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What Is Value Based Marketing?


In order for an advertiser to ensure that their marketing message is properly seen and heard in today’s crowded marketplace, the value proposition of their product or service must first be identified and then communicated. By pursuing a value based marketing approach, a company can cultivate the reality and residual halo of long-time, satisfied customers. In the financial services realm, American Express has mined this approach and wrapped it around the simple tag line of “Membership has its privileges.”

Product and Service Value Identification

Economists and marketing theorists spend a lot of time trying to fine-tune the notion of product and services value identification. Michael’ Porter’s Value Chain identifies five primary and four secondary strategically relevant activities that create value. The Japanese have been known to use a zero-time tolerance metric for measuring value, while others focus on the idea that an equally critical component can be the adoption of a value-driven third-party delivery system.

SWOT Analysis

For MBAs and potential investors, one of the oldest and most trusted ways of identifying the underpinnings of a value based ad campaign is a SWOT analysis, which identifies a firm’s strengths, weaknesses, opportunities and threats. Although this analysis applies mainly to the inner workings of a company, it also goes a long way towards isolating the core value proposition that will later be articulated in print, TV, radio and Internet ads.

Finding Strategic Partners

Value based marketing is not just a business-to-consumer marketing proposition. A great deal of time and effort is now also focused on helping businesses use value metrics to find the right strategic partners. A leader in this regard has been the American beef industry, which has devoted a great deal of time and analysis to helping beef producers funnel their cattle products to the right suppliers. For cattle farmers to find the right distributor, value based marketing questions that must be asked include ones related to health program concerns, feedlot issues and carcass data.


Resources – Marketing Management MBA Lecture Notes, Retrieved August 26, 2010 from

San Diego State UYniversity – Value-Based Marketing Systems and You, The Producer, Retrieved August 26, 2010 from

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