Adding Value vs Creating Value

1 April 2008

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Recently, I had an interesting discussion with a colleague about the role of marketing. Essentially we both agree, marketing should not be the cherry on top - it should be a process which starts with the creation of the product or service.

What got us talking about this topic is the placement of a fellow student of mine. I was telling people at work how he had a great placement this year - he works for a Fortune 500 company, gets a full time salary, a phone, a laptop. And his role? He gets to play with their latest gadgets and come up with ways to bring them to market. I still stand by my original assessment, that’s an amazing job for a placement student.

But then my colleague said he wouldn’t like that job, as it’s counter productive. This job means he is adding value, rather than creating it. The cherry on top if you will, or the meatball sundae as Seth Godin calls it. And I think he is spot on. It should be about creating value, not adding it. Adding value is the old way of marketing, which is centered around the producer. Creating value is the new way of marketing, it’s about the consumer.

That doesn’t take anything away from this placement being pretty sweet, though!