Question

1. Marketing is criticized because it makes people buy unnecessary items. Please offer a rebuttal or supportive view of this claim?

2. Explain the difference between customer market share and the value a company customer can bring throughout their life. Why is this concept important?

3. Discuss trends affecting marketing, and what does it mean for marketers to deliver to their customers?

Answer 1

Marketting is gud when it only to sell good and genuine products but if we see today's scenario then we can easily realised and observed that Marketing is not what it should be. Marketing is misleading a person on the basis of some false promises like A fairness cream advertisement shows that a person who is dusky or black can be fair in just 7 days. How it could be possible to change the by birth skin tone? Some height increasing machines and medicines are available in the Market and claiming tht it will work and increase the height of a short person. This is totally false but when a person who is suffering with this feeling that he or she is discriminated by their colour or any other thing then they follow these false advertisement. People buy unnecessary goods by watching the charming advertisement in which they see their favourite actors to using and promoting it.

2 ) difference between customer market share and the value of a company customer

There are various types of market share. If you need to grow your business you have to focus on your buyer or customer who is going to spend money on your product.Because focusing on growth through acquiring new customers is the hardest, riskiest, least profitable and least efficient way for you to grow. Growing through new customers is intuitive.So customer market share is very important.

Customer Lifetime Value or CLTV or the value of company customer is the present value of the future cash flows or the value of business attributed to the customer during his or her entire relationship with the company.

basic formula for calculating CLTV:
(Average Order Value) x (Number of Repeat Sales) x (Average Retention Time)

example: a man run a Health Club where customers pay Rs 1000 per month and the average time that a person remains a customer in your club is 3 years. Then the lifetime value of each customer is (according to the formula above):Rs 1,000 per month x 12 months x 3 years = Rs 36,000. This means each customer is worth a lifetime value of Rs 36,000.Once we calculate CLTV we know how much the company can spend on paid advertising.

3) Trends affecting the Marketing

a) There will be increasing complexity in consumer purchasing decisions.
b)Personalization in product design and communications will be more prevalent.
c)Mobile communications are becoming the center of marketing.
d)Transparency will dictate brand-customer relationships.
e)The marketing organization will increasingly move from digital silos to integrated teams.
f)More accurate metrics will continue to emerge.

customer is most important for any successful business idea because customer is the only key to achieve that a seller need.