2014-08-25

The ignored basis for marketing: the product equation


Every utility, product, viewed by a potential buyer offers a value. How much is decided by what the product offers the buyer in its own mix of features, and most essentially, by this person’s needs and wants and most subjective preferences. This is one side of the product equation. The other side is what the supplier offers. Does he offer an exceptionally good function with no frills to a buyer mostly wanting the frills? Or a lot of frills connected to a mediocre function to a buyer demanding utility in the first place? It is obvious that we in any case have an equation to solve – the supplier’s offer to be balanced with the buyer’s valuation. This transaction equation is crucial to the Meta Management concept on Value Marketing. Download and read.

2014-08-06

The persistent myth of win-win transactions

For years marketers and sales people and others have spread the myth that the appealing event of seller and buyer being united in a win-win transaction is highly unlikely. All false. The fact is that every voluntary transaction is win-win by nature. The seller prefers the money to keeping his product on the shelf. The buyer buys because he wants the product more than the money in his wallet. Both parties always win in the moment of transaction. Win-win should actually be the basis for any serious theory on marketing. Want a deeper look into what this means to the mechanisms of the transaction? Read my paper “On value creation in branded goods and services”, and you will see my point