5. Marketing: Creating Utility The ability of goods and services to satisfy wants. Form Utility Time Utility Place Utility Ownership Utility Customer need more than utility, they need value added
6. Marketing Trend : from Production to Value Based Era Production-oriented era Market-oriented era Sales-oriented era Value-based marketing era
7.
8. Value Base Define target markets and understand customer value Determine value Proposition Deliver value Monitor value Map of Value Creation
10. Rubbermaid Commercial Products, Inc . (example of value based vision & mission) “ Our vision is to be the Global Market Share Leader in each of the markets we serve. We will earn this leadership position by providing to our distributor and end-user customers innovative, high-quality, cost- effective and environmentally responsible products. We will add value to these products by providing legendary customer service through our Uncompromising Commitment to Customer Satisfaction.”
11. WHAT’S SO SPECIAL ABOUT ? The legendary customer service
12. The Progression of Economic Value COMPETITIVE POSITION Differentiated Undifferentiated DISTINCTIVENESS Memorable Unmemorable Pine & Gilmore, “Welcome to the Experience Economy,” HBR, July/Aug 1998. Extract commodities Make goods Deliver Customer services Stage experiences
13. How much value does Starbucks add? Cost of coffee bean when harvested = $0.50/lb. Value realized by Starbucks from selling cup of coffee = $230/lb. AN INCREASE IN VALUE OF +46,000% See video : How Starbucks create value through excelent customer services
14.
15. Porter’s Value Chain Firm Infrastructure Human Resource Management Technology Development Procurement Support Activities Inbound Logistics Primary Activities Operations Outbound Logistics Marketing and Sales Service Upstream value activities Downstream value activities
16. Value Creation Strategy at Wal-Mart Provide value for our customers Low prices, everyday Low inventory levels Linked communications between stores Short flow times Fast transportation system Cross-docking Focused locations EDI/satellites Wal-Mart Mission Competitive Strategy Operations Strategy Operations Structure Enabling Process and Technologies
