The Perceived Value For The Customers Marketing Essay

The firm that can be used for this assignment is Barclays PLC; this job is divided into three parts. The first part's aim is to identify and to make clear what's the recognized value for the customers, to do this, suitable types of consumer values are going to be used and then the model will be applied to the organization.

The second part will critically evaluate the value proposition of the business and a comparison will be made with that of the leading competitor's value proposition.

The third part would create a new value proposition, that will match the worthiness criteria of the existing customers; this will be done by figuring out the weaknesses in the prevailing value proposition. It will also provide us with an idea to implement the worthiness proposition internally and externally.


Using appropriate models identify the customer perceived value for the customers for a product/division/company of your choice.

Customer perceived value, exactly what does this really signify?

Customer recognized value, can be regarded as the opinion that a customer has or has made of a specific product and exactly how it is of value to him.

Simply put, the customer perceived value of any product is the consumer's overall evaluation of the power or use of a product based on perceptions of what the customer receives and what he's presenting to get the required goods and services.

This concept can be explained with the help of the next diagram:

Customer perceived value= Perceived Benefits


Perceived Sacrifice


Perceived benefits are the traits of the service being received and the customer recognized quality and price of the product.

Perceived sacrifice will be the customer costs involved with purchasing, such as time, travel etc.

Introduction to the organisation:

For the purpose of this assignment, the business that is picked is BARCLAYS PLC; the following text would give a brief company profile accompanied by the id of the customer recognized value for the company by the use of the client Value Hierarchy Model.

Company profile:

Barclays is one of the world's leading financial institutions headquartered at 1 Churchill Place, London. It really is a 300 yr old corporation that became a significant financial services service provider employed in retail and commercial banking, wealth management, bank cards, investment banking and management services supplier for big global equity firms. It comes with an extensive international presence in European countries, Africa, Asia and off recently has began to expand in america market as well. It steps, lends, protects and invests money for than 38 million customers and clients worldwide.

Barclays has two business clusters: Global Retail Bank and Corporate and Investment Banking and Wealth Management- both compromising world-class business and brands.

Before we look into the customer identified value of the Barclays brand, the job would like to discuss the Customer Value Hierarchy Model, and then make an effort to apply these to the clients of Barclays.

Customer Value Hierarchy Model:


Customer's goal and purpose


Desired consequences in use situation


Desired products/services attribute and performances

The Customer Value Model involves three layers, specifically the Attribute part, the Consequence Coating and the Goals layer. The target layer includes the best motivations of customers, the effect layer represents the customer experience desired by the person and finally the attribute part specifies what actually the needs of the customer are.

From the bottom of the customer value hierarchy, customers would always first of all consider the capabilities and option of products.

At the second layer, customers begin to make anticipations in line with the attributes.

At the top coating, customers form prospects about the realization of the aim.

How do Barclay's customers understand their bank? That is the question that assignment wish to answer giving the objectives, implications and attributes desired by the clients, followed by a customer review.


Easy personal banking

Safety of the bank account in any way times

Saving accounts options

Availability of loans at a good interest rate

Online banking to keep a record of their profile details in any way time

Ability to invest

Good home loan options

Insurance options

Credit card facilities

Assistance while travelling


Easy option of the account

Peace of mind as the customer is aware that the account details are secure and safe

More control over their own finances

The customer does not require to keep much cash with them all the time due to debit cards

Saving for the rainy day

A secure and safe environment

Future is taken care off

Can start a business by using financial banking

More purchasing power


Pin- sentry device

Debit card

Online bank facilities which permit the customers to check on account amounts, make transfers, set up standing orders and immediate debits.





Home insurance

Different types of cost savings accounts

Different types of current accounts

Overdraft facility


Car insurance

Travel services

Looking at the above mentioned attributes, outcomes and goals list you can identify the worthiness of the brand as identified by the client. The brand Barclays is an extremely more popular name and almost every person in the UK is a major fan, of course with some exceptions which are destined to be there, the clients on an over-all note feel happy with the huge selection of services and products offered by the bank for its customers and are content with the huge network of customer service centres spread all across the world providing 24/7 customer support, also the safe and secure online banking facility provided by Barclays is very user friendly and easy to use, letting the clients always keep a tabs on their money. So it is safe to state that Barclays as a bank not only for people also for smaller businesses and big equity organizations is a lender of repute and is also trusted and respected by the folks.


