Customer Value and Value Proposition in Business Management with Marketing

This study explores the concept of customer value and value proposition in business management with marketing and its importance in maintaining financial success. It discusses the role of customer value in business operations, the definition of customer value and value proposition, and how UK supermarkets deliver value to customers. The study also examines how value is communicated through the supermarket's website and provides recommendations for businesses to gain customer value and value proposition in the market.

Running head: BUSINESS MANAGEMENT WITH MARKETING
BUSINESS MANAGEMENT WITH MARKETING
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Introduction
Any business looks after the customer value and the value proposition to maintain the
business operation process. The value of the customer along with the value proposition can
be considered as an important factor on which the business could look after the business
(Hassan, 2012). The business should compromise their quality based on the customer value.
In most of the cases this is found that the business mostly focuses on the quantity of
production for competing in the business market (Hassan, 2012). For maintaining
competition in the business marker the business compromises the customer values (Hassan,
2012). This study describes the concept of the customer value and the value proposition and it
focuses on the importance of such concepts in maintain the financial success (Whalen &
Akaka, 2016). This study also describes how the UK supermarket maintains values and the
customer segments of the super market (Whalen & Akaka, 2016). This study shows how the
value is communicated through the website of the super market and the benefits of
communicating the value through the website of the super market (Whalen & Akaka, 2016).
This study also shows the recommendations through which the business will be able to gain
the customer value and the value proposition in the business market (Whalen & Akaka,
2016).
Customer value
The customer value is considered as the satisfaction or the experiences of the
customers by identifying the action that is relative to the development of the cost required for
the action. The value changes as compared to the use of the product in the customer journey
(Payne, Frow & Eggert, 2017). Therefore, from the success achieved as well as the mentality
and the cultural aspects pose a vital and lengthy proposition. Thus, experience and value is
created and the customer value creates customer satisfaction and experiences. The customer

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value increases the customer satisfaction and the customer experiences (Payne, Frow &
Eggert, 2017). The development of the customer value increases the loyalty, market share,
prices and increases efficiency. The higher market share and the better efficiency lead to high
profits. The value of the customer is considered as the perception of what the product and the
services are worth to the customer versus the possible alternatives (Payne, Frow & Eggert,
2017). The business should develop the customer value concept and the customer perceives
as the value.
The explanation of customer value can be made by identifying the perception about a
product and services that is worthy of contesting between the customers and the possible
alternatives (Whalen & Akaka, 2016). The worth means that the customer feels that he or she
receives the benefits and the services regarding what was paid (Payne, Frow & Eggert, 2017).
This can be expressed in the equation form that is the Customer Value = Benefits – Cost
(CV= B - C)
In the context of the customers, the benefits that can also vary by shifting the value as
the value of one customer can differ from another (Whalen, P. S., & Akaka, 2016). This is so
because what is important to sector of audience can differ to the other segment of the
audience (Homburg, Jozić & Kuehnl, 2017). The customer benefits might involve the product
quality, advantages of the ownership, image of the company, company brand, experience and
the long term takeaways.
Value proposition
Value proposition can be defined as the value that has been promised to a customer
after the purchase has been made. This is usually considered as the ultimate deal that helps in
making the product attractive to the customers. (Whalen, & Akaka, 2016). The business value
proposition is to focus on the superpowers that the potential customer gets (Homburg, Jozić

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& Kuehnl, 2017). It is also considered as the way that the brand or the product could fix the
pain point and could improve the lives of the targeted audience. For any business the value
proposition should be the centre when the visitor arrives on the business site (Payne, Frow &
Eggert, 2017). Value proposition can be considered as a promise that has been made between
companies and the market segment. It is considered as an easy guide that denotes the reason
behind the purchase of goods and services need to commence from a particular source.
(Homburg, Jozić & Kuehnl, 2017). The role of the value proposition is to provide explanation
about the ability and capability of a product to fulfil the needs so that communication about
the specifics about recent benefits can be made. It also states the reason behind a product
being better than its competitors are. (Whalen & Akaka, 2016). An ideal value proposition
helps in the development of the decisions that has been undertaken by the customers (Payne,
Frow & Eggert, 2017).
Explanation of why the concepts are critical to a firm’s financial success
In any business the customer value and the value proposition plays the critical role in
gaining the financial success. The value of the customer has become important for the
business leader and the mangers as the companies are losing other main and the special
talents due to the highly changing and the competitive global economy (Eggert et al., 2018).
There are no business that could survive in the business market without creating any
customer value as the business exist for creating customer value (Whalen & Akaka, 2016).
For maintaining the customer, value the business maintains the total quality management that
requires every member of the organization to play the active role for adding value to the
customer experiences (Gordon et al., 2018). The value proposition is important for the
business to gain financial success. The value proposition is important to expend the necessary
time and the effort for crafting the compelling value proposition as it will form the basis of
the sales, marketing, product and the development effort (Erevelles, Fukawa & Swayne,

