Page 49 - DMGT308_CUSTOMER_RELATIONSHIP_MANAGEMENT

Customer Relationship Management

Notes
Today Jagdeep owns 78 cows in all, with 40 cows in milk, producing an average of 700 kgs
of milk daily. His total income from milk is INR 32, 00,000 every year. In his six year long
relationship with Nestlé, Jagdeep has come a long way and is today a role model for other
farmers in the area. In September 2010, the Deputy Commissioner of Ferozepur visited
Jagdeep’s farm and highly commended his efforts.
Questions:

1. Has nestle succeeded in changing business through CRM?
2. State your observations regarding CRM in the case.
Source:http://www.accountingtoday.com/ato_issues/26_5/CRM-Case-studies-BDO-Hughes-Zoho-
Dynamics-WebsterRogers-62476-1.html

2.4 Summary

 Customer value creation is a central marketing concept that has been under investigated
(Hunt 1999). The customer value creation strategy framework developed in this paper
offers a useful tool for specifying and illustrating value creation strategies, illustrating
brand and organization positioning, identifying opportunities for new value creation
propositions, and suggesting enhancements to the value propositions of existing products.
 In addition to these contributions, the framework also suggests directions for future
research. For example, it leads to the following questions: Under what conditions are
some types of customer value creation more or less appropriate than others? Under what
conditions are some value migration strategies (patterns and progressions of value creation)
more or less appropriate than others? Are some sources of value more or less strategically
important than others?
 Other value creation observations suggest other testable propositions. Symbolic/expressive
value, for example, appears to be more difficult to create (fewer firms follow a brand
image/brand equity strategy than other value creation strategies), but it may provide
more sustainable competitive advantage.

 Most start-up businesses compete by creating functional/instrumental value or cost/
sacrifice value. Would start-up performance be enhanced by more complex value creation
strategies? If a firm started with a focus on functional/instrumental value, what type of
value should they next try to add to the product concept?
 The customer value creation framework presented here provides some assistance in this
task by extending and integrating extant conceptualizations of customer value creation.
 Future work is required to develop measures of customer value creation strategies
consistent with this framework.
 Being able to differentiate new products and services is at the heart of marketing. Without
a unique position, businesses (and their associated products and services) struggle to
survive let alone thrive. Being creative about creating customer value can enable marketers
to be more successful in discovering opportunities. Our goal, with the presented framework,
is to provide some structure to this creative process.
 Understanding what customers’ value in different contexts, and what customer value
creation strategies are more (less) appropriate in particular contexts, is central to marketing
strategy and marketing thought.

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