Value Delivery

VALUE DELIVERY

 Value delivery is a way of providing clients

with solutions that go above and beyond
what they anticipated and add value to their
lives while assuring complete satisfaction
and a high return on investment. For example,
when a consumer purchases a laptop, value delivery
may entail giving them free software updates and
longer warranties.

At the level of an organization
or a business
 Value delivery at the organizational or company level refers to
the accomplishment of the organization’s goals and objectives.
Additionally, it implies that the business has the ability to
recognize and cater to the wants and preferences of its clients.
To guarantee client happiness, the business should
concentrate on offering the appropriate tools, procedures, and
assistance.
At the level of a department within an organization

 At this level, value delivery means that each department has

specific goals and objectives to achieve. This includes sales,
customer service, marketing, and other departments. Each of
these departments should have a clear set of objectives and
strategies to meet those objectives. By focusing on each
department’s goals, the company can deliver value and
ensure customer satisfaction.
At the level of an individual
employee
 At this level, value delivery refers to each employee being able to
give consumers the finest experience possible on an individual
basis. This entails being aware of consumer wants and being
capable of offering the ideal service or product to suit their
needs. To guarantee they are giving customers the greatest
experience possible, staff members should be given the proper
equipment and resources.
 Ultimately, the goal of value delivery is to ensure that an
organization and its employees are focused on meeting
customer needs and delivering a satisfactory experience. The
key to successful value delivery is a well-thought-out strategy.
How to prepare yourself to
Deliver Value?
 1) Aligning Your Team Around Delivering Value
The first step to delivering value is to ensure that the project teams,
product managers, and product team all understand the objectives
and are aligned around these goals. This will help ensure that the
product managers have a clear understanding of how to deliver
value and what the desired outcomes should be.
Contd..

 2) Be aware of the customer value proposition

 The next step is to ensure that the product team and managers
are aware of the customer value proposition. This involves
understanding what makes them purchase a product, their
needs and wants, and how the product can fulfill them. It also
means understanding the current market share of competitors
as well as what new opportunities are available.

 3) Analyzing Your Market
 Another important step in delivering value is to analyze the
market and determine what potential opportunities can be
capitalized on. This includes researching the competitive
landscape, understanding customer preferences and market
trends, as well as looking at emerging markets and potential
new products.
 4) Building the right process and using the right tools
 Product teams also need to ensure that they have the right tools
and processes in place for delivering value. This includes
selecting the right project management system, developing a
product roadmap and timeline, as well as managing
customer expectations. Having the proper resources in place
will help to ensure that the product team can deliver value
efficiently and effectively.

 5) Measuring and Monitoring Performance
 Product management teams should also be monitoring and
measuring the performance of their products. This includes
tracking customer satisfaction, market share, and revenue to
determine if the value is being delivered as expected. Using
metrics such as those outlined in the Harvard Business Review
article on the elements of consumer value will help product
teams assess the success of their product and identify areas
for improvement.

Value Delivery Process

 1) Choosing which value is most important to customers

 To ensure your organization is ready to deliver value, it is
important to research and understand what matters most to
customers. This could be price, quality of the product or
service, speed of delivery, convenience, or even
customer experience. It is essential to identify the key value
for customers so that you can focus efforts and resources on
satisfying them and converting them into happy customers.
Contd…

 2) Delivering the value

 Developing a well-crafted marketing plan, implementing the
appropriate marketing mix, identifying target audiences, and
other related tactics have made it simpler to provide value to
customers. The marketing industry has undergone significant
changes, with companies paying close attention to the
strategies used by their marketing departments. As a result, it
has become easier to provide valuable marketing services. It is
also important to ensure that your organization is equipped
with the necessary tools and resources to deliver value
effectively.

