1. Value Based Marketing Professor Dave Beaty,
The Power of Brands in Value
Based Markets (Chs. 13 & 14)
Executing Value Based
Marketing Strategies (Ch. 15)
Value Based Marketing in
B2B Industrial Markets
(Ch. 5)
Targeting Value
Based Markets
(Ch. 9)
Value Based Marketing and
Customer Value (Ch. 4)
Formulating
Value Based
Marketing Plans
(Chs.. 2, 3, 7 & 15)
Overview of Value Based Marketing (Ch.1)

2. Overview of Value Based Marketing
Sessions One and Two
Overview of Value Based Marketing

3. Questions for the Luxor Case
Describe the external & internal environment of Luxor, and changes that occurred in the environments, from the start of the case - to the end of the case?
Describe the history of George’s career from the start of the case - to the end-of the case.
Who’s to blame for the problems that occurred? George? Luxor?
What did George do - or not do - that could have led to the problems in his career?
What did the leadership in Luxor do – or not do - that could have led to the problems that George encountered?
If you could go back in time, what should Luxor have done to prevent the problems encountered by George?
What should George have done?
As a member of the board, at the end-of the case, how should the Board Address the George dilemma?

4. Discussion Questions
Value, in Marketing, is the difference between a prospective customer's evaluation of the benefits and costs of one product when compared with others;
Now, define the terms “Selling” and “Marketing”
In terms of your definitions, how do you compare and contrast “Selling” and ”Marketing”? What do you think is the difference between ‘marketing’ and ‘selling’?

5. SELLING DEFINED
The tricks and techniques to get people to exchange cash for your product
(Source: Harvard Business Review, 2013)

6. VALUE BASED MARKETING DEFINED
Creating value for “Customers” and “Stakeholders” while integrating all the functions of an organisation to focus on satisfying customers
Stop relying on product sales – and start cultivating relationships with the right customers and stakeholders and put them at the centre of your business and organization (Harvard Business review, 2013)

7. POTENTIAL FOR CONFLICT
Why do you think there could be the potential for conflict between individuals working in Marketing and those working in Sales in an organisation
What complaints do sales people have about Marketing people?
What complaints do Marketing people have about Sales people?
How would you propose to manage these conflicts?

8. 10 Tips For Managing Conflict
Seek to understand before being understood
Focus on the issue—not the person
Look for a “big picture” (vision) to connect
Look for points of agreement
Keep emotions neutral
Know what you can and cannot give up
Suspend your assumptions (cultural, values or biases, etc.) but explore others
Deal face-to-face (Visual and Voice to Voice)
Take a deep breath and try to relax.
If it gets too hot---take time out
(Beaty and Robinson, 2003)

9. THE FOCUS OF VALUE BASED MARKETING?
Customers and People
Those involved in the marketing process, including customers, personnel and stakeholders who are present when exchanges took place
They are the focal point of all marketing activities

10. Coalitional Leadership For Building Positive Stakeholder Relationships
Involves building a coalition of people who support the leader goals and can help influence others to implement the leader’s decisions and achieve the goals.

11. Mapping Matrices Stakeholder Buy-In

12. Exercising Power
Successful Value Based managers use the power they develop in their relationships—along with persuasion– to influence people on whom they are dependent to behave in ways that make it possible for them managers to get their jobs done effectively and achieve their goals

13. Responses to the Use of Power
Position Power
Personal Power
appropriate use
excessive use
Compliance
Resistance
Commitment

14. Sources of Stakeholder Leader Power
Dependency
Control Over Resources
Control Over Information

15. RELATIONSHIP WITH STAKEHOLDERS
Constituents who have a ‘stake’, or claim, in some aspect of an organisation’s products, operations, markets, services, industry and outcomes - and who could potentially either help or hurt you from achieving your results or goals.
Staff and management (Internal)
Government
NGO’s
Municipalities
Provinces
Trade Unions Shareholders
Vendors and suppliers
Regulatory bodies and agencies
Industry ombudsmen and associations
How you structure your relationships with these constituents will be crucial for your long-term growth

16. Group Assignment: Stakeholder Mapping
You are the Marketing Director for an NGO or Trade Union.
Do a Stakeholder map!
You want to establish a close relationship
with each stakeholder group. Describe what you believe
each stakeholder would value (and need from you)
should they wish to form a relationship with you and
your NGO/Trade Union.
Describe how you would initiate and build a relationship
to each different stakeholder group?

17. A Value Based Marketing Strategy Comprises:
Creating a Marketing Mix
8P’s
Target Market Selection

18. THE MARKETING MIX
Marketers combine and balance these four elements when determining how to satisfy customers’ stakeholders’ needs for a product:
Product
Price
Place (Distribution)
Promotion
More recent marketing professionals have suggested expanding the marketing mix to include important variables:
People
Physical evidence
Processes
Partnerships
The ‘expanded marketing mix’ 8Ps
Sometimes called the 4Ps

19. EXPANDED MARKETING MIX: THE 8Ps
The expanded marketing mix refers to the set of actions, or tactics, that a company uses to
promote its brand or product in the market.

20. VALUE BASED MARKETING ENVIRONMENT
The six types of forces that surround the customer and affect the marketing mix
Economic forces
Political forces
Legal and regulatory forces
Technological forces
Sociocultural forces
Competitive forces
Unlike the marketing-mix variables, an organisation has no control over these forces bg

21. Discussion Question
Discuss how 1 of the 6 forces in the Value Based Marketing environment (that you don’t control) would impact on your marketing strategy for 1 of the following products:
Cigarettes
Alcohol
Diesel cars
Another example?