Delivered Value I am in sales, marketing point of view I can explain the need for advertising. Like how to improve profit margins? Is to increase the degree of value to the customer. Philip Kotler, published in 1994, &quot;Marketing Management - analysis, planning, implementation and control&quot; (8th Edition), the added &quot;through quality, service and values, customer satisfaction,&quot; a chapter, put forward &quot; Customer Delivered Value &quot;(Customer Deli vered Value) of the new concept. The concept proposed is the latest development of marketing theory. 1. &quot;Customer Delivered Value&quot; means &quot;Customer Delivered Value&quot; means the total value of customers (Total Customer Value) and the customer total cost (Total Cu stomer Cost) the difference between. The total value of customer is a customer to buy products and services are expected to get a set of interests, which includes the product value, service value, personnel value and image value. The total cost is the customer for the purchase of a product by the customer time-consuming, spiritual, physical and monetary funds paid, so the total cost of customers, including the cost of money, time, cost, cost and physical cost of the spirit. As customers buy products, in the hope to include the cost of money, time, spirit and physical strength to a minimum, while at the same time want them to gain more practical benefits, in order to maximize their own needs are met, therefore , customers buy products, often from the value and cost comparative analysis of two, choose the highest value, lowest cost, that is &quot;customer delivered value,&quot; the biggest priority in purchasing the product as an object. Enterprises to beat the competition and attract more potential customers, it must provide the customers with more than the competition, &quot;customer delivered value&quot; products, so in order to make their products for the consumer&#39;s attention, and then buy The company&#39;s products. To this end, in two ways businesses can improve their work: first, by improving products, services, personnel and image, and increase the total value; second is by reducing production and marketing costs, reduce the time customers to buy products, spiritual and physical cost, thus reducing the monetary and non-monetary costs. 2. Customers to purchase the total value of To gain more customers, &quot;customer delivered value&quot; one of the ways is to increase the total value of customers to buy. The total value of customers by the product value, service value, personnel value and image value of composition, each of which changes the value of both factors affect the value of the total. 1) product value. Product value is a function of the product, characteristics, quality, variety and value generated by such style. It is central to customer needs is the primary factor in customer purchasing products, which under normal circumstances, it was decided the size of the total value of customers to buy the key and the main factors. Product value is determined by the needs of customers, product value in the analysis should pay attention to: Different stages of economic development, the product needs of customers have different requirements, constitute the elements of product value and the relative importance of various elements will be different. For example, China&#39;s planned economy, due to product long-term shortage, the people to get more product features than our products Di Zhong Yao, Yin Er better value to buy a product O&#39;clock product durability, reliability properties such as 质量, 而 right product color, style, features, etc. but with little consideration; increasingly rich in the commodity markets, a general increase in living standards today, customers often pay more attention to product quality characteristics, such as demanding full-featured, high quality, new style and so on. During the same period in the economic development of different types of customers on product value will have different requirements, purchase behavior shows strong personality and obvious differences in demand. Therefore, it requires careful analysis of different enterprises to the economic development of the common characteristics of customer demand during the same period of development, and customer demand for different types of personality characteristics, and accordingly the product development and design to enhance the adaptability of products to customers and create greater value. 2) the service value. Service value is the entity with the sale of products, businesses to provide customers with a variety of additional services, including product introduction, delivery, installation, commissioning, maintenance, technical training, product assurance and other value generated. Customer service value is the total value constitutes an important factor. In modern marketing practice, with the increase in consumer income and consumption and changing attitudes of consumers in purchasing products, not only pay attention to the level of the value of the product itself, but also pay more attention to the value of product size. Especially in the quality and nature of similar products in substantially the same or similar circumstances, the company provided additional services to customers more complete, higher value-added products, customers receive real benefits from the greater, so the more the total value of purchases large; the other hand, the smaller. Therefore, while providing quality products, perfect service to consumers, have become new focus of competition in the enterprise market. 