2 prepare a strategy to deliver the value to the

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2. Prepare a strategy to deliver the value to the customer. One way of doing this is to explain to management the importance of customer value management (CVM). 3. Measure how well these values were delivered, by using a measurement instrument such as the balance scorecard (BSC). 4. Determine if there are any deviations and if there are, ensure that they are corrected. Value-based marketing – the way in which the organisation designs and manufactures useful products that it delivers on time while maintaining a more than satisfactory level of service for an extended period. Topic 2 – External factors influencing customer behaviour Study unit 3 – Market characteristics Market characteristics and the influence on consumer behaviour: 1. Demographical characteristics – demography is the study of people’s vital stats, such as age , race or ethnicity , and location . These characteristics are strongly related to consumer buyer behaviour and are accurate predictors of how the target market will respond to a specific marketing mix. 4
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o Growing population, its age and high urbanisation rate have a direct impact on the type of products consumers want and need. This influences the type of message marketers convey, as well as the price they charge for the product or service that the company offers. o Literacy rate and level of education has a direct impact on the integrated marketing communication mix that marketers use to promote their products and services to current and potential consumers. o Composition of the SA labour market, the high unemployment rate and the migrant worker status of the African people influence the blend of products and services that local companies provide. o Although there is a decrease in the state of informal housing and in the number of households accessing water from rivers, streams and dams, there is still a proportion of the population that cannot satisfy their basic needs for shelter and water. Marketers may be able to provide such people with affordable products that could help their situation. o Increase in access to electricity and telephones provide local marketers with the opportunity to sell more electronic products. o Increase in access to sanitation and health care facilities indicates that there is a change in the way people make decisions regarding their health care. 2. Economic factors o Economic areas of greatest concern to most marketers are the conditions of inflation and the impact of interest rates and currency fluctuations on prices and consumer demand. o The cumulative impact of consumers’ purchase decisions, including the decision to forgo consumption is a major determinant of the state of a given country’s economy. o Inflation, interest rates, unemployment , the economic growth rate and the incomes of consumers are economic variables which could influence consumer behaviour.
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