UNDERSTANDING CONSUMER
BEHAVIOUR
 Understanding consumer behavior is a key element of a
marketing strategy. In fact, before implementing a strategy, it
is essential to fully understand the needs and expectations of
the consumers you want to influence. To do this, you need to
understand how the consumer will react and be influenced by
your marketing strategies.
Contd…

 To delve deeper into the preferences of your target

market, it is necessary to know the answers of the
below questions:
• How do the consumers perceive the information?
• How do you capture their paying attention?
• What are their needs?
• What factors influence them to make purchasing decisions? Are
they price, quality, commercial offer, or others?
 The goal of every entrepreneur is to meet the demands of the
public and market, which will give a boost to the organization’s
sales and customer satisfaction.

What is Consumer
Behaviour ?
 Consumer behavior is the
actions and decisions that
people or households make
when they choose, buy, use,
and dispose of a product or
service. Many psychological,
sociological, and cultural
elements play a role in how
consumers engage with the
market.
Contd…

 It is a multi-stage process that

involves identifying problems,
collecting data, exploring
options, making a decision to
buy, and evaluating the
experience afterward.
Consumers may be impacted
during these stages by things
including personal views and
values, social conventions,
marketing campaigns, product
features, and environmental
conditions.
Consumer Behavior in Marketing

 Consumer behavior is important in marketing

because it explains how consumers make
decisions about what products to buy when
to buy them, and from whom to buy them.

 Marketers can develop effective marketing

strategies that target the right consumers
with the right message at the right time by
understanding consumer behavior.

 Here are some examples of how consumer behavior affects marketing:
• SEGMENTATION
• Consumer behavior research helps marketers behavioral segment
markets. Marketers can modify their marketing messages and
strategies to better appeal to each demographic by recognizing
these segments.
• PRODUCT DESIGN
• Understanding consumer behavior can also aid in product development.
Marketers can create products that better meet consumer needs
and preferences by analyzing customer requirements and tastes,
leading to increased sales and customer satisfaction.
• PRICING STRATEGIES
• Marketers can use consumer behavior data to determine the price
points at which customers are willing to pay for a product, as well as
the pricing strategies most likely to appeal to each market segment.
• BRANDING
• Consumer behavior research helps in the development of branding
strategies. Marketers can create brand messages and strategies
that resonate with consumers and build brand loyalty by
understanding consumer attitudes and perceptions of brands.

Why is consumer
behaviour so
important?
 Better marketing and communications
 As living standards, trends, and technology keep
changing, consumers’ choices also keep
varying. Understanding how these factors
affect customers’ buying habits helps
organizations design their messaging
accordingly. Thus, having insights into
consumers’ purchase behavior can help
marketers in meeting their objectives.
Contd…

 Improve customer retention

It is far more beneficial to retain an existing customer than to gain
new customers. It’s easier to sell new products and services to your
existing customers than to find new ones.

Entrepreneurs who are able to retain their customers and create

strong relationships manage to create strong new brand loyalty for
their businesses. Customer loyalty can prove to be a promoter of your
business and spread positive word of mouth. Satisfied customers
share their happy experiences with their friends and family.

So, retaining as many customers as possible should be the goal of

entrepreneurs interested in growing their companies.
Contd…..

• Increase customer loyalty

• Understanding customer behavior helps in finding out ways to boost
customer loyalty, which in turn, will lead to higher sales and a
strong brand. Analyzing trends in sales can aid in offering
discounts as well as suggesting the best products and services to
them.
• Better plan inventory
• Researching customer attitudes helps companies plan inventory and
stock raw materials. In the case of a service-based business, the
management team can better plan their human resources. If
businesses see a trend in demand for specific products, they are
likely to send more purchase orders to their suppliers. Consumer
behavior data can help them to balance demand and supply.

• Better plan inventory

• Researching customer attitudes helps companies plan inventory and stock

raw materials. In the case of a service-based business, the management
team can better plan their human resources. If businesses see a trend in
demand for specific products, they are likely to send more purchase orders
to their suppliers. Consumer behavior data can help them to balance
demand and supply.

