Why is value-based marketing the future of startups?
Value-based marketing has been the future of business for centuries now. It is not unique to startups. Because people do not buy products because of their great technology or features and they just want to possess the product or use a specific service.
Why people buy new technology?
People buy-products or consume a service because they are either trying to perform a job or want to perform a job. And they look for products that best serve their need in that situation. But what does that mean- "best serve their need"? The situation may determine whether the nature of need is Latent or Blatant. It could be Critical or Aspirational.
If the need is Blatant and Critical as against aspirational and latent the value the customer is looking for can be radically different.
And in order to service the job keeping in mind the nature of the need, you would need to figure out what is the problem and its nature you need to solve.
The nature of the problem can affect the urgency and the value the customer sees will depend on how effectively you address the underlying problem. Because people want to do the job in the best possible manner with the least amount of pain and significant gain.
Innovation is the key.
As an example would you hire an Uber cab just because they have a great app or their cabs looks so good? You won't unless of course, you need a cab to go somewhere. That is the job you are trying to perform. Let us say that you have an emergency and you must reach the hospital ASAP. Would you wait for a cab that is spic and span or is the model you prefer to travel in? You won't. The job is functional in nature, the need is blatant critical and the problem to solve is reach the hospital in the shortest possible time. So a cab service that ensures that will provide the best value and will be chosen. And now if the cabs are also super clean and of a good brand then that is the additional gain you have and you will build a bias towards that brand. Because for you the cab service delivered the best possible value. And you may not even mind paying a higher price because of the value you received.
To truly understand what is value-based marketing I highly recommend that you watch this clip
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