Value-based marketing: creation, delivery, and evaluation assignment

According to kothari(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 Product attributes 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 Access attributes 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, 2006) Experience attributes 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 . g: the brand value of Intel inside in the pc making customers. (kothari&Lackner, 2006; walter, 1999) Cost attributes 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.

Michael porter proposed the value chain as a basic tool for identifying ways to create more customer value, its has nine strategic process , five as 10(those below)&four as 20( those above). In creating value by the co-ordination of these activities Capture value Every enterprise have 3 pedals for capture shareholder value through(kothari&Lackner, 2006) Customer profitability: economic value share that the enterprise capture for its shareholder form the total customer value Share of wallets:% of total customer spending that the enterprise can achieve Number of customers: enterprise market share

The value cube helps to assess the enterprise its performance at present and where to go in future in the total value space. Relationship between customer relationship management and value creation& delivery From the modern concept of value marketing the CRM has an positive effect in creating customer value(Wang etal. , 2004; peck etal, 1999). By increasing the customer loyalty, customer’s retention and maximizing the customer life time value. The CRM is the process of managing the detailed information of the customer’s to maximize customer retention. The main steps of CRM are ??? Finding out the prospects and customers On the basis of needs and value differentiate the customer ??? Individual customer interaction to improve the knowledge about the customer and building relation ship ??? Customization of product and services and messages to each customer CRM helps to develop loyalty of the customers . Loyalty is the deeply held commitment for rebuy a preferred products or services in future without switching behaviour. Which in turn increases the life time value of the customer . Sherden suggest that 20-80-30 rule ie: 20%of life time customers generate 80% of firms profit of which 30% is loss serving unprofitable customers.

Using a database called CLASS(customer loyalty anticipation satisfaction system) to look the repeated customer needs and preference. Moreover the CARE system(clean and repair every thing)to ensure class service . All these activities are combined with CRM. Ritz value creation and delivery is recognized by the Malcolm Baldridge National Quality Award , twice by any in hospitality industry. ( www. ritzcarlton. com) Coming to ABAD group of hotels, although their marketing strategy is customer focused, they are not up to the mark. Their services are not just in time of the needs and wants of the customers .

They are unable to capture a good relation ship with the customer in making them loyal and retention. (personal experience, www. abadhotels. com) Recommendations As you all know that sustaining in hospitality industry is difficult without value addition . ABAD have to make a close look at Ritz strategy for service and developing customer loyalty and then retention. From the literatures its clear about the customer life time value, in addition the cost of retaining customer is less than that for new customer. Action plans for ABAD should focus on out side in, from customers to inside process and should have to create a value chain based on the customer needs and wants based on their feedbacks ??? they have to swift from selling concept to marketing concept ??? try to make out good customer relationship ??? use of data base system for monitoring services, and guest information ??? try to add more value in their services, by giving a feature touch of brand in the mind of customers ??? Use SIVA which i suggest to improve the performance of ABAD , Siva means(Solutions, Information, Value & Access). shown below an integrated SIVA mix