Critically evaluate the existing value proposition of the product/department/ company you have chosen. Compare and contrast the value proposition get back of the key rival in your sector.

This part of the project would measure the value proposition or the client value proposition of Barclays and contrast it with the customer value proposition of HSBC. However before we proceed to looking at and contrasting the worthiness propositions of both the brands we first need to understand, just what a customer value proposition is really? This is the question this task would answer first and then move forward on to discuss the modifications in the worthiness propositions of both the brands.

Customer Value Proposition:

In the subject of marketing, the client value proposition involves the sum total of benefits which a service provider offers or guarantees a potential consumer which he will receive in return for the customer's associated repayment (or any other value transfer). A customer value proposition is a business or marketing declaration that would illustrate why a person should employ the services being made available from the organisation. It is targeted towards potential consumers, alternatively than at other constituent communities such as suppliers, employees or lovers.

It is a defined statement, which was created to convince the customers that this one particular product or service will add more value or better solve problems than the other competitors in the same industry.

Why are customer value propositions so important? This question is of utmost importance to any business, because it is merely these statements that provide the customer an expectation of a desired service, it provides the consumers with a convincing reason to buy the desired good and also helps differentiate the merchandise from the other services provided by the other competitors in the same industry. They help in increasing customer's attention and when the customer value proposition is strong, and can gain the acceptance of the customer then it can help in building faster and more profitable sales and in increasing the market share of the organisation. Understanding of the customer needs is very vital as this might ensure the campaign and creation of a successful brand.

Types of Customer Value Propositions:

All benefits:

This is a list compilation of all benefits of the products and services wanted to the clients by the company. This approach requires the least market understanding of customers and competition and thus does not provide a good bottom part when seen from a marketing perspective.

Favourable Details of Difference:

This kind of value proposition explicitly recognizes the actual fact that the customer has different alternatives and after that it focuses about how to differentiate one product or service from another. A product or service may have several items of difference, puzzling the customer and therefore complicating the customer's understanding of the product which would offer him more value. With out a comprehensive understanding of the customer's requirements and choices, the suppliers might stress things of difference that relatively deliver little value to the targeted consumers.

Resonating Concentrate:

This approach can be used by professionals who directly package with a provider who completely grasps the critical issue in the product- consumer pattern and who is able to deliver a person value proposition that's simple yet powerfully captivating. The worthiness proposition offered is superior in the few qualities that are of the very most importance to the customers which convey a note to the targeted audience, that here's an organisation which is interacting a sophisticated knowledge of the customer's business priorities.

When talking about the value proposition of an financial institution we have to look at the current market conditions and then arrive at the administrative centre and financing strategy of the bank which alone is a sort of value proposition designed for the customers to have a look at and, then these consumers can choose for themselves whether they do need to connect themselves with the financial institution.

Analysis of value proposition of Barclays:

Capital Strategy:

Barclay's capital management activities will try to maximise shareholders' value by optimising the level and mix of its capital resources.

Barclay's ability to use as a bank is directly dependent upon the maintenance of enough capital resources.

Barclays works corresponding to a centralised capital management model considering regulatory and economical capital.

The Group's capital management objectives are to:

Maintaining the sufficient capital required to meet least regulatory capital requirements established by the united kingdom FSA.

Maintaining sufficient capital resources which can support the Barclays risk appetite and fulfil the financial capital requirements.

Support the bank's credit rating

Ensure that the locally controlled subsidiaries can meet their least capital requirements without having to acquire from other financial companies.

Allocation of capital to aid the strategic objectives set by Barclays, including ideal returns on economic and regulatory capital.

Funding strategy:

Barclays will take care of the funding position to comply with the regulatory requirements recommended by the UK FSA. Barclays operates on centralised governance and control process that ranges all of its liquidity risk and management activities.

