Colin Lewis wrote an article on value creation for Marketing Week.
“…It’s clear that marketers – and humans in general – have different definitions of value compared to economists. What consumers truly value, however, can be difficult to pin down and psychologically complicated…”
“What is value creation? The more formal definition of value creation is any process that creates outputs that are more valuable and have greater usefulness than its inputs. Value creation in the past was a function of economies of scale, mass production and repeatable activities.”
“But this notion of creating value has changed. Technology has allowed brands to create new value by doing something entirely new, creating more value by delivering more for the same price or create better value delivering better combinations.”
“The future of value creation by brands will come from the most creative, innovative and sustainable combinations of new ingredients, technologies and processes.”
“Where will all these value combinations come from? From a diversity of ideas, driven by a diversity of people. And, who is already telling us that they want diversity of choice, whilst not being harmful to the environment? The consumer—the true arbiters of value.”