Business Marketing Strategy Rev1


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Business Marketing Strategy Rev1

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Business Marketing Strategy Rev1

  1. 1. Business Marketing Strategy
  2. 2. Customer Value Management <ul><li>What does it mean? </li></ul><ul><ul><li>Delivering superior value to target markets and customers. </li></ul></ul><ul><ul><li>Getting an equitable return on the value delivered. </li></ul></ul><ul><li>How do we achieve it? </li></ul><ul><ul><li>Develop a market strategy. </li></ul></ul><ul><ul><li>Manage our market offerings. </li></ul></ul><ul><ul><li>Guide new offering realization in the marketplace. </li></ul></ul><ul><ul><li>Gain customers. </li></ul></ul><ul><ul><li>Sustain customer relationships. </li></ul></ul><ul><ul><li>Devise solutions that actually deliver superior value. </li></ul></ul><ul><li>So, how do we achieve it???? </li></ul><ul><ul><li>To get an equitable return, we must be able to persuasively demonstrate and document the superior value our offerings deliver. </li></ul></ul>
  3. 3. Customer Value Management <ul><li>OK, so what does all that mean? </li></ul><ul><li>It means being market-oriented. </li></ul><ul><ul><li>Translating the Features of our offerings. </li></ul></ul><ul><ul><li>Translating the Benefits of our offerings. </li></ul></ul><ul><ul><li>And, knowing what our offerings are worth to the customer. </li></ul></ul><ul><li>Imagine this position for your business: </li></ul><ul><ul><li>Being the recognized industry leader in knowledge of the customers’ requirements and preferences, and what it is worth to fulfill them. </li></ul></ul><ul><ul><li>Knowing the worth in monetary terms of the technical, economic, service and social benefits a customer receives in exchange for the price it pays for our market offerings. </li></ul></ul><ul><li>There is no mass-market, per-say, buy rather a multi-niche market. Where do we fit in & what is our niche? </li></ul><ul><li>Market share has very little diagnostic value, whereas share of customer business offers greater diagnostic value. </li></ul>
  4. 4. Product Knowledge <ul><li>Building a value model of our product offerings against what the customer perceives as the next-best alternative (competing product). </li></ul><ul><li>From the customers perspective: </li></ul><ul><ul><li>Identify the points-of-parity between our product offering and the next-best alternative. </li></ul></ul><ul><ul><li>Identify the points-of-difference (negative & positive) between our product offering and the next-best alternative. </li></ul></ul><ul><ul><li>Identify the points-of-contention (these will be negative!) between our product offering and the next-best alternative. </li></ul></ul><ul><ul><li>Focus the value model on the points-of-difference and points-of-contention. Don’t focus on points-of-parity, they are not relevant. </li></ul></ul><ul><ul><li>Construct a value word equation – express in explicit & simple words and mathematical equations how the customer either makes more money or saves costs with our product offering. </li></ul></ul><ul><ul><li>Focus on what the customers top priorities are and not what we value in our product offerings. </li></ul></ul>
  5. 5. Tools <ul><li>Use the customer value model results to create value-based sales tools: </li></ul><ul><ul><li>In-use case histories; Customer case studies with measurable results. </li></ul></ul><ul><ul><li>Customer & Industry reviews; </li></ul></ul><ul><ul><li>Flexible Market Offerings; </li></ul></ul><ul><ul><li>Solutions with options provide Customers with: </li></ul></ul><ul><ul><ul><li>Greater choice. </li></ul></ul></ul><ul><ul><ul><li>More customized services. </li></ul></ul></ul><ul><ul><ul><li>Superior value by better meeting their individual requirements. </li></ul></ul></ul><ul><ul><li>Solutions with options provide the company with; </li></ul></ul><ul><ul><ul><li>Lower costs in service delivery. </li></ul></ul></ul><ul><ul><ul><li>Greater latitude in pricing decisions, even for the stingiest customer. </li></ul></ul></ul><ul><ul><ul><li>A platform for consultative selling. </li></ul></ul></ul>
  6. 6. Tools <ul><li>Customer Value Propositions that create a resonating focus on the customers top priority & top concerns. </li></ul><ul><ul><li>This requires us to understand our customers business and help them better understand their priorities and concerns. </li></ul></ul><ul><ul><li>Identify the key point about our offerings (value proposition) that addresses the customers top concerns & helps them solve a problem they face. </li></ul></ul><ul><ul><li>Know how our product offerings differentiate from the next-best alternative (our competition) – focus on positive differences that are important to the customer. </li></ul></ul><ul><ul><li>Don’t drive off of perception (what the customer tells you); drive off of data (confirm what the customer tells you). </li></ul></ul><ul><ul><li>Constructing & delivering a value proposition requires knowledge of how our product offering specifically delivers superior value to customers compared to the next-best alternative. </li></ul></ul><ul><ul><li>A persuasive value proposition gives the company the chance to engage the customer in a dialog about the product offering. </li></ul></ul><ul><ul><li>We have to be able to substantiate what we say. Do we have the people, processes & resources to back up what we say our offerings are? </li></ul></ul>
  7. 7. Business Knowledge <ul><li>Market Orientation: </li></ul><ul><ul><li>Success – creating customers. </li></ul></ul><ul><ul><li>Profit – customers are the source of profits. </li></ul></ul><ul><ul><ul><li>Profit is an outcome, not an objective. </li></ul></ul></ul><ul><ul><li>Customers – ensures survival and fuels success. </li></ul></ul><ul><ul><li>Green Money – lowest bid negotiated down further. </li></ul></ul><ul><ul><li>Gray Money – cost savings offered by suppliers (customers often do not have the expertise, time or resources to measure results realized from promised cost savings). </li></ul></ul><ul><ul><li>Data light & assumption heavy offerings vs. data heavy & assumption light offerings (it doesn’t matter what we say, but what we can prove). </li></ul></ul><ul><li>Customer Segmentation Analysis: </li></ul><ul><ul><li>Partitioning markets into groups of customers with similar preferences. </li></ul></ul><ul><ul><li>Is the market segment growing, stable or declining? Get a clear vision of the market outlook. </li></ul></ul>
  8. 8. Business Knowledge <ul><li>Customer Segmentation: </li></ul><ul><ul><li>Validate your segmentation scheme: </li></ul></ul><ul><ul><ul><li>Measureable - Can the size, growth and market potential of a segment be measured? </li></ul></ul></ul><ul><ul><ul><li>Profitable – How profitable is the marketing effort likely to be? What is the payoff from each segment? </li></ul></ul></ul><ul><ul><ul><li>Accessible - Can segments be identified and reached successfully? </li></ul></ul></ul><ul><ul><ul><li>Actionable – Can effective marketing and sales programs be formulated for attracting and serving the segments? </li></ul></ul></ul><ul><li>Forecast of Market Demand: </li></ul><ul><ul><li>Define the market, i.e. overall market place. </li></ul></ul><ul><ul><li>Divide the total market into its main components, i.e. market segmentation. </li></ul></ul><ul><ul><li>Project changes in demand for each main component over a defined timeframe to substantiate a baseline forecast. </li></ul></ul><ul><ul><li>Understand the most critical assumptions and gauge the risks to the baseline forecast. </li></ul></ul>
  9. 9. Enthusiasm <ul><li>Successful competitive strategies teach buyers unique ways to achieve their goals. </li></ul><ul><li>Successful strategies focus resources on important buyer problems. </li></ul><ul><li>Sustaining a competitive advantage requires continually driving buyer learning. </li></ul>