Premium Essay

Marketing Value Driver

In: Business and Management

Submitted By Xilvergrey
Words 1559
Pages 7
The Marketing Value Driver
Chapter 3

A NEW DEFINITION OF MARKETING

Value-based marketing has four major steps:

1. Develop deep understanding of customer’s needs, operating procedures and decision making processes. 2. Formulate value propositions that meet customer’s needs and create a differential advantage. 3. Move from successful transactions with customers to long-term relationships based upon loyalty and trust. 4. Understand that superior value requires superior knowledge, skills, systems and marketing assets.

CREATING CUSTOMER VALUE

Meeting Customer Needs

There will be one or two critical interfaces between buyer and seller that drive consumer’s perception of value.

• Consumer will select offer that is of best value. • Consumer will choose product that meets their needs. • Trust is established with relationships, and keeps consumers loyal.

Differences between consumer and B2B markets - # of customers - Professionalism of buying process

Understand the decision-making unit - 7 roles in purchasing process: initiators, users, influencers, deciders, approvers, buyers and gatekeepers.

Existing wants, (satisfactory solutions already exist), latent wants (wants that people have, which are not yet satisfied) and incipient wants, (wants that people have, but they do not know solution until they see it).

The Market-Led Organization

Starts with understanding what customer wants and then develops products and services to meet those wants.

Production and sales-oriented organizations

- Design products or services with little or no input from customers - End up slashing prices resulting in declining market shares and eroding margins

Market oriented organizations - Create shareholder value by building relationships with…...

Similar Documents

Premium Essay

Purpose & Value of Integrated Marketing Paper

...Purpose & Value of Integrated Marketing Paper Priscilla Suero University of Phoenix – MKT 498 Delynn Byars September 10, 2012 Creating an awareness of a particular product or service is the fundamentally want marketing is intended for. The ability to communicate to potential and existing customers is the basis of marketing’s intentions. Integrated marketing is the coordination of all marketing tools within the marketing mix as it pertains to products, distributions systems and promotions. The goal of an integrated marketing system is to be able to have a strong presence and positive impact on consumers, businesses, and other end users (Clow & Baack, 2007). Materials such as direct marketing, one to one marketing and mass marketing are all strategies to enhance the effectiveness of a marketing plan. These marketing strategies can derive data the can be used in the development of a product or service, its distribution, customer relations and pricing. Presently, in the business world marketing is engulfed in an environment with trends that are constantly changing. The evolution of integrated marketing was unavoidable. For any business, integrated marketing is a need to keep up with the expansion of marketing channels via print, Internet, media, which all cannot be done without communication. Therefore, Integrated Marketing Communication (IMC) is the encompassing of all marketing tools, avenues, and sources within an organization into one program at a minimal...

Words: 794 - Pages: 4

Premium Essay

Creating Value in Marketing

...Marketing has been defined differently by different people. On the face of it, it may be thought of as the process by which an organisation reaches out to the consumers with the products or services that it has to offer in order to make profits. If we dwell deeper, it's worth mentioning that marketing strategies have evolved immensely over decades. The organisations in the present day care as much for creating value for customers as they do for increasing their profits. Infact, it has been largely accepted that both these things are interlinked. Modern age marketeers are realising and understanding the importance of creating value for their consumers so as to reap the benefits out of a strong buyer-seller relationship. This can be supported by Gary Armstrong who quotes that "creating customer value and satisfaction are at the very heart of modern marketing thinking and practice." The need and importance of creating value has been discussed in the following paragraphs. The ways in which organisations create value for their consumers as well as themselves has also been highlighted with examples from the products and services we use/see in our everyday lives. Also, the role of value creation in today's market has been illustrated with examples from the telecommunications sector, fashion sector ............................. What exactly does creating value for the customer mean? To understand this better, let us go back to the role of marketing. Marketing strategies......

