Value Marketing makes people in US overweight, writes The American Institute for Cancer Research. Because the food industry encourages consumption by offering more meals at fixed prices. Understandably, the cheapest way to offer extra value to customers by increasing portion sizes, not by cutting prices.
Drucker said business function had shifted to the creation of value and welfare. The term “value” is used because the usability of products and services attached to it increases.
Indeed, Doyle said, the marketing activities of its ends are maximizing shareholder value. Marketing is seen from the side of the company’s shareholders’ interest (result driven), following the capital markets demand that evaluates the effectiveness of corporate governance based on the ability to provide shareholder value in the form of dividends and share price fluctuation.
The different from practice in the field, usually, defining the target marketing with indicator of sales, market share, and customer satisfaction. The second objective is not uncommon to collide with the interests of shareholders. For example, maximum sales, market share, or customer satisfaction has implications for the low prices and high spending, though perhaps even profitable in the long term.
Doyle’s opinion is not wrong. But the value delivery, viewed from the purely financial side sometimes it traps. Although there is no doubt that the value of money is the simplest and most easily identified than functional value. To be able to provide competitive advantage, it is not enough just to look at from the perspective of shareholder value, let alone when to sacrifice long-term goals.
No less important is the customer value. Shareholder value will only be achieved through a ‘super customer value’, which presents a competitive differential advantage. Customer value is perceived customer preferences towards product characteristics, performance, and whether it meets what chill. Today has been developing the concepts of kinds of Relationship Marketing, Customer Retention, Customer Loyalty, Database Marketing, CRM (Customer Relationship Management), Frequency Marketing, Permission Marketing, and One-to-One Marketing is all based approach to customer value.
The difference lies in how to position themselves to customers, although ultimately the same goal: to maintain and enhance customer value.
Need a strategic approach for linking marketing processes with the value of the shareholders, customers, and employees are contained in the Marketing Value Chain. In the implementation carried Value Chain Analysis to help companies identify potential resources and competitive capabilities. Company requires an analysis of its overall value chain, including connectivity between each of its stages and in the process can build an integrated value chain of information. Like a race is the start of his customer needs, and his finish line is customer delight.
Each business function in the value chain is treated as an important asset and contribute to value. In short, the value chain in marketing integrates and manages all business functions, satisfy customer needs. Not just stop here, after a sales transaction while maintaining relationships with customers through the services ‘superior’ in order to obtain high customer equity.
Exploration of the next value is the customer value as the medium between creating shareholder value. For companies, customers contribute in the form of money, encouragement and competition, feedback, and design specifications. Relationships with customers can not be built overnight. To change the orientation of the product-focused to customer-focused companies must meet the following three stages: knowing the customer; deliver significant value and competitive, and creating a customer-centric culture.
To be able to provide competitive advantage, it is not enough to value functionally but also emotionally. So, what makes the customer satisfied? To be able to answer in advance what customers expect assessed against the company, namely responsibility, quality, value and innovation of products and services, overall quality of service / support, and timely presentation.
But remember that customer satisfaction alone is not a guarantee of loyal customers because as reported in the Harvard Business Review, that between 15-40% of dissatisfied customers who originally moved to competitors each year. In other words, satisfaction does not necessarily mean loyalty.
What is the role of loyalty in customers’ lives? Most customers have a strong desire to build loyalty. They will be back again and again if treated well and feel comfortable. With the loyalty of these customers want to reduce risk by returning to the company that they trust because they know what they’ll get.
To maintain and enhance customer value key lies in communication. Marketing campaign is important to customer retention and boost sales. Choices made by customers based on their perceptions. The stronger familiar with the customer, it will be easier to effectively influence their perceptions.
Who made all that up to the customer value? The main pillar of the prime achievement of value delivery is human beings who exist within the organization. Thus inevitably the employee value becomes crucial part of presented value to customers, which ultimately led to the creation of value for shareholders.
For the company, employees give contribute in labor, services, expertise, ideas and innovation, and corporate culture. Expectations of employees toward the company can be described as follows: the continuity of the company, profit sharing, job security, quality work environment, sharing information and good management.
The main principle in the value delivery is to add value at every stage in the flow value in accordance with the promised value proposition as well as gather information and data for continuous improvement on the process. This expectation of financial value of this delivery is reflected in earnings, earnings growth, financial ratios, cash flow, and the ability to make capital. The future will be reflected in market position, potential growth, continuous improvement, and knowledge management. Meanwhile the expectations of stakeholders can be represented by employees and customers.
So the marketing value rests on three main stages that must be passed, i.e. value exploration, value creation, delivery and value all of which must be supported by employee value. Value marketing stems from the attitude of top management to focus on putting the interests of customers, provided they meet or even anticipate customer needs. Tug willing to do short-term profits with long-term profits for the sake of loyalty relationship in an atmosphere of win-win solution. Thus, profitable customers can be drawn and maintained.
