71 percent customers from two brands prefer the one that presents values that are close to them - according to the Consumer Culture Report 2020. Have you already taken care of value marketing in your company?
Value Marketing - Definition
By definition Value marketing is the benefit that a customer can receive after deducting expensesthat he will have to bear. It is worth adding a few definitions here:
marketing - allows you to highlight those values and benefits that are most important from the customer's point of view, while taking into account your business goal.
benefits - added value, which is especially important for your client, apart from the purchase itself.
expenses - it is not only about money, but also about the time or energy that the customer has to spend to reach your product, do shopping, use the service, etc. This will also be taken into account when considering the offer in terms of value and this may result in customer objections (e.g. I need this book, but the payment and delivery options in a given store are so unattractive that I will probably choose another, less valuable book from a competitor's store). Each time when planning marketing around value, you have to evaluate what expenses the client can incur, so that the selected benefits still seem worth it to him.
Value marketing is being referred to recently, which is popular language of benefit theorywhich should be used in communication with the client. Talk about what the customer can gain from your offer, referring to the values that are important to him. The first thing that comes to mind in the context of Customer Value Marketing is price. But that's just the most important factor!
PwC data shows that the client can be convinced more effectively by referring to values such as:
- nice service,
- easy payment,
- experienced service,
- new technologies,
- interaction with another human being,
- Image - naming and logo,
There are many examples of similar ideas for value marketing. To some extent, they will be variable depending on the industry and client.
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Advantages and disadvantages of value marketing
Types of marketing strategies in the company, you can choose in a traditional way. However, when you add value marketing to it, you have entirely new opportunities. You will attract customers for whom the data is important. Currently, thanks to artificial intelligence, big data and commonly available on-line tools, you can segment your customers in terms of their values. Marketing segmentation can help you define and better understand your target audience and ideal customers. We can talk about it, for example, when a DIY store targets different ads to inexperienced people who are looking for an opportunity during the renovation of their first apartment, and other for professionals who buy in bulk. Both groups receive different value marketing to suit their specific preferences.
The number of "personas" you can create by matching your message to them can be virtually unlimited. The only downside to value marketing is that it is only applied based on wrong assumptions. For example: Your customers are willing to pay a lot for good quality, and you are trying to tempt them with the lowest price.
Value marketing - where to start?
It is worth starting the shaping of the definition of value marketing in the company by understanding, which values are crucial from the customers' point of view. For this purpose, it is worth doing market research and research of opinions of both former, current and would-be clients. This will mainly be qualitative research.
Marketing audit in the company will allow you to see which strategies have been effective so far and with what values your company is associated with. Gathering ideas for the future cannot be detached from the realities of the market. For example, today in the fashion industry, but also in nutrition and wellness, it is very expensive eco-marketing, inclusiveness and diversity. Meanwhile, in the 1990s, the same companies could operate based on completely opposite ideas. They were exclusivity, one set ideal of beauty and momentum without taking environmental costs into account.
On the one hand, those who begin to create a strong, new one first communication, can go down to legend. On the other hand, especially in the world of rapid, violent reactions in social-media and cancel culture it's hard to experiment with risky strategies and reject what customers want. So here we come back to the starting point and ask ourselves questions about the value in marketing that most appeal to your customers. They still happen there are industries in which it is enough to refer to basic values as old as the history of trade, such as price or functions. Increasingly, however, customers are not enough and they start looking for added value.
Just go to the website of any internet services to see what it is. In fact, space in a virtual cloud or Internet mail are quite boring issues based on incomprehensible IT processes. Meanwhile, the official Dropbox blog has introvert tips and articles about cultural diversity. Google, in turn, conducts webinars on combining maternity and business duties or finding a purpose in life. All to add "that something" to the boring image of a technology company that is hard to distinguish from many others. The values around which brands focus are related to the so-called the spirit of the times. Today, it is mainly the aforementioned issues related to environmental protection, minority rights and diversity. In her annual report on the most important economic values in a given year, Natalia Hatalska lists:
- blockchain economy,
- globalization 4.0,
- sustainable consumption,
- friendly city,
- prudent use of resources.
In addition, it also describes new trends in the areas of society, technology, communication and the environment. There are more such reports in the world, and the conclusions of most of them overlap. It is worth getting inspired by them when creating value marketing in your company. It is no coincidence that when browsing the advertising materials of the greatest, you will notice references to the trends mentioned here. If you don't know where to start introducing value marketing in your company, follow ours case-studies and let us know what we can help you with.