Words: 1974 - Pages: 8

Free Essay

Marketing Value Propositions

...up for Missed Class Case: Customer Value Propositions in Business Markets Basic Case Identification Who is/are protagonist(s) or decision maker(s)? Companies that offer a service product to a customer What is the primary decision that must be made? What constitutes a customer value proposition and what makes one persuasive to the customer? Primary Alternatives to Consider for Value Propositions 1) All Benefits - preferred by most managers; - list all the products benefits; - requests the least knowledge about customers and competitors; - negative: benefit assertion (features may have no value for the customer, not knowing anything about the customer or competition may have as an effect missing the points that make the differentiation from the competition and for the customer); 2) Favorable points of benefits – recognizes the existence of the alternative - requires to know the differences between own product and next best alternative and the customer’s requirements; - drawback: value presumption (assumed points of difference may have no value for the customer); 3) Resonating focus- the most valuable - requires a complete understanding of the customer needs and how you can fulfill this through features that are superior to the customer’s offering; - requires extensive research. Ways to substantiate the customer value value word equations: expresses in words and......

Words: 255 - Pages: 2

Premium Essay

Value on Integrated Marketing

...MBA 6012 Integrated Global Marketing Value on Integrated Marketing Starbucks Coffee Starbucks History Jerry Baldwin, Zev Siegl and Gordon Bowker created Starbucks; they met coffee roasting entrepreneur Alfred Peet who inspired the three novices to open a coffee shop to sell roasted coffee at their first location in Pike Place, Seattle. Their goal was to sell high quality coffee beans. This venture has certainly paid off, as Starbucks has become a well-known name brand both locally and internationally. They met Howard Schultz an entrepreneur who suggested the idea of selling coffee drinks in European style cafes. He later went on to purchase Starbucks and expanded the coffee chain. Starbucks Corporation (NASDAQ: SBUX) is a global coffee company with an Italian-style coffeehouse which started its chain in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 19,972 stores in 60 countries, including 12,937 in the United States, 1,273 in Canada, 971 in Japan, 790 in Great Britain, 657 in China, 453 in South Korea, 356 in Mexico and 276 in Taiwan. Starbucks sells drip brewed coffee, espresso-based hot drinks, other hot and cold drinks, coffee beans, salads, hot and cold sandwiches and Panini, sweet pastries, snacks, and items such as mugs and tumblers. Through the Starbucks Entertainment division and Hear Music brand, the company also markets books, music, and film. Many of the company's products are seasonal or specific to the locality of......

Words: 2187 - Pages: 9

Premium Essay

Value Driven Marketing at Aveda

...I. INTRODUCTION 1.1 Purpose of the Study The purpose of this study is to conduct a critical analysis and evaluation of the market value drivers which in this paper will refer to Aveda Corporation operating in personal care industry. The author will examine both marketing operations and strategic approach perspective to create customer value through differential advantage from comparable offerings in the same market. After comprehensive evaluation, the paper will determine opportunities and draw appropriate recommendations via Value-Driven Marketing approach for future development of the organisation in order to sustain competitive advantage within the industry. 1.2 Industry Context According to Euromonitor latest research, the beauty industry worldwide value was estimated at $426 billion in 2011 (Euromonitor, 2012). Porter (1980) states that within broad industries, subgroups exist in the form of strategic groups, which face their own unique set of competitive rules. In the case of Aveda, the company operates in natural and organic market which is $14 billion worth niche group of the broader personal care product industry. II. AVEDA - THE CORPORATE STRATEGY PERSPECTIVE 2.1 Aveda Corporation - the company background. Aveda Corporation (Aveda) is Minneapolis based manufacturer, established in 1978 by Horst Rechelbacher and it has been operating in the personal product care industry. Aveda offers a line of over 700 premium professional and consumer,......