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2016). The valuable proposition is considered as the valuable tools for guiding the marketing
efforts in the business (Whalen & Akaka, 2016). The major elements of a value proposition
are the specific value the company’s products offers (Erevelles, Fukawa & Swayne, 2016). It
is necessary for a company to respond to the customers about questions related the choice
made about the product of the particular company rather than its competitors. (Erevelles,
Fukawa & Swayne, 2016). Companies tend to offer value at lowest price as well as highest
quality value (Whalen & Akaka, 2016). Along with this, another important value is the ability
to save time. In the case of development of a proprietary technology or unavailability of
product unique value is offered to the customers. (Whalen & Akaka, 2016). Another major
element of the value proposition is to cover how the organization meets the individual
requirements and the customer desires (Skålén et al., 2015). The element aims at the
emotional side of the customers so that a relationship can be developed for maintaining the
brand loyalty. (Whalen & Akaka, 2016).
How UK supermarkets deliver value
This is clearly evident that the growth in the UK grocery supermarket is rising and
becoming more dominated by the few firms which are led by Tesco, Sainsbury and ASDA
(Whalen & Akaka, 2016). The UK supermarket sector is also considered as the oligopolistic
and the pricing strategy of the supermarkets could be understood by the application of the
game theory approach (Weinstein, 2016). It was identified that the large super market chain
had witnessed a fall of the independent high street retailers (Sidorchuk, 2015). This has been
evidenced that over the last years there has been a decline from 35000 to 18500 (Whalen &
Akaka, 2016).

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How your supermarket delivers value to you
According to Kantar, the food retailer super market such as Asda was one of the
strongest performers in the top food retailers in the country, with a sales growth of about
0.7%. Tesco and Morrisons follow ASDA (Luca, Hibbert & McDonald, 2016). The most
difficult period of Sainsbury’s was during its decline by 0.4%. It has been seen that the
growth rate of the supermarket slowed done to 1.6% over Christmas, which is rated as one of
the poor performances that has been encountered in over a year. This is because of the
political instability in the country (Whalen & Akaka, 2016). In 2017, it has been seen that
shoppers managed to spend £450m more than the growth in 2018, which was due to the
lower inflation rate of 1.3%, which is, less than half the level of the year earlier (Arslanagic-
Kalajdzic & Zabkar, 2015). This super market provides great value to me as this major
priority is to develop the customer value and the value proposition (Kowalkowski, Kindström
& Carlborg, 2016). This super market ensures that the business competes in the business
market based upon the quality of production and the reputation in the business market
(Arslanagic-Kalajdzic & Zabkar, 2015). The supermarket follows the customer expectation
and maintains the total quality management, value management in the business process that
ensures that the business provides the expected quality production (Arslanagic-Kalajdzic &
Zabkar, 2015). For an organisation like ASDA, innovation as well as change can be
considered as driving forces. Development of changes among the consumer behaviour
signifies that every employee needs to be provided with equipments that can help in its
operation in a complex as well as challenging environment (Arslanagic-Kalajdzic & Zabkar,
2015). An example, can be given in the form that over half of the transactions in the stores of
ASDA have undergone a self-scan checkout system by which employees can host the
customers and help them with any form of doubts that exist by managing more than one
check out sites at a time (Kowalkowski, Kindström & Carlborg, 2016). The shift in the

