The goal of marketing activities, ultimately, is to create and deliver value to existing and potential customers. At the core, value in a marketing context, is defined as the net difference between the total expenditure that a business organization makes and the cumulative revenues generated from the sales/utilization of a product or service. From the end-user’s perspective, value is a more subjective concept in that it is extent of the benefit that an individual derives from purchasing, using and consuming any brand (Möller 913).
An important point that marketers need to understand is that every member of the general population does not represent an equal source of ‘value’ to the business. The maximum Customer Lifetime Value (CLV) for any brand always comes from the most ‘brand loyal’ segment of its entire customer base (Möller 916). CLV is measured by calculating the net present value of the profit per customer and adding the number obtained here to the net present value of the weight (importance) that a company attributes to this profit, often referred to as ‘equity’.
Analyzing the significant lifestyle changes that technology adoption has brought into our lives, one unique change, in my perspective, has been the increasing popularity of ride-sharing apps such as Uber, across the world. These brands identified a ‘gap’ in the market that no brand was catering to and as the instant success and popularity of these services have indicated, were able to deliver value that far exceeded customer expectations (Möller 920). The consumer need in this case was to have access to convenient, affordable, secure and reliable transportation service, as and when required.
Since Uber and other ride-sharing services can be ordered and booked within a few minutes using only a smartphone, I believe that it is the people’s ‘utilitarian’ value is being delivered in this case (Möller 921). Without being a car owner yourself, one can arrive at important business meetings or social occasions, in a ride of your choice. To some extent, hedonic value is also being provided to people (Möller 922).
Works Cited
Möller, Kristian. "Role of competences in creating customer value: A value-creation logic approach." Journal of Industrial Marketing Management (2006): 913–924. Print.
