Page 42 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Unit 2: Customer Value

Notes
the approaches and none stand out as being particularly potent in the development of marketing
strategy or in conducting marketing research. In this respect, we aim to build on the valuable
previous work undertaken in this area to enable marketers to think more creatively about
customer value creation.

The strategy literature also recognizes the importance of value creation and of value creation
activities, such as value chains (e.g., Porter 1985). New product development research, for example,
finds that products offering superior customer value are more successful than those that offer
limited value or offer value already provided by other brands, as are those with a well-defined
product concept (Cooper 2001). Little has been written in the strategy literature, however, on
what value to create, when, why, and how, or what constitutes a well-defined product concept
from a value perspective. Opportunity recognition and exploitation are considered definitive
concepts in both new product development (Cooper 2001) and entrepreneurship (Shane and
Venkataraman 2000). However, scholars have paid relatively little attention to the opportunity
recognition process (Ucbasaran, Westhead, and Wright 2001) or to tools that assist in this process
(Gaglio 1997).
In light of this, we present an alternative framework for marketers to assist in their efforts to
create customer value; this will be useful for developing both marketing strategy and measures
of customer value for marketing research. The aim of this paper is to build on the strengths of
previous frameworks.

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Caselet General Electric’s Ecomagination

W e did it from a business standpoint from Day 1. It was never about corporate
social responsibility.
— Jeffrey R. Immelt, CEO of General Electric.
General Electric’s redirection of its business plan to “Ecomagination” program in 2005
was a result of the societal and governmental push for reduction in electrical and fuel costs
and in carbon emissions. With the help of environmental consulting firm, Green Order,
G.E. managed to modify its products more eco-friendly and energy saving. Their sale
reached US $18 billion in 2009 and is predicted to grow twice as fast as overall company
revenues over the next five years.
Dow AgroSciences
Dow AgroSciences, a wholly owned subsidiary of the Dow Chemical Company, developed
a line of Omega-9 rich canola and sunflower oils, with zero Trans fats and the lowest levels
of saturated fats, since 2005 Omega-9 Oils have eliminated nearly a billion pounds of trans
fat and 250 million pounds of saturated fat from North American foods.
Nestlé
Companies can also improve the competitive context in which they operate by investing
in their communities. Nestlé, for example, worked closely with the farmers of the Moga
Milk District in India, investing in local infrastructure and transferring world-class
technology to build a competitive milk supply chain that simultaneously generated social
benefits through improved health care, better education, and economic development.

Source: smithcolgate-2007-customer-value-creation-a-practical-framework

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