4 ms·
Ok, let me be less vague: If business X is 5% cheaper than business Y then value for the customer is created if they go to business X rather than Y. In your e
by rfergie 12y ago
Ok, let me be less vague:
If business X is 5% cheaper than business Y then value for the customer is created if they go to business X rather than Y.
In your example, no value is created at all if the product never sells no matter how good it might be in theory
- jacquesm 12y agoOk, Let me be more explicit: Typically marketing is used to put more expensive inferior products in the hands of more people rather than cheaper, higher quality products in the hands of more people. So in that example value is destroyed, which is a ton easier (and much more likely) as a result of marketing than creating value (even if it is possible it likely is not going to happen, those that engage in marketing are rarely philanthropists).
- rfergie 12y agoI'm not sure I agree about "typically" although I certainly agree that marketing can be used in that way. Why is value much more likely to be destroyed as a result of marketing? Per unit of product I can see that this is the case as some of the value must be spent on marketing, but if more product is sold than would have been otherwise extra value can be created overall. Engineers are also not philanthropists. I don't see what difference this makes
- jacquesm 12y ago> Per unit of product I can see that this is the case as some of the value must be spent on marketing You got it perfectly. > but if more product is sold than would have been otherwise extra value can be created overall. But selling product does not equate to value creation, it equates to an exchange. I'm not sure why I am incapable of communicating this point more clearly, but value creation is a totally different thing than increasing turnover or profits or taking more or less money out of the hands of consumers. Maybe there is a double meaning to this that I'm not aware of but for me 'value creation' is a fairly narrowly defined term and marketing does not enter into it. > Engineers are also not philanthropists. I don't see what difference this makes Engineers don't claim to improve the world by marketing either, neither do they claim to 'create value' when they write a piece of software. However that is much closer to my view on value creation than the view that a marketeer creates value by getting a consumer to spend money on some product.