What is value in marketing?

Value in marketing is the specific worth or benefit that a service or product has to its potential customers. In other words, it is the advantage or benefit that a consumer derives from the use of a particular product or service, this concept is then incorporated into an organization's marketing strategy and campaigns.

Value is essential in marketing because it affects the decision-making of consumers when they are seeking to purchase a specific type of product or service. In marketing, there are several different elements that involve value that often have to be considered, including:

• Price

Customers might place more value on a product or service if it is more cost-effective versus competing products. Conversely, some other consumers might place greater value on a product or service if it has a higher price tag than that of its competing products or services. The price of a product or service is then highlighted in all marketing efforts.

• Quality

Quality of a product or service can have to do with materials and durability or the robustness of its uses. Consumers might perceive a service or product to have a higher value if it is clearly high quality and meets or even exceeds their expectations. The quality of a product or service is then a major component in consumer messaging and marketing.

• Features

Consumers often place greater value on products or services that have multiple features, utilities, or benefits. The list of features included in a specific product or service is then used in communication and marketing strategies to target audiences.

• Time value

Time value applies to the creation of a service or product in an expeditious manner so as to make it available when customers want it or need it. For example, when a convenience store is open 24 hours a day for 7 days a week this creates a time value for potential customers. The convenience store can then market this utility by saying they are open 24/7.

• Place value

Place value refers to the location and convenience in terms of access to a particular product or service. It might also refer to a specific distribution channel. For example, companies that participate in e-commerce benefit from giving their customers all day and easy access to purchase products online. This convenience value is then advertised in marketing materials.

• Brand value

Another component of value in marketing is brand value, or brand reputation. This has to do with the consumer and public image of the brand promoting the product or service. When a brand has a positive and strong reputation, consumers are more likely to place value on its offerings. Reputation can then be used in a company's ad and marketing efforts.