2. Section II: Understanding Value Chapter 2- Business Market Management, 3 rd edition Chapter 2-
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7. Chapter 2- Business Market Management, 3 rd edition Guiding Principles Crafting Market Strategy Understanding Firms as Customers Marketing Sensing Managing Market Offerings New Offering Realization Business Channel Management Gaining New Business Sustaining Reseller Partnerships Managing Customers Regard Value as the Cornerstone Accentuate Working Relationships & Business Networks Focus on Business Market Processes Stress Doing Business Across Borders Understanding Value Creating Value Delivering Value Business Market Processes
8. Market Sensing: Process for Learning About Markets Chapter 2- Business Market Management, 3 rd edition Further Inquiry Evaluation Of Outcomes Information Utilization Interpretation Information Distribution Information Acquisition Inquiry Initiated or Continued Augmentation of Memory Organization Memory
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10. I. Defining the Market Chapter 2- Business Market Management, 3 rd edition
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12. Criteria for Judging Validity of Segmentation Chapter 2- Business Market Management, 3 rd edition Measurable? Can the size, growth, and market potential of a segment be measured? Profitable? How profitable is the marketing effort likely to be? What is the payoff from each segment? Accessible? Can segments be identified and reached successfully? Actionable? Can effective marketing and sales programs be formulated for attracting and serving the segment?
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16. Estimating Market Potential for a Segment Chapter 2- Business Market Management, 3 rd edition Buildup Method Market potential estimates for subsegments, using available secondary research or conducting primary research, and combining them to reach an estimate for the segment Chain Ratio Method Begins with a large number of prospective customers. This number is multiplied by a series of percentages that correspond to the assumptions made (e.g. percent of potential customer that use a certain technology to arrive a market estimates) Index Method Ties the estimates to a single factor affecting the market, such as the number of new housing starts, or to multiple factors, obtained from an econometric forecasting service
23. Chapter 2- Business Market Management, 3 rd edition Figure 2.3 The Intelligence Pyramid
24. III. Assessing Customer Value Chapter 2- Business Market Management, 3 rd edition “ Everything is worth what its purchaser will pay for it.” --Publilius Syrus, first century, B.C.
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26. Value Assessment Methods Chapter 2- Business Market Management, 3 rd edition Internal Engineering Assessment Focus Group Value Assessment Benchmarks Field Value-in Use Assessment Direct Survey Questions Compositional Approach Indirect Survey Questions Conjoint Analysis Importance Rating
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32. Customer Value Workshop Chapter 2- Business Market Management, 3 rd edition - (Value f – Price f ) > (Value a – Price a ) ( Value f – Value a ) > (Price f – Price a ) Value f, a > (Price f – Price a )
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36. IV. Gaining Customer Feedback Chapter 2- Business Market Management, 3 rd edition
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40. Chapter 2- Business Market Management, 3 rd edition Perceived Quality Customer Expectations Perceived Value Overall Customer Satisfaction (ACSI) Customer Complaints Customer Loyalty + + + + + + + - The American Customer Satisfaction Index Perceived Value Perceived Quality Customer Expectations Overall Customer Satisfaction (ACSI) Customer Complaints Customer Loyalty + + + + + + + -
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43. Chapter 2- Business Market Management, 3 rd edition - Overall Quality Drivers Category Importance US WEST Score Primary Competitor Score US WEST Ratio Best In Class Voice Reliability 30.0 9.0 9.0 1.00 Company A Repair Service 20.0 8.0 8.5 .94 Company B Data Reliability 20.0 8.0 7.0 1.14 US WEST Account Relationship 10.0 7.2 8.5 .85 Company C Installation Service 10.0 7.0 7.5 .93 Company C Billing Service 10.0 6.8 6.5 1.05 Company A Customer Satisfaction Score 8.0 8.1 Market Perceived Quality Ratio: 99.9 Source: Renee Karson, Formerly Director Customer Value Measurement, Market Intelligence and Decision Support, US WEST Communications.