The Elements of Value & Executive Insights
How can marketers pin down what customers really value?
The Elements of Value
MASLOW'S HIERARCHY VS. 30 ELEMENTS OF VALUE
MOST MARKETERS ARE FAMILIAR WITH THIS THEORY. YOU CANNOT REACH THE TOP UNTIL YOU HAVE ATTAINED THE LOWER PARTS OF THE PYRAMID.
FUNCTIONAL, EMOTIONAL, LIFE-CHANGING SOCIAL IMPACT
- FOCUSES ON THE CONSUMER NEEDS AS IT RELATES TO PRODUCTS & SERVICES
PHYSIOLOGICAL NEEDS, SAFETY NEEDS, LOVE & BELONGING, ESTEEM, SELF-ACTUALIZATION
Determining what different consumers value is difficult. Usually it is something that makes their lives more convenient or makes them feel better.
1. The Challenge
Meet the needs.
Combined will help to increase revenue and customer loyalty.
2. The Answer
Companies should improve value:
-New product development
3. The Opportunity
How can we connect the product to the consumer?
New Product Development
When demand is constant higher prices accrue directly to profit. How can we justify raising prices?
Segmentation allows marketers to analyze what these groups value.
Does increasing value cause growth in revenue?
50% of respondents scored Apple, Samsung, Amazon, USAA and TOMS as 8 or above (0-10 scale) on the elements of value.
High Scoring Companies
Companies that scored high on 4 or more elements of value had recent revenue growth 4x more than companies with 1 high score.
Proven Revenue Increase
Amazon Prime has penetrated 50% of the online retail market. The different elements of a prime membership continue to create more value for different types of consumers.
The value elements can help marketers creatively bring value to their brands, products and services- increasing growth and customer loyalty.
-Millennials want to know what is in their products
-Kraft wants to give consumers what they are asking for even if it means a price increase
-Since the brand is so large they can meet consumers needs through varying products
-Kraft is following the value elements
Which value element is most important to you as a consumer when you purchase a product?
(Functional, Emotional, Life-Changing, Social Impact)
How do you think marketers have to change their "value elements" depending on the consumer segment?