In marketing, the concept of value refers to the perceived worth or benefits that a product or service offers to customers in relation to its cost. It is a fundamental aspect of any marketing strategy, as customers are more likely to make purchasing decisions based on the value they perceive in a product or service.
Value can be created through various factors, such as product features, quality, convenience, customer service, brand reputation, and pricing.
Let’s explore two real-world examples that demonstrate the concept of value in marketing:
1. Apple iPhone:
Apple has been a prime example of creating and delivering value through its iPhone product line. While iPhones are generally priced higher compared to many other smartphones in the market, customers perceive a high level of value in owning an iPhone due to several factors:
Innovative Technology: Apple consistently introduces cutting-edge features and technologies with each new iPhone iteration, creating a sense of exclusivity and staying ahead of the competition.
User Experience: The seamless integration of hardware and software in Apple devices provides a user-friendly and intuitive experience, making it attractive to tech-savvy and non-tech-savvy consumers.
Brand Identity: Apple has built a strong brand image of luxury, sophistication, and reliability. Customers associate the iPhone with high quality and premium status, enhancing the product’s perceived value.
Ecosystem: Apple’s ecosystem, including the App Store, iCloud, and other Apple devices, encourages customer loyalty and provides additional value through seamless integration and convenience.
2. Amazon Prime:
Amazon Prime is a subscription service offered by Amazon that provides various benefits to its members. The value proposition of Amazon Prime lies in offering customers more than just free shipping:
Free and Fast Shipping: Prime members enjoy free two-day or even one-day shipping on eligible items, saving time and money on shipping costs.
Streaming Services: Amazon Prime Video provides access to a vast library of movies, TV shows, and original content comparable to other popular streaming platforms.
Amazon Prime Music: Members can access a music streaming service with a wide selection of songs and playlists.
Exclusive Deals: Amazon offers exclusive deals and discounts to Prime members during events like Prime Day, further enhancing the perceived value.
Convenience: The convenience of one-stop shopping, easy returns, and various membership perks contribute to the overall value of the service.
Through these benefits, Amazon has created a sense of value beyond the Prime subscription’s cost. As a result, Prime membership has become a significant driver of customer loyalty for Amazon.
In both examples, the companies have effectively communicated and delivered the value of their products and services, resulting in strong customer loyalty, positive brand perception, and increased market share. The concept of value in marketing is crucial for businesses to understand and leverage to meet customer needs and remain competitive.
Follow Nitin Kr Saxena
Professor of Marketing & an esteemed alumnus of IIM Ahmedabad, Dr. Saxena holds a Ph.D. in Brand Management, which garnered him the prestigious Best Ph.D. Thesis award. Recognized for his exceptional contributions to academia, Dr. Saxena has been honored with the Young Faculty by CEGR. Additionally, he received the “Best Professor in Marketing Analytics” award.
