“You need to understand all factors that customers take into consideration in accessing value, and you have to understand the relative importance that customers place on each factor. In the absence of this understanding, you are shooting in the dark. They always consider value relative to alternatives. These alternatives may not be other products or systems, but other ways of accomplishing the same goals or doing nothing at all… By understanding competing alternatives, you will also be able to focus on points of differentiation relative to these options and ignore points of parity that clutter and dilute your value proposition.
Value is a mind-set. The value mind-set is grounded in the belief that the sole purpose of a company is to create value for its customers and to be compensated equitably for its efforts. Therefore, everything the company says and does should revolve around its customers, not its products.”