July 30, 2013
I’m not talking about your ‘valuation’ or what your product is priced at (both of which are seperate conversations for another day), but what is the value of your product. Or, put another way, what value do your customers derive from your products?
Philip Kotler, who many credit with being the father of modern marketing, once said “Marketing is the science and art of exploring, creating, and deliverying value to satisfy the needs of a target market at a profit.”
Your product, he argued, has to meet the needs of your consumer. For food products it’s not necessarily as simple as they were hungry. Perhaps your target market is having a bad day and chocolate chip cookies makes them think of the cookies mom used to send them when they were in college. They may not actually draw that connection in their mind as they buy your cookies, but to them chocolate chip cookies equals comfort and that’s the value you’re delivering. Or maybe the value of your product to your customers is that it makes their life easier, it gives them a healthy snacking option, or gives them a quick meal option that they can grab-n-go from your food truck and still get back in time for that big meeting that’s coming up.
In all of these examples that value of your product isn’t tied to the price of your product. Of course the price of your product can’t vastly outweigh the value, but by looking at your products from the standpoint of what value they bring to your customers lives, you might find new and interesting ways to market to them and keep them engaged with you and your brand.