MGT-253 Principles of Marketing

Week 2 of 17MGT-253Women University Multan

Week 2: Creating & Capturing Customer Value

Learning objectives

  • Explain customer value and satisfaction in plain language.
  • Describe CRM and why retention often beats endless acquisition.
  • Prepare a structured view for a classroom marketing debate.

Customers do not buy products; they buy expected outcomes. Value is the customer's evaluation of the difference between all benefits and all costs of a market offering relative to alternatives.

Building blocks of value

  • Functional benefits — Does it work? (A mobile banking app that transfers money reliably.)
  • Emotional / social benefits — How does it make me feel or look? (A brand associated with trust or status.)
  • Monetary & non-monetary costs — Price, time, effort, risk, learning cost.

Satisfaction occurs when perceived performance meets or exceeds expectations. Over-promising creates short-term sales and long-term distrust.

Customer Relationship Management (CRM)

CRM is the overall process of building and maintaining profitable customer relationships by delivering superior value and satisfaction. In practice it includes:

  1. Identifying high-value customers and segments.
  2. Capturing interaction data (purchases, complaints, preferences).
  3. Personalizing offers and service recovery.
  4. Measuring lifetime value (CLV), not only this month's revenue.

Tools range from simple ledgers and WhatsApp lists used by small retailers to enterprise platforms. The philosophy matters more than the software: treat relationships as assets.

Pakistan example A ladies' clothing boutique in Multan that remembers preferred colors, sizes, and Eid shopping windows — and follows up after purchase — practices CRM even without an expensive system. Banks that send irrelevant SMS offers every day destroy perceived value despite CRM software.

Marketing debate (instructor-assigned topic)

Debates train you to weigh trade-offs. A good debate brief has: claim, evidence, counter-argument, and a managerial implication. Sample themes you may meet:

  • Low price always wins in emerging markets vs Quality and trust win.
  • Social media replaced traditional advertising vs They amplify each other.
  • Customer is always right vs Selective relationship strategy.

For Week 2, prepare notes on whichever topic your instructor assigns: define terms, give one Pakistan example for each side, and state which side you would defend as a marketer and why.

Key terms

Customer satisfaction
Match between expectations and perceived performance.
Customer lifetime value (CLV)
Predicted net profit from the entire future relationship with a customer.
CRM
Process of building and maintaining profitable customer relationships.
Share of customer
Portion of the customer's purchasing that a company gets in its product categories.

Self-check

  1. Explain value using benefits minus costs for a ride-hailing trip.
  2. Why can retaining existing customers be more profitable than chasing new ones?
  3. What data would a small retailer collect for simple CRM?
  4. List two arguments for and two against the idea that the customer is always right.