Creating and Capturing

Customer Value
Option 2) B2C, focusing on direct-to-consumer sales

Company Mission: To connect consumers directly with local

farmers and artisans to provide fresh, sustainable, and locally-
sourced food products.

Vision: To become the leading platform for supporting local

economies and sustainable eating practices, making local food
accessible to every household.
Option 2) Company Name: PurelyLocal. B2C, focusing on direct-to-consumer sales

Products
Local Food Subscription Boxes: Customers can subscribe to receive weekly or
monthly deliveries of fresh produce, dairy, and other goods directly from local
farms.

Artisan Goods Marketplace: An online platform where local artisans can sell their
products, such as handmade cheeses, baked goods, and preserved items, directly to
consumers.

Farm-to-Table Meal Kits: Meal kits that include all necessary ingredients, sourced
entirely from local suppliers, with easy-to-follow recipes designed by chefs.

Seasonal Pop-Up Events: Organizing seasonal events that promote local producers
and allow consumers to experience the quality and variety of local products
firsthand.
 Breakout Session 1 – 7 minutes

What is Marketing?
• What do you think marketing is? Write down
your thoughts.

• What is the function of marketing?

• What is the goal of marketing?

Marketing is That’s to… Marketing has twofold
the process by which o Understand the
companies create market
goal:
value for customers (customers’ needs 1. Attract new customers
and build customer and wants), by promising superior
relationships to o Design a value.
capture value from customer driven 2. Keep and grow current
customers in return. strategy, customers by
o Develop a delivering value and
The function of marketing satisfaction.
marketing is program,
to bring value to o build
customers, whom the relationship with Build &
business seeks to customers, maintain
identify, satisfy, retain o Capture value competitive
and expand. from customers advantage
Marketing aims to create a transaction that leads two
parties obtaining a desired outcome from the
transaction and ensure that the transaction is repeated
by retaining customers and grow their business with the
company.

Customer (or buyer)

Product
Provider (or seller)
Transaction
Understanding the Marketplace and
Customer Needs
 Breakout Session 2 – 6 minutes

What are customer needs, wants and

demands?
 • States of deprivation
Needs • Physical—food, clothing, warmth, safety
• Social—belonging and affection
• Individual—knowledge and self-expression

• Form that needs take as they are

Wants shaped by culture and individual
personality

Demands • Wants backed by buying power

Maslow’s hierarchy of Needs
Wants
“Wants” are desires consumers have beyond their basic needs.

A customer might need a car for transportation (need). But they want a Tesla
(want) because of its luxurious features, brand reputation, and commitment to
sustainability.

External factors play an important role in shaping “wants”. Examples of these

factors are culture, social context, marketing influences, and preferences.

Wants vary among individuals within the same target market. It’s important to
note that while wants can drive significant consumer demand, they are often
more flexible than needs.
Demands
A demand hinges on whether someone is able to pay for a product.

Demand combines wants with purchasing power. The customer’s buying power
fuels the demand for a product.

Understanding these three concepts allows businesses to tailor their marketing

strategies more effectively. It enables businesses to create products that meet
their customers’ needs, desires and ability to pay.

As an example, a company selling smartphones doesn’t just sell a device to

make calls (need). They also sell high-tech design, a range of functionalities, and
a status symbol (wants). And by offering different models at varying price
points, they cater to the demands of different purchasing power.
The Role of Marketing
Breakout Session 3: Identifying Needs, Wants, and Demands (10 minutes)
The Role of Marketing
Task: Analyze the PurelyLocal customer base and identify their basic needs,
wants, and demands related to local and sustainable food products.

Guidance Questions:
1. What are the physiological and safety needs that PurelyLocal addresses
for its customers?
2. What are the higher-level needs (social, esteem, self-actualization) that
PurelyLocal can satisfy?
3. How do external factors like culture and social context influence the
wants of PurelyLocal’s customers?
4. What do we need to know about the demands can PurelyLocal products?
Customer Value and Satisfaction Expectations
Multiple factors contribute to a customer's
perceived value

Customers • Satisfied customers buy again and

• Value and
satisfaction
Marketers
• Set the right level of
expectations
• Not too high or low
Marketers' perceptions about consumer
satisfaction, distinct from consumers'
actual satisfaction levels.
tell others about their good
experiences.
• Dissatisfied customers switch to
competitors and disparage the
product to others.
• Value and satisfaction – key things
for building a successful customer
relation (customer review free
shipping, services, availability
near to you)
Market Offerings—Products, Services, and Experiences

Market offerings are some combination of products, services,

information, or experiences offered to a market to satisfy a need or want.

Example: Apple
Marketing myopia is focusing only on existing wants and losing sight of
underlying consumer needs.

Example: BlackBerry
Limited – paid attention on a specific product that BB offered.

Kodak thought it was in the film-making industry, but in reality its

business was about preserving memories.
PurelyLocal Offering

Products
Local Food Subscription Boxes: Customers can
subscribe to receive weekly or monthly deliveries of
fresh produce, dairy, and other goods directly from
local farms.

Artisan Goods Marketplace: An online platform

where local artisans can sell their products, such as
handmade cheeses, baked goods, and preserved
items, directly to consumers.
What would you add?
Farm-to-Table Meal Kits: Meal kits that include all
necessary ingredients, sourced entirely from local
suppliers, with easy-to-follow recipes designed by
chefs.

Seasonal Pop-Up Events: Organizing seasonal events

that promote local producers and allow consumers to
experience the quality and variety of local products
firsthand.