Importance of Value Proposition
| Subject: | 💰 Economics |
| Type: | Argumentative Essay |
| Pages: | 3 |
| Word count: | 839 |
| Topics: | 🛒 Consumerism, Advertising, International Business, Marketing |
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The American Marketing Association defines Marketing as the set of institutional activities that through a process opt to deliver communication through exchanging offerings that ensure value for customers’ partners, clients, and the society. According to the AMA, marketing remains about value creation to the end user than it focuses on the evaluation and promotional purposes of the product (Armstrong, Adam, Denize, & Kotler, 2014). The focus should therefore not be an emphasis on the product but rather the result of the users and how much value such products on offer stand as an option of improving the lives of their target customers (Armstrong, Adam, Denize, & Kotler, 2014). On such basis, AMA emphasizes that the process of marketing should deliberately link that which remains provided as an alternative in the market and how the society stands to benefit from such a choice.
Such emphasis on the customer’s benefits from a product on offer leads to the AMA concept of the value proposition. Customer Value Proposition as a strategy in marketing refers to the statement with which firms use to assure their target customers on the reasons why they are better off with their products as opposed to the alternative. As a target statement, the Customer Value proposition statement focuses the group of potential customers including suppliers, partners, and employees. In most instances, firms to their target customers than to their internal staff apply the Customer Value Proposition as the entity seeks to reaffirm their products quality to the same customer prospects.
The marketing process often creates confusion among consumers with the advertising actions undertaken by a firm. A marketing process, when conducted by a firm, includes the systematic planning that goes on as part of strategizing in creating useful business activities that if implemented stands the chance of bringing together the potential buyers and sellers to a consensus on the mutual exchange of products that is advantageous in the end. Advertising, on the contrary, refers to the non-personal publicly paid statements through announcements that act as the strong links and messages released into the market by the product sponsoring actors on the need and benefits of their products (Armstrong, Adam, Denize, & Kotler, 2014). The two concepts, therefore, differ on both elements of principles and execution with the same end product being on the effectiveness of customer persuasion. Arguably, the advertisement can be described as part of the marketing process if marketing remains as the encompassing plans and strategies applicable in reaching out to the target population of potential customers.
In context, a stronger Value Proposition acts as a better stimulation and a rallying point for both the customers and the employees. The value proposition as such helps with decision making that is often a necessity among customers and the firm’s employees when making purchases (Frow et al., 2014). The strong value proposition helps with facilitating loyalty among clients and their willingness to pay a premium for the company’s products. Further, the value proposition helps with striking employee understanding as departments become aware of the opinion on what benefits the company and they work towards the same goal (Frow et al., 2014). Such operation masterstroke helps with faster and better managerial decision making within the administrative spheres of the business. Finally, in stronger value proposition systems, there stands the existence of highly effective conflict resolution mechanisms applicable towards creating clarity in managerial matters on conflict management (Frow et al., 2014). In the end, a comprehensive plan built around a strong value proposition as a concept of marketing and management creates a better understanding of customers and the company. Companies through their employees then stand a chance of building a platform that not only is healthy to the survival of the enterprise in the market through an assured competitive edge but further a more dynamic way of integrating the concepts of company-customer relationship (Frow et al., 2014).
British Petroleum as a multinational company over the years handled different kinds of market dynamics with the current situations changing at a faster pace than ever. As an energy relating company, it remains integral for the management to keep in contact with the customer demands and social expectations. The company, therefore, should shift focus too much of ecological awareness and sustainability in energy use choosing to place much emphasis on the need for clean energy, better safety measures in energy consumption, and resource reuse strategies. Presently, the company has shown the goodwill to support such initiatives through investment in alternative energy sources and creating much of awareness on better natural resource use for future sustainability. As a conscious consumer of green energy and outreach of the need to reduce the human global carbon footprint, the idea of sustainable energy sources stands a better chance as a value proposition statement for the firm.
- Armstrong, G., Adam, S., Denize, S., & Kotler, P. (2014). Principles of marketing. Pearson Australia.
- Frow, P., McColl-Kennedy, J. R., Hilton, T., Davidson, A., Payne, A., & Brozovic, D. (2014). Value propositions: A service ecosystems perspective. Marketing Theory, 14(3), 327-351.
Offered for reference purposes only.