3) The staff value. Staff value refers to the employees of the business ideas, knowledge, professional ability, work efficiency and quality, management style, adaptability and other value generated. Employees directly determines the company to provide customers with quality products and services, determine the size of the total value of customers to buy. An integrated high-quality customer-oriented business ideas but also has the staff, lower than the level of knowledge, business ability, management thought the staff did not correct to create higher value for customers, thereby creating more satisfied customers, and then to create markets for the company. The value of the enterprise personnel, the impact on the role of customers is huge, and this effect is often subtle and difficult to measure the. Therefore, attaches great importance to the overall quality of the corporate officers and ability to enhance the daily work of staff motivation, supervision and management, to always maintain a high quality and level of work is particularly important. 4) image value. Image of the value of an enterprise and its products in the formation of the overall public image of the value generated. Including enterprise products, technology, quality, packaging, trademarks, workplace, etc. constitute the visible image produced by the value of the company and its employees professional ethical behavior, management behavior, service attitude, style etc., the value generated by the image, and corporate values, management philosophy and other ideas generated by the image of value. Image value and product value, service value, the value of staff is closely related to a large extent, the value of the above three areas and the results reflect the combined effects. Image for the company is a valuable intangible assets, a good image of the company&#39;s products will produce a great supporting role, giving a higher value products, in order to convey the moral and psychological customer satisfaction, trust, so that customers The need was to a higher level and more to meet the limits, thus increasing the total value of customers to buy. Therefore, enterprises should attach great importance to self-image building, for the enterprise and thus bring greater value to customers. 3. Customers to purchase the total cost of To gain more customers, &quot;customer delivered value&quot; means the second, is to reduce the total cost of customer purchase. Customer total cost includes not only monetary costs, but also time costs, the spirit of cost, physical cost of non-monetary costs. Under normal circumstances, when the first customers to buy products to consider the size of the cost of money, so the cost of money constitutes a major customer and the size of the total cost of the basic factors. In the case of the same currency costs, customers should consider when purchasing the time, mental, physical and so on, so these expenditures also constitute an important factor in the total cost of customers. Here we mainly on the back of three kinds of costs. 1) time cost. The total value of the customer the cost of some other cases, the lower the cost of time, the smaller the total cost of customer purchase order, &quot;customer delivered value,&quot; greater. If a service company, for example, customers for the purchase of restaurants, hotels, banks and other services provided by the service sector, often have to wait some time before they enter into a formal purchase or consumption stage, especially in the business especially in the peak. In the case of the same quality of service, customers waiting to buy the longer the service, the greater the time cost to purchase the total cost will be. Meanwhile, the longer the wait, the more easily lead to customer dissatisfaction with a sense of enterprise to drop out will increase the likelihood to buy. On the contrary, no different. Therefore, efforts to improve work efficiency, to ensure the quality of products and services under the premise of minimizing the customer&#39;s time expenditure, lower customer acquisition cost, is to create more customers, &quot;customer delivered value&quot;, enhance product market competition An Important Way. 2) energy costs (mental and physical costs). Energy cost is the customer to purchase product, in the spiritual, physical aspects of the cost and expense. The total value of the customer the cost of certain other circumstances, the mental and physical costs of smaller customers to purchase products that lower total cost of expenditures to the &quot;customer delivered value,&quot; greater, as is the process consumers to buy products a demand from the production to find information, determine options and decide to implement purchase and post-purchase feelings of the whole process. Various stages in the buying process, required to pay a certain spiritual and physical. For example, when consumers had to buy a product demand, the need to gather information about the products. To collect information on consumers to pay the amount of mental and physical condition because of the complexity of buying vary (see the book, Chapter IX). The complex buying behavior, consumer generally require extensive and comprehensive collection of product information, so need to pay more on the spirit and