QUESTION TWO

a) Understanding the consumer behaviour is the basic for marketing strategy formulation. Consumers reaction to this strategy determines the organization success or failure. In this competitive environment organisations survive only by offering more customer value. Providing superior customer value requires the organization to do a better job of anticipating and reacting to the customer needs than the competitor. Marketing strategy is basically the answer to the question: How will company provide superior customer value to its target market? The right combination of the marketing mix that meets customer expectation and provides customer value is the answer

From the extract above differentiate between Customer Value and Customer Satisfaction. Make arguments for or against delivering Customer Value rather than Customer Satisfaction. [10 Marks]

b) Explain the product decision in each of the following cases

i) Coca-cola adds Minute Maid in their market offer

ii) Samsung uses their established brand name Samsung on their new TV

iii) ABSA offers their high end customers Premier banking experience

iv) Toyota adds a keyless start button to the car

v) EABL adds Tusker Cyder in their market offer [10 Marks]