Marketing is intimately related to branded products (goods and/or services). The main purpose of marketing is to enhance the value of the marketed products – the buyer perceived value. Consequently, the major task of marketing would be seen as creating value, multiple ways. Product value is a complex matter. The basic product may offer a generic utility, e.g. capacity for transport of four people and their luggage. A seven-seater thus offers higher utility value. The rest is intangible value, metavalue, sometimes huge. This is to a major extent created with the help of marketing motivated efforts, i.e. styling, branding, communication, relationship programs, etc. Value Marketing focuses on this multi-task value creation with the help of a consistent theory and its related tools. The theory is based on generally accepted definitions and a good deal of logic and common sense. Read more.
There are many techniques to decide a competitive price for products (goods and/or services) with respect to the need for covering costs and profit. But in the end, the quantity of sales (and the gross profit) depends on how the intended buyers value them. The price is the seller’s domain, but value is all in the mind of the buyer. To increase value, creative marketing is the key. Essential is to have a reliable theory and effective tools accepted and employed by all of the staff. Read about Value Marketing.
The realproduct is the product with no identity, no frills. Its value is all utility. Add styling and you add identity and value. This is the metaproduct, the intangible perceived part of the product. Add a brand, and if this is well known some more intangible value is added. In most cases the value of the brand is only a part of the total metaproduct value. Some times it is all. The value of a dollar note is one dollar. The value of the realproduct is next to nothing, and nothing at all if we think of electronic transactions. All of the metaproduct value, the metavalue, is then brand value. What brand? The US Federal Reserve. It guarantees that you always get the value of one dollar when you exchange it for some utility, some product. Can any brand be stronger? Read the theory of Value Marketing.
Well, it is a new concept and theory for marketing, but it is based on the original definition. Marketing is a complex area, but if you analyse what it means, you will realize that it is all about branded products. Thus the notion should have been born in the mid 19th century instead of a hundred years later. Marketing, as it became, now consists of a number of wild grown, often, contradictory concepts. On the contrary, Value Marketing concentrates on the value creating properties of marketing and offers a consistent theory in consequence. The Value Marketing concept accordingly offers a consistent and comprehensive set of models to be employed for education and practical and strategic purposes. Read the full description and have a lookat the complete set of models.