Marketing Management

Customer perceived value

According to Leonidou and Leonidou, (2011) it is the customers overall assessment of the utility of a product based on perceptions of what is received and what is given. Customer perceived value been seen as a interchange between benefits and sacrifices traditionally.The growth of mobile industry has been increased dramatically and still there is expectation of more growth in 2017 (Beverland and Lindgreen, 2010). According to the survey of GMCS, US consumers are focusing approx 9 billion times a day in the aggregate -up 13 % from last year at their gadgets. Gadgets have strong selling and their purchasers are coming in age group of 45-54 and 55+ (Liu, Kasturiratne and Moizer, 2012).

Mentioned on the industries maximum benefits of perceiving value

The maximum benefits of perceiving value of industries are listed below:

• Reliability: Dependability analysis and terminal analysis is used to analyse the reliable telecommunication network (Grönroos, 2011). The organisation is quite trustworthy and continuously doing well in providing reliable services to the users.
• Products: products like smartphones are producing vastly with special features like battery backup, RAM-ROM size,operating systems, etc. as per need of consumers (Mentzer and Gundlach, 2010).
• Convenience: It is the next essential need of customer which is a factor of time and effort by examining the need of society the organisation is gaining attractive profit from the convenience (Alvarez, Casielles and Martin, 2010).
• Loyalty Programs: A loyalty program provides coupons, discount, rewards, etc. to the customers to new products and a lot more. This attracts the people and ultimately it become beneficial for both consumers and organisation (Ling-Yee, 2011).
• Refund Policy: It makes company consumer friendly by taking care of them. so ,it is also a good factor which increases benefits (Navarro, 2011).

Customer sacrifice is defined as the gap between the customer needs and the product delivered by the company. Consumers are simply adapting a nature of making adjustment between the current products and the services. They are also moving towards new innovations as per their budgets. The companies are also launching new items regularly to fill that gap (Vargo and Lusch, 2011).

What are Customers looking for?

Customers are looking for those commodities which are best in terms of quality as well as cost. Some of the users focuses on cheap products. So the company has been making products at cheap rate also to satisfy their consumers. On the other hand some consumers are ready for pay extra penny if they get the best products needed by them. So by taking care of this also organisation decide the value of costing and quality analysis of products (Vargo and Lusch, 2011).

Two model of Customer Perceived Value

As the Customer Perceived value is related to the benefits of products so it is important to focus on the value of Customer views and how company are satisfying these values. The two models are:

• Value Hierarchy Model: This model consist of three levels of hierarchy focused on namely desired product attributes , desired consequences and the desired goal. This tells that customers attracts on the products attributes like its purity, price ,etc. and that attributes decides the consequences i.e. how products are liked by the consumers and this will impacts the company profit ultimately. And finally the goal set up by the enterprise will be achieved (Miquel-Romero, Caplliure-Giner and Adame-Sánchez, 2014).
• Utilitarian and Hedonic Model: This model emphasizes on the basic needs and the luxurious wish of the customers. Hedonic are those goods which are purchased for the luxury of the society to feel pleasure ,fun or enjoyment. For e.g. car, Refrigerators, etc. While Utilitarian are those one which are purchased by seeing practical uses or basic needs. e.g. water, home,etc.(Berthon and et. al., 2012).In this model the values should be viewed from both utilitarian as well as experimental perspective. The experimental perspective includes those values which are based on participation or the data obtained from the consumption and the other one's product value is based on the performance and functions. Hence the utilitarian and hedonic model has contributed a lot on giving the perceived value concept.
• Consumption value theory: Apart from above two model the consumption value theory is also aiding in making perceived value. It is based on the consumer's choice that is the buying behaviour between two products. It simply shows the customers decision to choose one particular brand over another. They propose five dimensions of value namely functional value which relates the utilitarian model, the community based value which is extracted from the society, the spiritual value which is related to the feeling of using the product, the epistemic value related to the wish of the consumers, and the conditional value which is generated by the consumers experience.

Critical analysis of existing value proposition of Celcom industry and maxis

According to Lii and Lee (2012) value proposition is a business strategy that is uses by the company for summarizing why customers should buy the products from this company not from it's competitors .' This statement convinces the potential customers and tells about the benefits and application of its products and tells how customers will get more benefit from its products rather than from similar offerings.” For creating the value proposition ,Celcom industry should design the value mapping and value statement first. Value mapping means before production of the products ,celcom should identify the needs and wants of customers then should make the products according to the requirements of customers but company should remember that products should be different from competitors. And this value mapping is done by Celcom. It always differentiate their products and services from competitors.

