Prof. Sakkthivel Annamalai Manickam Retail and Marketing
Marketing Innovation Value Chain Model - A Strategic Marketing Tool to Steer through the Troubled Times
The present times made the global business world highly vulnerable and made the companies to face uncertain future. Most of the companies are struggling to survive, and the leading companies are relooking at their strategies and realigning the same to stay alive.
At this juncture, it is imperative for the companies stay alive and how such aspects would become possible? It calls for an innovative approach from the companies to steer through the troubled times the entire world is facing now. However, most of the companies are using innovative approaches and what more they should do? What sort of innovation approaches they should inculcate? It requires a different innovative approach.
In order to provide a pertinent direction to the companies, a very novel approach is required i.e. Marketing Innovation Value Chain Model (MVCM). This model would act as a compass to guide and steer the companies through the troubled times. Whether it is normal times or tough times, the companies need to focus on the basics that are imperative aspects to guide them. Thus, the MVCM is built on the same basics with different steps that the companies to go through to achieve their goals during difficult times. Following are the steps which would guide the companies to understand, adopt and implement MCVM during troubled times. As seen in the pictorial model depicted above, MVCM begin its journey with identifying the needs of target consumers.
How should a consumer perceive a need and what is the point of origin of such need? Need could be classified into two broad categories such as physical need and social need. Normally a consumer perceives a need through encountering a problem. For instance, if a consumer uses a public transportation for commutation may encounter a problem of seamless transportation due to his dependency to such transportation mode to commute. Thus, such consumer will perceive a need to own a transportation which he/she could control and ensure smooth commutation. So, the consumer would look for a solution to such problem either to own his/her transportation or arrange an alternative mode of transportation thus ensuring the smooth commutation. Hence, the companies need to understand this process which a consumer goes through and find a suitable solution to the consumers’ problems.
Many automobile dealers would offer multiple solutions to the consumers such as buying a car or leasing a car or offering used car solutions or even rent a car. So, such alternative solutions would enable the consumers to choose an option that is of value. Such a perception of the value would lead to achieve satisfaction and happiness. This incidence would happen when the offerings of the companies and the expectations of the consumers’ match. Such confluence could be called as ‘Unique Value Proposition’. It is imperative that the consumers should feel satisfaction and happiness; thus, leading to repeat purchases or referrals. Such act could be called as ‘Consumer Loyalty’. Achieving this loyalty is very important for the companies to achieve sustainable growth in normal times or troubled times. The loyalty is built on trust of the consumers towards the companies, and the consumers would patronize during normal or troubled times. Hence, the companies need to look for offering solutions to consumers, instill value, win their hearts and minds, ensuring loyalty through trust, which would help the companies achieve sustainable growth. Therefore, MVCM could be used a very vital strategic marketing tool to help the companies steer through the troubled times. Leading universities in Dubai offering BBA, MBA, BSIT programmes involve in such exercises to understand the needs of the students, develop and offer state of the art programmes to offer solutions to the students to enhance their employability during normal or troubled times.