Hassan Sherwani ROLE OF SALES AND MARKETING IN ... - Oulu

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34 individual customer or customer organization that guide behavior, products and services. Values, whether personal or organizational, are very closely related to the goals customers may have. In other words, value is created by delivering benefits that help customers achieve their goals (Daniel et al., 1997). Ulaga and Eggert (2005) have identified four characteristics of customer value 1. Customer value is a subjective concept 2. It is conceptualized as a trade-off between benefits and sacrifices 3. Benefits and sacrifices can be multifaceted, and 4. Value perceptions are relative to competition. There are different aspects and understandings for interpreting value as a view however; two general meanings of value, ‘‘value-in-exchange’’ and ‘‘value-in-use’’, dominate business literature. This division actually came about through Aristotle’s efforts to address the differences between things (e.g., automobile) and their attributes, which included the qualities (e.g., red, fast, sporty), quantities (e.g., one car), and relations (e.g., lease, ownership) of such things. Use-value was recognized as a collection of substances or things and the qualities associated with these collections. Alternatively, exchange-value was considered as the quantity of a substance that could be commensurable value of all things (Vargo et al., 2008). According to Ulaga and Eggert (2005), customer value concepts can be summarized as the trade-off between the benefits and the sacrifices in a market exchange Moreover, Ravald and Grönroos(1996) clarify the concept of value as a multifaceted and complicated process and therefore; there is an evident risk that the concept is used without any efforts and commitments to understand really what it means to provide value to customers, how added value should be related to customer needs and the achievement of profitability for the parties involved. It is seen that many organizations think too much of the value they get from customer instead of pondering over value being provided to the customer and this ends up into a wrong strategic view point. In marketing literature, Naumann (1995) explains the concept of customer value as having a dual nature - a) value the company provides to the customer, through its product and service offerings, brands and relationships and b) the value the customer
35 provides to the company, in the form of profit streams, intellectual capital, and other customer assets. This concept of duality has a significant impact because it describes idea of value for both company and customer. For customer, it consists of process of making products and providing services that customer would find useful. It is safe to say that the customer view of the company’s value is a predictor of market share and shareholder value. In modern day economy setup, this value creation depends on product and process innovation by understanding vital customer needs. This innovation can be provided to customers by the firms by having immense commitment, energy and imagination from their employees. It is therefore most important aspect to keep those employees motivated in order to create value for them (O'Malley, 2005). This value might include equal treatment and involvement in decision making. Once this environment is created within the firm then employees also feel confident and play a better role in creating a superior value for the customers. When it comes to business, value is considered as what customers get for what they pay (Soman and Marandi, 2009). When it comes to business, the discussion of value is broader because value can never be emerged just through product or service providers. It is rather created with the interaction of variety of actors considering customer the most significant ones. In this situation, value is considered from customer point of view which may be determined by four attributes: 1 Name access 2 Product 3 Cost, and 4 experience Each of above mentioned attributes are measured by certain factors such as channel of distribution, reliability, brand, service, functions, ownership cost, features and payment terms. The real challenge for organization is that even after providing all these offerings to customers, the firm must contain profit in the end of day and only then, it would bring value for the organization in return. It is worth mentioning at this point that value does not mean to generate profit. Actually profit or loss is an outcome of value creation so value creation cannot be treated as profit. The concept of value creation is way beyond
Page 1 and 2: OULU BUSINESS SCHOOL Hassan Sherwan
Page 3 and 4: 3 CONTENTS Abstract Contents Figure
Page 5 and 6: 5 Figures Figure 1: The scope of th
Page 7 and 8: 7 1 INTRODUCTION 1.1 Introduction a
Page 9 and 10: 9 Electricity industry used to be c
Page 11 and 12: 11 Monopoly: A market with a single
Page 13 and 14: 13 2 RESEARCH CONTEXT This chapter
Page 15 and 16: 15 produced but, resources to gener
Page 17 and 18: 17 through bioenergy largely in the
Page 19 and 20: 19 framework. There is a need to re
Page 21 and 22: 21 the companies make themselves en
Page 23 and 24: 23 Monopoly Traditional Model Value
Page 25 and 26: 25 once a company at local market a
Page 27 and 28: 27 It is vital to notice that these
Page 29 and 30: 29 In the global arena, companies m
Page 31 and 32: 31 known as Uppsala Model and is wi
Page 33: 33 vital part so the parties must a
Page 37 and 38: 37 way of achieving this goal is to
Page 39 and 40: 39 Figure 7: The Emerging Concept o
Page 41 and 42: 41 who actually creates values and
Page 43 and 44: 43 value of the organization in its
Page 45 and 46: 45 being an extension to resource b
Page 47 and 48: 47 knowledge management process is
Page 49 and 50: 49 widely agreed on the negative ef
Page 51 and 52: 51 need to be coordinated and consi
Page 53 and 54: 53 responsibilities, and of the int
Page 55 and 56: 55 is equally important to manage i
Page 57 and 58: 57 All these four stages are follow
Page 59 and 60: 59 5 ANALYSIS As there was a brief
Page 61 and 62: 61 company’s individual needs irr
Page 63 and 64: 63 In other words, the market is fr
Page 65 and 66: 65 to seek more control in their en
Page 67 and 68: 67 themselves, who may be capable o
Page 69 and 70: 69 to enhance innovation (Pomeda &
Page 71 and 72: 71 Marketing is responsible for dev
Page 73 and 74: 73 Customer satisfaction is conside
Page 75 and 76: 75 clear picture of the role and co
Page 77 and 78: 77 more and more companies operatin
Page 79 and 80: 79 What level of integration betwee
Page 81 and 82: 81 There is a good opportunity to i
Page 83 and 84: 83 internationalization in Finnish
Page 85 and 86:
85 chaos within the company and man
Page 87 and 88:
87 In this thesis work, though the
Page 89 and 90:
89 described by Valocchi et al. (20
Page 91 and 92:
91 Cavusgil, S. T. (1980). On the I
Page 93 and 94:
93 Henry, A. (2008). Understanding
Page 95 and 96:
95 Metaxiotis K, Ergazakis K and Ps
Page 97 and 98:
97 Tykesson, D. and Alserud, M(2011
Page 99 and 100:
99 APPENDICES Interview Questions:
Page 101:
101 Are you familiar with va
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