1. Describe a value proposition and provide an example. How important is value to the consumer?
Value proposition is a marketing statement that summarizes additional benefits to the customer as a result of purchasing goods or use services offered by the company. It emphasizes on why a customer should buy product or use services. Following is an example of Apple’s value proposition to its customers...
Convince (Who?): For talented creative and techno-savvy people.
That (What?): Apples offers hi-tech and easy-to-use products.
Because (Why?): Apple consistently innovates and come up with well-designed technology products…iPod, iTunes, iPhone, iMac.
Value is a plays an important role in purchasing decision of a consumers. It makes them confident and builds their trust in company. It strengthens their faith and belief in company’s policy, attitude, communication, and that the company will stand by what they are giving to him.

2. How would you describe relationship marketing? Why are these relationships so important to successful marketing?
Relationship marketing is a strategy to develop long term relationship with the customers in order to retain them and win their loyalty. It involves methods and tactics designed to foster customer loyalty, interaction and long-term engagement. It focuses on exceeding customer satisfaction and having strong connections with the customers by promoting open communication between company and customers.
Building strong relationships with the customers is an important aspect of a successful marketing strategy in consistently changing global market. A company that fails to nurture and retain its existing customer’s base ultimately fails in terms of generating revenue and success in future. Following statistics of relationship marketing shows why it is important to develop the relationship with the customers …. * Repeat