Discussion Board Forum 1
Stephanie Green
School of Business, Liberty University
BUSI 745: Marketing for Competitive Advantage
Dr. Gary Eaton
January 20, 2020
Discussion Board Forum 1
In order to gain a competitive advantage and maximize profits, organizations have to
understand their customers and establish customer relationships. Customer needs and values are
the value driver for organizations and lead to maximizing profit. Therefore, it becomes critical
for organizations to understand the relationship between customer value and customer needs and
understand how to best meet those requirements.
Customer Value vs. Customer Needs Differentiation
Extensive research has been preformed into understanding customer value. Organizations
use customer value models to develop target marketing and to influence the design and product
or service portfolio. By identifying the customers value differentiation, organizations are able to
see a more significant return on investment (ROI). As a result, customer value differentiation
helped organizations gain a competitive advantage (Peppers & Rogers, 2012; Chen & Wang,
2016). In comparison, understanding the customer needs differentiation is as important to
organizations in gaining a competitive advantage; however, it is more difficult to understand.
Understanding the different customer needs can be a difficult process for organizations as it
requires a grouping (as well as multiple subgroupings) of customers based on needs that can be a
multifaceted process, which takes both time and resources that organizations do not often have.
Furthermore, understanding a customer’s needs differentiation will lead them to a product type,
but with a variety of different products under one product type, organizations need to also apply
their understanding of the customer values differentiation to gain a competitive advantage. For
example, there are multiple types of milk that can be used for cereal, such as whole milk, 1%
milk, goat milk, almond milk, etc. While the milk meets the needs of the customer, the customer
could value the almond milk due to the flavor. As a result, customer value differentiation is more
valuable and easier to understand than customer needs differentiation (Moghavvemi et al., 2018;
Peppers & Rogers, 2012).
Probability of Meeting Individual Needs
Organizations succeed by meeting the needs and wants of consumers, but with the
multiple layers in customer needs differentiation, it is difficult for organizations to recognize and
apply it at a micro-level due to the costly challenges that are related to it. However, organizations
can recognize the different consumer needs on a macro-level. By identifying the main different
consumer needs, organizations can focus on adding value to the products or services that meet
those needs. In addition, organizations can gather additional consumer information to help
understand and notice needs that are currently unnoticed by the industry. However, the consumer
needs differentiation is vast and complicated, so the probability of meeting every customer need
is unlikely because the organizations have to acknowledge and service not just the consumer but
also the retailer, manufactures, and stakeholders. This provides another layer of complexity to
meeting the customer’s needs while maintaining profitability (Peppers & Rogers, 2012; Meeting
the needs of different business-to-business customers: Identifying the right branding strategy,
2019).
One example of meeting a consumer’s needs at a macro level and it was profitable in at
Liberty University. Liberty University implemented online classes that are flexible and do not
have online presentations are a set time. This meets the needs of students who need flexibility,
such as military and full-time employees. It has helped Liberty University increase its student
body as well as its profits, especially during the current pandemic. In another example, the
University of Phoenix offers flexible classes that last over a month to enhance the students
experience, boost enrollment, and/or retain students. In a third example, Christopher Newport
has implemented monthly talk panels to increase student learning, collaboration, increase the
feeling of connectivity among students and alumni during the pandemic, and retain students. All
three of those examples deal with numerous customers who have different needs. The
universities focus on the macro level of the needs that optimally increase the value of the
universities.
Practical Examples
Nissan, a Japanese multinational automobile manufacturer, offers a wide variety of
vehicles ranging from trucks to compact, electric cars. Nissan offers basic vehicles with minimal
electronics to high-end vehicles with more technology. Overtime, as customer’s values and needs
changed, Nissan has adapted its vehicles to meet the needs of its customers by location. For
example, Nissan offers more trucks in rural areas than in crowded city areas and offers more
compact vehicle in crowded cities and in areas near universities. By employing this strategy,
Nissan meets the needs of its customers (e.g., reliable, size, fuel efficiency, family friendly, etc.)
as well as meets the values of its customers by offering eco-friendly vehicles with numerous
amenities, such as Bluetooth, numerous cup holders, and artificial intelligence (AI) (Bhasin,
2018).
