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    Marketing Planning & Strategy2

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    Arun Mittal
    The document discusses the importance of focusing on customer value in marketing. It defines customer value as the benefits that a customer perceives from a product or service, rather than all of the benefits claimed by the firm. Total customer value is the weight a customer assigns to a product offer, while total customer cost includes the price and other expenses. Customer satisfaction occurs when perceived value exceeds perceived cost. The document argues that firms should prioritize understanding and delivering value to customers through marketing strategies.

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    Marketing Planning & Strategy2

    Uploaded by

    Arun Mittal
    41 views21 pages
    The document discusses the importance of focusing on customer value in marketing. It defines customer value as the benefits that a customer perceives from a product or service, rather than all of the benefits claimed by the firm. Total customer value is the weight a customer assigns to a product offer, while total customer cost includes the price and other expenses. Customer satisfaction occurs when perceived value exceeds perceived cost. The document argues that firms should prioritize understanding and delivering value to customers through marketing strategies.

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    The document discusses the importance of focusing on customer value in marketing. It defines customer value as the benefits that a customer perceives from a product or service, rather than all of the benefits claimed by the firm. Total customer value is the weight a customer assigns to a product offer, while total customer cost includes the price and other expenses. Customer satisfaction occurs when perceived value exceeds perceived cost. The document argues that firms should prioritize understanding and delivering value to customers through marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    41 views21 pages

    Marketing Planning & Strategy2

    Uploaded by

    Arun Mittal
    The document discusses the importance of focusing on customer value in marketing. It defines customer value as the benefits that a customer perceives from a product or service, rather than all of the benefits claimed by the firm. Total customer value is the weight a customer assigns to a product offer, while total customer cost includes the price and other expenses. Customer satisfaction occurs when perceived value exceeds perceived cost. The document argues that firms should prioritize understanding and delivering value to customers through marketing strategies.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Download as ppt, pdf, or txt
    of 21

    p 

      
    Present a case study on the company shown for the group. The
    case study should not exceed 10 slides. Evaluate each case on
    the following:
     Mission and Vision statements
     Values of the company
     Present organisation¶s position
     Core competencies
     Corporate objectives
     Distinctive capabilities
     Growth vector
     Competitive advantages and synergy
     Understanding of customer value
     Effective differentiation

    | |
    p 
      
    uection A
    Group 1 Hindalco
    Group 2 Jet Airways
    Group 3 NTPC
    Group 4 ONGC
    Group 5 Ranbaxy Laboratories
    Group 6 uuzlon Energy
    Group 7 Tata Power
    Group 8 Videocon Industries
    Group 9 Yes Bank
    Group 10 Zee Enterprises

    ^ ^
    The need for a
    new perspective
    in understanding
    Marketing

    £
    º    
     
    
    *e have understood Marketing through ³the
    customer cum 4P framework,´ holding customer
    satisfaction as the theme of marketing and the 4P
    as its toolkit. But what is that the firm provides to
    the customer that brings about the satisfaction?

    Ñ
    
      
    
    
    ´ails to deliver targeted top and bottom lines

    ÿ

      
    
    Hindustan Unilever absorbed higher raw material expenses to
    sustain volume growth in the quarter ended December, 2010.
    At 11.6%, the growth in its net sales was lower than the 13%
    rise in volumes on a year-on-year basis. Advertising spends
    were up by 17% but the operating margins slid from 13% to
    8% for soaps and detergents business which accounts for
    43% of total net sales.

    D
    
      
    
    
    ´ails to help the firm avoid price wars

    r
    
      
    
    
    ´ails to achieve effective differentiation

    ‰
    
      
    
    
    ´ails to graduate from Tactical to utrategic
    Marketing
    It is expected that the marketing team should
    be strong in strategic marketing which
    traverses beyond advertising, promotion and
    pricing and understands and exploits the
    power of radical value innovation and value
    delivery.

    ·

     º 

    Nokia is the largest seller of mobile phones in India.


    *hen local player after local player was launching
    cheap handsets and dual-uIM phones, Nokia
    scoffed at them and their price strategy. Now two
    years later, it is doing the same thing with a sense
    of urgency. In the second quarter of 2010, Nokia¶s
    market share dropped to 36% from 54%.

    |
    
      
    
    
    ´ails to retain customers

    ||
    
      
    
    
    *hy should everyone pay
    for advertising?

    |^

        

    Motorola stumbled badly in the Indian cell phone


    market. The company tried to sell outdated models
    assuming that India is a backward market. Nokia on
    the other hand, launched state-of-the-art products
    for the Indian customers.

    |£
    
      
    
    
    ´ails to protect customers against
    value-eroding outsourcing

    |Ñ
    
      
    
    
    ´ails to grasp that abundance of
    choice does not help

    |ÿ
    *   
      
    How is it possible when the marketing has been
    stressing customer orientation/customer
    satisfaction?

    |D
    *
     
     
    *hat is meant by value in the marketing context?
    *hat are the various facets of value?
    *herefrom and how does the value arise?
    How can the firm approach the value delivery job?

    |r
    *
     
     
    The utility plus several things he looks for, together
    constitute benefits, also called ³bundle of
    benefits.´ This bundle of benefits is the carrier of
    value to him.

    |‰
    î     
     
    The customer reckons only some of those benefits
    that really matter to him. This is what is called
    ³customer value.´ Not all the benefits shown by the
    firm but the benefits that really contribute to
    customer value.

    |·
     
        
       
     
     
    The total weightage/credits, the customer assigns to a given
    product offer, indicates the ³Total Customer Value.´

    The cost includes the price of the product plus the other
    elements, called the ³Total Customer Cost.´

    The buyer derives satisfaction when the value


    exceeds the cost. The larger the value-cost gap, the
    greater is the satisfaction.

    ^

     
      
    The present plight of GM serves as a powerful
    illustration of the travails a business firm has to go
    through, once it failed to give the due importance to
    value delivery.
    *hy should the icon of American industrial
    supremacy land in this plight? *hat would have
    been better had GM resorted to value-focused
    marketing?

    ^|

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