value merchants ch1 points of discussion
TRANSCRIPT
praesentatio Andreas Brinck
Value merchantsChapter 1 - points of discussionInspired by Value Merchants byJ. C. Anderson, N. Kumar, J. A. Narus
praesentatio Andreas Brinck
Business as usual (p.2)
1. Sales personnel unaware of real differential value
elements AND ther“exact” value to
customer
2.No data supporting and measuring differential elements
3.Unreasonable give-aways on price when
confronted with competitor’s offer
4.“Commoditized” offer
(ein Teufelskreis)
praesentatio Andreas Brinck
But hear the warnings!
No business as usual!*
* ”doing more of the same with less” (p.3) actually means “doing more of the superior with less” and is entering/keeping you in the game: selling under value a product with differential value elements. What are the implications for customer/supplier/marketplace?
praesentatio Andreas Brinck
Solution: Customer Value Management
Take
Give
&
Deliver superior value to targeted market segments and customer firms
Get an equitable return on the value delivered
“Customer value management relies on customer value assessment to gain an understanding of customer requirements and preferences and what fulfilling those are worth in monetary terms.” (p.4)
praesentatio Andreas Brinck
Money. And how to track it…
GRAYLower cost of
ownershipMore time intensive
to account/harder to document
GREENDirect impact on
bottom line“Picking the lowest
one, and then negotiating…” (p.
5)
praesentatio Andreas Brinck
Turning gray into green
• Get grasp customers understanding of value: customer value assessment– value case histories TAKE AWAY POINT: Early on, collect case data on reference customers and record the cost savings and added value they have received from the supplier offer in order to document to potential customers
• Demonstrate superior value– value calculatorsTAKE AWAY POINT: Develop spreadsheets that support your sales force aspart of a consultative selling approach
• Document superior value– value documentersTAKE AWAY POINT: Get more credit from your customers by deliveringperformance reports to your customer. This will sharpen their understanding ofyour product and its superiority.
