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Value-based Marketing as “To Be or Not To Be” on the market

Written by PBLINK Editor | 07/09/18 08:34

Instead of an introduction to this article, can I ask you one question? How much will you appreciate world-class tips and facts that help you put your business to the next prosperous level?

Value-based marketing is a strategic topic and is discussed in many successful groups including top-class sport, as I have a privilege to point details with Tomasz Kuszczak, ex-goalkeeper of famous Manchester United; Grzegorz Rasiak, a footballer of Premier League and Remigiusz Jezierski, a former Polish footballer and a current commentator of Canal+. Hence read, note, implement.

10 years ago, I offered the marketing strategy to my clients on added value. This was always a constant point of my marketing tactic. Sometimes the clients looked at me and said, ‘But what is this added value?’ Today, 10 years later, added value is a “must”; it is something without which the company, which wants to make prosperous marketing operations, and wants to build a portfolio of loyal clients, cannot exist without.

Nowadays the added value is not treated as added value, but as the main value. And therefore, the marketing based on values is now the strongest way of tackling marketing and strategy actions.

Why value-based marketing is so important for your business?

Prior to explaining in detail why is beneficial for your business, it is important to realise that the merciless statistics from Forbes are that:

  • after the 1st year 20% of businesses will cease to operate
  • after 5 years 50% of businesses
  • and after 10 years 70% of businesses will cease to operate

And the major cause that the businesses are not on the market, it is a very weak marketing, because what we call Business Mastery is made from 5 elements:

  • An Effective Business Map
  • Constant & Strategic Innovation
  • World-Class Marketing
  • Sales Mastery Systems
  • and Financial & Legal Analysis

Generally, businesses operate, that if something wrong happens the quickest cuts are made in marketing. And simultaneously the investors complain: “I’m 10 years on the market, I’m selling the same product for 10 years, the product is of high quality, I have a competition which has weaker product but a much better position on the market.” Most of the time, the cause behind the competition’s victory is this World-Class Marketing. You may also still contemplate what to do with your business, but the reality is that the clock is ticking, and you must make an action. Because it is important to realise that you already conduct two companies:

1st: the one that you conduct today

and

2nd: that company that you would like to be in a few years.

And the whole art is in that to minimise the gap, differences between the company that you have today and the company you would like to lead. Certainly, value-based marketing is that something that if you will provide it well with your marketing consultants, then for sure you will achieve your highest business aspirations. It is also important to realise that marketing is not just images and colours, or one post on the company’s wall/funpage. It is the shift of your company/product/service to another level of beneficial language for your client, it is a kind of translation. And the more it is give in emotional way, the stronger it is.

The last report of the Charter Institute of Marketing states that 87% of companies revealed there is now more pressure for brands to act ethically and provide a role model for society. And this is very important to find such opportunities in your marketing activities, such partners which help your brand to become a role model in many ways.

23% versus 23% : Survive versus Prosper

Another factor that has to be realised (and I repeat this for the past 10 years), indicated by a study of PricewaterhouseCoopers:

23% of business’s resources, money and energy goes into the survival on the market, and other companies use the same 23% of resources, finance and energy for adding values to the market, which leads to their success. 

Showing this data, I direct the attention of entrepreneurs that is better to spend this 23%  to focus on development rather than on survival, because it is more effective. What is more important, that brands, which stick with and communicate very well their values simply gain loyal customers. DM2 Agency, which I represent, has this privilege that worked with and has in its portfolio 2 companies (GSK & Nestle), which are in the top 5 global ranking of companies (Fit for Purpose Index 2018) that best create and express their values and mission in regards to societal, ecological, economical aspects by including their marketing.

74% UK’s client wants matched values

How to apply to your business? Have a look at statistics: It is since clients that you served well, there is 50% more chance that he/she will use it again or from new service, product vs 14% when you gain a new client.

Another aspect is worth considering is that millennials which are at the moment the biggest group of your prospective clients, they take in consideration this aspect. And as studies show when it comes to 74% British group of millennials, 81% French and 68% Germans. It is important for them that values of the company match with their values.  It is a way to engage you target group. And at the same time, you have to choose values that relate to your business specifically to be trustworthy. Strategic game…

And here we talk a lot about values, and amongst the readers there can be found a sceptic which will say ‘Well okay, but all that counts is sales’. However, in no way this is in the conflict with the short-term goals, because as earlier it was written that you are operating 2 companies, the current one and more successful you want to have, and therefore you must have long-term goals. And therefore, you need this value-based marketing as it will help with these kind of goals as it will be balanced with the short-term goals for sales.

Significance through Partnership

In building value-based marketing another key factor is cooperating with valuable partners.

“Good content isn’t about good storytelling. It’s about telling a true story well” Ann Handley

For this reason, therefore it is crucial to pay attention if there are authorities, celebrities. And why is it essential element? Because it is an opportunity to create content interesting for the media. And the media leads you to produce external “reason why” your company is on everyone mouths.  This independent content about your business is 50% seen more credible than you would post your own materials. In other words, it sounds more credible the relationship put through papers or radio than if you would write information about yourself on your companies’ blog or on your social media.

The second reason, if not the first for your business, is that cooperation with experts and celebrities satisfies very important clients’ values. This is psychology of marketing, which is important to remember: Significance, i.e. having a feeling of being important. In the situation when marketing operations are based on the values, and valuable partners, celebrities, high authorities are appearing, hence you are allowing your clients to interact with those individuals. In this way you are meeting their need of Significance. This is very substantial for your clients, therefore for your business.

“The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself” Peter F. Drucker