Words: 2807 - Pages: 12

Premium Essay

The Value of Marketing to Customers

...Assignment 1.1: Discussion- The Value of Marketing to Customers Marixela Luis MBA: 505 Dr. Cusaac December 4, 2013 Jones International University a. The value you place on marketing As we all know that marketing plays an important role in businesses in order to become successful. Marketing provides value in many forms but gaining recognition is the number one tool to use in order to have a successful marketing plan and strategy. In same time helps businesses and brand to become well-recognized and trusted therefore by developing a good marketing plan can help businesses increase recognition and sales. Building trust is an excellent idea as well as having good marketing techniques in place which helps in starting to develop good recognition. Of course every business wants recognition that will help develop trust because having trust will certainly inspire people to put their faith in your product or services and select you over your competitors. Therefore, in order to build trust you must come up with good marketing techniques that will differentiate your business from your competitors. Gain new customers is another excellent marketing technique that not only helps in building recognition and trust, but also helps more with gaining customers and clients. For example, marketing a business services or products will certainly help in gaining brand recognition, which in time will lead to more people wanting your products and services. In same time if you are unsure......

Words: 929 - Pages: 4

Free Essay

Value Drivers in Automotive Sector

...SECTOR REPORT An Introduction about the factors influencing the sector: 1. Infrastructure/ GDP: Automobiles sales revenue follows economic cycles very closely. This is especially true in the case of sales of HCVs. Availability of good roads is an important determinant for passenger vehicle demand. 2. Affordability: Movement in income and interest rates determine the affordability of new motor vehicles. The ready availability of cheap loans is an important factor driving demand. Disposable income in the rural agriculture sector is increasing. 3. Auto Financing: There are more than 35 financers in the market today, with the State Bank of India being the leader. Easy availability of finance has been one of the most important growth drivers for the auto industry since 2003. 4. Demographics: It is evident that high population of India has been one of the major reasons for large size of automobile industry in India. Factors that may be augment demand include rising population and an increasing proportion of young persons in the population that will be more inclined to use and replace cars. The Indian middle class is growing and is estimated to grow from 50 million currently to 550 million by 2025. 5. Cost of ownership: i. Petrol prices: The price of oil affects the driving habits of consumers and the type of car they buy. During periods of high fuel cost as experienced in 2007 and the first half of 2008, demand for large cars declined in favour of smaller,......

Words: 2332 - Pages: 10

Premium Essay

Marketing and Value : Havaianas and Dukky

...ASSESSED WORKING PROJECT HAVAIANAS & DUKKY(Chick-Fil-A) Marketing and Value 2010 Marketing Action 1: Havaianas Campaign History The history of Havaianas started in the earliest 20's, when Scotsman Robert Fraser arrived in Brazil and began manufacturing flip flops based on the traditional zori sandals, a Japanese product. At that time, sandals were very different. It was only in 1958 that Havaianas that we know today were designed with rubber. That was the birth of the trademark Havaianas (1962) In the 1960s, Havaianas were sold at small, neighbourhood stores for a low price, displayed between house cleaning products and were purchased exclusively by the lower classes. That kind of product exposition and public turned Havaianas known as “chinelos de pobre” (poor man’s flip flops). The style of the product wasn’t elaborated. The model was basic and it was available only in a limited range of colours (4 colours), even though the products were strong, durable, comfortable and cheap. And that was what made Havaianas so popular in Brazil. Indeed, one year after had been launched more than 13,000 pairs were produced every day The success made raise the interest of other companies and imitations of Havaianas began to appear in the 70’s. To respond to this movement, the company launched a campaign called “Havaianas: As Legítimas” (Havaianas: the Legitimate Ones) embodied by a famous Brazilian humorist, Chico Anysio. It was in 1988 that sales started to decline,......

Words: 2910 - Pages: 12

Premium Essay

Customer Lifetime Value and Return on Marketing

...Case Study: Conroy’s Acura: Customer Lifetime Value and Return on Marketing Case Summary: Conroy’s Acura was founded in November 1986 by Ross Conroy, a veteran of the car industry who also owned a General Motors dealership to open in Toronto and one of the first in North America. Located in downtown Toronto, Conroy’s Acura sold both new and pre-owned vehicles, and its service department was dedicated to Acura Products. Conroy’s Acura was an independently owned dealership that held a franchise agreement with Honda Acura’s parent company. It has been a successful company amidst the number of competitors since 1986. And now, it needs to create less expense or cost efficient strategies to increase the number of customers and most importantly, sales. Allowing Employees and the other people in the work force to contribute to the brainstorming of new ideas, this became an interactive company work. Given that advertising will not be that purely effective for it, since it can only attract an indefinite number or potential customers. Statement of the Problem: What effective way/s should the Conroy’s Acura company be doing sto increase customer lifetime value on marketing, sales and profit? Analysis of the Data Data: Organizational Structure The company has a Functional Organizational Structure The company’s employees are organized by what they should do in their work. There is one top line manager, Terrence Conroy, he is the person who manages and controls the......

