This book offers novel methods for developing Value-based marketing
strategies aimed at increasing revenue and profits. The Value concept
relates all the benefits offered by a product with its price and the
effort required to obtain it. Global competition requires managing Value
rather than individual products or brands. This fosters customer
loyalty, and provides a solid basis for relationship marketing. The book
takes a practical, step-by-step approach to explain: - How the forces of
supply and demand interact with customer Value; - The relationships
between benefits, quantities, prices and costs; - How to develop
effective competitive strategies; - How to manage inventory and product
mix efficiently; - How to apply the Value model to increase
profitability, and solve major marketing problems. The book sets forth
several new approaches for marketing and pricing decision-making: - The
concept of Value integrates marketing, finance, economics and
accounting, in order to link Value-based pricing with relationship
marketing. - The law of supply and demand is restated with quantity as a
function of Value instead of price; this makes it a more realistic and
practical tool for understanding today´s highly today´s highly
competitive business environment. - The confrontation and
complementation concepts provide useful tools for guiding marketers into
new segments, and pricing products accordingly. They play a key role for
devising win-win strategies, not only with customers, but also with
competitors. - The Value Matrix is a practical tool for understanding
the product´s positioning, analyzing its competition, setting prices and
developing strategy. It aims at achieving an optimal balance between
customer loyalty and product mix profitability. - The Value Life Cycle
illustrates how Value acts as a force that constantly changes revenue,
providing insight for developing strategies in each phase of the
product´s life cycle. - Analogies with physics illustrate how policy
constraints create resistance to sales velocity, thereby determining the
rate at which a firm advances towards its financial and marketing
goals. - The strategy for pricing business services applies Value to
balance supply with demand; this leads to increased revenue. - The
marketing approach set forth unifies product portfolio and inventory
management with Value-based pricing for maximizing income. Clear
explanations and accessible language make this book ideal for marketing
professionals and non-specialists. Advanced readers may refer to the
appendices, where the subjects are analyzed further and the mathematical
foundations are laid out; numerous solved problems of pricing and costs
are included.
