Key Ideas: Value

@dilipsoman
 A Brief History of the Field of Marketing
Product
Orientation
Sales
Exemplified by the
quote: “Build a better Orientation
mousetrap, and the Consumer
world will beat a path Perhaps you have a
to your door” better mousetrap, but
Orientation
you need to make
Focus: Excellence in people a) aware and Understand the
product b) persuaded of its customer to better
superiority. create products and Value
services Orientation
Focus: Sales / selling
techniques, Focus: Market
awareness advertising research

2
The (new) Value Approach has four key pillars
1) Understand how to create value for the customer
• What behaviours should my ideal customer display?
2) Understand how to create value for the firm
• How can I as a firm benefit from my best customers?
3) Develop tools to measure and predict value
• What is the dollar value of a customer? Of a marketing action? How
can I use data to make better value predictions?
4) Use new insights (Behavioural Economics, Machine
Learning, Design Thinking) to better understand and
influence end-user and marketplace behaviours
MCV: A Working Definition
The process of value creation

• First, to the customer (VTC: Value To

Customer)
• But also to the organization (VOC: Value
Of Customer)

4
The two sides of Value: MCV Terminology

Value

Value of Customer Value to Customer

(VOC) (VTC)
The Sweet Spot
When you can create value for your customers….profitably!
Low VTC High VTC

Delighted
Low VOC No business customers, but
case! at what cost?

Not sustainable!
Monopolies,
High VOC fads, “snake oil”
products