CCDVTP is a term which has been brought in vogue by Philip Kotler. It stands for “create, communicate, deliver the value to target market at a profit”. It is being considered as the base of marketing amongst marketing masters. In relation to the business groups in an organization, CCDVTP is:
C for Creating value = product management
C for Communicating value = brand management
D for Delivering value = customer management
V for Value = Value in CCD
T for Target Market = Customers
P for Profit = Solving customers problem at a profit.
Suppose Qualcomm Inc (NASDAQ: QCOM) for their flagship Snapdragon processor family is internally involved in crucial activities to add more value to their latest Snapdragon 845 processor. They have to manage other components from downward supply chain so as to deliver quality value consistently.
If they want snapdragon processors to sustain its place at the heart of the mobile devices. Their R&D teams shall keep on adding value in terms of speed, better graphics, wireless connectivity, low power, etc.
The Lesson: Have a clear product management strategy to add value.
Regardless of how creating the best in class processor chips or adding more value to them in technical aspects will result in no value for the Qualcomm unless the same is not communicated. This is where product marketing managers and branding department comes in picture. The value perceived by the Qualcomm of Snapdragon 845 processor must also be conceived by the customers as having similar worth or more.
For example, Samsung for their new flagship smartphone Samsung Galaxy Note S9 should conceive the worth of Snapdragon 845 chipset, otherwise, the complete exercise of the adding value to the new processor after extensive R&D and product management strategies be in vain. Therefore channels of communications are used to communicate the product differentiation and value offered by Snapdragon 845 processor enables Qualcomm to pull Samsung, HTC, Sony, Nokia, etc. to use their process chip in their latest devices.
The Lesson: Communicating value is as significant as adding value to products.
The outcome of all the efforts put up by the Snapdragon Processor chip product management department and the product marketing managers is actually realized upon delivering the value to the customers.
If the value offered by the chip is such that it exceeds all expectations, then customers come back with repeated orders or talk positively about their experience. Through efficient customer management, customer satisfaction will increase and focus on customer retention will ultimately drive sales growth.
The Lesson: For any Company to succeed, customer management needs to be a priority.
For Snapdragon Processor family Qualcomm’s target market is Smart Phone manufacturers like Samsung, Sony, One Plus, HTC, Xiaomi, Nokia, LG, etc.
The Lesson: Identification of target market is the key to your business.
Increasing number of sales of Snapdragon 845 processor chips will increase the sales revenue. Every sales dollar contributes to cover fixed costs and variable costs and is also responsible for profit earned by Qualcomm.
The Lesson: Profit is an indication you are creating, communicating and delivering value.
Having said that, the Mantra of marketing CCDVTP applies to all products and services to the road towards the brand and Globalization.