Question

Does marketing create value for customers and shareholders?

Answer 1

Marketing aims at creating a need for a product or service first and then meeting that need. We can describe any new development that has taken place in the recent past which becomes commonplace in our lives later. For instance, before instant messaging has opened up the world to faster communication which was otherwise restricted by territorial limits. Smart phones have obviated the need for desktop computers by performing many functions from the palm of hand. All these technologies have evolved over time by addressing the needs of consumers. They would not have succeeded if they had not added value to consumers first. Consumers are in a better position either to accept or reject any new product or service which makes or mars the marketing effort. It is therefore a natural corollary that success in marketing brings considerable revenue to shareholders. Thus adding more value to consumers comes always first.
Marketing is a management process that seeks to maximize return to shareholders by developing and implementing strategies to build customer relationships of trust with high value customers and creating a competitive advantage.” Creating shareholder value is then essentially about building a sustainable competitive advantage-a reason why customer prefer to buy from one company rather then the other. The only route to more shareholder value is to create more value for customers. The value to customer is created by using value proposition which are Customer Benefit- Customer must see value to them in their own terms, Unique-Customer must recognize their benefit.