Why Does Customer Perceived Value Matter?

As defined in Market Management by Kotler and Keller, customer-perceived value is the difference between the prospective customer evaluation of all the benefits and all the costs of an offering and the perceived alternatives. More than ever, customers have access to a plethora of information that can be used to see consumer reviews, look for competitors’ comparisons and to verify companies all through technology. 

Now with that in mind there are two other terms that need to be understood the total customer benefit and the total customer cost. The total customer benefit examines the assumed monetary value of the different benefits customers expect from offering of the product, service, people and image. On the other hand, the total customer cost is the perceived amount of cost customers expect from the transaction like psychological, energy, time and monetary cost.

With all this knowledge, we can benefit and understand how to increase the customer benefit and reduce customer cost. If the marketer raises the value of the customer offering by increasing benefits and can reduce a cost or more. The customer will favor this choice versus the other ones. In reality, we are always measuring the customer perceived value by outweighing the benefit to the cost.

For example. I started going to Aldi Supermarket versus Publix because they have better quality meat and produce and the cost is significantly cheaper, and the location was close enough to make the change. While I know they might not be the elite choice, I can definitely argue they are the better one for those reasons. A downside to Aldi’s is that they are more limited in items versus a bigger chain like Publix, who has a lot more variety. I still like Publix and will go there but only when necessary.          

In sum, the high benefits and the low costs are what created enough customer perceived value for me to switch from Publix to Aldi’s. The determinants of customer-perceived value are what influence and persuade customers to switch and prefer one company to another. These determinants can create long-term loyalty relationships between brands and consumers.

How to Prepare Before Assessing Your Raw Materials

In the business world, despite your profession, everyone needs to know how to be marketable. As marketers we need to create our own personal brand. The best way to start is accessing and understanding what you bring to the table.  Actually, completing the raw material assessment takes quite some time. The best way to be time efficient is to prepare in advance. Here are a few ways to prepare yourself ahead of time and be ready to work on your raw materials assessment to better market yourself and your brand.

Take online tests that access your strengths, weakness and personality type. Take a few different ones and screenshot your answers for reference. Try out enneagrams, strength and personality test. These insights will already get you to start thinking of possible raw materials you will want to include in our assessment.

Read through the 6 categories in the raw materials assessment and ask for insights of each category from people closest to you such as coworkers, bosses, friends and family. You can ask your boss for previous or current evaluation documents. Ask co-workers for their thoughts from their experiences working with you. Ask friends and family about your personality and how they see you to give you different points of comparison.

Try to self-evaluate and come up with a few insights for each of the categories. After you have yours and a few other people’s perceptions, you can compare the results and maybe write out a new list of what you now think your traits and attributes are in each category.

When I created my raw materials assessment, I was able to gather old evaluations from previous jobs, take a few online assessments and note what I thought was best, and asked people in my life their views to cross reference all of this information. In sum, the more prepared you are for this, the better your raw material will reflect who you are. 

Why use Good Trojan Horse Marketing?

“The best marketing doesn’t feel like marketing.”

Good Vs. Ill Trojan Marketing

This quote by Tom Fishburne, self-proclaimed “marketoonist,” really stood out when I came across it. I recently read his article, Trojan Horse Marketing, where he discusses how this type of marketing will be used for ‘good’ or ‘ill.’  ‘Good’ meaning they will use the content to create a splendid relationship with their audience by acknowledging the veiled messaging because it is authentic. On the other hand, ‘ill’ content is to ensnare their new audience and burn everything to the ground like the story of the trojan house.

Both methods of the Trojan Horse Marketing are methods of invisible marketing. This marketing tool can be added to the already in place marketing process. Good trojan horse marketing is the key to giving something extra and making the company more memorable.

Good Trojan Horse Marketing is Key

In the article, Why the Best Marketing Doesn’t Feel Like Marketing, the author describes a few examples of how she’s seen this invisible marketing and from that simply acts of kindness. One of the examples, that stood out is how the Trader Joe’s employee asked about her day and then gave her flowers when she said it wasn’t great. This small act of kindness is now a story she’ll always share about the company with people because it’s memorable. It’s good invisible trojan horse marketing and all it took was a small act of kindness.

