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  • Tatiana Johnson

VALUE-DRIVEN MARKETING

Why value should come first and how it can lead to disruptive innovation

Credit: Roy Lichtenstein

CHAPTER I: LET'S TALK VALUE


Not recognizing the difference between price and value can be abysmal just like missing the difference between Monet and Manet, or face value and real value.


Understanding, prioritizing and driving the right value is where opportunity sits. And in a ‘shared economy’ – price per share has become just as important as market share.


From shared values in storytelling to shared rides in tech, marketing investment should not be considered a cost anymore. Value-driven marketing doesn’t cost money, it creates value.

As reported by Forbes -- Intangible assets such as brand value, customer equity and perceptions of innovation now make up over 80% of shareholder value and increasingly drive stock price.


This global survey spanning 5000 CMOs suggests brand and enterprise value are directly correlated and should carry the same weight in a brand’s Big Picture and Marketing Plan. Marketing is not a luxury, it is the means to an end. The bottom line is directly connected to the top of the funnel. Looking at value from all vantage points, from the CMO to the CFO matters more than ever as suggested by Jim Stengel’s book, Growth.


Value-based storytelling as proven by Nike is just as important as the storytelling behind growth rate and gross margins. For a reason Nike was recently named fashion industry leader in brand value, with a valuation of $32 B three times that of Adidas. Brand value that translated into enterprise value with a record-breaking, online sales increase of 31% after Kaepernick’s ‘Dream Crazy’ campaign.

Using a value-driven approach paints a much more agile, effective and measurable framework. We call this proprietary framework, Smart Growth. Smart Growth is all about disruptive innovation – thinking and acting fast with existing or low-hanging resources and using the multiplier effect as biodiesel. As leaders, our soul function is to drive effective growth.


Simply put, there are two ways to drive growth: by adding or by multiplying. Our framework identifies the right value properties to invest resources at the right time in order to drive the fastest and most sustainable output possible with the least input. The total should always be greater than the sum of its parts.


With a value-driven approach, outcome carries more weight than the input. The reward is greater than the risk – and the more trials the better the result. By being value or outcome oriented, we turn off risk aversion and are able to make bolder and faster decisions. More importantly, the team can learn to move as a single unit, optimize their priorities and focus on what really matters. With a value-driven approach my team was able to report 300% ROI growth last year with a marketing budget that represented less than 3% of total sales at one of the fastest-growing ad tech companies in LATAM.

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