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 concepts. Defining Of Value
According to kotter and keller(2006) value is the central marketing concepts and can been seen as the identification ,creation ,communication ,delivery and monitoring of customer value. Value reflect the perceived tangible and intangible benefits and cost of the customer(zeithamal,1988). In the view peck.etal(1999) customer value is the perceived benefits a customer believe they receive from the owner ship or consumption of a product or service relative to the ‘total ownership’. Some authors argued that value dwells in the balance between functional solution and sacrifice by the customers(Ravald&Gronoss,1996;Christopher,1996). Wooddruff(1997) noted that the value concept varies according to the circumstances of the customer’s.
Moreover in the view of kotler (2009)the value creation and delivery has three phases first value choosing. i.e. STP(segmentation, targeting, positioning).Secondly value providing through product development, offering and distributing and serving. Finally to value communicating through sales force ,advertising .Coming to 3vs approach of marketing( London’s business school) value is defining process like research on markets ,value is developing process like new product innovation, strategy development and selection of vendors .Finally to delivering value process such as advertising and distribution management
The value creation cycle help us to understand different steps in the process of making benefit
According to kothari&Lackner(2006),the key elements of value lies in products ,access ,experience and cost. The best company should understand the value the customer’s placed on this attributes ,but also quantify in terms of dollars also
Most of the industry now focused on the product attributes to maintain a competitive advantage .More than 90% of time concentrated on the inwards design of the products, instead of what the customer need(kothari&Lackner,2006
Helps the accessibility of products and services to markets .Organisation have to develop and understand different access requirement of each markets and customers, depending upon these organisation should have to deploy there resources to attain the customer’s requirements(kothari&Lackner,2006)
The overall experience of the customer by using the product and services of the organisation. Enterprise’s should have a close look base on the experience of the customer’s and should shape their brand based on the interaction between the customer’s in the many stages of the buy-pay-cycle .eg: the brand value of Intel inside in the pc making customers. (kothari&Lackner,2006;walter,1999)
Cost attributes is the main thing that builds value. These helps the organisation’s to communicate better value of its offering and also helps customer’s to make more economical purchase decision. (kothari&Lackner,2006)
A complete understanding of these value drivers helps to effectively differentiate its total system value than its competitors’.
Create and deliver value
For creating value the enterprise should first understand the needs ,wants and demands of the customer’s....