Value

VALUE

val·ue (v l y )

n.

1. An amount, as of goods, services, or money, considered to be a fair and suitable equivalent for something else; a fair price or return.

2. Monetary or material worth: the fluctuating value of gold and silver.

3. Worth in usefulness or importance to the possessor; utility or merit: the value of an education.

4. A principle, standard, or quality considered worthwhile or desirable: "The speech was a summons back to the patrician values of restraint and responsibility" (Jonathan Alter).

In marketing the term value is harder to define. That's because every prospect interprets value in their own terms. It's subjective, and therefore difficult to quantify. Value is whatever the customer thinks it is. Value is in the eye of the beholder.

Take the example of a consulting firm providing web design services to a customer. If the organization has highly skilled developers and designers and thinks that as the value they provide to the customer, they are wrong. For the client, value is more like – "what this website is going to do for me?" and what they are going to gain in terms of increased sales, reduced cost, saving time and so on.

If you are increasing or decreasing something that your customer wants increased or decreased, then you are creating value. Can you save time, money and increase sales for your customer? These