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Understanding Kelon's Marketing Strategy Of Services Based On Customer Delivered Value

Posted on:2006-08-20Degree:MasterType:Thesis
Country:ChinaCandidate:W H FanFull Text:PDF
GTID:2166360155453936Subject:Business Administration
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With the fast development of Household Electrical Appliance Business in the past ten years, China has been an affected country in the household electrical appliance realm in international market. In the same time, the business of household electrical appliance is a matured and a high competing industry yet, more and more acute of Price-War indicates it has been relative surpass supply in many realm. It is difficult for a company to become a better one, It is difficult for a company to become big and strong one too, It is even more difficult to become a long-term company. Around how the company can become a long-term business, and how to resolve the company's healthy development, and how enable company to win competitive advantages, etc, the scholars and the managers in western countries have studied actively, deeply ,and effectively in both the field of theory and the field of practice . They have advanced many new theories and some of them are excellent and helpful Among them the value-chain management, quality management, organization and process reproduce, company culture, customer satisfaction are representative theories . But whether these theories are effective in helping the company to gain the competitive advantages depends on a premise that the company can to create superior customer value than it's competitors.The traditional strategy logic concentrate the company's attention on how to defeat it's competitors . Then the company will make use of a series of means such as "price war" which may blemish both the company itself and it's competitors. These sleazy competitive means will enable both the company and it's competitors earn no money. The business of color TV in China is a good example. Therefore, we think that the companies should change their strategic competitive logic, that is to concentrate it's attention on how to provide the customers with superior value, We believe it is a good way. So, who gain the customer satisfaction and the customer loyalty, who will be the " big winner" at last. The company should consider the customer's need, and produce customer-oriented product which contains highervalue and lower cost to meet the customer's need .Only customer feel get higher value-delivered, then company can win the customer loyalty, the standard of customer loyalty is very special: The customer rebuy the company's products is loyalty customer. Customer value is the only route to win customer's satisfaction and loyalty.However, what is customer value ? The distinguished professor of the Northwest university USA , the authority on marketing Philip .Kotler argued that "customer value" is "customer delivered value" .He proposes that the concept of customer value can be expressed in the form of an equation: customer delivered value is the difference between the total customer value and total customer cost. Total customer value is the bundle of benefits customers expect from a given product or service . Total customer cost is the bundle of costs customers expect to incur in evaluating , obtaining ,using ,and disposing of the product or service. The total customer value include the product value, service value personnel value ,and image value .The total customer cost include the monetary cost ,time cost ,energy cost and psychic cost .The equation is as follows :DV=TV-TCTV=Pd+S+Ps+IPd: product value; S: service value; Ps: personnel value; I: ImagevalueTC=M+T+E+PM: monetary cost; T: time cost;E: energy cost ; P: psychic costTotal customer value is a function in mathematics, The parameters including products value, services value, person value, image value, and me changes of any factors will affect the Total customer value. The function in mathematics is:TCV=f (Pd, S, Ps, I)Total customer cost also is a function in mathematics, It includes monetary price, time cost, energy cost (ENERGY COST) and the changes of any cost factorswill affect the total customer cost. The function in mathematics is: TCC=f CM, T, E)Customer Deliver-Value is affected by the two factors of total customer value and total customer cost. In the same time, the changes and affection of every element of total customer value and total customer cost are not independent, but to interact each other. A factor' change of value can not only affect the total customer value, but also affect the total customer cost, therefore affect the customer deliver-value.In order to gain long-time competitive advantages, the companies should establish an Customer Value Delivered System based-on customer orientation .1. establish a customer value delivered system(1) the internal customer value delivered system ; (2) business-chain customer value delivered system ;(3) customer-participating customer value delivered system.2. establish a dynamic customer value delivered system3. the company should know the degree of the value-delivered GUANGDONG KELON ELECTRICAL HOLDINGS COMPANY LIMITED(the former is ZhuJian Refrigerator Factory) is established in the 1984, through more than 20 years' development , company still have the prosperous vitality .Through study the reason, we believe that the company's marketing strategy match the "customer value" theory, and especially match the "customer delivered value" theory . Through promote the product value, service value, personnel value, image value etc., the company have promoted the customer total value successful; through lower the monetary cost, time cost, energy cost, physic cost , risk cost etc., the company have successfully lowered the customer total cost, thereby the company at last win the competitive advantages through delivering more customer value than it's competitors .Now, Services as a competitive means are more and more important. The new service-competence includes service' content consummating, service' promise updating, service' slogan creating, service' behavior norming. As the first service...
Keywords/Search Tags:Understanding
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