Management

The concept of value in marketing

The value in marketing is the ratio of total benefits obtained from a particlular product and the total cost beared to buy the product. Here the benefits include the purposeful benefit as well as the emotional benefits.

The buyer always chooses product which will match percieved benefits to actual benefits along with the optimum cost. In order to provide value chain there are four steps

1. Value selection

2. Value formulation

3. Value delivery

4. Value scheme

5. Value enhancement

The marketeer tries to select a criterion for providing value to the customers, out of emany alternatives formulation of value to be provided is done. Here the formulation could be combination of alternatives or perhaps on e alternative or several alternatives clubbed together and only the primary cue of the alternative is added.

usually the customers are looking forward to satisfy the latent needs. Once the scheme is formulated then comes delivery and offering. The marketeer has to make sure that the delivery of value has to be prompt without delay then how the scheme is to be offered is the major point of the value process or value cycle. And once the offer is in customers hand and still there is a scope of providing more benefits then marketer provides with enhancement to the value.

Read more: http://wiki.answers.com/Q/The_value_concept_in_marketing#ixzz1x5Pe2QXn

Value includes both subjectivity and objectivity depending on what is being valued. For example, the value in a product such as a piece of artwork is purely subjective (some may find it beautiful and others may not see any value in the art). On the other hand, the value in a functional product, such as a computer, may be evaluated more objectively. The advantage of objective value is that it can be conveyed by marketers. Subjective value is perceived differently by the consumers.

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