Value-Based Marketing: Creation, Delivery, and Evaluation

2726 WordsJun 19, 201011 Pages
Introduction Marketing principles made a fast swift from the conventional methods to the modern marketing. From the literature, we can marked the shift from product centric view to customer centric view .i.e. from” inside-out to outside-in”. This made an outstanding shift from Mc Carty’s 4p concept to value based marketing. Emphasising this shift the Piercy(2009)imprint that marketing is a set of management activities that define ,create and deliver value to the customers. The essay is divided into 3 section ,firstly about the creation and delivery of value ,in the second section deals with the case study of the Ritz Carlton and Abad group of hotels service orientation and recommendations and finally the critical evaluation of the…show more content…
Based on the demographical, psychological and behavioural difference of the customers in the segments they select a target market for their offering and it is positioned .For example Volvo developed its cars for the customers ,whom safety is main concern. Offering is the intangible value proposition made physical.( kotter and keller,2006;kolter,1997;Wilson etal.,1992) Value proposition is another main thing in creating customer value. It is the bundle of benefits the company offer’s in addition to the core positioning .Taking the example of the Volvo car its core positioning is safety, but in addition it promises a long lasting car, long warranty and service. So this can create a value in the mind of target customer who are concern in safety.( kotter& keller,2006) Customer satisfaction is the main concern of creating value and competitive advantage(zeithaml,1988;parasuraman,1997). Satisfaction is the feeling of pleasure or displeasure resulting from the comparison of products/services performance in relation to the expectations. Expectation comes from the past buying experience, friends or associates advice etc .The relation between expectation and performance decides the satisfaction ;whether it is high, medium or low. According to the literatures the two main wrong things usually the enterprises do in creating and delivering values are the supply chain
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