Blackblot Value-Marketing Model
The goal of the product marketing discipline is to generate product awareness, differentiation, and demand. There are three principal methods to achieving this goal and each of them emphasizes one of the various aspects of the product: price, features, or value. The value emphasis method is called value marketing.
The Blackblot Value-Marketing Model is a collective name for several work models and their supporting definitions. This model's components present, map and structure the process and different activities necessary to perform value marketing through the use of marketing messages.
For more information, please read the "Value-Marketing Model" chapter in the Blackblot PMTK Book.
The following table summarizes notable concept definitions used in the Blackblot Value-Marketing Model.
| Blackblot Value-Marketing Model – Concept Definitions (Summary Table) | |
|
Value Formula |
Value = Benefits - Costs[customer] |
|
Value |
Worth derived by the customer from owning and using the product. |
|
Benefits |
Product features that are desirable to the customer. |
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Costs[customer] |
Aggregate expenses incurred by the customer from buying and using the product (essentially "Total Cost of Ownership" or TCO). |
|
Perceived Value |
Unsubstantiated estimation of worth that the customer obtains or could potentially obtain from owning and using the product. |
|
Actual Value |
Measured and validated worth that the customer or similar customers factually obtain from owning and using the product. |
|
Product Quality |
Market's perception of the degree at which the product can consistently meet or exceed customers' expectations. |
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Customers' Expectations |
Hopes for deriving benefits from the product and establishing a rewarding relationship with the vendor. |
|
Resultant Value Proposition |
Implicit promise a product holds for customers to deliver a fixed combination of gains in time, cost and status. |
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Actual Resultant Value |
Fixed combination of gains in time, cost and status the product factually delivers to customers. |
|
Relative Value Proposition |
Implicit promise a product holds for customers to deliver a desired ratio of benefits and costs[customer]. |
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Actual Relative Value |
Ratio of benefits and costs[customer] the product factually delivers to customers. |
|
Perceived Value Formula |
Perceived Value = Resultant Value Proposition + Relative Value Proposition |
|
Actual Value Formula |
Actual Value = Actual Resultant Value + Actual Relative Value |
|
Superior Perceived Value |
State where customers perceive the product gives a net value more positive than its alternatives. |
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Superior Actual Value |
State where the product factually gives customers a net value more positive than its alternatives. |