What is the value equation? Identify its various components and explain how the equation relates to a company's pursuit of competitive advantage

What will be an ideal response?

The task of marketing is to create customer value that is greater than the value created by competitors. According to the value equation, value for the customer can be increased by expanding or improving product and/or service benefits, by reducing the price, or by a combination of these elements. Companies with a cost advantage can use this advantage to gain a sustainable competitive edge in any of the marketing mix elements: product, price, promotion, or place. Knowledge of the customer combined with innovation and creativity can lead to a total offering that offers superior customer value. If the benefits are strong enough and valued enough by customers, a company does not need to be the low-price competitor to win customers. On the other hand, the value equation may lead to a focus on price as the key element of competitive advantage.