Words: 1465 - Pages: 6

Premium Essay

Relationship Marketing and Values

...reading case Daimler/ BMW: A New Breed of Driver found in Coursemate, describe the values held by this emerging group of drivers that incline them toward car-sharing programs. Car-sharing is a growing market currently targeted in dense areas such as New York, London and Tokyo. These areas are highly populated with little recreational space. Car-sharing allows people to only have a car when they require it, such as vacations and special events. The values that commonly influence a person’s lifestyle are self-sufficiency, upward mobility, work ethic, and conformity. Owning a car is a traditional symbol of a higher lifestyle status, however this is not important to people interested in car-sharing. This group of people does not have to worry about car payments, insurance costs, maintenance, fuel, or parking conditions in city areas. This is an example of a component lifestyle. They can choose what type of products and services they want rather than conforming to traditional stereotypes. A likely value they have may be the concern for their environment; car-sharing reduces the amount of pollution and creates sustainability. A car-sharing program is more reliable and convenient than having to maintain your own vehicle that you already may pay for without much use. This emerging group of drivers are changing our traditional values and creating a new way of living life. 2) Consider the following statement, “Relationship marketing is not possible in a firm embracing......

Words: 1118 - Pages: 5

Premium Essay

Marketing and Value : Havaianas and Dukky

...http://938169.com/essay-on/Marketing-And-Value-Havaianas-And/29819 Marketing And Value : Havaianas And Dukky In: Business and Management Marketing And Value : Havaianas And Dukky ASSESSED WORKING PROJECT HAVAIANAS & DUKKY(Chick-Fil-A) Marketing and Value 2010 Marketing Action 1: Havaianas Campaign History The history of Havaianas started in the earliest 20's, when Scotsman Robert Fraser arrived in Brazil and began manufacturing flip flops based on the traditional zori sandals, a Japanese product. At that time, sandals were very different. It was only in 1958 that Havaianas that we know today were designed with rubber. That was the birth of the trademark Havaianas (1962) In the 1960s, Havaianas were sold at small, neighbourhood stores for a low price, displayed between house cleaning products and were purchased exclusively by the lower classes. That kind of product exposition and public turned Havaianas known as “chinelos de pobre” (poor man’s flip flops). The style of the product wasn’t elaborated. The model was basic and it was available only in a limited range of colours (4 colours), even though the products were strong, durable, comfortable and cheap. And that was what made Havaianas so popular in Brazil. Indeed, one year after had been launched more than 13,000 pairs were produced every day The success made raise the interest of other companies and imitations of Havaianas began to appear in the 70’s. To respond to this movement,......

Words: 358 - Pages: 2

Premium Essay

Marketing Management and Value Creation

...MARKETING MANAGEMENT AND VALUE CREATION CLEAN EDGE RAZOR – SPLITTING HAIRS IN PRODUCT POSITIONING QUESTION 1 Consider exhibit 1 and the three different consumer segments. For which segment would the niche strategy be more effective? And for which group would the more mainstream approach be more effective? Considering exhibit 1, social and emotional shavers is the segment where the niche strategy would be more effective. This group has some specific characteristics as: more brand switching (mainly to super premium quality); shorter inter-purchase intervals; and shorter average usage period for blades (greater recognition for earlier replacement). On the other hand, maintenance shavers is the segment where the mainstream approach would be more effective. This segment: has a view of products as they are the same; a lack of interest in product category; shaving routine is inconsistent; shaving is a chore they try to finish as quickly as possible; and are motived by the price. QUESTION 2 What segment would you choose to target and how would you position Clean Edge for this segment? I would choose the niche market segment with a super-premium product. This market, with a low initial investment, minimizing costs, and selling through the niche market, we have what seems like a less risky strategy, that still yields a healthy profit. The niche market will complement company’s existing product portfolio perfectly and avoid cannibalism, it requires less immediate......