physical strength. For these products, if the business potential through multiple channels to provide customers with comprehensive and detailed information, you can reduce customer costs for product information by the spirit and physical strength, thereby reducing the total cost of customer purchase. Another example is more complex for structural performance, less convenient loading and unloading machinery, electrical products, if the company can provide customers with good service, such as home delivery, installation, regular maintenance, supply of spare parts, the The cost for this will reduce the customer&#39;s mental and physical, mental and physical strength to reduce costs. Therefore, the enterprises to adopt effective measures to increase the practical interests of customers to buy, reduce total cost of greater &quot;customer delivered value&quot; of great significance. 4. &quot;Customer delivered value,&quot; meaning In the modern market economy, enterprises set up &quot;customer delivered value&quot; concept, strengthening marketing management, and improving economic efficiency is of great significance. 1) &quot;Customer Delivered Value&quot; by the number of total customer value and customer total cost of both factors. Which customers value the total value of the product (Product Value), service value (Services Value), personnel value (Personnal Value) and the image value (Image Value) function of such factors, can be expressed as TCV = f (Pd, S, Ps , I) any one factor can influence the value of the total value of customers. Customer total cost including the cost of money (MonetaryPrice), time costs (Time Cost), energy costs (Energy Cost) function of such factors, namely = f (M, T, E) A cost factor in any of the changes will affect the total cost of customers, thus affecting the &quot;customer delivered value&quot; size. Meanwhile, the total customer value and total cost of the various components of change and its influence is not independent, but influence each other&#39;s. A value changes in certain factors not only affect the value of other factors related to the increase or decrease, thus affecting the size of the total cost of customers, but also the &quot;customer delivered value&quot; size; the other hand, is no different. Therefore, enterprises in the development of the marketing decisions should be taken into account the total customer value and constitute the total cost of this interplay between the factors, in order to use the lower cost of production and marketing to provide customers with more The &quot;customer delivered value&quot; products. 2) The customer base of the product value of the expectations and emphasis on the cost is different. Enterprises should demand characteristics of different customer groups, targeted customers to design and increase the total value, lower total cost of customers to improve the practical value of the product. For example, for busy consumers, time cost is the most important factor, companies should try to reduce consumer demand from the production to the specific implementation of the purchase, and the product put into use and product maintenance time satisfy and meet their speed demand will seek the psychological requirements. In short, the enterprise should be based on different segments of customers with different needs, and strive to provide strong practical value products, so as to increase their purchase of real interests, to reduce their purchase cost, the need to maximize customer satisfaction. 3) Enterprise to win customers over competitors, consolidate or improve their products to market share, often taking the &quot;customer delivered value&quot; maximization strategy. Pursuit of &quot;customer delivered value&quot; to maximize the result is often costly, less profitable. Therefore, in marketing practice, enterprises should understand the boundaries of a reasonable degree, not one-sided pursuit of &quot;customer delivered value&quot; maximization in order to ensure the implementation of &quot;customer delivered value&quot; than the benefits of increased therefore the cost. In other words, enterprise &quot;customer delivered value,&quot; the size of the enterprise should be able to achieve the business objectives of economic efficiency principle. Advertising is publicity, so well known. On the one hand, the customer can not easily buy a never heard of the product, and this product was referred to the number the better. Reduce the customer time to consider energy and choice, enhancing the customer trust the product. Trust and high reputation of the product is brand great. This is part of product value. As a brand culture, products to customers is the taste, personality and other value-added. On the other hand, manufacturers can not say to each customer to their products, customers select the products do not know where to buy if, it is difficult for him to buy this product. Advertising on the other hand saves the cost of sales. To enhance product value, saving the cost of sales, while advertising also saves customers the cost of purchase. It is the simple calculations, so advertising is worth it. More vivid metaphor, the wine has deep fear of the alley, because buyers do not know where to pass out, do not know how far to go, do not even know what wine, this time we must stand up billboards. Lane 50-meter rice flower. The simplest example is the success of the melatonin. Pure advertising marketing.