Value Force: How to win on value proposition and not just price

Tweet A recent question we received is a fairly common concern we hear from readers — customers only care about price — what do I do? So we’ve decided to answer it here on the MarketingExperiments Blog, since the answer might help you as well. And if you have a question you’d like answered on the blog, let us know. Thanks for the outstanding workshop on value proposition. I agree that value propositions are the core to growth for any brand but the challenge I have is marketing products in a highly commoditized and fragmented category (olive oil).  Price is such a dominant element of the value proposition that it’s difficult to compete unless you’re competitive on price, which is a no-win strategy. How have you seen other brands effectively create and market a value proposition that did not rely strongly on price? ” – Brian   First, let me start by defining terms, which might help. Price is not an element of the value proposition. Price is part of the cost force of the buying decision. For every purchase customers make, they weigh the cost against the value. If the cost is too high, they will not purchase. So, essentially, a company that does not have a strong enough value force (Vf) must reduce the cost force (Cf) to get the sale. All that stands between you and the Barbarians at the gate is a good story As Brian mentions, it is very difficult to succeed by selling on price alone.…
Source: Marketing Experiments
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