Ch4 value the_basics

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  • J. K. Sharma
  • Ch4 value the_basics

    1. 1. <ul><li>CHAPTER FOUR </li></ul><ul><li>Value – The Basics </li></ul>
    2. 2. The Meaning of Value in Marketing <ul><li>Benefits Translate into Value </li></ul><ul><ul><li>All buyers seek Value in all their purchases and they look for it in the form of benefits. </li></ul></ul>Chapter 4 : Value – The Basics The Concept of Customer Value <ul><li>Customer Value is the composite of tangible values as well as </li></ul><ul><li>intangible values. </li></ul><ul><li>Customer Value, Customer Cost, and Customer Satisfaction </li></ul>Initially Perceived Value and Finally Delivered Value <ul><li>Initially Perceived Value </li></ul><ul><ul><li>Initially perceived value, the outcome of mental evaluations </li></ul></ul><ul><ul><ul><li>Blend of qualitative and quantitative yardsticks. </li></ul></ul></ul>
    3. 3. <ul><li>Finally Delivered Value </li></ul><ul><ul><li>Is the difference between the total value from owning and using the product and the total costs incurred in obtaining it. </li></ul></ul><ul><li>Challenge is to Fulfil Customer’s Initially Perceived Value </li></ul><ul><li>Am I Getting My Money’s Worth? </li></ul>Chapter 4 : Value – The Basics Initially Perceived Value and Finally Delivered Value
    4. 4. Components of Customer Value <ul><li>Tangible Values </li></ul><ul><ul><li>Functional value </li></ul></ul><ul><ul><li>Economic value </li></ul></ul><ul><ul><li>Convenience value </li></ul></ul><ul><ul><li>Sensory/aesthetic value </li></ul></ul><ul><ul><li>Service (people) value </li></ul></ul>Chapter 4 : Value – The Basics <ul><li>Intangible Values </li></ul><ul><ul><li>Social value </li></ul></ul><ul><ul><li>Prestige/status value </li></ul></ul><ul><ul><li>Sentiment value </li></ul></ul><ul><ul><li>Belief value </li></ul></ul><ul><li>The two categories not mutually exclusive; they overlap and blend </li></ul><ul><li>Intangible values are equally vital as tangible ones </li></ul><ul><li>A Consumer’s Profile Determines How He Perceives Value </li></ul>
    5. 5. Components of Customer Cost <ul><li>Customer cost also consists of tangible and intangible components </li></ul><ul><li>Total of monetary cost plus psychic costs like time, energy, and other botherations. </li></ul>Chapter 4 : Value – The Basics
    6. 6. The Customer Decides What Value is; the Firm’s Job is to Deliver it <ul><li>Design and create products and services that embody attributes, which customers consider as value </li></ul><ul><li>Customer analysis and Customer dialogue, the tools </li></ul><ul><li>In some cases, the firm can be customer-driving </li></ul>Chapter 4 : Value – The Basics
    7. 7. Indian Consumers Now Increasingly Vote for Value <ul><li>Paisa Vasool Approach </li></ul><ul><li>Value Takes Precedence Even Over Brand Name </li></ul><ul><ul><li>Nike, Reebok, and Adidas could not succeed in India on brand name alone </li></ul></ul><ul><li>In Durables too, Value Becomes Vital for Indian Consumers </li></ul>Chapter 4 : Value – The Basics
    8. 8. <ul><li>Requires Creativity </li></ul><ul><li>Innovation, Equally Essential </li></ul><ul><li>Consumer Insights </li></ul><ul><li>A Demanding Task </li></ul><ul><li>(Example: Nestle and Frito-Lay) </li></ul>Chapter 4 : Value – The Basics Value Delivery is No Easy Task; It Requires Creativity, Innovating Ability and Customer Insights Value Delivery is the Essence in CRM Too <ul><li>‘ Customer Relationship has more to do with Value than with Relationship. ‘ </li></ul><ul><li>– Martin Christopher, Adrian Payne and David Ballantyne, Relationship Marketing: Creating Stakeholder Value </li></ul>

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