Funding Structure

Global Retail and Commercial Banking, Barclays Riches and Head Office Functions are to be self-funded through customer debris and Barclays equity and other long-term capital. The Barclays Capital and Absa businesses will be funded through the low cost secured and unsecured funding marketplaces.

Major currency repayment flows and repayment system collateral will be monitored and handled, so it can be ensure that at all times there is sufficient security to make repayments.

Day to day funding

Day to day money will be handled through boundaries on general and secured borrowings. This can ensure that on any day and over any period there is merely a restricted amount of refinancing necessity.

In addition to cashflow management, Barclays would also keep an eye on the word mismatches between resources and liabilities, as well as the level and type of undrawn loaning commitments, the use of overdraft facilities and the impact of contingent liabilities.

Additional value propositions specific to an individual customer and not the global market:

Personal bank made easy by the debit card that is an internationally valid credit card which includes many advantages like international assistance anytime everywhere, guaranteed ventures etc.

Wide selection of current accounts open to suit different customer needs. (cellular phone insurance, car break down cover etc. )

Availability of loans at competitive rates

Online facilities offering easy option of customer cash.

24/7 customer service

Wide array of savings and investment options

Credit card facilities

Insurance facilities(home, motor unit and life insurance coverage)

Mortgage facilities(buying, building and renovating of property)

To understand the client value proposition of Barclays and then to contrast it with the worthiness proposition of HSBC, this project is going to use the SWOT analysis which is preceded by the mission claims and the eye-sight claims of both Barclays and HSBC, this provides you with us a much better notion of what the customer expects from the brand and what exactly are the guarantees being created by these institutions to potential and existing consumers.

Mission Declaration:

This is a short, formal, written statement of the purpose of the company. It guides the actions of the business, benchmarks its goals, provides a sense of route and manuals in decision making. It provides a construction within that your strategies of the company are designed.

Vision Declaration:

This can be explained as statement that captures the permanent picture of the particular organisation wants to become. It gives a broad and an aspirational image into the future that an company wants to attain. It is often inspirational and memorable.

Mission Statement of Barclays:

"To develop & deliver the most impressive products, manage customer experience, deliver quality services that plays a part in brand strength, establishes a competitive benefits and enhances success, thus providing value to the stakeholders of the bank. "

Vision Declaration of Barclays:

"We have a definite view of where growth should come from in the coming years. While you will see significant progress opportunities in the UK, we see many more internationally. Barclays can be a leading global universal lender. "

Mission Affirmation of HSBC:

"We aspire to be one of the world's great specialist banking groups, influenced by commitment to our center philosophies and principles. "

Vision Declaration of HSBC:

"We envision enabling HSBC to achieve its strategic targets, driving excellence inside our delivery through partnership with this customers and affiliates. "

SWOT Analysis of Barclays:


Extensive network in European countries providing business sustenance.

Focus on cost efficiencies which ensure relatively higher success.

Ability to provide amidst reduced size of the balance sheet.

Associated with creativity, brought out the first visa or mastercard in 1966, lately the OnePulse cards incorporating Oyster, credit cashless functions because of its customers.

Opening of several new branches, plus a massive refurbishment programme.


Strained trading income impacting the earnings diversity.

Barclays Capital credit market exposures are impacting the financial position and performance.

Large add-ons for the Directors have fascinated unwanted attention.

Expansion plans in the Asian market thwarted, when Barclays were outbid for ABN Amro in 2006.


Barclays was willing to acquire some of Lehman's belongings prior to its collapse but however, after the collapse, they may have been able to negotiate a much better offer with liquidators which also allowed those to be very selective where parts of the business enterprise they actually wanted to acquire.

The bank's strategy to offer a full stock portfolio of services worldwide, provides a wide range of cross-selling opportunities.

Asia is still an opportunity for enlargement, and procedures are being setup in a number of locations.

Welfare provision has reduced in many countries because of the cost to governments, and Barclays perceives self-provision as an increasing trend that it can utilise.

The court lately found that Barclays bank charges, which had been challenged legitimately, were enforceable, thus repayment is not essential and charges can continue being enforced.

Positive outlook for buy to let market may bring business volumes.

