Question - Define and explain the term value analysis. Why customer value analysis is important in marketing? What are the different types of value analysis exercises?
The competitive pressures are forcing manufacturing and marketing organisations to re-examine their product ranges to offer higher level of customisation without incurring high cost penalties.
Customer Value Analysis
Customer Value Analysis is a powerful tool used to better define an organisation's products or services because it provides a better understanding of what customer value most. It allows an organisation to view its performance relative to the competition. Customer Value Analysis leads to development of high quality products, new product line extensions, and an optimal marketing strategy.
Customer Value Analysis is critical to understand the needs of the market, and to track organisation's and competitor's performance on those needs.