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What is Value-Based Marketing?

Jim B.
By
Updated May 16, 2024
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Value-based marketing is the process by which a company attempts to gain the maximum impact from its marketing strategies and initiatives. Ideally, a company can reach the largest amount of potential consumers and persuade them to purchase its product with a streamlined, cost-effective marketing approach. This may be achieved by utilizing technological advances like the Internet and other computer applications that allow marketers to reach large audiences with minimal cost. In addition, value-based marketing may be accomplished by a company that creates a consistent brand and a product that encourages positive word of mouth from consumers.

Business as a whole has changed rapidly along with the ever-increasing amount of marketing options available to companies. It is highly unlikely for a company to be able to compete on a significant level without embracing some sort of aggressive marketing strategy. By the same token, technology has allowed companies to do a lot of advertising and selling with relatively little cost attached. Value-based marketing is all about getting the absolute most from a marketing budget.

The concept of value-based marketing has evolved from the realization that marketing and sales are increasingly correlated to one another. In the past, marketing initiatives were more focused on non-monetary functions like public relations than they were with sales. Marketing to customers, in a simpler, less-competitive time, was a simple process of presenting the customer with the product and showing him where to go to get it. In modern times, marketing has become a powerful tool from which practically all income is generated.

It is impossible to discuss value-based marketing without connecting it to the rise of technology. For a minimal cost, companies can reach out to consumers around the globe via software applications or Internet advertising. The drawback is that there is so much of this type of advertising available from so many companies that it is easy for a single company's efforts to get lost in the shuffle. Companies must realize that even a cheap marketing campaign is costly if it fails to produce some sort of value.

For that reason, value-based marketing initiatives must be focused and consistent efforts over a period of time. Through consistency, a company can build up a brand that resonates with consumers and allows the message to get across to them with minimal effort and cost. It is also important to realize that a marketing campaign is only as effective in creating value as the product that the company has to offer. The best value in marketing may be simple word of mouth, with one consumer singing the praises of a specific product to another.

SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Jim B.
By Jim B.
Freelance writer - Jim Beviglia has made a name for himself by writing for national publications and creating his own successful blog. His passion led to a popular book series, which has gained the attention of fans worldwide. With a background in journalism, Beviglia brings his love for storytelling to his writing career where he engages readers with his unique insights.
Discussion Comments
By Melonlity — On Feb 11, 2014

This concept is a lot more difficult than it sounds. For example, how can one gauge if Internet marketing is really working? Most people ignore those ads, so is it worth the time and money to make something that's more attention grabbing or will people fly past that expensive, shiny new add as well? Will they be annoyed by it and get angry when they notice it, thus swearing to never deal with "that blankety-blank" company because of an intrusive, browser-slowing ad?

In other words, at what point does throwing money at an advertising medium make no sense?

Jim B.
Jim B.
Freelance writer - Jim Beviglia has made a name for himself by writing for national publications and creating his own...
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