Presentation of the workshop on "Value based marketing for B2B" by Magnus Billgren conducted at SPM Summit India 2023 at IIM Bangalore

1. Value based marketing for B2B
Product Summit
Bangalore 2nd of March 2023
by Magnus Billgren, tolpagorni thought

2. Talk Show host productbeats.com
CEO tolpagorni thoughts AB
Fellow and Founding Member ISPMA
• Mail: magnus.billgren@tolpagorni.com
• Linkedin: https://www.linkedin.com/in/billgren/
Helping giants like:
Spotify, Volvo, Ericsson, Saab, Würth, Cytiva, Atlas
Copco, Klarna, PayPal, Worldline, Trustly, Canon…
And scalers like:
Inriver, RT-Labs, Zebware, Ålö, Netinsight, Tobii,
Barium …
Magnus Billgren

3. Professionals
working
within:
Product Management
Success teams
Growth teams
Portfolio Management
Technical Documentation
Product Marketing
Product Pricing Management
Portfolio Sales Support
This session designed for

4. Multiple users involved
Hard to get the holistic understanding
The value delivery not easily understood and monetized
Deployment a part of the product
Multiple problems solved
Long procurement period
…
Why is it so hard with b2b tech marketing?

5. Aware Inspired to solve
problem
Understand
solution needs
Selection Use
BUYING PHASES
BUYING PHASES ZMOT
Not Aware
Channels
Things are changing

6. Consistent messages over time
Consistent messages over different channels
Help recipient understand the logic behind the value
Consistent messages across the organisation
Need to engage customers in communicated values
Role of Product Management is changing

7. Customer gets a larger value
Customers get the value they are looking for
We get happier Customers
We get faster sales
We increase Life time value
We increase profitability
What can we win if we succeed with marketing

8. Concept developed by Tolpagorni & Ericsson
• Luca de Stefano, Ericsson
• Magnus Billgren, Tolpagorni
References
In cooperation with
• Tetra Pak, Tobii, Tacton Wittra
• Warwick Taws, CTO Wittra
Inspired by
• James Andersson, Author ”Value Merchant” & Professor North Western University
Chicago
• Ph.D. Tony Gorschek, Professor BTH
• Osterwalder et al, Author ”Value Proposition Design”
Used by
• Intel
• Ericsson
• Mycronic
• Atlas Copco
• Wurth
• Fibbl
• Telenor
• Inriver
• Zebware

9. What is value?
(Mural vote)

10. Opex reduction
Capex reduction
Business Growth
What is so complicated about value?

11. • Opex reduction
• Capex reduction
• Business Growth
• Net Value
• Architectural Value
• Updateable Value
• Intrinsic Value
• Pragmatic value
• Delivery Value
• Risk minimization
• Brand Value
• UX Value
• Knowledge Value
• Financial Value
What is so complicated about value?

12. The concept of Value
• Multiple perspectives and 64 types Professor Tony Gorshek, BTH
• 4 categories Professor James Anderson, Kellogg School of Management
Three perspectives used today:
Intrinsic – the obvious values before you buy the
service/product
Delivery – how easy/difficult is it to buy and
get started
Usage – What are we really using and what Value does
it bring us
Four Categories
&

13. The Value Development Model

14. CONVEY…
• … via relevant engagement tool
• … Value Calculator and other creative
tools
• ... The Value with a story
Tools: Storytelling, Value Calculator, Engagement models
DISCOVER…
• … technology improvement to leverage
• … value logic
• … market insights
• … where to sell
Tools: Value Tree, Driving forces, Target Market
DEFINE…
• … market opportunity
• … value offering
• … value documentation
• … value formulas
Tools: Resonating focus, Problem Design, Value Proposition design
CONNECT…
• … Target markets with value
• … Compelling event with values
• … product with Portfolio Value
• … Buyers journey with value
Tools: Compelling events, Buyer’s Journey, PMA
Tools: Compelling events, Story telling
Value Development Model

15. DESIGN
VALUE PROPOSITION
DEFINE
DISCOVER
COMMUNICATE
VALUE PROPOSITION
CONNECT
CONVEY
Value Development Model

16. DISCOVER…
• … technology improvement to leverage
• … value logic
• … market insights
• … where to sell
Tools: Value Tree, Driving forces, Target Market
Value Development Model

