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Thoughts:
There was a time which required youto change, if you want to
succeed in
life. but today, it is not enough tochange, but the rate of
change will
determine your level of success in life
Prof. Bharat
Macmillan Publishers India Ltd. Chapter 4 / Slide 1
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Macmillan Publishers India Ltd. Chapter 4 / Slide 2
CHAPTER 4
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Macmillan Publishers India Ltd. Chapter 4 / Slide 3
Chapter 4:Value The Basics
At the end of this chapter, you should be able to:
State the meaning ofValuein Marketing
Understand the Concept of Customer Value
ComprehendInitiallyPerceivedValue& FinallyDeliveredValue
State the Components of Customer Value
State the Components of Customer Cost Understand that the
Customer Decides What Value is
Recognise that today Indian Consumers are increasingly voting
forValue
Understand that Value Delivery is no easy task it requires
creativity, innovating ability and customer insights
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Macmillan Publishers India Ltd. Chapter 4 / Slide 4
The Meaning of Value in Marketing
Benefits Translate into Value
All buyers seek Value in all their purchases and they look for
it inthe form of benefits.
Chapter 4:Value The Basics
The Concept of Customer Value
Customer Value is the composite of tangible values as well
as
intangible values.
Customer Value, Customer Cost, and Customer Satisfaction
Initially Perceived Value and Finally Delivered Value Initially
Perceived Value
Initially perceived value, the outcome of mental evaluations
Blend of qualitative and quantitative yardsticks.
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Macmillan Publishers India Ltd. Chapter 4 / Slide 5
Chapter 4:Value The Basics
Finally Delivered Value
Is the difference between the total value from owning &
using the
product and the total costs incurred in obtaining it. Challenge
is to Fulfil Customers Initially Perceived Value
Am I Getting My Moneys Worth?
Customer Value (contd)
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Macmillan Publishers India Ltd. Chapter 4 / Slide 6
Components of Customer ValueChapter 4:Value The Basics
Tangible Values
Functional value
Economic value
Convenience value
Sensory/aesthetic value
Service (people) value
Intangible Values
Social value
Prestige/status value
Sentiment value
Belief value
The two categories not mutually exclusive; they overlap and
blend
Intangible values are equally vital as tangible ones
A Consumers Profile Determines How He Perceives Value
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Macmillan Publishers India Ltd. Chapter 4 / Slide 7
Components of Customer Cost
Customer cost also consists of tangible and intangible
components
Total of monetary cost plus psychic costs like time, energy,and
other botherations.
Value Delivery : Examples
Chapter 4:Value The Basics
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Macmillan Publishers India Ltd. Chapter 4 / Slide 8
The Customer Decides What Value is; the FirmsJob is to Deliver
it Design and create products/services that embody attributes
which customers consider as value
Customer analysis and Customer dialogue, the tools
In some cases, the firm can be customer-driving
Chapter 4:Value The Basics
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Macmillan Publishers India Ltd. Chapter 4 / Slide 9
Indian Consumers Now Increasingly Vote for Value
Paisa VasoolApproach
Value Takes Precedence Even Over Brand Name
Nike, Reebok, and Adidas could not succeed in India on brand
name
alone
In Durables too, Value Becomes Vital for Indian Consumers
Chapter 4:Value The Basics
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Macmillan Publishers India Ltd. Chapter 4 / Slide 10
Chapter 4:Value The Basics
Value Delivery is No Easy Task; It Requires
Creativity,Innovating Ability and Customer Insights
Requires Creativity Innovation, Equally Essential
Consumer Insights
A Demanding Task(Example: Nestle and Frito-Lay)
Value Delivery is the Essence in CRM Too
Customer Relationship has more to do with Value than
withRelationship.
Martin Christopher, Adrian Payne and David Ballantyne,
RelationshipMarketing: Creating Stakeholder Value
