Developing Marketing

Strategies

Plans&

1

Marketing Affect

Customer Value?

How does

Value Delivering Process

Choosing the Value

… represents the ‘homework’ marketing

must do before any product exists.

Providing the Value

Marketing must determine specific

product features, prices & distribution.

Communicating the Value

By the sales force, sales promotion, advertising

& other communication tools to announce &

promote the product

Nike

Each of these value phases has cost implication

& it begins before there is a product & continues while

it is being developed and after it becomes available.

Manufacturing cost= 25$

Market value= 80$

The Value Chain

As a tool for

identifying ways

to create more

customer value.

Proposed by Michael Porter

The value chain identifies

5 primary activities

Servicing

Marketing & Sales

operations

Inbound logistics

Outbound logistics

Core Competencies

Refers to areas of

special technical &

production expertise,

distinctive capabilities describes

excellence in broader business process.

In 2004, after being bumped Kodak eliminated almost 30,000 jobs and it spent money acquiring a string of companies for its graphics communications unit. Not only must Kodak convince consumers to buy its digital cameras and home printers, but it also must become known as the most convenient and affordable way to process digital images.

Netflix

Netflix became a success in the DVD rental business by exploiting its

distinctive capabilities-state-of-the-art software that supports its

product recommendations, merchandising, and inventory control

Holistic Marketing Orientation

Value Exploration

Finding

new value

opportunities

Value Creation… identifying new customer benefits

from the customer's view

Value Delivery

making substantial

investments in infrastructure

and capabilities.

Affect of Marketing on

Customer Value

1. Value Delivering Process

2. The Value Chain

3. The Value Chain

4. Holistic Marketing Orientation

Sameer Mathur

Indian Institute of ManagementLucknow

Marketing Professor 2013 -

Marketing Professor 2009 -2013

Ph.D & M.s (Marketing) 2003 - 2009

Amit PandeyIndian Institute of Technology Kharagpur

(Internship)