The aim of this assignment is to examine the theme of customer perceived by value and its marketing implications for how organisations become and remain competitive.
The essay is using two leading products which operate in the mobile phone industry. These are Research in Motion (RIM) and Apple and their retrospective products: a) the Blackberry and b) the iPhone. Both companies have a strong branding position in the market. They seek to create value through the manipulation of technology and in offering features that are of satisfaction to the customers.
Table of Contents
1. Introduction
2. Theories of Customer Value
3. Current Value Proposition of Blackberry
3.1 Extrinsic and Intrinsic Features
4. Apple’s value proposition
4.1 The synergy between features within single devices
4.2 Cost and Design
5.
6. New value proposition for RIM
6.1 Mission
6.2 Objectives
6.3 Market Strategy
6.4 Marketing Programmes
6.4.1 Internal knowledge capabilities
6.4.2 Creating potential for differentiation
6.4.3. Allocating the necessary budget to achieve milestones
6.5 The implementation stage
6.5.1 Internal implementation of the value proposition
6.5.2 External implementation of the value proposition
7. Conclusion
Research Objectives and Key Topics
This assignment examines the concept of customer perceived value and its marketing implications for organizational competitiveness, specifically analyzing Research in Motion (RIM) and Apple through their flagship products, the Blackberry and the iPhone.
- Theoretical frameworks of customer perceived value and assessment models.
- Comparative analysis of Blackberry and iPhone value propositions.
- The impact of product design, technological synergy, and cost on consumer purchasing decisions.
- Strategic development of a new value proposition for RIM.
- Implementation strategies involving internal knowledge capabilities and market engagement.
Excerpt from the Book
3.1 Extrinsic and Intrinsic Features
According to Hempel et. al (2009) the value of the Blackberry is to be found in its technological capacity to provide features which combine telephony and internet services. This theme is in alignment with Holbrook’s (2009) reference to the objective dimension of a product. Namely the customers’ satisfaction in using the Blackberry emerged from having practical access to specific technological features that were not offered by similar phone providers.
Having access to emails on-the-go stretched the boundaries of online communication, but, also strengthened the practical applications of the internet. By using the theoretical framework by Zeithaml (1998) this essay wants to argue for the extrinsic and intrinsic attributes of the product. In particular, the design of the Blackberry phone is based on a different concept from the other mobile phones. It allows the easy typing of messages and assists users with sending and receiving messages. The extrinsic attributes of the products are strongly associated with its design and in becoming a gateway to accessing the internet. However, the intrinsic attributes of the product concern the different and numerous opportunities of communication via the internet and by using the handheld device.
Holbrook (1999) discusses the difference between the extrinsic and intrinsic value in the following way: “Extrinsic value pertains to a means-end relationship wherein consumption is prized for its functional, utilitarian, or banausic instrumentality in serving as a means to accomplishing some further purpose, aim, goal, or objective” By contrast, intrinsic value occurs when some consumption experience is appreciated as an end in itself—for its own sake—as self-justifying, ludic, or autotelic (p.10). The application of this argument for the Blackberry concerns the nuanced innovations of technology.
Summary of Chapters
1. Introduction: Outlines the research focus on customer perceived value within the mobile phone industry, specifically contrasting Research in Motion's Blackberry and Apple's iPhone.
2. Theories of Customer Value: Defines perceived value through academic frameworks, emphasizing the trade-off between benefits and costs in consumer decision-making.
3. Current Value Proposition of Blackberry: Examines how Blackberry established its market position through easy email and internet access, setting it apart from early mobile competitors.
3.1 Extrinsic and Intrinsic Features: Analyzes the dual nature of Blackberry's value, focusing on design-led extrinsic attributes and functional, experience-based intrinsic attributes.
4. Apple’s value proposition: Contrasts the iPhone with the Blackberry, highlighting Apple's success through innovative design and an ecosystem-based value approach.
4.1 The synergy between features within single devices: Explains how the integration of diverse high-quality features into one device drives superior perceived value for iPhone users.
