Download - Prof Swamy
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Whichever Way One looks at it
Marketing is All About Creating
Communicating
Delivering Value
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Various Tasks in Marketing
D) Market research and marketing control
A) Marketing planning, consumer analysis, and
market selection (segmentation and targeting)
C) Personal selling, advertising, publicity, salespromotion and direct marketing
B) Product development, production anddistribution
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Task A:
The firm studies the Customers, acquires the
needed insights and selects the value to be
offered.
Marketing planning, consumer analysis, and market
selection (segmentation and targeting)
Customers expectations are the clues to the
value to be offered
Concerned with Value selection
These tasks also touch upon Value Creation
and Value Delivery
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Task B: Product development, production and distribution
Concerned withValue Creation
Concerned withValue Delivery
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Task C:
Personal selling, advertising, publicity, sales promotion & direct marketing
Concerned withValue Communication
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Task D:
The tasks assess the
effectiveness of the Value delivery:
the level of satisfaction actually passed on to the Customer
how it compares with the level intended by the firm as well as the levels offered by the competing firms
Market research and marketing control
The purpose here is Value Enhancement and Value Sustenance
Even these are concerned with the value-delivering process
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Marketing Viewed
In terms ofwhat is offered
What is offered by marketing, in any given case isfinally carried by the 4Ps
We can in fact say 4P represents what is offered.But, what is it that the 4Ps represent in turn?They represent Value. They are carriers of Value.The firm packs Value in each P
It makes out an assemblage ofbenefits(value) in the4Ps as per the Customers expectations and puts itacross to the customer as the offer
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Marketing Viewed
As marketing graduated from one stage to another, theidea of what is marketed changed. Irrespective of theentity that is marketed, value is the real thing marketedin all marketing.What happened through the variousshifts? More value was being created and delivered, i.e.Value Enhancementwas taking place.
In terms of the entity marketed
Some firms market Commodities
some market Products
some Brands
and some Solutions
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Marketing Viewed
In terms of the Customer
Competition frame workMarketing consists of
* Serving Customers
* Meeting Competition
Serving customershappens by offering Value
Meeting Competition toohappens by offering
Value
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Marketing Viewed
With what weapon are they all fought?
the obvious answer
As a Battle
A Battle of Brands
A Battle for Market Share
A Battle for Mindshare
Value
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Marketing Pricing is an important component of Marketing activities
Here too, Value holds the key
The true power of pricing actually lies in capturing the
value from the market correctly. The right pricing formulawill not be based on the company costs, but on the Value what the consumer perceives as value.
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Pricing
The firm thoughtfully knits together, into the price , the
value presented by all the elements of its offer.
Communicating this to the customer, the firm apprisesthe latter of all the benefits and of the value being
delivered, which is more than what the customer has
paid for,
and is indeed more than what is offered by all
comparable competing offers.
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MarketingsUltimate Aim
Satisfaction of the customer rests on thevalue the firm delivers to the customer.
It is value , and the pursuit of value, thatbuild competitive advantage of the firm
Customer Satisfaction - rests onvalue.
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Value & Competitive Advantage
Superior value in itself represents a competitive
advantage When a firm relentlessly pursues value creation and
specialises in value creation in certain selected areas,it results in superior capability in those areas.
This in turn translates into a sustainable competitiveadvantage for the firm.
Value creation and competitive building go hand inhand.
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Innovation and Value
o Packing new value in an offer, and capturing it back
through right pricing , is what innovation inbusiness/marketing is all about.
o From the product idea stage down to the after-salesservice stage, there is always scope for adding
value.o The dividing line between innovation and adding
value is thin. When what is added is breakthroughvalue, it becomes an intrinsic innovation.