Value Proposition: The company must decide how it will serve targeted customers- how it will differentiate and position itself in the marketplace. A brand’s value proposition is the set of benefits or value it promises to deliver to customers to satisfy their needs. There are few steps that the company can take to create value proposition as stated below: The first step is defining the target audience. In this step the company must figure out who their customers will be and who will buy their products. The company can do some small test before launching the product completely. They can run it by a small group of the target market to ensure the value proposition resonates with customers they’re trying to reach. The …show more content…
The customer value proposition is arguably the most important tool in the product marketer’s toolset. It is the foundation for understanding how the product will realistically be valued by the target user. Unlike a benefits statement, a customer value proposition is more balanced. It certainly includes the advantages a target user would experience. But to these benefits it adds the tension of disadvantages and parity experiences. The sum of all of these experiences provides a much more accurate assessment of the product in its marketplace. In the absence of customer value propositions, companies are walking blindly in the marketplace. Businesses underplay the fact that their target users have other options. They ignore that fact that their product has deficiencies some of which may significantly hamper their efforts in the marketplace. The customer value proposition is the keystone for effective product marketing activities. It brings together customer intelligence, competitive insight, and product valuation. It delivers a concise, supportable statement of the product’s value. It quantifies how that value is realized based on all of the target user’s likely product experiences. The customer value proposition provides a focused approach to understanding the target user in the context of your …show more content…
In order for James White to survive and generate revenue in Malaysia they need to offer what the competitors do not or cannot offer. We live in a world of constantly changing products. New features are added. Prices are changed. Competitive products are enhanced. New alternatives are introduced. All of these events affect the customer value proposition. For this reason, customer value propositions are associated with a specific timeframe. Customer value propositions can be created for newly available products where none previously existed. They can be developed as a strategic planning mechanism for products that are in the formative stages. They can be updated for an upcoming product release. Before a customer value proposition can be created, the key target user must be identified and profiled. Key target user profiles help the entire organization understand who are the key target users, where can they be found, what issues do they face, and how would they use the product. Before we can separate these value experiences, we must expand the information about the “how” events we’ve identified for the key target user. We do this by adding the following
Value Proposition is defined as "A business or marketing statement that summarizes why a consumer should buy a product or use a service”. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings." To structure a proper value proposition for a company, you must view the business model and three identifying features of the business. These three features are the Goals, Core Activities, and the Product Market Focus. The goal of a company is what it aims to accomplish. In regards to Imperial Oil ltd., their main end goal would be to create profits for their shareholders and to increase the overall value of the company. With creating more value to the company, the business can use funds to access and develop more research and advance their technology in growing the corporation. The core activities of the business are what value creating tasks will help the business run properly and how t...
In every given business, the name itself portrays different meanings. This serves as the reference point and sometimes the basis of customers on what to expect within the company. Since personality affects product image (Langmeyer & Shank, 1994), the presence of brand helps in the realization of this concept. Traditionally, brand is a symbolic manifestation of all the information connected with a company, product, or service (Nilson, 2003; Olin, 2003). A brand is typically composed of a name, logo, and other visual elements such as images, colors, and icons (Gillooley & Varley, 2001; Laforet & Saunders, 1994)). It is believed that a brand puts an impression to the consumer on what to expect to the product or service being offered (Mere, 1995). In other application, brand may be referred as trademark, which is legally appropriate term. The brand is the most powerful weapon in the market (LePla & Parker, 1999). Brands possess personality in which people associate their experience. Oftentimes, they are related to the core values the company executes.
Every business must identify its customers in its marketing plan. The customer analysis performed hereafter shall interrogate the characteristics of the potential customers of the products by LifeVantage and the current and emerging factors that influence their buying behavior.
At the end it all comes down to being receptive of the customer’s perception and their requirements by offering a service or a product that caters to everything and removes the barriers to adoption of the emerging technology and innovations rather than just holding them
Customer value is defined as "the perceived benefit of a product, used by customers to determine whether or not to buy the product" (Lussier, 2006). I do believe that most customer's focus on creating customer value. It is an aspect needed in order to sell anything. A customer would not buy something if she or he did not see the benefit in buying it, therefore, organizations strive to create customer value because they need the customer to see a benefit and to buy the product.
Soman,D & Marand, S (2009). Managing Customer Value: One Stage at a Time.: World Scientific Publishing. p9-14.
Companies use a collection of brand equities to represent their products in the market (Voolnes, 2012). Brand equity refers to the commercial value that is derived from the perception of consumers on any given brand name of particular products in the market as opposed to the product itself. Ataman (2003) notes that the effect to the consumer is in the brand name and not the product itself. Companies use logos, trademarks and a collection of other symbols to present this information to the customers. The use of these symbols is meant to try and capture the customer mindset so that they can be thinking about the company products at all times through the items they possess at home (Estes, Gibbert, Guest, & Mazursk, 2012). This can well be explained by use of the customer-based brand equity model that brings together the requirements for a publicly renowned brand in the market.
In this world, creating a new product, as good as it may be, is not enough. The success of any product, in this day and age, depends grandly on the way it is presented to the market. Marketing is responsible in assuring a successful launch of a product, new or reinvented, and to assure its sustainability in this competitive world. For those reasons, billions of dollars are spent each year on tools and strategies to improve marketing research and predict the success of a product: many marketing firms form focus groups, do trials and conduct many tests just to end up with a fairly high percentage of failures.
...er than sales, the companies should adapt themselves to suit the needs of the consumers mindset at the right time in the right channel. It’s necessary for brands to unite their business goals and brand attributes with deep audience interests, needs and passions. This way they can give the audience something that they will actively seek out, amplify and share with others.
A company’s brand is one of its most valuable assets (Green and Smith 2002). Brands owners invest millions of dollars every year in advertising and promotion to raise awareness and create demand for their brands.
The source of the brand features is in a connection between customers and companies that sell services or products. Consumers who choose a specific company fundamentally acknowledge to prefer that brand more than other brands rooted from the recognition of the brand’s worth.
By communicating a new value proposition, brand management aims to change the brand’s former brand percep-tion and link the new brand image to the new position. Of course, also within re-positioning, new attributes have to demonstrate points of difference and superi-ority. By emphasizing the brand’s uniqueness, management enables the cus-tomer to perceive higher brand value in their mind (cf. Friis 2009, p. 19). If the brand elements are not relevant for the target audience or the brand proposition was not chosen correctly, brand identity will not be perceived as credible and communication will fail. Therefore, companies have to analyse their target groups accurately before choosing new attributes, which they want to communicate. Management has to find out what are the target audience’s needs, wants and desires and what do they believe in. The organizations values should in best case overlap with the values of the audience. New brand attributes have to follow specific communication objectives, which are focussed on changing the custom-ers’ perception (cf. Feddersen 2013, p.
Value has different aspects which include company values; which relates to new innovations, job growth, reducing costs, as well as long term production and so forth. Value must meet customers’ needs which they benefit from the product or service.
Customer Value Proposition Functional benefits - based on a product attribute that provides the customer with functional utility. The goal is to select functional benefits that have the greatest impact with customers and support a strong position relative to competitors. The phone capability of an iPhone, the cross platform data transfer of iCloud, iPad lightness and powerful abilities : games, movies, office work etc. Emotional benefits - provide customers with a positive feeling when they purchase or use a particular brand. They add richness and depth to the experience of owning and using the brand.
Explain how the company’s value-chain activities can be better linked to create value for the company.