 Increase sales
 A company always aims to satisfy specific market niches. Even if the
company operates in different sectors, it should target potential buyers in
each segment. If you know your customers well, you can have better
conversations with a high probability of closing the deal.
• Research competition
• Studying consumer buying behavior helps in understanding the competitive
market. You can plan on how to position your products and services to offer
competitive advantages. Find out answers to questions like:
• Is the customer already using a competitor brand?
• What drives a consumer to buy from your competitor?
• Are potential customers happy with the competitor brands?
• What are the gaps between your products and that of competitors?

4 Types of Consumer Behavior for effective marketing strategies

1.

2. Complex buying behavior

When customers are actively involved in the purchasing decision process and
are aware of the significant differences between the various brands, this
happens. Before making purchasing decisions, consumers conduct extensive
research, gather information, and evaluate alternatives.
2. Dissonance-reducing buying behavior
This type of behavior happens when people make expensive or risky purchases
and then feel uncomfortable or confused about their decision. Consumers may
seek reassurance, information, or feedback from others to reduce confusion.
3. Habitual buying behavior
This happens when customers make purchases with minimal decision-making and
marketing efforts or information search. Based on prior experiences, they have
developed brand and customer loyalty also buying habits, and they may buy things
out of habit, convenience, or familiarity.

4. Variety-seeking buying behavior

This type of behavior happens when customers are not deeply involved in the
purchase decisions but seek variety or uniqueness in their purchases. They may
most often change brands or products to satisfy their curiosity or need for variety.

Whatfactors influence
consumer behavior while
purchasing?
• Situational factors
• They are temporary in nature and include physical factors such as a store’s
location, layout, colors, music, lighting, and even scent. Companies try to
make these factors as favorable as possible. Other situational factors
include holidays, time, and moods of the consumer.
• Personal factors
• These factors include demographic factors such as age, gender, income,
occupation, etc. It also depends on one’s interests and opinions. To further
understand consumers, companies also look more closely at their lifestyles
– their daily routine, leisure activities, etc.

• Social factors
• This factor also includes social class, level of education, religious and ethnic
background, sexual orientation, customer orientation, and people around
you – family, friends, or social network. Different cultures have varying
customs and rituals that influence how people live their lives and what
products they purchase.

Generally, consumers in the same social class exhibit similar buying

behavior. Most market researchers believe a person’s family is one of the
biggest determinants of buying behavior.
• Psychological factor
• A person’s ability to understand information, perception of needs, and
mindset influence consumer behavior. One’s reaction to a marketing
campaign will depend on one’s beliefs and state of mind.

How to collect data on consumer behavior?

 To understand consumer buying behavior, you need to know how

consumers think and feel about the different alternatives
available in the market, how they reason, and how they
choose between different options.
 The motivations that influence consumer behavior are so broad
that the most effective way to study them is to use different
market research methods. These methods should collect both
qualitative and quantitative data. Some of the common
data collection methods are:
Contd….

 Surveys
 Surveys are a popular method for collecting data about customer
behavior. Online, phone or in-person surveys can provide
quantitative information about customer opinions,
preferences, and behavior.
 Focus groups
 A focus group is a market research method that brings together
6-10 people in a room to provide feedback regarding a
product, service, concept or marketing campaign.
 Focus groups provide qualitative information on consumer
opinions and views and also insights into how customers
interact with products and services.

 Interviews
 Consumer interviews can provide detailed data on customer behavior,
attitudes, and preferences. Interviews can be conducted in person or over
the phone, and they can provide qualitative data to boost quantitative
data.
 Observations
 Observational research entails watching and recording consumers in their
natural surroundings. This method can aid in identifying patterns of
behavior and offer insights into how consumers engage with products and
services.
 Experiments
 Experiments involve changing one or more variables to see what effect it has
on customer behavior. It can be carried out in a controlled
environmental analysis or in the field, and it can provide information about
the connections between variables and consumer behavior.

 Data analysis
Data from sources such as sales data, web analytics, and social
media can be analyzed to gain an understanding of customer
behavior. This method entails recognizing patterns and trends in
data in order to determine consumer behavior and preferences.
