A HOLISTIC APPROACH TO VALUE BASED MARKETING
Value Based Marketing is a marketing Lexicon, used to conceptualise the process of valuecreation, in the firm, for the customers , without loosing focus on profitability and thusincreasing shareholder value.
De Bonis, Balinski & Allen approach to value based marketing is, essentially focusing oncustomer value, through the concept of -
Marketing metrics used for evaluating marketing performance, such Brand Equity, CLV, repeat purchase rate etc, generally fall shy of management needs - due to lack of conformity withdominant accounting-finance language of the firm, making it difficult to compare withalternative expenditures undertaken in the firm, humorously reflected in:
“ I know I am wasting half of my advertisement budget, but I just don’t know which half”
Hence the the concept of VBM has evolved further. Peter Doyle conceptualises it as the
and attempts to link marketing activities to financialconsiquences and creation of intangible assets.
Kolter defines,Customer Value = Perceived Customer Benefits (product, services, quality and personal or image benefits) – Customer Cost