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customer service along with the customer management can be attributed with the business
model that brings about a challenging as well as the traditional supermarket skills that are
required at ASDA since its inception in 1965 (Arslanagic-Kalajdzic & Zabkar, 2015).
Analysis has been made in areas that required training and operational service staff with a
more complex and skills based on individuals are necessary. The pairing of the autonomy as
well as the decision making activity need to be made for understanding the importance of
ASDA (Arslanagic-Kalajdzic & Zabkar, 2015).
One customer segment at your supermarket and the value it seeks
The measurement of standard metrics is important for the development of HR
operations so that the value of the data can have a significant growth after it gains relevant
insights about a business. One of the most significant roles for an HR team is for the
development of clear reports that can help in the delivery of insights between the various
teams as well as the senior leaders (Chandler & Lusch, 2015). With the increase in
availability of data the amount of reports that are needed to be formed by the HR need to
increase (Kowalkowski, Kindström, & Carlborg, 2016). For this reason, the goal of ASDA is
to identify and rationalise the HR measures that are required as dashboard while an
illustration of the key performance indicators can be connected with the HR strategies
(Chandler & Lusch, 2015). ASDA has been involved with the external experts so that HR
data can be used along with the dashboard report that can help in characterising different
business metrics (Kowalkowski, Kindström, & Carlborg, 2016). The dashboard can be
accompanied by information in the form of narration that can help the people at ASDA in
trying to focus on the recent performances as well as the performance of the customers
(Chandler & Lusch, 2015).

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The direct action that is developed from the market insight as well as the alternative
customer service models can help in driving real value creation within a business. At the
same time, leaders use the data in ways that help in the combination of the data of the
employees based on people with power in the organisations (Grönroos,Strandvik &
Heinonen, 2015). ASDA has managed to identify and focus on the analytical development
that helps in its building capability and development of the business sectors that utilise data
and help in identifying the performances that can be used to create a unique and innovative
nature within the organisation (Grönroos,Strandvik & Heinonen, 2015).
How value is communicated via your supermarket’s website
The business value is communicated in the website of the business as this is the major
priority of the business to show the visitors of the website to find out the visitor’s expectation
from the website (Kowalkowski,Kindström, &Carlborg, 2016). The development of the
business website helps the business to provide details about the organization to their website
visitors (Grönroos,Strandvik&Heinonen, 2015). The website also involves the product and
the services that the business offers and the quality of the services are also advertised in the
supermarket’s website for attracting more customers (Kowalkowski,Kindström, &Carlborg,
2016). This is communicated in the business market that is how the business provide value to
their customers and the website should reflect how the supermarket provides values to the
customers and how they maintains the value proposition in the business market
(Grönroos,Strandvik&Heinonen, 2015). The website allows the customers to reveal their
thoughts about the product and the improvements the customer suggest for the business. This
will help the supermarket to increase the maintenance of value proposition in the business
market (Grönroos,Strandvik&Heinonen, 2015). This will help the business to reflect upon the
sectors that needs to be imposed for enhancing customer value. The website of the super
market will also ensure the business to reflect the business that will bring improvements

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thereby attracting more customers towards the business market
(Grönroos,Strandvik&Heinonen, 2015). This shows that the supermarket websites helps the
business to follow the business process thereby leading to the practice of cost effective
marketing strategy through the websites of supermarket (Kowalkowski,Kindström,
&Carlborg, 2016).
Recommendation
This study recommends the business to take feedbacks from the actual customers so
that they can set the proper customer value and as the values differ from one customer
segments to another the business is required to analyse the data in the proper manner before
setting the customer value (Andreassen et al., 2018). This is also recommended for the
business to maintain their website in the correct manner thereby providing every detail of
information regarding the products and services they are going to offer to their customers
(Kowalkowski, Kindström, &Carlborg, 2016). The website should also show the detailed
information regarding the unique services they provide (Kowalkowski,Kindström,
&Carlborg, 2016). This is also recommended for the business to compete with other business
regarding the setting of customer value. This is only possible when the business is able to
determine the customer segments that differs from one business to another (Kowalkowski,
Kindström, &Carlborg, 2016).
Conclusion
Thus, the above discussed paper could be concluded by providing a brief overview of
the following aspects. The assignment have a thorough discussion of the values that is to be
maintained by any kind of organization to conduct business in a sustainable way. The paper
also have a thorough discussion of the other business aspects such as estimation of the value
of the organization or their business. The paper also explains about the critical features

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behind the firm’s financial success. The assignment provides an overview on the different
ways by virtue of which the supermarket at the United Kingdom’s deliver value to their
customers. The paper also provided a justification regarding the communication patter
regarding spread of value via the websites of the supermarkets. The paper also provides a
recommendation for the fellow readers.

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