Buoyant secured unsecured loans market in the united kingdom could help the business enterprise.


Bleak view for the UK economy.

Regulatory fines can compress margins and budget.

Increase in online fraud.

Barclays has been accused of loss-making purchases from the sub-prime market from its accounts to prospects of other shareholders, and there's a risk it may be sued.

While offering a wide range of services provides opportunities, there is also the threat that customers may prefer to go to suppliers who present a more specialised methodology.

Barclays bought a reputation for shutting branches because of a high incidence of the in 2000, and competitors have been able to put themselves as more consumer-friendly through a technique of keeping branches available.

The Asia expansion sometimes appears as dangerous given that Barclays are in a less strong position than banking industry market leaders regarding capitalisation, which may detract investors.

SWOT Analysis of HSBC:


The loan company is well capitalised thus enabling it to perform relatively well against other finance institutions in the recent economical conditions.

Going forward, the lender is improbable to borrow from the UK government because of the huge market capitalization; this permits it to sustain more autonomy.

HSBC has a solid presence in emerging markets, placing it in a good position to consider good thing about future development in those economies.

HSBC's global presence in European countries, Asia and South America spreads the chance and offers significant economies of range.

Rebranding relatively recently (1999), the HSBC bank has become well-established and is known as of great value within the industry circles.


HSBC strongly thinks in buying the small business sector, however the current financial situation has resulted in increased risks, which could potentially compromise the activity levels in the region of its procedure.

HSBC's engagement with sub-prime markets in the US has compelled it to write off large statistics lent to high-risk borrowers.

Despite cuts in the UK interest rate, HSBC has been increasing its home loan rates. This is perceived adversely by the borrowers and potential borrowers, which might add pressure to a already depressed housing market and can in the end lead to more defaulting as borrowers would have a problem with higher repayments.

A redundancy program which was announced recently make a difference morale among personnel, leading to decreased productivity and devotion.

HSBC's branding emphasises its global presence, which is seen as adversely by some consumers in its implication of homogenisation and insufficient personalisation.


HSBC's high levels of market capitalisation place the lender, in a strong position which helps it to acquire assets.

Banks which find the trading conditions especially difficult at present could be available at low costs.

HSBC has sufficient capital which it can use to purchase more powerful banking institutions such as Loan company Ekonomi in Indonesia, where it offers purchased a stake to continue its Asian development despite challenging economic times.

HSBC's strong position presents the chance to outperform other banking competitors in the economic downturn which allows it to create a reputation of being one of the safer lenders for depositors which in turn helps to increase resources for financing.

Negative press coverage of competitors such as HBOS can encourage customers to choose HSBC instead.


Decreased trust in the financial system overall, including HSBC anticipated to financial deficits suffered by investors may be considered a reason behind them to invest elsewhere.

Financial losses which includes affected the bank industry and buyers on a global scale has led to less credit being designed for customers. In the united kingdom this coupled with raises in living cost has resulted in less overall being saved.

The slump property market has led to a rise in numbers of homeowners with negative collateral. If a property is worth significantly less than what it was borrowed to fund its purchase, there exists less probability that the lender will recoup all its deficits if owners default.

Claims have been made against HSBC, about the bank understating losses resulting from US sub-prime market segments, and this has resulted in undermining assurance in the lender by the clients.


Barclays is currently taking a conventional approach because of the recession. However, the downturn has provided the bank with many opportunities for loan consolidation. Also, with the BRIC and East Asian markets rebounding fast this region looks to be always a source of potential revenues and provides opportunities for increasing operations. With the United Kingdom and the Americas looking at a sluggish and prolonged period of recovery, Barclays should adopt a policy of looking east when it comes to functions.

The hazards and issues that Barclays may face in the future would be the sustained economical situation being experienced in the United Kingdom, Europe and America that may lead to doubt within the retail consumer market and may result in shortage of option of credit. Therefore makes it even more important for the Barclay's to drive its overall corporate success and margin by wanting to offset the shortfalls in the united kingdom home market with developments in emerging markets. All companies, like Barclays, are being forced to re-examine specifically the retail areas of their operations wanting to stay competitive on the traditional and also making slices wherever necessary. Within this current economical situation, banking companies are unwilling to fund the other person and with the UK market on the verge of the projected severe recession, all of the retailing factors will influence Barclays competitiveness and it could depend largely how the lender of England and the Treasury seek to regenerate and reinforce the flagging self confidence of the stock marketplaces.

