Customer Thought process for judging a products value :

               In the last part we discussed how....

          marketing is a value creating and value delivering process

A firm has to put a lot of efforts to find out what a customer's actual needs are , what extra a company can provide to make the customer delight.

So, today lets check the customers process of judging a product against price and assigning a value to it.... 

           A customer assigns a rating for a particular benefit, now different benefits have different rating based upon the customers need priority. 

       The total rating when all benefits put together makes the total customer value and it is the individual estimate of a individual customer.    

           Now the customer Judge the total rating against the total cost.

         The cost of a product includes the price, waiting period, after sales service , after sales location, all these makes a mental image in the customers mind in the form of             total customer cost.

      Now the total customer value minus total customer cost is termed as customer delivered value. 

     It is the customers net value received from the transaction... less the cost....more the delivered value. 

     So the key take home is different customer calculate different value for a certain product, which makes the marketer task challenging.

Bye for now,

Manabhanjan 

manabhanjantheblogger@gmail.com

    

          

        

Marketing Management : The Value Delivery Process Marketing mix

 PART TWO : IMPLEMENTATION OF MARKETING CONCEPT

             

 Marketing : The value delivery process       

•               Now we have understood that Marketing concept aims at Satisfaction of customer. Again satisfaction comes from the value delivered to customer. So the marketing concept is implemented through value delivery process.

            A company must try to find the benefits sought by the customer and build them into products and related benefits, offer it as a complete value package. The company must ensure that the offered value have been made the customer satisfied. So the marketing concept is in operation when a firm satisfies the customer with high value products. The customer need holds the clue for the marketer and how a firm should find it are tools of  market research, which we will discuss later.

 Benefit and value building process :

           Through its value creating and delivering process, a system makes out the best possible assemblage of benefits as per customer expectation and put it across in the form of market offer.

 Marketing Mix :

            These are the different elements of marketing which are mixed and adjusted to create a right value for the customers. We will discuss it later in details. A firm can enhance value by adjusting elements of marketing mix. for example :

• Increasing the functionality of the product.
• Managing price
• Increasing service support  
• Giving the customer easy access to the product
• Giving better communication.

   

            A firm must indigenously use all elements of marketing for providing more value to the customer.

TODAY'S TAKE HOME:

           marketing concept is implemented through value delivery process.

            offered value have been made the customer satisfied.

            The customer need holds the clue for the marketer and how a firm should find it are tools of  market research

Bye for today

Manabhanjan

manabhanjantheblogger@gmail.com 

Link between Benefits-customer value-cost-satisfaction, concept of value

 PART TWO

              So, In the first part we discussed extensively on the different concepts of doing business, The MARKETING concept, also understood that MARKETING IS ALL  ABOUT VALUE CREATION FOR CUSTOMERS, CUSTOMER SATISFACTION.

Now the question is : What is the mechanism through which a firm puts the marketing concept into practice....THE SECOND PART DEALS WITH APPLICABILITY OF MARKETING CONCEPT.

The concept of value

            As per psychology....

 human mind always seek the maximum usability of a product, and this very nature influence their purchase decision. 

           The buyer select a product basis on the maximum usability of the product or service, he or she is partnering with. In other words the buyer seeks a mix of benefits in the product. This very benefits are customer value.

Link between Benefits-customer value-cost-satisfaction

         It is natural that through its market offering a firm extends the benefits sought by the customer. The customer assigns different weightage to all benefits from the offering of the firm and assigns a value in totality, as the buyer  perceives. Now to acquire the value , a buyer has to pay a certain cost. If the Value in the form of product and benefits exceeds the cost he/she paid. The customer delighted , which leads to customer satisfaction.

       This is how the linkage between benefits-value-cost-satisfaction works. It is implied that a firm must achieve the best possible configuration of above four ingredients that appeals most to the customer.

         In actual practice arriving to such a configuration is a challenging exercise. The entire job of marketing management commencing with planning and strategy formulation, and controlling the marketing efforts. This exercise concerned purely with this task----- Arriving at the wining configuration of benefits-value cost-satisfaction.

Creating and delivering the Customer Value Is all about Marketing

 

PART ONE

Final words: Marketing concept :

           So in part one we discussed extensively on What when and how of the concept of Marketing. The exchange, product, production and sales concept and how marketing is the best one.

          We also have discussed what marketing Myopia is ??

