The Value Delivery Sequence

This belief is at the core of the new view of business processes, which places marketing at the beginning of the planning process. Instead of emphasizing making and selling, companies see themselves involved in a three-phase value creation and delivery sequence (Figure 1-8).

The first phase, choosing the value, represents the strategic "homework" that marketing must do before any product exists. The marketing staff must segment the market, select the appropriate market target, and develop the offer's value position-

(a) Traditional physical process sequence

Make the Product

Sell the Product

Design product

Procure

Make

Price

Sell

1 Advertise/ promote

Distribute / Service

(b) Value creation and delivery sequence

Choose the Value*

Provide the Value

Communicate the Value

Customer >Market,) Value ) froduct ) ,Serv,ice )„.. ) Sourcin^Distributin^^ ) Sales , ..

segmentation / sel.ection/ / positioning / develop"/develop"/ ng / / / Sales force/ promoting Advertlslng focus ment ment Making Servicing

Strategic marketing

Tactical marketing

Figure 1-8 Two Views of the Value-Delivery Process ing. In the second phase, providing the value, marketers detail the product's specifications and services, set a target price, then make and distribute the product. Developing specific product features, prices, and distribution occurs at this stage and is part of tactical marketing. The task in the third phase is communicating the value. Here, further tactical marketing occurs in utilizing the sales force, sales promotion, advertising, and other promotional tools to inform the market about the product. Thus, as Figure 1-8 shows, the marketing process actually begins before there is a product and continues while it is being developed and after it becomes available.

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