The INVEST Method: The Modern Marketing Mix by Carl Holden

Author:Carl Holden [Holden, Carl]
Language: eng
Format: epub
Publisher: Carl Holden
Published: 2017-06-28T04:00:00+00:00

As you see the two experiences in the same ValCube, you can understand how changing Value determines the success of an offering in a market.

Improve value by decreasing the perception of cost and increasing the perception of quality and utility.

How is Value perceived? You guessed it— cost, quality, and utility. How does each contribute to the overall perception of value?

Cost is the sacrifice of resources.

Money is not exactly something people love to give away. It is the most obvious proof of Value but usually the most misleading. What we pay in money does not always logically make sense.

The more compelling measures of cost are time, effort, and opportunity. Those devoted people who waited in long lines for the newest phone were not just giving up cold, hard cash. They gave up hours, physically standing in line and potentially missing work because the Value of the phone far exceeded the monetary cost. When considering position in the ValCube, realize there’s more to cost than money.

To change the perception of cost, help people save time, effort, and opportunity.

The money part can only get you so far. It’s hard to cut costs and decrease price. It’s a race to the bottom in most cases. Change cost by reducing the perception of it.

Elaborate on how the offering takes less time to learn or use. Show how much easier it is to implement. List all the opportunities it now provides the customer. The true cost is what you sacrifice minus the advantages afforded.

Utility is the usefulness and intangible effects.

It is the intangible effect on a customer’s life and well-being. A new phone helps a person be organized, have more fun, and access a wealth of information. Often, people don’t realize all the benefits they could experience. Therefore, utility is a matter of perception, a realization of what the offering could represent in their life.

Increase perceived utility by improving the communication of benefits.

It cannot be assumed that people will understand all the benefits of using an offering. It needs communicated to them so they understand the utility of it.

Show how quality of life or experience is affected positively, how emotional well-being can be improved or how

productivity is increased. The consumer needs to visualize how being a customer improves that part of their being.

Quality is the physical manifestation of cost and utility.

On the top surface, Quality is what the offering is made of, the physical components or experiences. Examples might be a well-built, durable home or the clean office of a doctor. It comprises of all the elements that our five senses experience.

However, the physical offering is really the tangible reflection of less tangible elements. Human beings care most about intangible things like love, sadness, appreciation, satisfaction, regret, fulfillment, and other emotions. That is why it did not read that cost and utility are the intangible manifestations of quality. That’s been the mistake of countless businesses. They suppose that if they make the offering out of the highest quality materials that people must be inclined to like it.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.