Well, before getting into details, we will reiterate that just like the various other concepts of marketing that have been in vogue such as the product concept and marketing concept, the value concept also signifies one kind of company orientation towards the market. While with the product concept and marketing concept, the firm’s orientation is centred on the product and the customer respectively, with the value philosophy, the firm’s orientation towards the market is centred especially on delivering value to the consumer.
The chart below presents the information that the value concept includes all attributes of the marketing concept and goes beyond.
VALUE CONCEPT OF MARKETING: MAIN TENETS
- The realisation that delivering value is fundamental to marketing
- Every business must recognise that it is in ‘the business of creating value for customers
- Profit to the firm to get equal focus as ‘value delivery to customer’
- Competing in the market is to be viewed as the art of delivering superior value to customers.
- A marketing failure basically signifies a failure to deliver value to the customer
- Delivering value is a corporate-level concern; any failure in the process is to be seen as a failure of the whole firm, not of marketing alone
- The firm must vote for all-pervasive marketing across the organisation
- The firm must try and attain all its goals, but it must be via ‘value delivery to customer
- The firm’s commitment to the value delivery idea end to end and its actualisation alone will assure sustainable success in business
- Value delivery results in a win-win situation for everyone for the firm, the firm’s cus-tomers and its shareholders
Marketing Defined as per the Value Concept
Relying on the value theme, we can define marketing this way: Marketing is about satisfying customers and building profitable relationships with them by delivering superior customer value to them; profit has to be secured through the value-delivery route.
The Distinction of the Value Concept
The two main distinctions of the value concept are:
(a) it provides practical direction for generating consumer satisfaction’ and
(b) it explicitly projects value delivery to the consumer as the central idea. Consumer satisfaction can result only if he gets the expected value.
Consumers are value maximisers; they choose the offer that gives them the best value. That is why adopting a value-centric perspective of marketing makes eminent sensor Here, value delivery takes precedence over everything else.
