8/4/2019 Prof Swamy

1/15

Whichever Way One looks at it

Marketing is All About Creating

Communicating

Delivering Value

8/4/2019 Prof Swamy

2/15

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

8/4/2019 Prof Swamy

3/15

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

8/4/2019 Prof Swamy

4/15

Task B: Product development, production and distribution

Concerned withValue Creation

Concerned withValue Delivery

8/4/2019 Prof Swamy

5/15

Task C:

Personal selling, advertising, publicity, sales promotion & direct marketing

Concerned withValue Communication

8/4/2019 Prof Swamy

6/15

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

8/4/2019 Prof Swamy

7/15

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

8/4/2019 Prof Swamy

8/15

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

8/4/2019 Prof Swamy

9/15

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

8/4/2019 Prof Swamy

10/15

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

8/4/2019 Prof Swamy

11/15

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.

8/4/2019 Prof Swamy

12/15

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.

8/4/2019 Prof Swamy

13/15

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.

8/4/2019 Prof Swamy

14/15

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.

8/4/2019 Prof Swamy

15/15

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.