Marketing

Marketing is defined by the Canadian Marketing Association (n.d.) as “…a set of business practices designed to plan for and present an organization’s products or services in ways that build effective customer relationships.”^[1] Components include (a) a market, (b) an exchange and (c) an offer.  Marketers create offerings and manage exchanges with customers.

The traditional way of viewing the components of marketing is via the four Ps (also known as the marketing mix):

1. Product. Goods, services, ideas or people (an offer).
2. Price. What is given up in exchange for the product. This is usually monetary but not always (an exchange).
3. Place (or Distribution). Making the product available for the customer to purchase.
4. Promotion. Informing and persuading the customer.

Value

Value is at the centre of everything marketing does (figure 1.1). What does value mean?

When we use the term value, we are referring to the benefits buyers receive that meet their needs. In other words, value is what the customer gets by purchasing and consuming a company’s offering. Although the offering is created by the company, the value is determined by the customer.

How each consumer judges the benefits of a product will vary, as will the time and effort he or she puts into shopping. Value, then, varies for each consumer.  Value is what companies need to create for customers.