Value marketing is a powerful strategy for businesses to attract customers and build trust. A new dimension of value has emerged in recent years known as social value. But what is social value in marketing?
Social value is the positive impact and value that a product or service brings to society as a whole, beyond mere functionality. In this article, we will explore the concept of social value in marketing, its significance, and the benefits it offers to businesses.
Types of Value Marketing
Before diving into social value, let’s discuss the different types of value in marketing.
- Functional Value: refers to the utility and performance that a product or service provides, addressing functional needs and solving problems.
- Economic Value: economic value relates to the financial benefits customers derive from a product or service, such as cost savings or return on investment (ROI).
- Psychological Value: refers to the emotional and intangible benefits that customers derive from a product or service. These include sense of status, self-expression, and enjoyment it provides.
- Social Value: social value emphasizes the impact and value a product or service brings to society as a whole.
According to a survey conducted by Neilson in 2016, 56% of respondents indicated that they considered “the reputation of a brand for its social value” as a significant factor influencing their purchasing decisions.
What Are Social Values?
Social values encompass a set of principles and attributes that contribute to the betterment of individuals, communities, and the environment. When applied to marketing, social values focus on how products or services can have a positive impact on society.
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Here are some key characteristics of social values:
Value marketing emphasizes products or services that serve a genuine purpose and fulfill societal needs. They provide tangible benefits that enhance people’s lives and make a positive difference.
Value marketing recognizes the importance of accessibility and affordability. It aims to offer products or services at reasonable prices, ensuring that a broader range of people can benefit from them.
Another attribute is a strong emphasis on ethical practices. It involves businesses operating in an ethical manner, adhering to fair labor, sustainability, and ethical sourcing.
This type of marketing involves transparent communication about the impact of products or services. It allows customers to see and understand the positive effects they contribute to society, fostering trust and loyalty.
Value marketing emphasizes sustainable practices that minimize negative environmental impacts and support long-term ecological balance. It encourages businesses to consider the environmental footprint of their products or services.
Benefits of Social Value Marketing
Embracing value marketing can yield numerous benefits for businesses. Let’s explore some of the key advantages it offers:
Gain a Competitive Advantage
By incorporating value into their marketing efforts, businesses can differentiate themselves from competitors. Demonstrating a genuine commitment to values can attract socially conscious customers, providing a unique selling proposition.
Improve Your Business
Value marketing encourages businesses to evaluate their practices and make improvements. By aligning their products or services with values, companies can enhance their reputation, strengthen customer trust, and foster long-term relationships.
Value marketing enables businesses to have a broader positive impact on society. By focusing on the value they create, organizations can make deliberate choices that lead to meaningful change, benefiting individuals, communities, and the environment.
Social Risk Management
Taking values into account mitigates the risk of negative or unintended outcomes. By considering the social impact of their actions, businesses can proactively manage potential risks and ensure responsible practices throughout their operations.
Involve People Who Matter Most
Value marketing emphasizes the importance of engaging with stakeholders and considering their perspectives. By involving customers, communities, and other relevant stakeholders in decision-making processes, businesses can gain valuable insights, build strong relationships, and deliver products or services that truly meet their needs.
Final Words: Social Value Marketing
In conclusion, social value has become an integral part of marketing. By incorporating values into their strategies, businesses can create products or services that contribute to the well-being of society. Embracing value marketing offers a competitive advantage, as 70% of consumers consider it significant for brands to express their stances on social and political matters.
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