So to sum up:

• Business is a need satisfying process.
• Business must be managed, keeping the customer and their needs in focus.
• Business goals, Profit must be realized through customer orientation and customer satisfaction.

           Now as I talked marketing means customer thousand times, The question arises how to put the marketing concept into practice ???

             " Satisfying the need of the customer is the only way to implement marketing successfully and it can be achieved by creating value for the customer. "

          So creating and delivering customer value is the essence of marketing.

SO SECOND PART, will present you HOW customer value will be created and delivered. We knew what marketing is …. we will know how marketing will be implemented.

Bye for now

meet you in second part

Manabhanjan

manabhanjantheblogger@gmail.com

Characteristics of Marketing Concept Marketing Features Modern Marketing Concept Characteristic of marketing plan Integrated Management

 

       Characteristics of Marketing Concept : 

        

         Customer orientation:                   

             An utmost emphasis on consumer and his needs is the first distinguishing features of marketing concept. Giving the firm to see business from the prospective of consumer is the important marketing feature.

                              The purpose of any business is to create customer

                              It is the customer who determines what a business is.....

   

              The modern marketing features says: What a business thinks it produces is not of first importance especially not to the future of business and its success. What a customer thinks he is buying, what he considers a value is decisive, it determines what a business is, what it produces and weather it will prosper. 

                    The characteristic of marketing plan is to accept the customer as he/she is...

                    and build the business around it.

         Integrated Management: 

        Integrated Management means all the business functions of a firm must be tightly integrated with one another with marketing as a pivot. Because every function has a bearing with the consumer and to see all the functions has a bearing on consumer. All elements are seen through the eye of the customer, so as to produce the best benefits and satisfaction for the customer.

         Customer Satisfaction: 

        The marketing concept emphasis on that it is not enough if a firm has customer orientation, it is essential that such an orientation lead to customer satisfaction. The orientation underscore that no firms can afford to ignore customer satisfaction.

        Realization of organizations GOAL: 

         If a firm has succeeded on generating consumer satisfaction, it implies that firm has given a quality product, offered competitive price, prompt services and managed to maintain a good image. In the process organizational goal and profit automatically realized.

  

       

What is market orientation? Definition and stages, How it solve Marketing Myopia

 What is market orientation : 

              Marketing orientation, definition : It is obvious that the marketing concept represents a totally distinct approach to business. It is the most advanced of all ideas of marketing that have emerged through the years. The marketing concept is only be able to keep the organization from marketing myopia. This is how marketing orientation explained.

            Marketing orientation approaches: All ideas like the exchange concept , the product concept, the production concept and the sales concept leads to marketing myopia only, in one form or other.

           Types and stages of marketing orientation: 

•                        From production orientation to marketing orientation
•                        From product orientation to customer orientation
•                           From supply orientation to demand orientation
•                        From sales orientation to satisfaction orientation            
•                           From internal orientation to external orientation

 

           So we can conclude that marketing concept is essentially a shift in orientation.

Next we will know the distinctive features of marketing concept. There are four.

Stay tuned

Bye 

manabhanjantheblogger@gmail.com

Basic difference between sales and marketing

 Difference between Sales and Marketing :

SALES                                                                           MARKETING

The concept sales concentrate                                       The concept of marketing concentrate

with the need of the seller.                                              With the needs of the customer.

Here activity starts with sellers                                         Here activity starts with the need of the

existing products.                                                          Customer, then designing the product.

View business as a Goods producing Business is customer  satisfying                     

process.     Process.

       

                                                                                                   

Here the firm makes the product first, then                  Here the firm identify the customer need 

decide how to sell the product and make profit.               First and decide how to add value then

                                                                                          Make the product as a solution.

Cost of production determines the price.                   Customer determines the price and price 

                                                                                         Determines the cost of productions.   

The firm's motives decide marketing Products benefits and added value decides  

communications.           The marketing communications.

Emphasis given on selling the product by any means. Emphasis is on integrated marketing with

There is no coordination between the different functions.  All departments.

The firms with selling concept, has production as the     The firm practicing has Marketing as the 

Central function.                                                                 Central function.

Selling views the customer as the last link of the Marketing views the customer as the first 

Process.                                                                              business, And the sole of the business

All emphasis on exchange aspect, without caring for the       All emphasis is on need satisfaction and

Value satisfaction of the customer.                                            Value addition for the customer.