discussion response

Customer Value Differentiation Versus Need Differentiation

Businesses tailor their products to their customers to increase sales, but there are varying strategies to accomplish this. The most common of these strategies is customer value differentiation this strategy focuses on how the product delivers greater value than a competing product, this strategy requires less market research and can be more efficient in the manufacturing process, as the product is made the same for all consumers (Rintamaki & Saarijarvi, 2021). Customer needs differentiation tailor's products to a specific customer, this strategy offers products that are more in line with an individual's needs but require a more involved process with the customer and is less efficient in the manufacturing process, thus making it more common in things like financial services (Zutshi, 2024).

Generating Profit by Meeting Individual Needs

Companies have been able to navigate tailoring products to individuals and generate profits for the company. These successes are more common in industries that are providing services. Financial institutions are an example of these successes; by offering individually tailored financial services to their customers they have been to help customers move toward their financial goals while generating profits for themselves (Zutshi, 2024). Insurance is another area where companies have tailored the products that they are selling to meet customer needs and aid their customers while generating profits for their company ((Rintamaki & Saarijarvi, 2021). Cell phone service providers have created a wide array of plan offering to develop offerings that meet individual needs and price ranges. This market continues to be competitive and forces the service providers to continue to tailor plans and price points to their customers to remain competitive.

Categorizing Customers by Need in the Automotive Industry

General Motors Company has a very broad customer base with varying needs in the vehicles they purchase. GM has developed a line of vehicle offerings that is just as diverse as the customers they serve. GM produces vehicles under four major brand names, producing high end luxury vehicle, sports cars, trucks, and economic low-cost cars as well. GM diversifies their products to meet the needs of their diverse customer base helping them develop a strong market presence and generate strong profits.

Categorizing Customers by Need in the Airline Industry

American Airlines has flights to almost anywhere in North America, they continually look to add new flights to better meet customer needs and look to provide excellent customer service utilizing applications for phone to make the booking and boarding processes easy for their customers. They have also developed customer loyalty programs that reward customers for utilizing American Airlines as well as encouraging them to utilize and American Airlines credit card which allows the customer to compound their rewards while increase revenues generated by the airline. These strategies have led to American Airlines being profitable while developing customer loyalty by meeting their needs.

Categorizing Customers by need in the Personal Care Industry

Procter and Gamble is a prime example of how businesses can meet the needs of individuals in the personal care industry; they have developed product lines that are geared toward certain audiences and within society they are acknowledged as belonging to a certain demographic due to how well branded and advertised these products are. With brands such as Old Spice and Olay that are front runners in their industry. Procter and Gamble has tailored entire brands that they produce to individual demographics of people and done so very successfully and generated immense revenues and profits.

Categorizing Customer by need in the Hotel Industry

Hotel chains compete based on price point, quality of service, and cleanliness. When these things are relatively similar Hotel Chains have to differentiate themselves in other ways. Hilton has developed their honors program in such a way that they have been able to tailor the guest experience to the individual customer. Within the Hilton Honors application they allow customers to express what type of room they prefer, what floor they prefer their room to be on, allow them reserve rooms, and also offer digital keys so honors members never have to go to the front desk to check in or out. This allows travelers to check in on their phone and go straight to their room when they arrive. This provides great benefit to the customer but also reduces the amount of work required at the front desk of the hotel. These factors contribute to Hilton's prevalence and success in the industry.

Consumer's Sense of Self

Consumers seek out quality products and are willing to pay more for those products than for a similar product that does not have the same noted quality and reputation (Mora Cortez et al., 2023). An example of this is Carhart, Carhart makes quality outerwear and was geared toward working class individuals. As the quality of the product become more notable the portion of the market that was interested in purchasing their products grew and with the so did the cost of their products. Consumers attach a portion of their sense of worth to the products they purchase, leading to brand loyalty and some times the adverse as well when brands do things that are counter the beliefs of their customer base which Carhart experienced a few years ago.

Biblical Context for Relationship Marketing

Scripture tells us in Ephesians 4:29 "Do not let any unwholesome talk come out of your mouths, but only what is helpful for building other up according to their needs, that it may benefit those who listen" (New International Bible, 1978/2022, Ephesians 4:29). In this verse Paul is relaying the importance of ensuring that in all we do we are providing for the needs of others and not only regarding ourselves. In relation to marketing, this verse inspires us to ensure that our products are not only intended to bring our company profits but to bring value to the customer and society as a whole (Pfajfar et el., 2022). Similarly, Proverbs 22:1 says, "A good name is more desirable than great riches; to be esteemed in better than silver or gold" (New International Bible, 1978/2022, Proverbs 22:1). This verse emphasizes the importance of reputation; this is true for a business as much as an individual. If a business makes money but destroys their reputation in the process their success will be short lived, if they provide their customers with quality products and service, they will build wealth over time due to their reputation (Ahmad & Akbar, 2023). Luke 6:31 says, "Do to others as you would have them do to you" (New International Bible, 1978/2022, Luke 6:31). This verse is referred to as the Golden Rule, this rule holds true for businesses. The prioritization of customers is essential for the success of the company. If the customers of a business are displeased with the business they will not purchase products of services from the business leading to the failure of the business. These verses show us the importance of emphasizing people over the value they could potentially bring us or our business, when these principles are applied to our business and our lives, we have fuller more meaningful interactions with those around us, which allows us to prosper in the light of those relationships.

References

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New International Bible. (2022). Tyndale House Publishers. (Original work published 1978)

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