One: The concept of â€œvalue-addingâ€ and â€œvalue propositionâ€ is necessary for a firm to be successful in their marketing strategy because it takes a â€œbrand, customer service, packaging, or anything the marketer adds to differentiate it from what might be called the â€œcommodityâ€ version of the product. For example, bottled waters are chemically indistinguishable from tap water. When a company puts a brand on it, it can mean safety, purity, taste, or whatever the company has decided to emphasize. Aquafina by Pepsico and Dasani by Coke are tap water that has been brandedâ€ (Dhar, & Russ, 2011). A company must take their product that is otherwise â€œordinaryâ€ and make into something that is desirable by consumers.
I work for a law enforcement agency and while we are not in the business of selling products, we do in a sense market or use â€œvalue addingâ€ for our citizens. Our non-profit organization wanted to raise funds or our K-9 unit and instead of making an ordinary calendar that anyone can buy in a local store or market, they decide to make a calendar featuring our K-9 unit and their handlers. It was a huge success and the foundation was able to raise the money they wanted too for the K-9 unit and provide items they needed. Sometimes when selling or promoting a product you just have to think outside of the box and find the best way to appeal to your costumers.
Ethical situations can occur in marketing practices if the seller is misleading the consumers to believe their product is something it is not. For example, as mentioned above if Dasani or Aquafina is just â€œtapâ€ water and is advertised as â€œpurifiedâ€ water then the company and marketing executives are misleading the consumer, falsifying their product and committing ethical violations.
Dhar, R., & Winer, R. (2011). Marketing Management. (4th Edition). Pearson Education. New Jersey.
Two: According to Winer and Dhar (2016) value-adding is a differentiation activity in which the marketer takes the commodity version of a product and adds to its value to some group or groups of the buying population. Value-adding can be accomplished through various avenues for example brand, customer service or packaging. The value proposition is a key element of the core strategy. It is essentially a short summary of the value of the product (or service) which includes specific targets, product category, and a clear statement on how the product (or service) is distinguished in the market. Taken together value-adding and the value proposition are essential elements to an efficient and effective marketing strategy. Hassan (2012) states that an effectively tried and true value proposition is the cornerstone for a successfully differentiated business and that a companyâ€™s ability to deliver superior value for its customers is one of the most effective competitive strategies..
In marketing added-value is achieved when the customer receives something that has value to them. Holding true to this notion when creating the value proposition ensures that the marketing practices that follow will align with the firmâ€™s stance on ethics since there is a strong consumer appeal to organizations that act in the best interest of their stakeholders. The value-proposition is essentially a communication strategy to the public, which can thus be used to convey ethical standards. It can also be used to set expectations for the organizationâ€™s current and future behavior (Graham Spickettâ€Jones, Kitchen & Reast, 2004). Taken together, the value-added activities and the value proposition can be used to send a strong message both internally and externally about the firmâ€™s commitment to ethics in both communication and practice.