Value-Based Marketing Strategy Pricing And Costs For Relationship Marketing [Paperback]

This book offers novel methods for developing Value-based marketing strategies aimed at increasing revenue and profits. The Value concept relates all the benefits offered by a product with its price and the effort required to obtain it. Global competition requires managing Value rather than individual products or brands. This fosters customer loyalty, and provides a solid basis for relationship marketing. The book takes a practical, step-by-step approach to explain: How the forces of supply and demand interact with customer Value; The relationships between benefits, quantities, prices and costs; How to develop effective competitive strategies; How to manage inventory and product mix efficiently; How to apply the Value model to increase profitability, and solve major marketing problems. The book sets forth several new approaches for marketing and pricing decision-making: The concept of Value integrates marketing, finance, economics and accounting, in order to link Value-based pricing with relationship marketing. The law of supply and demand is restated with quantity as a function of Value instead of price; this makes it a more realistic and practical tool for understanding today?s highly competitive business environment. The confrontation and complementation concepts provide useful tools for guiding marketers into new segments, and pricing products accordingly. They play a key role for devising win-win strategies, not only with customers, but also with competitors. The Value Matrix is a practical tool for understanding the product?s positioning, analyzing its competition, setting prices and developing strategy. It aims at achieving an optimal balance between customer loyalty and product mix profitability. The Value Life Cycle illustrates how Value acts as a force that constantly changes revenue, providing insight for developing strategies in each phase of the product?s life cycle. Analogies with physics illustrate how policy constraints create resistanclsß