1. (TCO A, B, C) Describe a value proposition and provide an example. How important is value to the consumer? (Points : 5)
There is no universal definition of the term value proposition. Value proposition in marketing is a statement that summarizes why a consumer should buy a product or service. Basically, value proposition should convince a potential consumer that the product or service will solve his/her problems and it is impossible to live without that product or service. Value proposition can be in form a statement or an ad. Prime example is Apple iPad ad. Apple does not have a convincing written statement on this product, but what they have is very convincing ad.
In order to be have a successful relationship marketing program, a company should recognize the four key constituents of relationship marketing: Valuing customers, employee as value creating assets, suppliers as assets, and partners as valuable assets.
I came across the following example of relationship marketing-----
I just returned from picking my 14 year-old-son up from a travel baseball fundraiser event. He always returns with the best stories. Story of the day: Mom, I asked this one lady if she wanted to donate for our little league. She said, “NO”, that she had already donated for another team. I talked with her for awhile, anyways. I found out that her grandson plays ball and I asked her how his team was doing. We talked for awhile about a couple of other things, like pitching and stuff…and then she gave me $5.00 before she left! WOW! Relationship marketing at its finest. Even after he was told “NO”…he did not discount the person or the relationship. He socially engaged the person, without any thoughts about what he could “get” out of it. Don’t know about you, but I think that’s Relationship...