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Value merchants
Chapter 1 - points of discussion
Inspired by Value Merchants by
J. C. Anderson, N. Kumar, J. A. Narus



                                        praesentatio
                                             Andreas Brinck
Business as usual (p.2)


                                            1.
                                 Sales personnel unaware
                4.
                                 of real differential value
      “Commoditized” offer
                                elements AND ther“exact”
                                     value to customer




                3.                          2.
     Unreasonable give-aways     No data supporting and
     on price when confronted     measuring differential
      with competitor’s offer          elements




                     (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
                                                “Customer value
                                                management relies on
                          Take
                                                customer value
                          Get an equitable
                          return on the value
                          delivered

                                                assessment to gain an
               &                                understanding of
                                                customer requirements
                                                and preferences and
                                                what fulfilling those are
 Give
                                                worth in monetary
 Deliver superior value
 to targeted market
 segments and customer

                                                terms.” (p.4)
 firms




                                                                  praesentatio
                                                                       Andreas Brinck
Money. And how to track it…


       GREEN                GRAY
 Direct impact on      Lower cost of
     bottom line           ownership
“Picking the lowest More time intensive to
   one, and then     account/harder to
negotiating…” (p. 5)      document


                                  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 calculators
  TAKE AWAY POINT: Develop spreadsheets that support your sales force as
  part of a consultative selling approach


• Document superior value
  – value documenters
  TAKE AWAY POINT: Get more credit from your customers by delivering
  performance reports to your customer. This will sharpen their understanding of
  your product and its superiority.



                                                                                             praesentatio
                                                                                                    Andreas Brinck
Questions? Answers? Suggestions? mail@andreasbrinck.de

THANK YOU!


                                                  praesentatio
                                                         Andreas Brinck

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Value Merchants Ch1 Points Of Discussion

  • 1. Value merchants Chapter 1 - points of discussion Inspired by Value Merchants by J. C. Anderson, N. Kumar, J. A. Narus praesentatio Andreas Brinck
  • 2. Business as usual (p.2) 1. Sales personnel unaware 4. of real differential value “Commoditized” offer elements AND ther“exact” value to customer 3. 2. Unreasonable give-aways No data supporting and on price when confronted measuring differential with competitor’s offer elements (ein Teufelskreis) praesentatio Andreas Brinck
  • 3. 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
  • 4. Solution: Customer Value Management “Customer value management relies on Take customer value Get an equitable return on the value delivered assessment to gain an & understanding of customer requirements and preferences and what fulfilling those are Give worth in monetary Deliver superior value to targeted market segments and customer terms.” (p.4) firms praesentatio Andreas Brinck
  • 5. Money. And how to track it… GREEN GRAY Direct impact on Lower cost of bottom line ownership “Picking the lowest More time intensive to one, and then account/harder to negotiating…” (p. 5) document praesentatio Andreas Brinck
  • 6. 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 calculators TAKE AWAY POINT: Develop spreadsheets that support your sales force as part of a consultative selling approach • Document superior value – value documenters TAKE AWAY POINT: Get more credit from your customers by delivering performance reports to your customer. This will sharpen their understanding of your product and its superiority. praesentatio Andreas Brinck
  • 7. Questions? Answers? Suggestions? mail@andreasbrinck.de THANK YOU! praesentatio Andreas Brinck