For example, Weinberg at al’s recent report into changing consumer behavior highlights that approximately 65-70% of consumers fall within the category of “multichannel shoppers” and increasingly have the highest purchasing power (Weinberg et al, 2007). As a result, Weinberg et al posit that it is “critical that organizations effectively employ a multichannel marketing approach, as consumers in B2C contexts now expect it” (Weinberg et al, 2007, p.385). The focus of this paper is to critically evaluate how organizations create value in the context of marketing and it is submitted at the outset that central consideration should be given to the movement away from the conventional economics-based approach to consider the benefit of integrating effective customer relationship management (CRM) into business strategy to create value.Fort example, Vargo and Lusch argue that the underlying basis for marketing is rooted in economic principles of exchanging goods for value (2004). It is precisely this concept of “value” that has been at the heart of marketing strategy in persuading consumers to exchange value for goods in conventional business strategy. However, as the business models continue to evolve in line with changing consumer habits and retail channels, Vargo and Lusch point to the fact that the economical basis for traditional marketing strategy has been forced to adapt to remain relevant (2004).“very nature of network organization…..and the potential impact on the organization of consumption all suggest that a paradigm shift for marketing may not be far over the horizon”(in Vargo and Lusch, 2004).They highlight the point that marketing has been forced to move away from the focus on tangible goods in light of the increasing consumer value attached to intangibles, thereby underpinning the “paradigm shift” in providing value in marketing. A significant part of this has been the move away from the economic model to the recognition of marketing as a social and economic process (Vargo and Lusch, 2004).
Value in the Context of Marketing