CVch9slides_2e

C h a p t e r 9 Strategies for Adding ValuePromoting Value Via IMC : 

C h a p t e r 9 Strategies for Adding ValuePromoting Value Via IMC

Adding Value - Foundation Concepts : 

Adding Value - Foundation Concepts The CV approach means go the “extra mile” -- customer satisfaction and retention are keys to business success. Having a strong value proposition, firms can differentiate themselves, add value to their offerings and promote the organization’s uniqueness to their target markets. Marketing communications adds and communicates value to customers. Cont…

Adding Value - Foundation Conceptscont… : 

Adding Value - Foundation Conceptscont… Key Terms Unique selling proposition (USP), positioning, value-added marketing strategies, integrated marketing communications (IMC)

The USP & Differentiation : 

The USP & Differentiation An unique selling proposition is critical to support the firm’s value proposition Marketers have begun to call USP - the unique service proposition The unique service proposition demonstrates that companies must distinguish themselves with respect to the offerings as well as the message Cont.

The USP & Differentiation – cont. : 

The USP & Differentiation – cont. An USP creates and communicates value All components in the company’s value proposition must work in harmony to support the firm’s promise to its customers To maximize value, organizations must stand out from the pack and be different from its competitors

Levels of POSITIONING : 

Levels of POSITIONING Since value creation is a dynamic process, repositioning must be ongoing There are 3 levels of product positioning: Core level Extended level Total product level

The Product Positioning Framework : 

William C. Johnson/Art Weinstein 2003 Short, Intermediate, Long-Term The Product Positioning Framework

Core, E x t e n d e d & Total Product : 

Core, E x t e n d e d & Total Product Core product is short-term positioning and typically works for a year or less - companies focus on the tangibles: price, quality, and technical specifications Extended product - firms create the necessary infra-structure to develop strong relationships with channel members, suppliers, and customers; strategy tends to last in the intermediate term, 1 to 5 years Total Product - companies have clearly identified who the company is and what they stand for. Firms have garnered a long term position - lasts more than 5 years (they have won the market’s respect)

How to Add Value to Products : 

How to Add Value to Products Companies must constantly search for new ways to add value to distance themselves from their rivals Additional features/benefits Affordability Branding Customer involvement Customization and choice Enhanced quality Exceptional service Frequency marketing incentives Internet as a value adder Simplify or bundle the offering Solve customer problems Technological leadership Warranties

Additional Value-Added Approaches : 

Additional Value-Added Approaches ? The use of ambiance & atmospherics ?Dominant merchandise assortments ? Hassle-reduction ? One-stop shopping ? Segmented marketing ? Speed ? Supply chain management

6-Step Process for Implementing a Value-Added Services Program : 

6-Step Process for Implementing a Value-Added Services Program 1. Specifying business objectives -- e.g., increasing traffic, increasing sales, targeting best customers, etc. 2. Designing a program to accomplish said objectives 3. Being sure that the value offered really includes an added value cont..

6-Step Process for Implementing a Value-Added Services Program – cont.. : 

6-Step Process for Implementing a Value-Added Services Program – cont.. 4. Determining whether the program is sustainable both financially and in terms of consumer interest 5. Explaining and executing the program (sales associates must be involved and motivated) 6. Measuring and fine-tuning the program to maximize long-term results

Value through an IMC Program : 

Value through an IMC Program Integrated marketing communications (IMC) means coordinating all promotional activities: advertising, databases, direct marketing, Internet, personal selling, sales promotion, and public relations The objective of IMC programs is to provide a synergistic and consistent message (one look, one voice) which communicates value to targeted audiences COMMUNICATING

IMC - Strategic Issues (Schultz) : 

IMC - Strategic Issues (Schultz)

Slide 15: 

* (Adapted from ideas offered by Schultz, D.E. (1991)

Creating an IMC Program : 

Creating an IMC Program Use zero-based budgets Focus primarily on current customers Use highly targeted mass promotion Build marketing relationships Realize that everything an organization does sends a message 2-way dialogue is key Use 21st century communication technologies Measure promotional effectiveness

Adding and Promoting Value:Concluding Remarks : 

-> Service organizations must rethink the way that they compete from a strategic perspective -> This requires a two-pronged attack: 1) Adding value to your offerings 2) Using integrated marketing communications (IMC) to promote your value edge -> Service companies can keep customers over time by using retention marketing strategies Adding and Promoting Value:Concluding Remarks