Value-based marketing: 6 key questions to understand why it has become essential for business success.
What is value-based marketing?
All companies, all brands, all institutions, all organizations, all people have an intrinsic value.
Value-based marketing aim to answer the fundamental question in marketing, "What makes our product services or brand valuable?" by understanding and identifying your customer's needs, desires, and problems and what the market can offer to satisfy them.
Value-based marketing strategies help create and offer brands, products, and services that customers perceive as valuable. And not only sets you apart from competitors, but it also plays a critical role in the success of your business.
WHAT IS VALUE?
Value is a perception. A perception on which the impact of our marketing activities depends. But what makes something valuable, and how is that value perceived?
Customer perception depends on two factors: degree of pain or need and degree of uniqueness. How well your offering addresses your customers' emotional and rational pain points and how it compares to what's available in the market determine its value. Unique offerings that address greater needs or pain points are perceived as more valuable. Companies that understand and meet their customers' needs and know the market's offers are more likely to create valuable products, services, and brands.
WHY ARE VALUE-BASED STRATEGIES ESSENTIAL FOR ANY BUSINESS?
In order to take your business Efficiency and Growth to the next level thanks to step-by-step Marketing, understanding your company's value chain is not just recommended - it's mandatory.
The success of any brand or company depends on a 5-step value chain. Imagine it as a funnel where each step can only carry as much value as it receives from the previous one. Sales strategies are limited by how much value we have communicated, created, and ultimately identified before. Every step depends on the very first one, so focusing on identifying our value to others is the key to every successful company.
What are the different ways in which we can deliver value?
The key to optimizing your market positioning is to identify what value you can deliver to your customers to set yourself apart from the competition.
We categorize value into four types: solution, market, identity, and added value. Solution value is how our solution stands out to address a customer's specific needs. Market value depends on supply and demand. Identity value is the emotional attachment a brand creates for a customer. Added value is the extra features, trust, or convenience we offer. Branding, marketing, content, and communication agencies analyze these four types of value through traditional workshops, each kind of agency focusing on a specific value.
WHY DOES A CUSTOMER PURCHASE YOUR BRAND, PRODUCT, OR SERVICE?
By taking a customer-centric approach, you can answer the tough questions that will drive your marketing strategy step by step: what activities should you prioritize next, what messages will resonate with your target audience, and what investments will yield the highest returns?
To understand the value you provide customers, you must analyze their decision-making process. When a person makes a purchase decision, they go through concrete steps linearly to understand if the product, service, or brand is valuable for them to the price offered. By using a linear model, we measure perceived value from the moment a customer has a need to when they make a purchase. Different types of value require different marketing efforts. With this model, you can prioritize marketing activities based on the customer's needs and communicate our brand's unique value more effectively.
Value-based vs traditional marketing/branding?
Marketing is at the heart of the growth of any business. It should be simple, enriching, meaningful, and impactful for everyone involved. But the nature of the traditional approaches can make it complex and frustrating; why is that?
Agencies use different methods to identify value but differ in perspective: branding agencies focus on internal identity value, marketing agencies on external market value, and touchpoint agencies on customer behavior and solution value. These perspectives offer limited results and make marketing with multiple agencies and departments complex, unsatisfying, and hard to measure. Value-based marketing integrates all these perspectives into a data-driven, customer-centric analytical approach, combining traditional methodologies under one unique process.
11 data-driven analytical modules designed to implement STEP BY STEP value-based marketing strategies.
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