Redefining Marketing by Creating Exceptional Value for Both Shareholders and Customers

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Redefining Marketing by Creating Exceptional Value for Both Shareholders and Customers

EXECUTIVE SUMMARY

This report redefines marketing in terms of share holders and

customers as:

“Marketing is a management process that seeks to maximize return to

shareholders by developing and implementing strategies to build

customer relationships of trust with high value customers and creating

a competitive advantage.”

The report also tells us how value can be created for customers and

shareholders by using value based marketing principle and taking

Cadbury Schweppes as an example which became successful by creating

value proposition for both customers and shareholders. Cadbury

Schweppes followed the four principles by setting the right ambition,

distinctive advantage, selective resource allocation, finding win-win

for customer and shareholder.

Creating shareholder value is then essentially about building a

sustainable competitive advantage-a reason why customer prefer to buy

from one company rather then the other. The only route to more

shareholder value is to create more value for customers. The value to

customer is created by using value proposition which are Customer

Benefit- Customer must see value to them in their own terms, Unique-

Customer must recognize their benefit.

Profitable- The Company has to deliver at a profit; Sustainable- The

advantage should be difficult to copy.

The report also tells us how BCG matrix can be used as a guide for

companies to think about different investment needs and Ansoff model

to develop competitive strategies since they relate to actions

regarding products and markets which are to be implemented to achieve

the most specific objectives of the organization.

TABLE OF CONTENTS

INTRODUCTION.. ……………………………….4

FINDINGS. ……………………………………….5

I. New definition of marketing. ……………5

II. Setting the Right Ambition. ……………….8

III. Distinctive Advantage. ……………………8

IV. Selective Resource Allocation. ……………8

V. Increase Both Customer and Shareholder Value …..9

VI. Properties Of a Winning Value Proposition……....10

CONCLUSION.. 14

REFERECES. 15

APPENDIX.. 17

INTRODUCTION

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This report redefines marketing in terms of creating exceptional value

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