Value angles
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Value angles Value angles Document Transcript

  • Value anglesCustomers desire to purchase those products that add value to their values. Taking into accountthis point, companies should produce such products that add value to customer values.Even in case a company accomplishes to determine its target audience, there may be many valuesamong this audience, which may take the company to chaos. However, in order to avoid theactivities of the companies aimed at ranking not to be chaotic, the value given by customers to anyproduct should be studied and key values should be determined. THE CUSTOMER VALUE may vary depending on the product nature, product applicationareas and etc. As systematizing these values and determining key values is a complex process,which values to aim and how reflect it in its products remains a difficult issue for the companies orbrands. In order to avoid such confusion, companies should follow two strategies: 1) Engrafting the brand values to customers; and 2) Transferring the customer values to brand values.When people make purchases, they always try to get such value that is important for them. Andthe companies aim to determine these values and offer such products and services to thecustomers that fit these values. However, this process is not quiet easy. The logic prescribed hereis mainly to ensure right understanding of this value between the company and the customer.While the process of purchase (before deciding, at the time of deciding and after deciding) thecustomer understand his/her certain needs, despite not entirely, and accepts them as a value forhimself/herself. The customers reflect the value through emotional expressions, like ‘it’s premium’,‘it’s very cheap’, ‘it’s very beautiful’, and etc.In many cases, several values become actual for the customer all together. For example, let ussuppose that you want to buy a car. You determine several values in this process for you: 1. Quality 2. Design 3. FunctionalityYou make choices based on these values and you choose S or E class model from the Mercedesbrand. If we study the process, we can see that the importance of your three values are differentand these values influence your understanding under certain agle.Therefore, we called this approach ‘Value angles’. The cause is that the values in perception ofthe customer are under certain angle.Another important issue is determining these values and supplying suitable product (goods andservice). In this case, the company should transfer these values to the values s/he would offer.
  • However, rational expressions of the values should be determined for the company. That is,although the value angles is an emotional expression, the company should transfer it to the valueangles offered by the company in a rational expression. Let us see the values regarding the product below: Funksion Functionality Self- Özünü Transformation process allıq idarəetmə management funksiyası function Uzunömürl Durability Keyfiyyət Quality ülük Dizayn Design Tərz StyleAs we can see, the emotional expressions were transferred into rational expressions. Thementioned conditional emotional expressions are shown actually as a triangle. That is, the outlookof the values has various angles for the customer.As in Mathematics, the sum of the angles in a triangle is 180 degrees. However, the values of theangles themselves are different. The key issue is defining its degrees exactly or to some extent.Because the values offered by the company should be similar as well.It is required to solve two major problems in this case: 1. Defining the angles of the customer values: and 2. Transferring the same values to values offered by the company in rational expression.Thus, the company defines the emotional values of its current or potential customer (segment) andoffers rational values to him/her.
  • Emotional Value Rational Value Explicit Expressions of Rational ValuesQuality Durability 10 yearsFunctionality Self-management Gathering speed in a short time, regulation of speed according to weather conditionsDesign Style Unusual and lux design for those who regard themselves exclusive onesAnd so, the company manufactures products meeting these rational needs specifically andintroduce them into market. Even in promotional campaigns these rational values are expressed.It is possible to define separate value angles for the abovementioned quality value. For example:according to customer, the quality value includes the product quality, functional consumptionquality and consumption durability qaulity. And the company, in compliance with these, should formsubvalue angles for its durability value. And this process may itself divide. And so, each valueangle may be itself lowered to a subvalue angle. The key stipulation is to ensure the value anglesoffered by the company to be at the same angle with the customer and to be in a rationalexpression.One of the problems is to transform the customer values to the company values.If we look at 4 P and 4C, we can see the same logic there. That is, if the important values by thecustomer are 4 C, then the values offered by the company are 4 P. However, the angles of thesevalues may always be different for various companies. The reason is difference of importancelevels of the values for the customer.
  • Classification of Customer ValuesClassification of customer values is one of actual problems in the spheres of marketing andmanagement. Thus, in this sphere, Anderson, J. C., Narus, J. A., & Rossum, W. v. (2006). in theirarticles in the Customer Value Propositions in Business Markets, Harvard Business ReviewMagazine have divided the customer value offers into 3 categories: 1. All benefits 2. Favourable Points of Difference 3. Resonating FocusLet us show below what these 3 categories of the value offers express:Value All benefits Favourable Points of Resonating FocusSupplies DifferenceWhat do they All the benefits the customer Major points making Which different pointsexpress? obtained you different from a to be improved will little stronger provide the customer alternative with the biggest value in the future? (near, medium and far)Responses to Why your supply? Why you? Why we should buy What is the key valuecustomer from you, but not from that necessiates us toquestions your competitors? keep your offer in(desires) mind?What do they Becoming aware of all offers Becoming aware of all How to convey therequire? in the market offers and the best most important value alternative offers in to the customer in the market comparison with the best alternative?Invisible Statement of feasibility Self-satisfaction and The customerpotential self-confidence in the requires a valuethreats values researchVarious companies or brands are using these 3 value categories in different forms. In general, theyhave mainly directed toward the 2nd and 3rd value categories recently.Although, an action like all players is required in the first value category, in the second categorydistinguishing advantages (differentation) have been underlined. But if the dynamics of the marketand participators are considered, it would be gradually possible to offer it to the customers byothers in a similar or stronger form. Also, there is a threat of perceptibility of self-confidence andself-satisfaction in the 2nd value category.
