Through effective and considered marketing, the value of a product or service is defined through a customers perceived value. This includes their subjective opinion of the associated benefits of the product or service compared to its retail cost. This perceived value Is also considered relational as It Is In direct comparison with their perception of competing products and services. Effective marketing considers 7 main categories; product, price, place, promotion, people, physical evidence and processes. When all 7 categories are thoroughly considered the perceived value of a product increases.
The company Apple started by Steve Jobs exemplifies a strategic and effective marketing approach that has created some of the highest valued products in the electronics market. A product is first created as a need-satisfying market offering to customers. Apple creates value within its product through a simple to use Interface and stylish range that meet customer needs. A price must be decided for the product or service they are offering. In the case with Apple, their products are In the higher end price bracket as their products have a high-perceived value which means consumers are willing to pay more for the products.
The place Is where a product or service Is available to its consumers. Apple have a multitude of easily accessible and interactive stores that offer customer support through one-on-one interactions that create value for it’s customers knowing there is a network of support for the product, when Apple devised its retail strategy in the past, the company had a single overriding goal; to launch stores that were unlike anything that customers associated with the computer industry (Mango 2010, 68-112).
Promotion Is a communication tool not only to Inform customers but also to Interact with them for long-term benefits. The primary purpose of promotion Is to communicate with customers. One of Apple’s promotions that add value Is the university student discount offered throughout a range of their products to satisfy customers. Physical Evidence is mostly intangible and aims to raise value through ways in which a customer can judge.
This is seen in an Apple store as your able to interact with a lot of their products allowing for customers to have a higher perceived value, as they can interact with the product they are about to purchase. The process is based on both production processes and service processes. Company employees an create a positive service experience for consumers through knowledgeable assistance. A service process Apple offers is the genius bar located inside Apple stores, which offer customer interactive support and guidance.