Topic 1

CCDVTP

Professor of International Marketing, Philip Kotler, speaks of CCDVTP 

In summary, CCDVTP = Create, Communicate and Deliver Value to a Target market at a Profit.

Creating value = product management. Communicating value = brand management. Delivering

value = customer management. Kotler mentions that each of these types of management are

generally changing in trends for businesses which is explained below.

Product management is changing from using only internal scientists in a secretive approach.

Now, companies also utilize external scientists that may already have the innovations needed.

This increases the quantity of resources for that company.

Brand management is changing in the sense that companies used to tend to simply focus

on attracting people’s mind and heart. Kotler states that a brand is a promise which inspires

everything a company does. The new direction is that companies focus on people’s mind, heart,

and spirit (narrow to specific interests). 

Customer management used to be essentially having a database of customers. What’s new, is

that the companies want to get to know the customers beyond the database. Want customers’

assistance in creating products and advertisements. This is to help meet their needs and desires.

This is some good advice for companies that are limiting themselves to the traditional strategies

mentioned. Following new trends of these three types of management trends will help companies

keep fresh.

Or

4Ps, 4Cs and CCDVTP

CCDVTP is what Kotler now calls is marketing and it seems to make a lot of sense.

         C: Create

         C: Communicate

         D: Deliver

         V: Value

         T: Target Market (to the target segment)

         P: Profitably

So according to CDVTP you create value by conceding of, designing and manufacturing a

product which will seek to satisfy an observed need in the segment of the market you are

targeting. Of course creation of value is not enough; you need to communicate it to your target

audience by the way of product design, features, UMP (unique marketing proposition, again USP

vs. UMP!!), the price, service levels and extent, the positioning etc….

Delivering the value is self explanatory. In fact effective delivery at the desired location is itself

a major value addition. This becomes even more important considering that distances in the

virtual world have died but the physical distances still remain. So it has become infinitely easy

for me to reach a seller online, place my order and pay through my papal account. But the

moment money goes out, the countdown begins. The seller better be fast, so what if he is book

seller somewhere in Philadelphia and I am in India. Now the seller has to deal with the real

distances and the sometimes (in act often,,,, or maybe always) un realistic expectations of the

customer!!! So delivery is a very important part of the setup.

The “T” stands for your target market. I am sure we all know what a target market is and I am

sure most of us will accept that technology has made it easier to tap into target segments easier

and at the same time more complicated!!). In fact now service organizations are being matched

by manufacturers to manufacture in “batches of 1”!! Consider logging on to Dell’s site and

custom building a DELL PC!!

P is of course for profitably. Needless to say, business is business. You do not make and sell

stuff to please people. You do it to make money. Yes, you would love to make money and to see

the customer happy. Why? So that he comes back, brings a couple of friends along and you make

more money!!! In this new age, all business organizations have access t the same technologies

and market resources. The costs of manufacturing and operations have been controlled so tightly

that corporations are almost at the limits of squeezing the last drop out of every penny.

Profitability has become a variable that needs to be kept in focus right from the very beginning.

Ad hoc and isolated actions to “boost” profitability by “cutting costs” often results in sub optimal

marketing conditions.

The CCDVTP as you can see is more “targeted” and “specific”. It talks of a specific action

(creating value) by the organizations to specific people (the target segment).