For creating the value proposition ,it have to differentiate themselves from the competitors (Sharma and Lambert, 2013). For this company should offer those products which have some unique features so that target market can attract towards it's products. For becoming the major player in the market , both company should find out the benefits and drawback of their products matching with the needs and wants of the target market so that it will be able to attract the customers and be able to achieve the competitive advantage over competitors (Sashi, 2012).

For creating value proposition, it is important that product should have more attributes and benefit that will help in achieving competitive advantages.

Celcom 's value proposition plan or marketing strategy-

Celcom 's value proposition to its customers are as follows-

• Before launching the new products ,it identifies the needs and wants of the customers.
• Then identifies the target market that are going to capture.
• It increases the competition in the market by launching the new innovative products.
• It focus on what is useful for the customers.
• And at last improving the brand success.
• Market vision and value- Celcom has vision to become the finest enterprise in the country and to give pleasure to the customers and increase the expectations and together with all the members of the company ,we will make branding premium(White, MacDonnell, and Ellard, 2012).
• Competitive positioning- It is the oldest telecommunication industry in the country. It has captured largest market in the country and It has approx 230 million across 9 Asian markets(Kim, and Hyun, 2011).
• Marketing assets-it have 300 million subscriber across Asia and more than 25000 employee in 10 country. It is a major player in the market. It has controlling interest in many countries(Mintz, and Currim, 2013).
• Competitive differentiation-firstly it had introduces 2G ,3G and satellite mobile network computers. It has improving its competitive level by introducing new features in mobile network(Gordon, 2012).

Customer's value propositions most important for Celcom company because it is only that statements that gives the idea about the customers 'requirements and expectation and it provides a reason for convincing the customers for purchase the products and also provides differentiation in the products from the competitors products. It attracts the attention of the customers and if the value propositions is good then Celcom can generate more sales and profits and increase the market share of it. To identify the needs of customers is very important for getting success in the market.

While making the comparison with same industry , It is most important to analyse their business through it's marketing mix. In marketing mix ,it is analysed that which type of product or services, it is offering and at what price for creating the value proposition and getting the success. Celcom and maxis both are dealing in the same sector(Sheth, 2011). So firstly these company should identify the need and wants of target market and then accordingly should offer the products and services for creating the value proposition which is the part of business strategy.

Celcom 'services is not good but maxis service is excellent as well reception. Maxis has active10 where you can list down 10 number and customers like better for your family,friend and relatives and can call at lower call rates. Maxis deals with post paid services(Pomering, Noble, and Johnson, 2011) . In celcom , it has loyalty plan by which customers can collect the points when they reloaded and top up their mobile .These points can be redeemed for free hundreds messages or downloaded multimedia messages contents. Maxis prepaid services is popular among youngster because plan is offered in their budget ,particularly their SMS plan.

Maxis has great promotion strategies for creating awareness and generating sales. They target few levels of group for their services. In this if customers have some problems then they can easily contacts with customer care.

Value propositions

It is a promise that made by the company to the customers for delivering the good quality of products and services(Al Muala, and Al Qurneh, 2012). It ensures the customers that they will get more benefits after using the products in comparison to similar offerings(Merrilees, Rundle-Thiele, and Lye, 2011) . It creates value for a specific target group. It is helpful in achieving the competitive advantages over competitors.

• Benchmarking-It is the process of comparing the one's business process with the other one ' s business process. With the help of this management can get know about the best industry in the market and can compare the results of own company with the competitors products. With the help of this company can know how their business is performing etc. There are many types of benchmarking which are as follows-
• Process benchmarking- The initiating business focuses and observe the other business process for identifying the best practises in other business that are competitors.
• Performance benchmarking- It allows the initiator firms for comparing it's products and services with their competitors' products and services.
• Best in-class benchmarking – It involves that an initial firm can study the leading competitors that carried out the specific function.

Every company have different different value propositions which are as follows-

Competitive differentiation- competitive difference means that company 's products and services have some unique features that can attract the customers towards its products and achieve the competitive advantages over competitors(Castronovo, and Huang, 2012). It is helpful in capturing the larger market and get successful. Celcom uses this value proposition because it introduces new types of products and services which have some unique features (Helm, and Gritsch, 2014).It innovates the products and services according to the needs and wants of the customers so that it can attract the customers toward their company and can achieve competitive advantages over the competitors and can capture the large market and today s time it is successful company in the country(Moogan, 2011).

