Value delivery process

• Earlier concept of marketing – manufacture -

communicate
• Because of varying customer wants, perceptions,
Marketing
preferences Management
and buying criteria – marketers see
themselves as a part of value delivery process
– Choosing the value – segment the market, select the
appropriate target, and develop the offering’s value
positioning (STP)
– Providing value – features, prices and distribution
– Communicating the value – internet, advertising, sales force
and any other communication tools
Marketing Management , MBA 2017 - '19

DCSMAT Vagamon,
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 Value Chain

• Value Chain (Michael Porter) – to identify ways to

create more customer value
• (Need for it – because of varying customer wants,
Marketing Management
perceptions, preferences and buying criteria)

Marketing Management , MBA 2017 - '19

DCSMAT Vagamon,
2
 Value Chain
Michael Porter proposed the value chain as a tool for identifying ways
to create customer value

According to this model, every firm is a synthesis of activities

Marketing Management
performed to design, produce, market, deliver and support its product

Primary activities

Support activities – by
specialized departments
Marketing Management , MBA 2017 - '19

DCSMAT Vagamon,
3
 Value Chain

Primary activities Support activities

• Inbound logistics • Procurement
• Operations • Technology development
Marketing
• Outbound logistics
Management
• Human resource
• Marketing management
• Service • Firm infrastructure

The firm’s task is to examine its costs and performance in

each value – creating activity, benchmarking against
competitors and look for ways to improve
Marketing Management , MBA 2017 - '19

DCSMAT Vagamon,
4
Firm’s success depends on coordination of departmental
activities to conduct core business processes given below

Market sensing process

Marketing
New offering Management
realization process

Customer acquisition process

CRM process

Fulfillment management process

Marketing Management , MBA 2017 - '19

DCSMAT Vagamon,
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