Marketing and customer value

1. Howdoesmarketingaffectcustomervalue?

2. 1.Whatiscustomer
?
 There are two aspects to customer value:
Desired value refers to what customers desire in a
product or service.
 Perceived value is the benefit that
a customer believes he or she received from a
product after it was purchased.

3. 2.ValueDeliveryProcess
Traditionalviewofmarketing
Marketingisinvolvedonlyinthesecond
halfoftheprocess.

4. But your business
will fail. Why?

5. ThePowerfulConsumer

6. Valuecreationanddeliverysequence
Choose the
value
Customer
segmentation
Market
selection
Value
positioning
Provide the
value
Product
development
Service
development
Pricing
Sourcing/Ma
king
Distributing/
Servicing
Communicate
the value
Sales force
Sales
promotion
Advertising
1
2
3
StrategicMarketing
TacticalMarketing
New form of marketing

7. 3.ValueChain
“A set of activities that a company performs to design,
produce, market, deliver and support its product.”

8. Primary Activities
1.Inbound logistics: Movement of
materials from suppliers to
manufacturing plants,
warehouses or retail stores.
2.Operations:Converts
inputs into the final
products.
3.Outbound logistics:
Storage and movement of
the final product to the
consumer.

9. 5.Service:Activitiesrequiredtokeep
theproduct/serviceworking
effectivelyforthebuyerafteritis
soldanddelivered.
4.Marketing &Sales: Sellinga
productorserviceand
processesforcreating,
communicating,delivering,
andexchangingofferingsthat
havevalueforcustomers.

10. Supporting Activities
1.Procurement:Acquisitionof
goods,servicesorworksfroman
outsideexternalsource
2.HumanResources
Management:Allactivities
involvedinrecruiting,hiring,
trainingpersonnel.
3.TechnologicalDevelopment:
Equipment,hardware,software,
proceduresandtechnical
knowledgebroughttobearin
thefirm'stransformationof
inputsintooutputs.
4.Infrastructure:Consistsof
activitiessuchasaccounting,
legal,finance,control,public
relations

11. Success depends on Core Business
Processes:1.Market sensing processes: Gathering marketing intelligence,
disseminating it within the organization & acting on the
information.
2.New offering realization:Research,development and
launching high quality offerings quickly and within budget.
3.Customer acquisition: Defining target markets and
prospecting new customers.
4.Customer relationship management: Building deeper,
understanding relationships and offerings to individual
customers.
5.Fulfillment management: Receiving and approving orders,
shipping the goods on time and collecting payment.

12. CHARACTERISTICS:
1.Sourceofcompetitiveadvantage
2.Applicationsinawidevarietyofmarkets.
3.Difficultforcompetitorstoimitate.

13. How to maximize core competencies?
1.Redefiningthebigidea.
2.Reshapingthebusinessscope. 3.Repositioningthebrand’s identity

15. CreatedbySantaNibedita,CETBhubaneswar,
duringaninternshipbyProf.SameerMathur,IIM
Lucknow.
www.IIMInternship.com