Session 5 elements of value presentations

elements of value

1. Elements of
Value
Deval Kartik, Ph.D.
IMT DCP PBM 2025

2. What is Marketing?
•Creating
•Communicating VALUE
•Delivering
VALUE

3. Customer Value
•Perceived value against the price
•Cost/ benefit analysis
•Difficult to pin down what customers really want
•How can companies manage ‘value’ or devise ways to deliver more of it?
•Value can be FUNCTIONAL – saves time, reduces cost
•Or EMOTIONAL – reduces anxiety, provides entertainment
•Or more… will see soon
•Companies need to anticipate what customers might consider valuable

4. Right combination of value
= Strong customer loyalty
•30 elements of value
•Fundamental attributes that make up a value pyramid
•Four Categories
•Functional
•Emotional
•Life Changing
•Social Impact
Reference: Measuring—and delivering—what consumers really wantbyEric
Almquist, John Senior, andNicolas Bloch
Harvard Business Review, September 2016

5. Inward or Outward looking values
•30 elements of value derived after 30 years of consumer research and
observation of corporate clients
•Lots of quantitative and qualitative studies
• The Value Pyramid is based on Maslow’s Need Hierarchy and focuses
on people as consumers
•Companies need to focus on multiple values, which, when optimally
combined, increase customer loyalty and lead to revenue growth.

6. How was the study conducted?
•Online survey
•10000 US Consumers and their perception of
•50 major US companies
•Each respondent scored one company from which they bought a product/service in
the last 6 months
•On each of the 30 elements, using a scale of 0-10
•Let’s look at the elements

8. Higher value = loyal customers
•Companies that performed well on multiple elements of value had more loyal
customers
•Companies with a score of 8 and above on 4 or more elements from 50% or
more respondents had 3 times the Net Promoter Score (NPS)* than
companies with just one high score.
•*NPS: is a widely used metric for customer loyalty and advocacy.
•Apple, Samsung USAA, TOMS, and Amazon
•Apple – one of the best performers – scored high on 11 out of 30 elements.

9. •https://media.bain.com/elements-of-value/
•Check this link for an interactive model of the Element of Value Pyramid
•It explains each element in detail.
•Check it out, now.

13. Faster Revenue Growth
•Companies that do well on multiple elements will have faster revenue
growth
•Amazon introducing Prime – faster delivery, access to movies, music,
(streaming services) and cloud storage
•Earlier Amazon benefits were Functional (saves time, reduces cost, variety,
connects, simplifies, etc)
•With Prime, it provides entertainment, provides access, nostalgia… More
emotional benefits

14. Elements Hierarchy
•Do some elements create more value than others?
•Do companies have to compete to be at or near the top of the pyramid to be
successful?
•Can companies succeed by providing only functional values?
•What values do customers see in digital v/s omni channel companies?
•Let’s examine

15. Key Values
•Perceived Quality affects customer advocacy the most
•Sensory Appeal in Food & Beverage
•Access and Heirloom (Good investment for future generations) in
consumer banking
•Reduces effort, saves time, connects, integrates, variety,
fun/entertainment, provides access, organizes – Smart Phone values
customers look for
•Consumers perceive Digital Firms as providing more value
•Well-designed digital businesses make consumer interactions easier,
more convenient – Netflix did better when it moved to streaming
•Omni channel businesses can do well by providing badge value,
attractiveness, affiliation & belonging

16. Higher NPS on Emotional Value
•Emotional value provides better NPS to business than just functional
value
•Digital technologies have transformed physical businesses – not killed
them
•Fusion of digital & physical is more powerful than either one of them

17. Value to be part of NPD Process
•Ensure your existing products have crucial value elements – quality being core
•Then attempt new ones
•Example: Banks, Financial apps must have ‘anti-fraud’, ‘anti-phishing’ features
•Companies should develop new value elements and deliver them using current
capabilities and by making a reasonable investment
•Value elements must align with the company’s brand
•Follow the same process as NPD
•Structured listening to consumers
•Ideation sessions
•Customer-centric design prototype concepts
•Testing the prototypes

18. To start with: Provide value in 3 areas
•New Product Development: How can we add more value elements
while developing new products?
•Pricing: Before any price increase, evaluate if there is incremental
value provided.
•Customer Segmentation: Survey current and prospective customers
and examine where the company stands on value elements
•Can it offer different/more value to a new segment?
•EG: What value did Titan create/offer to Fastrack/Sonata/Raga segments?
•Well-designed value elements can give an edge to the brands,
products, and services, and improve revenues and profits.
•Now back to the assignment:

19. 1
st
Individual Assignment
•2024/25
•Which product/service did you need in 2024/25 for the first time?
•What did you wish it offered better than it already did?
•If you were to offer that product/service, what would you offer? (Refer to the value
pyramid and name the values your product/ service will offer and how it will be offered.)
•EG. If the value you offer is ‘saves time’ or ‘connects,’ please explain how your
product/service will do that.
•Which segment will you offer it to?
•At what price point will you offer it?
•(Think about how much you paid for it and then decide your price.)

20. 1
st
Individual Assignment
•What do I expect?
•Provide context. Describe where necessary. Write clearly.
•Use pictures/ graphs/charts where necessary
•Use headings and subheadings to make it readable
•500-700 words
•10 marks
•Submit on Canvas on or before………………

21. Thank you
[email protected]
[phone]