Marketing and Value Planning

The Value Planning Model Approach to Marketing

The Value Planning Model, provides marketers with a framework that captures the essence of value in different environments and provides a managerial process to aid in the facilitation of exchange and creates value for customers.  The model comprises four main elements: Understanding Value; Create/Configure Value; Communicate Value; Delivering Value.

Understanding value

Involves:

  • Analysing the market environment or situational context  (trends and possible impacts)
  • Understanding value as sought by different customer segments (What value are they seeking and what trade-offs will they accept)
  • Understanding the nature of customers
  • Deciding who to offer value to

Marketers use the following tools and knowledge to build this understanding of value:

  • Understanding Buyer behaviour
  • Gathering marketing information – Marketing Research and Marketing Intelligence
  • Segmentation, targeting and positioning of markets

Creating and configuring value,

Involves the development of a value proposition (a new or revised product) that attracts targeted customers

Involves:

  • Product design
  • Attributes and benefits
  • People, process and proof in services
  • Branding
  • Image and associations linked to the offer
  • Pricing
  • Signalling quality and association

Communicating value,

Involves:

  • Developing marketing communications goals
  • Promotion of value through management and targeting of marketing communications to customers and potential customers
  • Knowledge and awareness of the audience/target segment
  • Imaging and positioning

Marketers use the following tools and knowledge to communicate value:

  • Advertising, Sales Promotion, Personal Selling, Marketing Public Relations (PR/Publicity)
  • Content and style – what to say and how to say it
  • Packaging

Delivering value,

Involves:

The concept of Logistics, Channels of Distribution and the value chain

  • Efficiency and control
  • Profitability
  • Sustainability
  • Alliances and networks
  • Customer Service  – e.g. responsiveness to customers, levels of service
  • Time and location benefits
  • Supply through Channels of Distribution – e.g. wholesalers, retailers, (actual and internet)
  • Supply through Logistics and Supply Chains – e.g. warehousing and transportation,

Marketers use the following tools and knowledge to deliver value:

  • Packaging
  • Channel design and management
  • Logistics and supply chain management
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