Value based marketing
(also called customer value marketing)
(also called customer value marketing)
DESCRIPTION
A marketing approach that involves the pursuit of marketing strategies and tactics that provide a high degree of meaningful value and satisfaction to customers as well as achieving improved business leverage.
A marketing approach that involves the pursuit of marketing strategies and tactics that provide a high degree of meaningful value and satisfaction to customers as well as achieving improved business leverage.
KEY INSIGHTS
Value-based marketing entails a strategy that focuses on ongoing analysis of the company, the competition, and the customer, observing opportunities to deliver superior value to customers based on the company’s niche competencies. The approach recognizes that the firm must also be responsive to changes in the competitive environment, where the firm strives to remain competitive with sustainable advantages, while providing consumers with credible offerings that are value based. As such, the company’s value proposition becomes a primary organizing force for doing business and creating shareholder value.
Value-based marketing entails a strategy that focuses on ongoing analysis of the company, the competition, and the customer, observing opportunities to deliver superior value to customers based on the company’s niche competencies. The approach recognizes that the firm must also be responsive to changes in the competitive environment, where the firm strives to remain competitive with sustainable advantages, while providing consumers with credible offerings that are value based. As such, the company’s value proposition becomes a primary organizing force for doing business and creating shareholder value.
KEYWORDS Value, ongoing analysis
IMPLICATIONS
Value-based marketing emphasizes the need for marketers to consistently develop and implement marketing approaches that are of high value in multiple stakeholders—to the organization and its employees, to the organization’s shareholders, and to customers. A greater understanding of value-based marketing approaches may therefore be potentially beneficial to marketers involved in any area of marketing, including strategy development, brand management, pricing, and marketing communications, as it may assist with the identification and pursuit of high-value marketing initiatives from multiple perspectives.
Value-based marketing emphasizes the need for marketers to consistently develop and implement marketing approaches that are of high value in multiple stakeholders—to the organization and its employees, to the organization’s shareholders, and to customers. A greater understanding of value-based marketing approaches may therefore be potentially beneficial to marketers involved in any area of marketing, including strategy development, brand management, pricing, and marketing communications, as it may assist with the identification and pursuit of high-value marketing initiatives from multiple perspectives.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Walters, D., and Lancaster, G. (1999). ‘Value-Based Marketing and its Usefulness to Customers,’ Management Decision, 37(9), 697–708.
Walters, D., and Lancaster, G. (1999). ‘Value-Based Marketing and its Usefulness to Customers,’ Management Decision, 37(9), 697–708.
Doyle, P. (2001). ‘Shareholder Value-Based Brand Strategies,’ Journal of Brand Management, 9(1), 20–31.
Marketing Management
Webster, F. E. (1994). Market Driven Management. New York: John Wiley & Sons, Inc.
Webster, F. E. (1994). Market Driven Management. New York: John Wiley & Sons, Inc.
BIBLIOGRAPHY
Doyle, P. (2000a). ‘Value-Based Marketing,’ Journal of Strategic Marketing, 8(4), 299– 310.
Doyle, P. (2000a). ‘Value-Based Marketing,’ Journal of Strategic Marketing, 8(4), 299– 310.
Doyle, Peter (2000b). Value-Based Marketing: Marketing Strategies for Corporate Growth and Shareholder Value. New York: Wiley.
Davidow,W. H., and Malone, M. S. (1992). The Virtual Corporation. New York: Harper- Collins.