Marketing assets-marketing assets means that tools that is helpful in capturing the markets and satisfying the customers needs and wants and which are the parts of the organisation (Pomering, Noble and Johnson, 2011). Marketing assets includes employees , presentation , customers , head office , subscribers , subsidiaries etc. Celcom have 230 million customers across 9 Asian country and more than 25000 employees across 10 country. It adopts promotion strategy according to the target market and their needs and wants. It have many branches in many country for capturing the large market and it is successful in it's business strategy(Sheth, 2011).

• competitive differentiation is helpful in achieving competitive advantages while marketing assets is helpful how to achieve that competitive advantages(Woodcock, Green and Starkey, 2011).
• Competitive differentiation is helpful in satisfying the customers needs while marketing assets is helpful in the process of satisfying the customers(Sharma, and Lambert, 2013).
• Competitive differentiation involves to design the products and services according to the the customers 's needs and wants while marketing assets involves to identify the need and wants of the customers (Mintz and Currim, 2013).
• Competitive differentiation is helpful in capturing the market while market asset include to create awareness about the products and services.
• Marketing assets is helpfulin getting information from the prospect while competitive differentiation does not do so(Sashi, 2012).
• Marketing assets helps the customers to get knowledge about products and services while competitive differentiation provides that products which have some unique features(Shaw, 2012).

It is correct that value proposition is very important for any organisation for getting success and achieving the organisation objectives. If any company do not adopt value proposition then it cant get competitive advantage , larger market etc. For example-

Celcom and maxis adopts the value proposition now it are the most successful business in the telecommunication industry in it's country (Gordon, 2012). Celcom adopts the competitive differentiation , marketing assets , competitive positioning etc. for achieving the large market and get successful.

Both competitive differentiation and marketing assets helps the company in the process of exchanging ,communication, delivering the products and services to the customers according to their needs and wants and also helpful in satisfying the customers ' needs and wants (Sheth, 2011).

New value proposition plan- Celcom can builds their new value proposition by following the four steps which are as follows-

• Define – Celcom should define the problems and identified the needs and requirementof target market. A significant part of the value proposition involves what I like to call 4U[ unavoidable ,unworkable ,urgent and undeserved ].If service provider gives the answer in yes then he is on the right path of success.
• Evaluate – Company should evaluate that whatever it is offering to the customers that is unique or not. it will be successful in convincing the customers or not. For this company should think in the context of 3 d that is discontinuous innovation , defensible technology ,disruptive business model. If company will evaluate the productsin above context thenit will get success.
• Measure – After evaluating the products in the context of 3D ,celcom should measure that target market is adopting the products or not. If not then should find out the reason behind it.
• Builds – After doing all things, Celcom should make the value proposition that will contain the following things-
• what will be the target market.
• Whose customers are dissatisfied with the current alternative.
• Contain information about new products.
• It is a innovative product not a copy of it.

Analyzing existing value proposition model and development of new proposition model

In Existing value proposition, it only focuses on the benefits of the products and services and don't tell about the disadvantages to the the customers(Shaw, 2012). It only talks about the disadvantages of the competitors ' product and services(Williams, and Page,, 2011).Sometimes it is possible that company can creates value proposition but it may be failed to identify the needs of the customers and do focus only on the narrow group of customers(Bhamra, Lilley,and Tang, 2011). For example-

Celcom has identifies the needs of the target market but it failed to identify what actually customers want. It only focus on the new innovative products, not on its services and prices. Its service is very poor .

One thing to remember that company should not focus on the whole world but it should focus on the target group(Lii, and Lee, 2012). It should be unique in the mind of customers not in the mind of whole world(Wu, and Lu,2012). Organisation can produce new value proposition in the following way by giving the value to the customers(White, MacDonnell and Ellard, 2012)-

• company can deliver the products to the customers without any shipping charges.
• Fast shipping and free bonus with purchases
• company should give the option to the customers that they can cancel order at any time etc.
• company should focus not only on the narrow group of customers but whole group of customers and not only on the products but also focus on the prices of the products and Its problems(Kim and Hyun, 2011).