Delta operates in 325 domestic and international destinations across 6 continents. It offers
different seating selections to target its customers, such as first class, economy class, comfort
plus, and premium select. Each seat selection offers different features based on its different
customer value. For example, Delta’s comfort plus features 4 inches of extra legroom compared
to regular main cabin seats. In comparison, its basic economy seating offers low costs and the
bare basics (Johnson, 2020). By breaking out its seating options, Delta can target a variety of
customer needs and values, such as business class, family, and richer class as well as offer larger
seats, better meals, and more comfort.
Burt’s Bees, an American personal care products company, offers natural, eco-friendly
products for personal care, health, beauty, and personal hygiene. Using natural ingredients, its
products offer a variety of options for its products. For example, its skin care products offer
many options to meet customer’s needs, such as sensitive skin, skin renewal, for gender, oily
skin, skin nourishment, and for babies. The products are also offered in different sizes for travel
and home care. It can classify its customers needs into several different categories, such as by
age (e.g., oily vs. dry skin, wrinkle care vs. acne care), by gender, and by product need (e.g.,
body lotion, face care, lip care, etc.).
Holiday Inn Express has differentiated itself as a mid to high end hotel chain across the
country. It offers lower prices with similar convenience that customers want, such as a gym or
complimentary breakfast. It fulfills the needs of traveling customers through its facilities,
amenities, and customer service as well as offering different types of its hotel facilities to meet
different customer needs, such as hotel branches geared toward families, resorts, branches
targeting richer clientele, branches targeting the business class, and branches targeting customers
who only need to stay one or two nights in the hotel. By having several types of different hotel
branches, Holiday Inn Express has managed to meet the main needs of consumers (Wilder et al.,
2014).
“Every Good Endeavor” Connection
The aspect of work ranges from mundane, necessary, and negative to fun and positive.
Keller (2012) offers an opposite opinion of work from the common interpretation of work being
merely toilsome and futile. Keller says that work can honor God. By preforming to one’s ability,
we honor God in our work and by our actions. Furthermore, Keller (2012) notes the importance
of pausing to reflect on the splendor of our world, such as God’s creations, individual creativity,
and innovation. Burt’s Bees offers products that are based on natural ingredients and that are eco-
friendly. It has increased its brand recognition throughout the years for low price and natural
ingredients. This is important as more customers are turning away from harmful products, such
as Lancome, which does animal testing and contains harmful synthetic ingredients, and turning
towards products that are eco-friendly and ethical.
References
Bhasin, H. (2018). Marketing strategy of Nissan – Nissan marketing strategy. Marketing.
https://www.marketing91.com/marketing-strategy-nissan/
Chen, C. F., Wang, J. P. (2016). Customer participation, value co-creation and customer loyalty
– a case of airline online check-in system. Computers in Human Behavior, 61, 346-352.
https://doi.org/10.1016/j.chb.2016.04.010
Johnson, C. (2020). 8 things to know before you fly Delta Air Lines. Clark.
https://clark.com/travel/things-to-know-about-delta-air-lines/
Keller, T., Alsdorf, K. L. (2012). Every good endeavor: Connecting your work to God’s work.
Penguin Books.
Meeting the needs of different business-to-business customers: Identifying the right branding
strategy. (2019). Strategic Decision, 35(11), 21-25.
https://doi-org.ezproxy.liberty.edu/10.1108/SD-08-2019-0152
Moghavvemi, S., Lee, S. T., Lee, S. P. (2018). Perceived overall service quality and customer
satisfaction: A comparative analysis between local and foreign banks in Malaysia.
International Journal of Bank Marketing, 36(5), 908-930.
https://doi-org.ezproxy.liberty.edu/10.1108/IJBM-06-2017-0114
Peppers, D., Rogers, M. (2012). Managing customer relationships: A strategic framework. John
Wiley & Sons, Inc.
Wilder, K. M., Collier, J. E., Barnes, D. C. (2014). Tailoring to customers’ needs: Understanding
how to promote an adaptive service experience with frontline employees. Journal of
Service Research, 17(4), 446-459.
https://doi-org.ezproxy.liberty.edu/10.1177/1094670514530043
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