Value Framework Marketing

The 3-V Framework

• An offering’s success is ultimately determined by its ability to create
value to the relevant market participants: target customers, the
company, and its collaborators.
• The optimal value proposition reflects the core marketing principle,
which asserts that to achieve success, an offering should deliver
superior (relative to the competition) value to target customers and
collaborators in a way that enables the company to reach its strategic
goals. 
• Because different target segments vary in their needs, they often have
a different set of competitors and collaborators, rely on different core
competencies and strategic assets of the company, and are influenced
by different aspects of the overall context in which the company
operates. This requires that an offering’s value proposition be defined
for each target segment. Therefore, an offering that targets multiple
customer segments must have distinct value propositions tailored to
each segment.
 The G-STIC framework
• A typical action plan involves five key
elements: goal, strategy, tactics,
implementation, and control. These five
elements comprise the G-STIC framework.
The G-STIC Framework for Action Planning
• Developing and/or analyzing an action plan
involves the following five steps: set a goal,
develop the strategy, design the tactics,
develop the implementation plan, and identify
the control metrics to measure the proposed
action’s success
GOAL
• Setting a goal involves two decisions: identifying the focus
of the company’s actions and defining the specific
performance benchmarks to be achieved. 
- The focus identifies the ultimate criterion for a company’s
success (e.g., net income, profit margins, sales revenues,
and market share).
- Benchmarks define the quantitative and temporal aspects
of the goal.

For example, a goal may involve increasing earnings per

share (focus) by five percent (quantitative benchmark) by
the end of the fiscal year (temporal benchmark). 
STRATEGY
• Strategy development involves three key
components: identifying target customers, defining
the market structure, and designing the offering’s
value proposition.
- Target customers are the potential buyers for whom
the company will tailor its offering.
- The market structure describes the key aspects of the
market in which the company’s offerings are
presented to target customers. The market structure
builds on the selected target customers and is further
defined by the following factors: 
1. the company introducing and managing the
offering
2.  collaboratorsworking with the company on
this offering
3.  competitors with offerings that provide
similar benefits to the target customers
4. the social, technological, economic, political,
legal, and physical context in which the
company operates.
- The value proposition describes an offering’s
ability to create value for all relevant market
participants—target customers, the company,
and its collaborators. Because of its crucial
role in ensuring the market success of an
offering, optimizing these three aspects of the
value proposition is the key aspect of an
offering’s strategy. 
TACTICS
• Marketing tactics are defined by seven key
elements, often referred to as the marketing
mix variables: product, service, brand, price,
incentives, communications, and distribution.
IMPLEMENTATION
• The implementation component of market planning
outlines the timeline and the logistics of executing an
offering’s strategy and tactics. Developing an
implementation plan involves two key components:
- Defining the processes that enable the company to
implement its strategy and tactics (e.g., product
development practices, service-delivery infrastructure,
brand-building mechanisms, and distribution channel
structure).
- - Identifying the people managing the implementation
processes (e.g., the core skills and knowledge of the
company personnel).
CONTROL
• The control aspect of managing an offering aims to ensure
adequate progress toward the set goal; it encompasses two key
activities: evaluating the company’s performance and
monitoring the environment in which it operates.
- Performance evaluation involves evaluating the outcomes of the
company’s actions relative to its goals. Performance evaluation
can lead to one of two outcomes:
1.  success, which indicates adequate progress toward the
established goal or 
2. a performance gap that represents a discrepancy between a
company’s desired and actual performance on a key metric
(e.g., net income, sales revenues, market share, profit margins,
earnings per share, and return on investment).
- Monitoring the environment enables the company to
identify changes in the environment in which it operates
and, when necessary, adjust its business activities to better
reflect the new environment. Most changes in the
environment are classified into one of two categories:
1. opportunities, which involve a favorable set of
circumstances (e.g., favorable government regulations,
decreased competition, or an increase in consumer
demand) or 
2. threats, which involve an unfavorable set of circumstances
(e.g., unfavorable government regulations, increased
competition, or a decrease in consumer demand).
THE BIG PICTURE
The C-C-D Framework
• Marketing tactics are defined by seven key factors, often
referred to as marketing mix variables: product, service, brand,
price, incentives, communications, and distribution. These
marketing mix variables are summarized below.
1. The product aspect of the offering captures its key functional
characteristics. Products typically change ownership during
purchase; once created, they can be physically separated from
the manufacturer and distributed to end-users via multiple
channels.
2. The service aspect of the offering is in many respects similar to
the product aspect. However, unlike products, services do not
necessarily imply a change in ownership of the offering;
instead, the customer acquires the right to use the service
within a given timeframe.
3. The brand serves two key functions: creating an identity for the
offering that differentiates it from the competition, and
creating value beyond the product and service characteristics of
the offering.
4. The price reflects the monetary aspect of the offering; it refers to
the amount of money the company charges for the benefits
provided by its offering.
5.  Incentives offer solutions, typically short term, aimed at enhancing
the value of the offering by providing additional benefits and/or
reducing costs.
6. Communications aim to inform target customers about the
availability of the offering and highlight its particular
characteristics.
7. Distribution captures the channel through which the offering is
delivered to customers.
•  the 4-P approach may be interpreted in the
context of the C-C-D value-management
framework, such that product and price
represent the processes of creating value,
promotion represents both the value-creation
and value-communication aspects of the
offering, and place represents the value-
delivery aspect of the offering. 
The C-C-D the 4-P Framework