17. Value
Concept
Feature
Realisation
A value logic based on four levels – going from value to technical features
Net Price calculation Flexible invoicing CMS Integration
Max response
time 3s
UX
New Segment Better cash flow Cost reduction
Block subscription
Reduced
administration
Subscription
Management
Value Tree

18. Value Tree outcomes

19. Industry 4.0 – an example

20. Start small (Mural)

21. Values
Features
Concepts
Handle fits three
fingers
New isolation
material
Contains
2,3 dl
Special Croatian
ceramics
Realisations
Perfect for coffee, tea or
chocolate
cleanable surface Comes in five colors
Keeps drink
warm
Luxury
feeling
Long lasting
usage
Easy to clean
Fits deign
environment
s, taste
Fits in all
environments
Pleasant drinking feeling
Building the value tree

22. Team (3h) PM (8h)
PM (8h)
Team (3h) PM (8h)
PM (16h)
3+3 Team (3h) PM (8h)
PM ( 8h)
PM (5h)
PM (2h)
Scope
Invite the right people
Workshop 1
Ideation, initial placing, physical – creative mode
Workshop 2:
Connecting bottom up
Analytical thinking 3+3
Workshop 3
Review
Refine placing
Analytical
Review connection
Update, add Top down – new thoughts
PM update – prune the Value tree
The process

23. Value Development Model
DEFINE…
• … market opportunity
• … value offering
• … value documentation
• … value formulas
Tools: Resonating focus, Problem Design, Value Proposition design

24. To define the Value Proposition is the second
step of the Value Development Model. You
need to define separate Value Propositions
for the different customer segments you’ve
chosen to focus on.
Tools
• Problem Design
• Value Proposition Design
• Resonating Focus
Aim with the Define Step

25. Extract and define your core messaging to
give it resonating focus – what matters the
most to the customer. Includes points of
parity and points of difference.
Use resonating focus to:
• ”Set the agenda”
• Guide customers – less is more. Cut to
the chase
• Position your product
• Guides sales and marketing
Resonating focus

26. Consists of:
Answers the customer
question:
Requires knowledge of
All benefits
Why should our firm buy your
product?
Our product
USP: Competitive edge compared
with 2nd best alternative
Why should we buy your product
instead of an alternative?
Our product
Main competitor
Areas of difference that delivers the
biggest value
What is most worthwhile about
your product?
Market insight!
Our product
Main competitor
Customer
Sustainable Vector of Differentiation
Product Focus Competition Focus RESONATING FOCUS
Value Proposition Evolution

27. Value Development Model
CONNECT…
• … Target markets with value
• … Compelling event with values
• … product with Portfolio Value
• … Buyers journey with value
Tools: Compelling events, Buyer’s Journey, PMA
Tools: Compelling events, Story telling

28. The buying
phases are
influenced
by five
insecurities:
Need
1
Supplier
Product/Solution
Delivery/Commissioning
Future
2
3
4
5
Buying process

29. The buying
phases are
influenced
by five
insecurities:
Need
1
Supplier
Product/Solution
Delivery/Commissioning
Future
2
3
4
5
Buying process

30. Identify and define the buying phases to
map and design relevant marketing material
that match questions and concerns.
Use Product Material Analysis to:
• Increase the quality of yourValue
Argumentation
• Create effective marketing communication
material vs. “checklist marketing”
• Helps the sales organization (and
the customer)
Product Material Analysis (PMA)

31. Who needs information?
What do they need?
When do they need it?
Why do they need it?
Where will they use it?
How must it be delivered?
PMA answers questions like

32. Identification of buying phases
Define each phase
1. Who is involved in each step
2. What are triggers for next step
3. What are obstacles
What are key messages
1
2
3
The three steps PMA

33. Not aware Aware Inspired to
solve problem
Aware of
solution
Understand
solution
needs
Selection
A. Audience
B. Customer
Triggers for next
level
C. Customer
showstopper for
next level
D. Relevant
Compelling event
E. Core message /
Value to focus on
F. Context
G. Communication
Channel
BUYING PHASES
Phases
Who is the
audience for this phase
What is the trigger to enter the next phase?
What is the showstopper for entering the next
phase
What message is needed in this phase?
Is there a Compelling Event to take under
consideration?
What is the environment the audience receives
the mesage in?
What channel shall we use?
PMA Template

34. Convey
Engagement
Models

35. Engagement models are used to engage the
Customer in our Value.
Use Engagement Models to:
• Design your marketing collateral
• Design Customer Meetings
• And all support your customer touchpoints
Engagement Model