4.2 Cost and Design: Discusses the significant price premium of the iPhone and how design as a status symbol justifies this cost in the eyes of consumers.
5.: Explores organizational processes and the knowledge infrastructure required to maintain a competitive advantage through continuous innovation.
6. New value proposition for RIM: Proposes a strategic framework for RIM to realign its value proposition by focusing on cost-effectiveness and feature synergy.
6.1 Mission: Recommends a refined mission for RIM that prioritizes feature-rich products at competitive price points.
6.2 Objectives: Outlines necessary internal goals, focusing on knowledge sharing and fostering an entrepreneurial environment among employees.
6.3 Market Strategy: Suggests that RIM leverage its low-cost structure and segment its offerings to compete effectively against higher-priced alternatives.
6.4 Marketing Programmes: Details the operational requirements for designing marketing programs that support the new strategic focus.
6.4.1 Internal knowledge capabilities: Stresses the importance of auditing and utilizing employee knowledge to identify new product development opportunities.
6.4.2 Creating potential for differentiation: Encourages RIM to explore untapped technological opportunities to differentiate its product lineup.
6.4.3. Allocating the necessary budget to achieve milestones: Highlights the need for dedicated financial resources to support experimental projects and staff training.
6.5 The implementation stage: Discusses the transition from strategic planning to the execution of corporate objectives.
6.5.1 Internal implementation of the value proposition: Focuses on operationalizing the new strategy through internal knowledge management and feedback loops.
6.5.2 External implementation of the value proposition: Details how the company can actively promote its new, cost-effective image to consumers.
7. Conclusion: Summarizes the study’s findings, reiterating that RIM must invest in organizational culture and innovation to remain competitive.
Keywords
Customer Perceived Value, Blackberry, iPhone, Research in Motion, Value Proposition, Marketing Strategy, Technological Innovation, Means-End Model, Consumer Behavior, Brand Perception, Competitive Advantage, Organizational Processes, Mobile Telecommunications, Cost-Effectiveness, Product Differentiation.
Frequently Asked Questions
What is the core focus of this assignment?
This assignment investigates the concept of customer perceived value and how it influences competitive strategy, using a comparative analysis of the Blackberry and the iPhone.
What are the central themes of the research?
The core themes include the definition of perceived value, the comparative analysis of product features (extrinsic vs. intrinsic), the importance of design, and the implementation of strategic changes in organizations.
What is the primary objective of this study?
The primary goal is to evaluate the existing value propositions of Blackberry and Apple and to propose a new, competitive strategic framework for Research in Motion (RIM) to improve its market standing.
Which scientific methodology is utilized?
The study employs a theoretical framework based on established marketing literature, specifically utilizing Piercy’s (2002) strategic change models and Zeithaml’s (1988) Means-End Model to analyze consumer perception and organizational processes.
What topics are covered in the main body of the work?
The body covers the theoretical foundations of value, a detailed comparison of Blackberry and iPhone features, and a comprehensive strategic roadmap for RIM, including mission, objectives, market strategy, and implementation.
How can this work be characterized by its keywords?
The paper is defined by terms such as Value Proposition, Competitive Advantage, Mobile Telecommunications, and Consumer Behavior, reflecting its focus on strategic marketing and product positioning.
Why does the author argue that the iPhone's value is based on synergies?
The author highlights that the iPhone's value is not derived from a single feature but from the integration of multiple devices and functions (music, video, internet) that create an interconnected user experience.
What specific suggestion is made for RIM's future strategy?
The author suggests that RIM should focus on offering a synergy of features at a competitive price point, while simultaneously investing in an internal organizational culture that promotes risk-taking and employee-driven innovation.
- Arbeit zitieren
- Fotini Mastroianni (Autor:in), 2013, Marketing Management. A study of consumer perceptions of value in relation to the Blackberry product versus the iPhone, München, GRIN Verlag, https://www.hausarbeiten.de/document/346295
