The actors can create value and make offers for potential values. In some occasions, both service providers and customers play significant roles in value creation process. This brings the issue of clients being the value co-creator. Gronroos (2011, p.1) points out that the customer is always a co-producer of value as far as creation of customer value is concerned. Understanding value creation and co-creation value are essential because it enables individuals to meet their stated goals successfully. Value creation deals with value-in-use, which is produced by clients. The process that contributes to value-in-use for customers is essential in producing value for clients. The value-in-use covers all the activities performed by the company and customers in business process. Moreover, the both customers and firms play significant roles in value creation process. Customers are the user of the products; thus, they create value for themselves through integrating organization resources with other crucial available resources in a self-services process (Gronroos 2011, p.9). Contrary, the firm play the role of resource provision to customers; thus in the process they create value to customers. The resources integrated and utilized by customers or firms must be created by someone. Self-evident manufacturing is one of the essential roles of firms that they play in the process of value creation of customers. Designing, development, manufacturing and delivering of resources are all the necessary process for creating value in-use (see figure 1 below). This means that they facilitate value creation of customers; thus contributing to successful business...
The report stresses that marketing management philosophies are the key, critical tasks of creating effective customer and organization value; thus improving business performance. There are numerous ways through which organizations conduct their marketing activities. These include production, promotion, distribution and pricing concepts, which are combined as the marketing mix. The societal marketing is one of the marketing management philosophies that aim to improve the wellbeing of the society. This is through focusing on consumer value creation and satisfaction of their needs.
This paper concluded that understanding value creation is essential, and marketers should understand it in the new sense of satisfying the needs of customers rather than making sales in marketing practices. Therefore, companies nowadays strive to maintain and attract new customers through creating customer value. The employ varied marketing strategies, which include marketing promotion, product differentiation and pricing strategies in achieving effective business performance. They empathize on the significant of marketing management philosophies that will enable them to maintain and improve customer of organization values. Lastly, marketers incorporate technologies in the business process such use of Internet and social networking sites in order to achieve competitive advantage. However, poor incorporation associate with inadequate technical skills impact significantly customer and organization value in the marketing practices.