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Marketing Value Driver

In: Business and Management

Submitted By Xilvergrey
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The Marketing Value Driver
Chapter 3

A NEW DEFINITION OF MARKETING

Value-based marketing has four major steps:

1. Develop deep understanding of customer’s needs, operating procedures and decision making processes. 2. Formulate value propositions that meet customer’s needs and create a differential advantage. 3. Move from successful transactions with customers to long-term relationships based upon loyalty and trust. 4. Understand that superior value requires superior knowledge, skills, systems and marketing assets.

CREATING CUSTOMER VALUE

Meeting Customer Needs

There will be one or two critical interfaces between buyer and seller that drive consumer’s perception of value.

• Consumer will select offer that is of best value. • Consumer will choose product that meets their needs. • Trust is established with relationships, and keeps consumers loyal.

Differences between consumer and B2B markets - # of customers - Professionalism of buying process

Understand the decision-making unit - 7 roles in purchasing process: initiators, users, influencers, deciders, approvers, buyers and gatekeepers.

Existing wants, (satisfactory solutions already exist), latent wants (wants that people have, which are not yet satisfied) and incipient wants, (wants that people have, but they do not know solution until they see it).

The Market-Led Organization

Starts with understanding what customer wants and then develops products and services to meet those wants.

Production and sales-oriented organizations

- Design products or services with little or no input from customers - End up slashing prices resulting in declining market shares and eroding margins

Market oriented organizations - Create shareholder value by building relationships with

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