Business Market Management: Understanding, creating and delivering value
In today’s fast-paced business environment, companies that deliver the best business value to their clients are those building and leveraging their business market management processes. The Value Model Method for understanding, creating and delivering value identifies the stages, phases, activities, and tasks for accelerating business market process strategy, formulation, and sales deployment.
The Value Model Method is an iterative process. Based on your clients business requirements, you may be working on any one or more stages within the model at a given time. You will help tailor the methodology to your sales and marketing organization, and collaborate with them to develop an action plan based on your goals and priorities.
The first phase of the Value Model Method is to determine, with your sales and marketing departments, which markets, and segments within them, are of greatest interest to your companies short and long-term revenue goals. Market potential “identifies the maximum units of a defined product or service capable of being purchased within a designated geographic area, during a designated time period”.
Monitoring competition is essential to understanding your client’s market offering and value. Business market managers use knowledge about competitors in crafting their own firm’s market strategy, and anticipating the competitors’ reactions to it, and in deciding what reactions to make in response to competitors’ actions in the marketplace.
The second phase of the Value Model Method is in assessing the value to the customer of your current offerings for a particular market segment.
“Everything is worth what its purchaser will pay for it.”
Publilius Syrus, First Century, B.C.
Value assessment is the process of obtaining an accurate estimate of the worth, in monetary terms, of some present or proposed market offering.
Understanding the value relationship between a technology investment and the bottom line, by defining the value generated from the business process to which it is applied. And documenting the relationship to maintain the measure of value and achieve agreement on the value of a technology investment from four perspectives within a company; and seeing and comparing the investments within a company as a portfolio, grouped by type of investment, business process affected, bottom line contribution, and a company’s key value equation.
Not until an organization identifies its value equations (CEO); business processes and measures (COO); and technology investment (CIO) can it begin effectively utilizing this model. A company then attains this information and examines how business processes affect sales, cost, customer satisfaction, and employee satisfaction, which then calculates into the value equation. Companies are also capable of exploring how their technology investment is applied to these business processes.
I would be interest to know how many sales people understand how to create a value statement and a value proposition that explains how their product or service delivers value above the cost of capital.
Regards,
Mark
Topic is understanding how to develop a repeatable sales model, a six step process to Value Creation.
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