Market Edge Advisor March 2019

    Maggie Girolamo

    How do we lead the discussion from Price to Value?
    If we do not understand our value, we are destined to give it away

    Does your organization have the required commercial capabilities to quantify and capture the value associated with your offer?

    Our clients face increased pressure to define and hold value in markets with professional purchasing, increased transparency and consolidated downstream power.

    However, not all businesses have the required commercial (sales AND marketing) capabilities to raise or hold prices effectively in this environment.

    Our experience with a range of global, category leading B2B companies shows the following are critical to defining and holding value.

     

    Customer selection – Targeting the right customers is a critical first step in a value-oriented approach. Leading organizations understand that “average is the enemy” and focus on target customer segments, not simply the average customer.

    Actionable customer insight – Detailed identification of the value drivers for a target segment or account is critical to developing a value proposition and focusing on the most important components of value.

    Value quantification – Defining the value associated with customer offers involves more than product performance and benefits. Leading organizations uncover other operational or efficiency components that can be validated and quantified.

    Value communication – Disciplined value proposition development, negotiation preparation and campaign development ensure that value messages are delivered clearly and concisely in a way that resonates with the target customer.

    Value capture discipline – Organizations have an agreed price strategy and are ready to capture the value confidently.  Value discipline extends from marketing to operations, sales and technical departments and ensures that the aligned organization has process and metrics to capture the value it delivers.

    Value Creation Program 1024x503 - Market Edge Advisor March 2019

    For examples of the concepts and tools above in practice, contact info@mkt-edge.com