In the world of marketing and selling, value is an important element which helps to build long-term consumer relationships with a brand and its product. The value of an item in the customers eyes, is not always related to its cost in money, it’s the customers assessment of the additional benefits of the product related to its cost.
A good example of this is hotel rooms, no matter what chain or business you use, you’ll receive a room with a bed and a bathroom, however each brand has a different level of amenities, service and atmosphere. From low-budget hotels to luxury hotels, the value of which company is better is subjective to each customer. This ultimately means customers judge which type of accommodation offers the best value according to the benefits they desire and their willingness and ability to pay for the costs associated with the benefits.
Benefits in marketing isn’t exactly something new, as the majority of us want to feel the worth in a product, however this tends to be based on our expectations or previous experiences. Think of music concerts and artists, we’re all subjective of what we like based on our personal preferences, thus some of us will quite happily pay hundreds of dollars for concert tickets, while others may not.
As well as personal preferences, we also attach emotion elements to a purchase too, think about buying a car, there’s lots of different manufacturers to choose from – yet we make a conscious decision in our own mind on which brand to choose. For many people they want to highlight the better car they drive, the more successful they appeal – thus this feeling may help to determine what the value of the product means to them.
In addition to this, marketing can also be used to create value in other ways. For example, let’s look at the computer industry, you can easily purchase a brand-new computer from a retail store online, there’s many to choose from, yet people tend to make purchasing decisions based on delivery times, technical support and so on.
For example, a marketing campaign may not just focus on the product itself, it will also highlight and promote the additional benefits to the consumer (such as quick delivery, after-sales support and so on). This can ultimately help a business to differentiate themselves from competitors and gain a larger market share.
A tip to remember is how much the target audience wants a product or service you’re offer, if people are needing the faster way to get hold of your item, then pricing becomes a secondary thought. This can be seen in supermarkets or cafes when busy lunch times, customers walk in and buy the first thing they see off the shelf.
In the end, the creation of an effective marketing strategy requires understanding the needs and requirements of customers and designing a marketing mix to satisfy them and provide the value they want.