Podcast
Questions and Answers
Which of the following best describes the relationship between creating, communicating, and capturing value in contemporary marketing?
Which of the following best describes the relationship between creating, communicating, and capturing value in contemporary marketing?
- These perspectives should receive simultaneous attention from marketers to maximize marketing productivity, even though some functions may be performed in isolation. (correct)
- These are independent functions performed by different firms, with no overlap.
- Maximizing marketing productivity requires a sequential approach, starting with creating value, then communicating it, and finally capturing it.
- Creating value is the sole responsibility of the product development team, while communication and capture of value are handled by the marketing and sales teams respectively.
According to the material, how is value best conceptualized from a marketing perspective?
According to the material, how is value best conceptualized from a marketing perspective?
- As the ratio of benefits to costs from the customer's viewpoint. (correct)
- As the monetary worth of a product determined by the cost of production.
- As the tangible benefits a product offers to the consumer.
- As the symbolic benefits a product offers to society.
IKEA's approach to creating value primarily focuses on what aspect?
IKEA's approach to creating value primarily focuses on what aspect?
- Offering the lowest prices in the furniture market.
- Extensive global advertising campaigns.
- Exclusive partnerships with local artisans.
- Product design. (correct)
What is a key characteristic of Southwest Airlines' approach to creating value?
What is a key characteristic of Southwest Airlines' approach to creating value?
What primary method does Uber utilize to create value for its customers?
What primary method does Uber utilize to create value for its customers?
How do companies like Google communicate value internally?
How do companies like Google communicate value internally?
What is a defining characteristic of Apple's strategy for capturing value?
What is a defining characteristic of Apple's strategy for capturing value?
ALDI captures value primarily through which strategy?
ALDI captures value primarily through which strategy?
In the context of the marketing road map, what activities are emphasized during the 'Conceptualize' phase (Modules 1-5)?
In the context of the marketing road map, what activities are emphasized during the 'Conceptualize' phase (Modules 1-5)?
A company's marketing efforts should primarily aim to:
A company's marketing efforts should primarily aim to:
Flashcards
Value Definition
Value Definition
Value is the ratio of benefits to costs from the customer's perspective.
Creating Value
Creating Value
Refers to the act of designing products that resonate with customer needs and preferences.
Communicating Value
Communicating Value
Communicating Value refers to using symbols, branding to make a product or service appealing.
Capturing Value
Capturing Value
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Environmental Analysis
Environmental Analysis
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Industry Analysis
Industry Analysis
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Consumer Behavior
Consumer Behavior
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Marketing Productivity
Marketing Productivity
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Study Notes
- Lecture Outline 2 focuses on Value Perspectives in Marketing
- Learning objectives include the conceptualization of value, gaining insight into value perspectives and their impact on marketing productivity, and understanding how marketing contributes to value conceptualization/creation, communication, and capture
- Key topics include a Road-Map and the Value Perspective of Marketing
Marketing Road Map
- It involves conceptualization (modules 1-5), execution (modules 6-10), and achievement of value objectives
- Conceptualization includes: environmental analysis, industry analysis and consumer analysis
- Execution focuses on product, price, promotions, and place
- Achievement focuses on value objectives: creation, communication, and capture
Value Perspective in Marketing
- A precise definition of value is controversial due to differing views among philosophers, economists, and business managers
- Value can be conceptualized as a ratio of benefits to costs from the customer's perspective in the exchange process
Value Formula
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Value = (Tangible Benefits + Symbolic Benefits) / (Cost)
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Contemporary marketers generally agree that maximizing marketing productivity involves creating, communicating, and capturing value
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All three perspectives need simultaneous attention from marketers, even if a marketing function is performed in isolation
Industry Examples: Creating Value
- IKEA: Creates value through product design: founded in 1943 by Ingvar Kamprad in Sweden, with its head office in Delft, Netherlands; worldwide with 450 locations and 9 stores in Australia
- SOUTHWEST: Creates value through industry segmentation. Founded in 1967 by Herb Kelleher and Rollin King, with its head office in Dallas, Texas; revenue: US$ 20 billion (approx) in 2019
Industry Examples: Communicating Value
- Emojis: Communicating value through symbols
- HARLEY DAVIDSON: Communicates value externally through brands; founded in 1903 by Harley and Davidson; revenue is US$ 6 billion (approx) in 2019
- GOOGLE: Communicates value internally through brands; founded in 1998 by Sergey Brin and Larry Page; revenue: US$ 160 billion (approx.) in 2019
Industry Examples: Capturing Value
- APPLE: Captures value
- ALDI: Captures value; founded in 1913 by the Albrecht brothers; head-office is in Essen and Mulheim (Germany); revenue: US$ 60 billion (approx.) 2019; deep discounter in the concept of private labels
- UBER: Creates value through access was founded in 2009 by Kalanik and Camp; revenue: US$ 12 billion (approx) in 2019
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