Value Marketing 2018 edition

The Abstract is completely rewritten, and gives a more direct and clear overview.

Page 10 offers a modified explanation of the Paradigm of Survival.

Read it! www.metamanagement.se/linn_gtm.pdf


Wow, what an international attention

For nearly 40 years, I have contemplated what a theory should look like to be the foundation for marketing. During the time I have step by step developed my thoughts in five books. Last summer, though, I reviewed it all, from the ground up, to create a paper publishing the theory of Value Marketing on our Meta Management site.
Google Analytics now shows the number of visits the paper has attracted internationally. Amazing! From the UK, Germany, Italy, Austria, France, Saudi Arabia, Canada, USA, and most from Russia! Apart from Sweden, of course, and some odd visits from other countries across the Globe.
Have alook at it yourself!


Oj, vilken internationell uppmärksamhet

I nära 40 år har jag funderat över den teori som borde finnas bakom marknadsföringen. Under den tiden har det blivit fem böcker, där jag steg för steg har utvecklat mina tankar. I somras tog jag ett rejält grepp och satte ihop ett ”paper” att lägga ut på nätet med länk från vår hemsida (Meta Management).
Nu kan Google Analytics visa besök på hemsidan – och min teori – från ett antal länder runt om i världen. Ett tiotal! Storbritannien, Tyskland, Italien, Österrike, Frankrike, Saudiarabien, Kanada, USA och inte minst Ryssland. Sverige, förstås, och några ströbesök här och var.
Det skulle vara kul att få veta vad man tänker här och var.


Where Kotler was wrong

In Philip Kotler’s world marketing is technocratic. Human aspects are in fact neglected especially when it comes to the 4P marketing mix. The serious nature of this is exposed in how the Ps are conceived. P for product is mixed with Ps for Price, Promotion and Place. If the other Ps in the series are changed, the perceived product is also changed as a consequence. That is, if you are concerned with how human beings perceive reality. Consequently, the 4P marketing mix does not reflect the reactions of real humans. Kotler does not either seem to realize the crucial dualism between price and value. Value being a function of the buyer’s perception of the product (the offer including metaproduct and brand) including the price set by the seller. Thus, the buyer’s sense of value decides if there will be a transaction or not. In all, Philip Kotler has done much to promote marketing, but also, in his role as world famous author and speaker and status as guru, he has restrained the theory of the discipline and its development. Follow thislink to learn more.   


The core of marketing: Price vs. Value

The basics

Several attempts have been made to define the elusive notion of marketing. A definition has to state what something is and what it is not. Now I have tried to be further concise stating the characteristics of the concept by three key aspects only.

The transaction

The starting point has to be the transaction when the commodity and/or service – the product – is exchanged for money. The industrialised economy needs communication, distribution, and information on markets and users. Differentiating products is mandatory for adding more than pure utility value – the metavalue. A number of functions combining for differentiation, value adding and accessibility of branded products are joined under the concept of marketing.
Transactions are triggered – there and then – when the buyer finds that the value of an offer corresponds to the price asked. Consequently, value is a key notion in marketing.


The exchange value in commercial transactions is defined:
The amount of any utility against which any given thing can be exchanged
– or the amount of goods, services, or money that can be accepted in exchange.
In deliberate transactions the value is always decided by the buyer and is relative and hypothetical until it is proved by the realization of the transaction.
In the case of differentiated (branded) products, the value is influenced by rational as well as subjectively experienced valuing factors such as:
·      Practical utility
·      Accessibility
·      Pleasure
·      Supplier relation
·      Social identity


Marketing has as its overall task to ensure that the same differentiated product (ware and/or service) can be sold to the same value on widely differing places. This demands distribution of the physical offer as well as knowledge of it.

Branded products

Differentiated products – goods and/or services – demand identifying names or trademarks to connect with value, influencing associations to the producer/supplier as well as between owners/users and buyers.


The above offers a scope for this concise definition of marketing

Marketing comprises the efforts of the supplying chain to add value and accessibility to branded offers.

Read more on Value Marketing!