|
Blackblot Value-Marketing Model
The goal of the product marketing
discipline is to generate product awareness, differentiation, and
demand. There are three principal
methods to achieving this goal and each of them emphasizes one of the various
aspects of the product: price, features, or value. The value emphasis method is called value
marketing.
The “Blackblot Value-Marketing
Model” is a collective name for several work models and their supporting
definitions. This model’s components
present, map and structure the process and different activities necessary to
perform value marketing through the use of marketing messages.
For more information, please read the Value-Marketing Model article.
This model is taught in the Business and Market Planning™
seminar.
The following table summarizes
notable concept definitions used in the “Blackblot Value-Marketing Model”.
|
Blackblot
Value-Marketing Model – Concept Definitions (Summary Table)
|
|
Value Formula
|
Value
= Benefits - Costs[customer]
|
|
“Value”
|
Worth
derived by the customer from owning and using the product.
|
|
“Benefits”
|
Product features that
are desirable to the customer.
|
|
“Costs[customer]”
|
Aggregate
expenses incurred by the customer from buying and using the product (essentially
“Total Cost of Ownership” or TCO).
|
|
“Perceived Value”
|
Unsubstantiated
estimation of worth that the customer obtains or could potentially obtain
from owning and using the product.
|
|
“Actual Value”
|
Measured
and validated worth that the customer or similar customers factually obtain
from owning and using the product.
|
|
“Product Quality”
|
Market’s
perception of the degree at which the product can consistently meet or
exceed customers’ expectations.
|
|
“Customers’ Expectations”
|
Hopes
for deriving benefits from the product and establishing a rewarding
relationship with the vendor.
|
|
“Resultant Value Proposition”
|
Implicit
promise a product holds for customers to deliver a fixed combination of
gains in time, cost and status.
|
|
“Actual Resultant Value”
|
Fixed
combination of gains in time, cost and status the product factually
delivers to customers.
|
|
“Relative Value Proposition”
|
Implicit promise a
product holds for customers to deliver a desired ratio of benefits and costs[customer].
|
|
“Actual Relative Value”
|
Ratio
of benefits and costs[customer] the
product factually delivers to customers.
|
|
Perceived Value Formula
|
Perceived
Value = Resultant Value Proposition + Relative Value Proposition
|
|
Actual Value Formula
|
Actual
Value = Actual Resultant Value + Actual Relative Value
|
|
“Superior Perceived Value”
|
State
where customers perceive the product gives a net value more positive than
its alternatives.
|
|
“Superior Actual Value”
|
State
where the product factually gives customers a net value more positive than
its alternatives.
|
|
