How Companies Target Specific Customers - 1110 Words

The strategy of a successful organization lies in attracting the right customers by differentiating themselves from competition. Customer value proposition (CVP) is the essence of that strategy (Noreen, Brewer, Garrison, 2014) which helps the company to deliver value aligned with the organizations strategy to its targeted customers. Customers therefore infer that product as high value while purchasing and perceives that this value creates a reason for him or her to choose it over a competitor in the industry. Customer Value proposition states the reasons a customer may want to purchase a particular product or use a particular service, i.e. it emphasizes on the added value a particular brand has got that fulfills customer’s needs better. The â€Å"value† is the benefits that the company delivers to its customers through their product and service. Top level do not base their value proposition based on the promise to â€Å"deliver all the benefits† to its target customers the reason being that delivering too much benefits can dilute genuine points of difference (Anderson, A.Narus, Rossum, 2006). Therefore successful companies have fewer elements (benefits) in their value proposition those of which that matter the most to their targeted customers. The three broad categories of CVP include is customer intimacy, operational excellence and product leadership. A company can pursue both customer intimacy and operational excellence strategy to be a product leader in the long run.Show MoreRelatedTarget Marketing : Marketing Strategy971 Words   |  4 PagesTarget marketing includes 3 main activities. Identify and describe those activities. At times as an initiative to attract a cluster of customers who share similar interest in a product that a company or person is selling merchandizers create strategies to set up target markets. 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