Easy Ways to Do This

There are several ways you can use these invisible marketing tactics and the good trojan horse method. For business trying to grow a good/better perception, easy ways to do this is include small acts of kindness.

A few examples are…

  • Writing handmade notes when shipping your products
  • Making sure the employees are always giving excellent customer service
  • Giving free gifts with purchase
  • Offering promotions and deals
  • Encouraging social media posts and reviews

All of these simple acts of kindness just increase the likeliness of the current customers talking to others about the company. Dropping the good trojan horse of invisible marketing are easy ways to add icing on the cake to the company’s marketing and that’s what makes all the difference.

WHY use Sales Funnels?

For marketers, the funnel analysis can be one of the most useful instruments in your toolbox. The marketing communication and sales funnel analysis is a powerful analytics tool that goes from impressions all the way to sales and can show what percentages of users there are at every step. These numbers will be used to evaluate where in the funnel things can be improved. Additionally, it can assess the following sales processes, communication strategy success, and messaging.

The sales funnel analysis is meant to plot out the user’s experience (from beginning to end) from the impression, to views, to clicking on the site, to subscribing and then to sales. Look into What is Funnel Analysis, to further understand how it applied. While funnels may not follow this exact order it just depends on what the company has set up for the user’s experience. It’s important to write down each variable for calculations to be correct.

With the number calculated, marketers can determine gross margin, return of investment, and profitability from what they’re spending. These crucial numbers will help marketers evaluate how to increase and fix these percentages or whether to not use them anymore because it’s unprofitable. If that’s the case the funding can be reallocate to other platforms to see if they are more profitable. Furthermore, this will also help when going over the funnel with the sales department to show them the numbers of what’s working and what needs to improve.

In summary, the sales funnel is key in helping understand the analytics and metrics. Every marketer should keep this tool in their belt.

Why changing customer attitude = changing customer behavior

Marketing efforts are what make the intended results for companies to have buyers pick them in the exchange decision process. To do this, marketers need to understand two crucial concepts buyer behavior and buyer psychology. The straightforward one is buyer behavior and its simply what buyers do. On the other hand, buyer psychology is more complex but in short it dives into why buyers do what they do and utilizes their attitudes, beliefs, feelings, motivation, etc. to better understand their choices and create the intended results. The aspects of what buyers think regularly reflects what they do.

To create these anticipated results, marketers must comprehend that attitudes and beliefs will motivate behavior. How do they do this? By researching the target market using surveys, in-depth interviews, field experiments, focus-groups, and observations. Using all of this knowledge, they can make educated assumption on what’s best to use from their research to market the target audience in the most effective way.

If buyer psychology isn’t understood, influencing it will be even less likely. There is a three-part view of attitude that can assist in persuading the target market. The three are cognitive that’s fact based, affective that’s emotion based, and conative that’s behavior based. Furthermore, their attitudes and beliefs will proceed their behavior. In Marketing Mo, Understanding the Psychology of your Buyer, it offers insights into creating a buyer persona where you generate a person that represents a common group of buyers in the industry. Sharing this persona with the team will help everyone understand the typical buyers in the brands target market and will aid in making a loyal customer.

To create a persona, ponder who this person is and add a description, image, and even quotes to fashion the right kind of person. Subsequently, think about why the buyer is shopping for the specific product, what their views, needs, and desires are, and think about their motivations, interpretations, beliefs, attitudes, intentions, regrets, etc. Additionally, add the three-part view of attitude which are cognitive, affective and conative to mimic an ideal person if the target market. This persona will help create the most effective and efficient profile to share with the team when marketing content for the brand is produced. In turn, helping the team gain insight into why changing the customers attitude can consequently change their behavior.

For example, the persona Wendy is someone who loves looking taking care of herself. She spends time trying to improve all aspects of herself and become the best version of herself. If trying to market a gym, talking about how exercise can help you both physically and mentally with proven research can bring someone like Wendy to invest in herself and the gym. This changes her attitudes toward the gym by showing how many different positive benefits it has. Thus, changing her behavior and getting her to purchase a gym membership.

In marketing, changing the customer’s attitude is the key to changing customer’s behavior. Studying the target market will win over the buyers and create those key behaviors like motivation. This is crucial in successfully marketing the brand to clients.