Value Delivery Sequence

MKT 502
 Value Delivery Sequence*

Choose Provide Communicate

the the the
Value Value Value

*Adapted from Cathy Anterasian and Lynn W. Phillips, “Discontinuities, Value Delivery, and the Share-Returns Association: A Re-examination of the
‘Share-Causes-Profits’ Controversy,” Marketing Science Institute, 1989.
Value Delivery | 2
 Value Delivery Sequence*

Choose Provide Communicate

the the the
Value Value Value

Customers Product Promotion

Competitors Place
Company Price
Situation Analysis The Marketing Mix

Customer Relationship Management

*Adapted from Cathy Anterasian and Lynn W. Phillips, “Discontinuities, Value Delivery, and the Share-Returns Association: A Re-examination of the
‘Share-Causes-Profits’ Controversy,” Marketing Science Institute, 1989.
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Strategic Decisions

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 STP Model

Choose the Value Provide Communicate

the the
Strategic Decisions
Value Value

*Adapted from Cathy Anterasian and Lynn W. Phillips, “Discontinuities, Value Delivery, and the Share-Returns Association: A Re-examination of the
‘Share-Causes-Profits’ Controversy,” Marketing Science Institute, 1989.
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 STP Model

Choose the Value Provide Communicate

the the
Strategic Decisions Value Value

Segment • Identify bases for segmentation

your market • Determine important characteristics of each market segment

Target • Evaluate potential attractiveness of each segment

your best customers • Select one or more segments

Position • Develop detailed product positioning for selected segments

Your offering • Develop a marketing mix for each selected segment

*Adapted from Cathy Anterasian and Lynn W. Phillips, “Discontinuities, Value Delivery, and the Share-Returns Association: A Re-examination of the
‘Share-Causes-Profits’ Controversy,” Marketing Science Institute, 1989.
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 Marketing Mix: 4 P’s >> 7P’s

Product | Price | Promotion | Place | People | Process | Physical

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 Situational Analysis
SWOT

Mission
Marketing Objective

Position / Branding
Targeting

7P’s

Product | Price | Promotion | Place | People | Process | Physical

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Market Segmentation

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 Target Market

Homogenous within
Heterogeneous between
Substantial
Operational
Value Consistent

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Value Delivery | 11
Positioning is the act of
designing the company’s
offerings and image to
occupy a distinctive place in
the target market’s mind.

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 Branding and Positioning
• Positioning
• organizational decision and intent
• space
• In relation to the competition
• Branding
• Meaning, personality, story, identity
• Who you are – brand values
• External and internal
• Co-created with multiple stakeholders
• Long term investment
Both are strategic and frequently used interchangeably.
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Value Delivery | 14
 Differentiating for Positioning

• Important
• Distinctive
• Superior
• Preemptive
• Affordable
• Profitable
• Value

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Value Delivery | 16
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 Targeting and Positioning
1. What are possible bases for segmentation of your product?
Support this.

2. How do these segments compare on the criteria for segmentation?

3. What positioning would you like for your product? How does this
differentiate you from your competition?

4. Develop a perceptual map of your positioning that shows the basis

of positioning, your product’s relative position and your
competition’s relative positioning.

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 Strategic Decisions and Marketing Mix

• Value proposition is delivered to the target market via the marketing

mix elements (4P’s); therefore each marketing element should
reinforce the Brand.

• Strategic Decisions first.

• Then develop 4P’s concurrently.

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 Place
Product •
•
Retail
Wholesale
Price
• Design • Quality • Strategies
• Mail Order
• Technology • Packaging • Skimming
• Internet
• Usefulness • Branding • Penetration
• Direct Sales
• Convenience • Accessories • Psychological
• Peer to Peer
• Value • Warranties • Cost-Plus
• Multi-Channel
• Crowd Sourcing • Loss Leader, etc.

Physical Promotion
Target Market • Integrated Marketing
Environment Communication
• Creative
• Smart • Media
• Interface • Special Offers
• Comfort • Advertising
•
•
Facilities
Clues
Process People • User trials
• Direct Mailing
• Especially relevant • Employees • Competitions
to service industries • Management
• How are services • Other Customers
consumed? • Culture
• Customer Service

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 Value Delivery Sequence*

Choose Provide Communicate

the the the
Value Value Value

Customers Product Promotion

Competitors Place
Company Price
Situation Analysis The Marketing Mix

Customer Relationship Management

*Adapted from Cathy Anterasian and Lynn W. Phillips, “Discontinuities, Value Delivery, and the Share-Returns Association: A Re-examination of the
‘Share-Causes-Profits’ Controversy,” Marketing Science Institute, 1989.
Value Delivery | 22
 Customer Relationship Management

Linked Video: How I Built It, Stew Leonard

http://www.wsj.com/video/how-i-built-it-stew-leonard/50270205-9031-
4245-984A-A7D3B94B0485.html

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