The Value Delivery Process
The traditional—but dated—view of marketing is that the firm makes something and then sells it, with marketing taking place during the selling process.
Companies that take this view succeed only in economies marked by goods shortages where consumers are not fussy about quality, features, or style—for example, basic staple goods in developing markets.
In economies with many different types of people, each with individual wants, perceptions, preferences, and buying criteria, the smart competitor must design and deliver offerings for well-defined target markets.
This realization inspired a new view of business processes that places marketing at the beginning of planning. Instead of emphasizing making and selling, companies now see themselves as part of a value delivery process.
The value creation and delivery sequence consists of three phases.
- In the first phase, choosing the value,
marketers segment the market, select the appropriate target, and develop the offering’s value positioning. The formula “segmentation, targeting, positioning (STP)” is the essence of strategic marketing. - The second phase is providing the value through identifying specific product features, prices, and distribution.
- The third phase is communicating the value by utilizing the Internet, advertising, sales force, and other communication tools to announce and promote the product.
The value delivery process begins before there is a product and continues through development and after launch
Check your Red Cross Fundraising plan.
Does step 1 covers the STP-approach? (Segmenting, Targeting and Positioning)
1. What problem do you solve, and for whom do you solve it?
2. What is the revenue potential for this target group?
3. What position we would take in the mind of the target group?
Based on the outcome of the STP it is easier to create the best solution (Product/service), with the most optimum profit (Price), communicated via the best converting channels (Promotion) and purchased at the most relevant stores (Place).
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