How HARD Can You Market? — Series: Value Definition

Let me tell you a STORY which I heard from my mentor…

This STORY is called “The Black Book”

So he was going on a trip to the US for some office work. After being boarded, he was seated beside one very sophisticated person who was wearing a suit and tie. It seemed like he was going to some business meeting.

That person was quite friendly and asked, what do you do? and stuff…

And he replied about work with some frustration. That man quickly recognized that frustration. Then the man said, Do you know what I do…..man answered himself, I help businesses grow with strategies.

He was amazed to hear all this and asked, "Can I attend your session?"

The man said that I have this BLACK BOOK which contains everything. And I have not printed many copies, so it is one of 10 books printed.

He asked the man , Can I have this book ?

The man said it was 1Cr ... .can you pay?

He said yes, I will, and then he read that book. Then, after some time, he met someone and told the story of this BLACK BOOK. That man said, I want this book.

He said it is 2 Cr….

What have you learned from this conversation? Yes, the price of the book kept on increasing. But I am looking for some in depth thinking.

Okay, what if the person who pitched his book was not angry or frustrated? Would he buy it at the price he was selling?

No right…..this is what we can call a value definition.

For some, the value of the thing you provide does not seem fair, and for some, it is the GOLD …or DIAMOND …or PLATINUM

In marketing, "value" is a multifaceted term. Like in BATMAN

It can mean different things to different people and can be subjective based on a customer's needs, preferences, and perspective. Fundamentally, value in marketing refers to the perceived benefit that a product or service brings to a consumer, relative to its cost.?

It's essentially a trade-off between what the consumer gets (benefits) and what they give (costs), and this calculation isn't always monetary.

It's important to note that what constitutes "value" can greatly differ from one consumer to another.?

Well Harvard Business Review writes it like :?

(Values – Prices) > (Valuea – Pricea)

For some, value might be purely economic, relating to factors like price, quality, and efficiency. For others, it might be emotional, relating to factors such as status, brand affinity, or personal satisfaction. Yet for others, it could be functional, relating to the practicality and usefulness of a product or service.

I will cover types of value later.

INSTANCE….

A high-end luxury car might hold immense value for an affluent car enthusiast who values brand prestige, superior performance, and cutting-edge technology.?

They might perceive the high cost as worthwhile for the benefits they receive.?

On the other hand, for a budget-conscious consumer who values fuel efficiency, low maintenance, and affordability, the same car might hold little or no value.

Value is in the EYE of the beholder, and it's the YOUR job to understand and deliver what their particular beholders value.

Companies often segment their market based on different value perceptions.?

WHY..?

To create a range from budget-friendly to high-end luxury in most categories.?

WHY…?

To cater to different value perceptions.

WHY…?

Aiming to satisfy the needs and preferences of various customer segments.

It's important to understand the specific value perceptions of the target audience.?

HOW can we target different Value Propositions ?

Functional Value

This refers to the practical utility a product or service provides to a consumer. A product that is durable, efficient, or provides a solution to a particular problem offers functional value.?

For example, a reliable washing machine offers functional value by helping users clean their clothes efficiently and easily.

Economic Value

This refers to the financial benefits a product or service provides to a consumer. It could be a product that saves the consumer money, offers superior quality for the price, or provides a cost advantage over similar products.?

For instance, buying in bulk often provides economic value as it tends to be cheaper than buying items individually.

Emotional Value

This type of value refers to the psychological benefits a product or service provides to a consumer.?

This could include feeling good, reducing stress, providing entertainment, or giving a sense of belonging. Luxury brands often provide high emotional value by making consumers feel prestigious or unique.

Social Value

Social value refers to the extent to which owning a product or using a service increases a consumer's social status.?

Brands that are seen as trendy or popular can provide social value. For example, a teenager might perceive high social value in wearing clothes from a popular brand to fit in with their peers.

Experiential Value

This type of value refers to the experience that a product or service provides. It's not just about the product itself, but also the experience surrounding it.?

This could be the shopping experience, customer service, packaging, or even the experience of using the product. Companies like Apple, with their focus on user experience and sleek design, exemplify experiential value.

Symbolic Value

This refers to what a product or brand symbolizes to the consumer. For some, owning a Tesla might symbolize their commitment to sustainability, while for others, using an Android phone over an iPhone might symbolize their preference for customization and open systems.

THE ChatGPT

Functional Value: ChatGPT serves as an information resource, answering users' queries on a wide variety of topics.

Economic Value: Available for free or at a reasonable cost, providing a cost-effective solution for users who need information or writing assistance. Compared to hiring a personal assistant or tutor, ChatGPT can be a more economically feasible option.

Experiential Value: The interaction experience with ChatGPT is designed to be smooth and user-friendly. The AI tries to provide accurate and relevant responses in a conversational manner, which enhances the overall user experience.

Innovative Value: Engaging with an AI like ChatGPT can be exciting for users who are interested in technology and AI. The novelty of interacting with an advanced language model can provide value in itself.

Now it's your choice to mix and match the different values into one product to market it….

I will see you in the next post.