Value proposition builder model-Value proposition models is an organisational approach that is used for identifying the needs and wants of the customer and satisfying the needs and wants of them(Mintz and Currim, 2013). It is build by giving the value to the customers ' experience. It is simply that if company are building new value proposition model then it should give value or more profit to the corporation and satisfaction to the consumers as they are complementary to each other. (Gordon, 2012). If any company want to make new proposition model then it have to cross six stages which are as follows-

• Company should analyse the market and identify the market segment or specific customers which company wants to cater and wants to give the value to them. If Celcom are building new proposition then it have to identify the market segment and target market(Sheth, 2011).
• Celcom should give and analyse the value experience that customers are getting from this company from it's current activities (Pomering, Noble and Johnson, 2011).
• Celcom should define the offering mix which is capable for giving the value experience with the defined target market group (Moogan, 2011).
• Celcom should assess the benefits of that offering which are providing by the company in the context of value propositions(Castronovo, and Huang, 2012).
• Value= Benefit - cost
• Celcom should analyse and define the alternatives of the products and services that are available in the market (Helm and Gritsch,2014).
• And back it all up with relevant proof, to ensure that it is a good value propositions.

According to the Helm and Gritsch., value proposition statement should involve the four main parts that are capability , cost , proof , and impact . Value proposition model should be made according to the customer 's value and experiences.

Produce a plan to implement the value proposition externally and internally

The value proposition is nothing but a written statement focused on the market activities of any organisation as per the customer’s decisions based on their needs so that the company compete with other one in the market (Pomering, Noble and Johnson, 2011). To gain a best combination of the demand from the consumers side and the service providers there should be a link between two perspectives of values (Ballantyne and et. al., 2011) .These two perspectives are listed below:

• Internal value: This is the share holders prospects whose value is profit. These includes all the internal processing related to the corporation's workers like giving them training, make them understand the new products details, also taking care of their needs (Lindič and Marques da Silva , 2011).
• External value: This is the customer’s perspectives whose value is their satisfaction. These include all the external views i.e. customers views on the products and their satisfaction regarding quality, price as well as convenience (Storbacka and Nenonen, 2011).

In order to produce value proposition externally and internally concepts is used. Below are the steps and processes used :

Illustration 1: Implementation plan for value proposition, 2017

(Source: Implementation plan for value proposition, 2017)

The implementation process goes on simply by choosing value i.e. exploring what consumers really wants and then the value proposition based on that, delivering value which is managing the business processes as per the value proposition proposed to be and finally communicating the value in the market for the competition and making profit (Chandler and Lusch, 2015).

Below is the implementation plan for both external and internal implementations:

• The company should firstly identify the market segment and then by market analysis discovering the special customers which are wanted by the corporation to value. This process is called the value choose or value selection. The implementation process is the value delivered to the consumers by analysing the experience of them on the basis of their feed back.(Payne and Frow, 2014).
• The organisation need to be aware of offering mix which is used in the implementation of the products to establish the price and expenses allocation in the internal implementation process (Grönroos and Ravald, 2011). The organisation have to access benefits of that offering which are providing by the company in the context of value propositions (Ballantyne and et. al., 2011 ) in the external implementation.
• The enterprise should be focussed on the analysis and defining the alternatives of the products and services available in the market place in the internal implementation (Storbacka and Nenonen, 2011). On the other hand in external implementation the enterprise will market its products by making awareness to its customers by back it all up with relevant proof, to ensure that it is a good value propositions.
• In internal implementation the corporation needs to focus on value proposition statement (Patrício and et. al, 2011). It covers the four main parts i.e. capability, price, proof, and its impact. (Skålén and et, 2015). While the corporation in the external implementation have to traverse the different geographical parts and various markets in order to make sure that the company will be at the top of the market by proving satisfaction to its consumers also . This shows that value proposition model should be made as per the consumer's value and experiences. (Blocker and S.F, 2011).

Conclusion

From the above mentioned report, it has been concluded that marketing is an essential department of an organisation who help them in increasing their profits. The whole market based on the customer's perceived value. It the value that is obtained by differentiating the consumer's benefit from the cost of that product which is decided by the enterprise. The maximum benefit of the organisation is determined by this value only. Some benefits are based on the reliability, products , convenience, loyalty programs , refund policy ,etc. By doing this the gaps of sacrifice is reduced. Hence Customer's perceived value is the pillar of whole marketing.

You may also like to read: 

• Marketing Planning

References

Books and Journals

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