Value in marketing, also known as customer-perceived value, is the difference between a prospective customers evaluation of the benefits and costs of one product when compared with others). It is the measure of the benefit gained from a product or service relative to the full cost of the item. Value can be expressed as a straightforward relationship between perceived benefits and perceived costs: Value = Benefits - Cost). The basic underlying concept of value in marketing is human needs, which may include food, shelter, belonging, love, and self-expression. When wants are backed by buying power, they become demands).
For a firm to deliver value to its customers, they must consider what is known as the "total market offering." This includes the reputation of the organization, staff representation, product benefits, and technological characteristics as compared to competitors market offerings and prices). Value can thus be defined as the relationship of a firms market offerings to those of its competitors).
Value in marketing can be defined by both qualitative and quantitative measures. On the qualitative side, value is the perceived gain composed of individuals emotional, mental and physical condition plus various social, economic, cultural and environmental factors. On the quantitative side, value is the actual gain measured in terms of financial numbers, percentages, and dollars).
In order to determine the value of an offering and align it with the wants and needs of a target customer, marketers use tools and processes such as customer value models. By creating and using customer value models, suppliers are able to figure out exactly what their offerings are worth to customers.
Value-based marketing aims to build a relationship between consumers and the company and its brand. The company studies the consumers needs, wants, and desires to create a value proposition that meets their needs. Value-based marketing focuses on proving that a brand can deliver to customers beyond their moneys worth.
In summary, value in marketing is the perceived benefit gained from a product or service relative to its cost. It is the difference between a prospective customers evaluation of the benefits and costs of one product when compared with others. To deliver value to customers, firms must consider the total market offering, including the reputation of the organization, staff representation, product benefits, and technological characteristics as compared to competitors market offerings and prices. Value can be defined by both qualitative and quantitative measures. Marketers use tools and processes such as customer value models to determine the value of an offering and align it with the wants and needs of a target customer. Value-based marketing aims to build a relationship between consumers and the company and its brand by studying the consumers needs, wants, and desires to create a value proposition that meets their needs.
