Customer Value (CV) is the fundamental concept in marketing management. In short, major marketing activities are organized around how to create and harvest CV. CV of a marketing offering is defined as the difference between the the customer’s perceived benefits (e.g., use value) and perceived costs (e.g., the price paid). In general, customers are assumed to be CV maximizer. Namely, they choose the marketing offering with the highest CV among a set of competitive marketing offerings. The chosen offering returns values for the winning organization in the exchange. An organization’s marketing management is to create the essential elements of CV and maximize the total marketing returns or Customer Lifetime Value (CLV) for targeted customers and over time by choosing the right marketing offerings.  The basic ideas that marketing managers manage customer value: the fundamental framework for Marketing Management.

Marketing managers understand customer value change over time primarily from two perspectives: 

• When do they become your customers the very first time (customer acquisition or product life cycle)?
• How do they purchase from you repeatedly (customer retention or brand loyalty)?

The ultimate goal of understanding customer value both cross-sectionally and longitudinally is to form a competitive strategy for the company capitalizing the identified marketing opportunities. This understanding further sheds light on how marketing managers should orchestrate their efforts to develop an appropriate marketing mix program to create customer value.

-From the business strategy framework, how do we define Amazon’s business strategies?