We have become value providers, not product providers.

The Every Day Life / Post Digital culture is presenting us with new marketing concepts and opportunities. Changing our focus from creating customers through products, and better customers through line extensions. To focusing on direct relations, memberships and extended value.

Two things:

    – Products are worthless until they are introduced to the situation where they create value. (link)

    – It’s not only the content industries (music, film, media) that will be affected by the changes brought by digital communication. As both people’s behaviors, and their accessibility change, more and more business categories will find that the fundamentals for how they create customers, are disrupted.

In the words of Peter Drucker:

    “The purpose of a business is to create a customer.”
    “The aim of marketing is to know and understand the customer so well the product or service fits him and sells itself. ”
    Peter Drucker

This invites companies to think of themselves as value providers, not product providers, to understand that customers are created through members, not features. And that extending customer value comes from within the situation where we are already creating value, not artificial product line extensions introducing foreign situations to the customers.

A simple diagram to introduce some suggested changes:

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One Comment

  1. November 25
    Reply

    Credit you representing details. It helped me in my assignment

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