  • The 3rd value category is in a more strategically purposeful and planned form. At the same time, itis in a position to respond with more proper and rational values to the emotional values of thecustomers. As we can see from the above schedule, actually, from the 1st value category to the3rd value category the values are gradually getting optimized. However, at the same time, thepower and singularity of the values are increasing. This shows that every brand should discoverthe strongest emotional values of the customer and should offer specific rational values inresponse to these values. And singularity in the values is increasing the power of the value directly.The singularity will be on a limited number and in general, in many cases will be in singular. Bydefining this key value and other key values supporting or completing it and by offering it to thecustomer, the brands may maintain its power for a long time and may increase it.The customer value angles may be reflected through various geometrical figures. However, whenwe increase the number of the value angles in these figures, there may occur some difficulties. Forinstance, it is difficult to determine it in a five-angle value and even, it is quite impossible to transferit to the value offered by the company. And in general, when the customer is supplied with manyvalues, s/he is confused. And sometimes, the customer does not entrust that so many values aresupplied by one company.Another difficulty is confusion of concentration and lose of value exchange with the customer. Theproblem making the action of the companies in this direction difficult is them direct toward variousvalues, which affects the companies negatively in brand building.In general, we recommend the companies to choose the first 3 most appropriate ones from thesevalues, taking into account the desires of the customers and the strong business position of thecompany. In any product the customer chooses, s/he will search for the most important values forhim/her. As little as the values that the customer attaches importance is, the powerfulness of thevalues would increase.There are situated the values of the customers based on their degrees, at one side similar to theGE matrix, and the values situated in Ps fitting to these values and expressed rationally, at theother side. And the direction may be determined based on the power level of both values. That is,in order to transform the customer values into the rational values, the powerty level of the valuesshould be determined and rational values should be placed depending on responding capacity tothis power level. At both sides should be selected those values which have strong desire andresponding capacity. All the activities of a brand should be set up on the basis of these values.
  • Below is provided a matrix showing the Importance Levels of the Customer Values and a Brand’sCapacity to Transfer the Customer Value to the Rational Value. High IMPORTANCE LEVEL OF A should be B should be May be selected CUSTOMER VALUES selected selected Medium C should be May be selected Should not be selected selected Low May be selected Should not be Should not be selected selected Company/brand capacity to transfer customer value to rational value Low Medium High Şirkətin mövqeyiAs shown from the above matrix, the customer values and of capacities of companies or brandsshould be high or on a level close to high. In this matrix, as if the customer value and the capacityof the brand to accept this value – to transform it to the rational value are balanced and expediencyof selection of the most fitting three values are stated. Other three of nine values are such valuesthat may be selected. And the remaining three values are such values that should not be selected.The values which are not recommended to be selected are those ones that have lower importancethan other customer values or those ones not recommended to be selected, taking into accountthat the brand has a low capacity to transfer this value to the rational value, despite this value is onthe medium level.The number of values in the value supply of companies may change. The key question is thecompanies to transfer the emotional values of the customers into rational values and express it tothe customers. We can give some examples of various companies, regarding this transformationprocess:For example, BMW (Bavarian Motor Works) has accepted the values of quality, technology,performance and exclusiveness as the brand values. We are speaking about four values here.These values are those that the customer wants to gain. As rational forms of these values, thequality value means durability, operation for a long time and late breakdown of the parts;technology value means application of the latest technological devices, distinction of the car’stechnological equipment from other brand products; performance means a high speed, durability,...; and, as exclusiveness, the company gives a message to those who feel themselves differentand exclusive that the BMW is not a car for all, but for only exclusive people. And the companyexpresses it though various means in the product.
  • Value angles and general managementIn general, the value angles may be applied not only to marketing, but also to generalmanagement. For example, there may be some important values for entrepreneurs, which theyexpress in a rational form. For example, s/he wants to increase the profits or the market value ofhis/her company. Thus, it should be transformed into the rational expression: increasing the profits15 percent.In fact, it is possible to include the existing Balanced Scorecard System, KPI, metrics and othermethods in the frame of the value angles. The advantage of the value angles is that it targets tobalance the values mutually and makes it easy. Value angles and personnel managementOne of the main advantages of the value angles is possibility of its application in the personnelmanagement effectively. That is, in this case, the emotionally expressed values of the personnelmay be expressed in a form that is rational and easy for them, as well. That is, the personnel worksat an appropriate working time and they are offered a rational 40 hours working time. Thepersonnel desires the working environment to be good. And s/he is provided with a work place,equipment and sustenance based on the subvalues s/he considers important.Namely, his/her desires are satisfied. And the personnel gains an opportunity to get information tobe able to compare it. And the importance level of the desires of the personnel should be studiedas well. It is also crucial to determine and balance the added value frame the company expectsfrom the personnel properly.Madad Rustamov and JABRAYIL VALIYEV (PhD of Economy )