopting the new strategy of online marketing can help in capturing new customers and coverage.
Threats	Changes in customer taste	The customer change of taste might lead to customer loss to other products that match their taste.

Competitive Analysis

Nordstrom is a high-end retail store offering fashion ranging from shoes, clothes, and accessories for women, men, and kids. A part of their revenue is generated from the sale of the Nordstrom -branded visa credit cards. The combination strategy has helped build customer loyalty and convenience during payment processes in the store. The major competitors are Dillard's and Macy's, specializing in high-end fashion. The most criteria used by the customers in deciding where to shop are the benefits such as packaging, convenience, and services type of service the store offers Daněček et al. 2018)

Chart

The highest-ranking product is the clothes that portray high scores within the categories given. The high-ranging products within the classes are the clothes and shoes that show people shop for them relating to how it benefits them and the nature of convenience the customer prefers. The results show the concentration of customer wants that tend to focus on the companies' benefits and services, where most of the customers tend t look for user specific. The leading product is clothes followed by shoes and women accessories.

Reference

Atkinson, T., Charbonneau, K., Chen, S., Hedger, A., Lee, T., Lee, R., ... & Stout, R. MGMT 4500. MO1.

Daněček, J. (2018). A Competitive Analysis of a Selected Company.

Gürel, E., & Tat, M. (2017). SWOT analysis: a theoretical review. Journal of International Social Research, 10(51).

Sheth, J. N. (2019). Customer value propositions: Value co-creation. Industrial Marketing Management, 87, 312-315.

Nwachukwu, C., & Žufan, P. (2017). Influence of Customer Focused Mission Statement on Customer Satisfaction. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 65(3), 1031-1038.

Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution, development, and application in marketing. Journal of the Academy of Marketing Science, 45(4), 467-489.

References

Competing Offers

SHOES BENEFIT SERVICE CONVINIENCY 5 3 3 CLOTHES BENEFIT SERVICE CONVINIENCY 5 4 2 WOMEN ACCESSORIES BENEFIT SERVICE CONVINIENCY 5 3 2