The Exclusive Value Principle – A Concept for Marketing
| Published date | 01 September 1994 |
| DOI | https://doi.org/10.1108/10610429410067397 |
| Pages | 08-18 |
| Date | 01 September 1994 |
| Author | John C. Groth |
| Subject Matter | Marketing |
Introduction
Extremely high margin with low volume.
Or, a meager margin with immense volume.
Pure nirvana: unbelievably high margins with
stupendous volumes! The exclusive value
principle takes on great import in the search
for wealth through the marketing of products
or services having special characteristics that
fulfill unique consumer “psychic” needs.
Psychic needs can create enormous margins.
Understanding the exclusive value principle
and the role of psychic needs are important in
developing and executing a strategy that
creates value to the firm. That prompts this
article.
Clever financing of a firm, modern
production facilities, high efficiencies, and
valuable human resources are all crucial to
success. However, none of these ingredients
of success will overcome the core element
essential to value creation. The value of a
good or service is created in the marketplace.
Sensing and fulfilling a need and doing so
with an attractive positive margin is the origin
of created value. A firm must sense and fulfill
a need. The marketer, strategist, and leader are
charged with accomplishing that task. If they
cannot do that, all the resources are wasted
and there is no reason for the firm to exist.
Sometimes a firm can influence what the
customer will pay to satisfy a need. On other
occasions, it is possible to even create,
simulate, or help define a need for a customer.
The amazing fact is that some of the highest
margins obtainable in fulfilling the needs of
customers derive from fulfilling what we term
psychic needs.
We are drawn to this subject by the
unusually attractive margins available
through psychic need fulfillment as opposed
to pure utility fulfillment. In this article we
focus on meeting special psychic needs and
garnering immense margins in the process.
Others have addressed such issues before and
many marketers have reaped the benefits of
customer psychic fulfillment. However, this
article codifies a unique marketing and
valuation principle: the exclusive value
principle (EVP). It also provides an overview
of psychic dimensions and a psychic market
assessment matrix, both of import in
marketing. These are useful in identifying,
evaluating, targeting and focussing marketing
strategy and plans. Psychic dimensions also
take on importance in product/service design
and all functional steps essential to fulfilling
customer needs.
Psychic needs are not essential for
customer survival or even maintenance of
PRODUCT
&
BRAND
MANAGEMENT
8
The Exclusive Value Principle –
A Concept for Marketing
John C. Groth
Journal of Product & Brand Management, Vol. 3 No. 3, 1994, pp. 8-18
© MCB University Press, 1061-0421
The author wishes to thank anonymous
individuals for comments and suggestions and
recognizes the assistance of S. Cade.
To continue reading
Request your trial