Words: 809 - Pages: 4

Premium Essay

Purpose and Value Integrated Marketing

...product or service is the fundamentally want marketing is intended for. The ability to communicate to potential and existing customers is the basis of marketing’s intentions. Integrated marketing is the coordination of all marketing tools within the marketing mix as it pertains to products, distributions systems and promotions. The goal of an integrated marketing system is to be able to have a strong presence and positive impact on consumers, businesses, and other end users (Clow & Baack, 2007). Materials such as direct marketing, one to one marketing and mass marketing are all strategies to enhance the effectiveness of a marketing plan. These marketing strategies can derive data the can be used in the development of a product or service, its distribution, customer relations and pricing. Presently, in the business world marketing is engulfed in an environment with trends that are constantly changing. The evolution of integrated marketing was unavoidable. For any business, integrated marketing is a need to keep up with the expansion of marketing channels via print, Internet, media, which all cannot be done without communication. Therefore, Integrated Marketing Communication (IMC) is the encompassing of all marketing tools, avenues, and sources within an organization into one program at a minimal cost that will shape the way customers buy (Clow & Baack, 2007). This trend has enabled for a company’s brand to hold a substantial value within its industry and returns high......

Words: 285 - Pages: 2

Premium Essay

Creating Customer Relationships & Value Through Marketing

...sales era, the marketing concept era, and the current customer relationship era. The production era covers the period to the 1920s when buyers were willing to accept virtually any goods that were available. The central notion was that products would sell themselves. The sales era lasted from the 1920s to the 1960s. Manufacturers found they could produce more goods than buyers could consume, and competition grew, so the solution was to hire more salespeople to find new buyers. In the 1960s, the marketing concept era dawned, when organizations began to integrate marketing into each phase of the business. In today's customer relationship era, organizations focus their efforts on (a) continuously collecting information about customers' needs, (b) sharing this information across departments, and (c) using it to create customer value. The first objective in maintaining customer relationship is discovering the needs of prospective consumers. This is not an easy task because consumers may not always know or be able to describe what they need and want. A need occurs when a person feels physiologically deprived of basic necessities such as food, clothing, and shelter. A want is a felt need that is shaped by a person's knowledge, culture, and personality. Effective marketing can clearly shape a person's wants and tries to influence what we buy. Having selected its target market consumers, the organization then takes action to satisfy their needs by developing a unique marketing program......

Words: 795 - Pages: 4

Premium Essay

Marketing Paper for Value Brands

...Marketing Paper For Value Brands REPUBLIKA NG TM: ASTIG TAYO DITO! Touch Mobile or TM is one of the cellular service brands of the second largest telecommunications company in the Philippines, Globe Telecom, Inc. Positioned as the champion brand for value seekers in the country, it was triumphant in gaining recognition as the first-mover in providing the most affordable, hence lowest priced call and text promo offers. It was also the first brand that paved way for popularity of bucket promos that include all network texts and voice calls allowing TM subscribers to connect to other local sim users. Currently with around 11 million subscribers, TM has a meager 15% share in total prepaid mobile market ranked as the 4th key player in the industry. Sinong Pinaka-ASTIG? : Introduction to the Environment of TM “Hyper-competitive” has been the superlative tagged to Telecommunications (Telco) Industry in the past few years as evident in the continuous exponential upsurge of telco subscribers clamoring for better, to say the least, value for their communications enabler day after day. Dubbed as the “Texting Capital of Asia”, the Philippines has posted around 75 million phone subscribers processing an average daily texting rate at 1.39 billion SMS messages per day. This consumer behavior has been the concrete evidence that fuelled steady growth, even during the height of 2008 recession, of three dominant players in the Philippine telecommunications industry -- Smart......

Words: 1246 - Pages: 5

O Mensageiro (The Messenger’s Box) 2016 | 1000 1.000 mille francobolli mondiali vari misti lotto usati raccolta filatelica | Sonic Underground