HSBC will focus on the strategic and prioritized areas of its worldwide operation with the further emphasis on HR management strategies and technologically-advanced applications within the group to keep a firm business lead in the financial marketplaces. HSBC's conservative approach to banking, staying centered on keeping its capital bottom part strong and liquid balance sheet have avoided its failure. Performing the HSBC's strategy includes enhancing intra-group linkages by signing up for up the businesses and functions to more effectively create extra value. The HSBC brand and global sites will be leveraged to attain new customers and offer more services to the prevailing ones. Efficiency will be improved by taking the full good thing about local, regional and global economies. Appropriate targets and incentives will be used to encourage the employees to be fully engaged in providing the strategy.


In light of your research of your existing value proposition and what you have learned in this module produce,

a new value proposition that will match the worthiness criteria of your customers, and

a plan to implement the worthiness proposition externally and internally

http://openlearn. wide open. ac. uk/pix/spacer. gif

To create a fresh value proposition that would be acceptable to the customers of Barclays, all the weaknesses that the current business framework has would have to be removed and a fresh and better business plan would need to be drafted by figuring out the opportunities and eliminating the weaknesses.

A New Value Proposition:

The trading income should be laid back such that it will not impact the revenue diversity.

Capital bonus products should be distributed in accordance with the FSA and the bad practice of the directors acquiring huge bonus products should be curtailed.

Barclay's should provide the consumers with a full collection of services worldwide, somewhat than just focusing in the united kingdom, this move could allow cross-selling opportunities.

Barclay's should look towards expanding in the world's flourishing economies like India, China, Indonesia etc. so these economies could provide Barclays with the market opportunities it is looking for, thus increasing the market capitalization. This project would suggest that Barclays must have an aggressive enlargement policy in the Asian market.

Barclay's needs to spend money on buy to let market, which would in turn bring business amounts.

Due to the financial problems in the markets, Barclays must cut down its interest rates and home loan rates, in order to turn into a people's bank and thus nurturing the brand image.

PLAN Execution:

To put into practice the new value proposition detailed above the task, will identify the key relationship-marketing issue, followed by refocusing of marketing work: moving activities away from a marketing combine that creates a series of one-off transactions, to control a intricate network of romantic relationships involved with the creation of the whole consumer offering.


Marketing audit will be carried out in order to map out an idea that will be of most benefits to the customers and you will be conducted in periods, namely at the beginning, the middle and at the end.

Marketing analysis in terms of the talents, weakness, hazards and opportunities.

A review must be performed to comprehend the new value propositions specified above in the light of interior marketing.

A new strategy development process focusing on differentiation, cost leadership and sufficient response systems would have to be created.

Action programmes would need to be created by managers in order to determine the most likely course to take in tackling the weakness of the organisation, with a perseverance of the likely costs which would be incurred.

The execution plan would need to be watched and managed by keeping a an eye on staff performance, analysis and appraisal plans.

To ensure effective, appropriate and correct results, basis for market segmentation would have to be identified, based on extensive market research.

Marketing orientation is going to be very important, the new value propositions must be produced clear to all the employees and evidently defined individual goals should be placed down to allow the employees to see their own contribution in achieving the organisation's aims.

Externally implementing the plan is likely to be very important, and can be done through media, electronic, printing and sponsorships.

The new value propositions can be produced available in the form of television advertisements, designed for all the people to see.

The Barclays website can become a powerful medium on which the new value propositions can be put up and offered. It ought to be designed in a highly effective and in depth manner so that the customers know about all the new services available to them.

Print advertising is another powerful form by which the new plans can be produced designed for the masses.

Barclay's is a big sponsor for many big international situations and meets and can use that as a dynamic platform to teach the consumers about the new change in the coverage structure.

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