The essence of marketing is creating customer value that is greater than the value created by competitions. The value equation, shown in survey is a guide to this task. As suggested in the equation, value for the customer can be increased by expanding or improving product and or service benefits, by reducing the price, or by a combination of these elements.This might come from cheap labor or access to cheap raw materials, or it might come from manufacturing scale or efficiency or more efficient management. Knowledge of the customer combined with innovation and creativity can lead to product improvements and service that matter to customers. If the benefits are strong enough and valued enough by customers, a company does not need to be low-price competitor in order to win customers.
THE THREE PRINCIPLES OF MARKETING IN VALUE EQUATION
Post socialism era has changed the global marketing scenario as we have noticed that China has welcomed the aboard investment in their home land sectors.Similarly a large number of ex-socialist country follow the path of China. Life is lopsided, whether it be in business, software development or coming up with good ideas for your own personal betterment. We all know of areas in our lives that seem off balance. It’s this reality on which the Pareto principle is based. Even those who can’t think of the principle offhand will likely recognize the spirit behind the principle under a more commonly recognized term: the 80-20 rule.