2. The Value Delivery Process- Conventional
Pattern
No Initial
Research/Plan
ning
Keen in Production
& Selling
Aim- To overcome
shortage of Goods
Customers not fussy
about quality,
features or styles.
Eg. Staple goods
Marketing becomes
a vicious cycle
3. Latest Trend in Value Creation and Delivery
Sequence
Phase-I
Choosing the Value.
• Segment the market
• Select appropriate target.
• Develop the offerings
value positioning
Phase- II
Providing the Value
• Identify specific product
• Desired features & Price
• Distribution strategies
Phase- III
Communicating the
Value
• Social Media advertising
• Getting help from sales
force.
4. The Value Chain by Michael Porter
• Definition – Tool for identifying ways to create more customer
value by designing, producing, marketing and supporting its
products.
• According to the Model – 9 Strategically support activities
developed.
• 5 Primary activities and 4 support activities.
• All these activities create value and cost in a specific business.
• Objective- Examine cost and performance in each value creating
activity, benchmarking against competitors and looking ways to
improve.
7. Core Business Processes
• The market sensing process- gathering and acting upon information
about the market.
• The new offering realization process- researching, developing and
launching high quality offering within budget.
• The customer acquisition process- defining target market and
prospecting for new customers.
• The customer relationship management process- building deeper
understanding, relationship and offerings to individual customers.
• The fulfilment management process- receiving and approving orders,
shipping goods on time and collecting payment.
8. Ways B2B companies develop effective marketing
strategies
• Embracing system selling
• Adding valuable selling to their product offerings
• Employing customer referencing program
• Introducing wide variety of online and offline communication and
branding activities.
9. Establishing corporate trust, credibility and
reputation
• Corporate credibility depends on 3 factors:
• Corporate Expertise- extend to which company is able to make & sell
products or conduct services.
• Corporate trustworthiness- extend to which they are honest,
dependable and sensitive to customer demands.
• Corporate likability- extend to which they are likable, prestigious and
dynamic
10. Buyer- Supplier Relationship (8 categories)
• Basic buying and selling relationship- routine exchange with moderate
levels of co-operation and information exchange.
• Bare bones- more adaptation required by seller and less exchange of
information.
• Contractual transaction- very formal in nature generally having low
level of trust and interaction.
• Customer supply - Traditional situation, concentrates more on
competition rather than cooperation.
11. • Cooperative systems- united in operational ways but neither
demonstrates through structural commitment.
• Collaborative- trust and commitment lead to true partnership.
• Mutually adaptive - get adaptive according to the circumstances
without necessarily achieving strong trust.
• Customer is King- close cooperative relationship.
