Navigating Value Price Profit

Dr. Colm Reilly

Description

Dr. Colm Reilly, the founder of several companies, tackles misconceptions surrounding the idea of the value proposition and why value propositions are so critical.
The original meaning of the term “value proposition” has devolved into a vague sales and marketing notion that does not match its intended use. It is often used to mean benefits, a unique selling point, or differentiation and therefore is often regarded as falling under the Sales and Marketing departments within an organization.
In this book, Dr. Colm Reilly tackles the misconceptions that surround what a value proposition is and why it is important. He answers the four core business questions which are:
1. Why are value propositions needed for a business to be profitable or for a not-for-profit organization to succeed?
2. How can organizations build and use value propositions?
3. How can an organization use a value proposition to serve both internal and external customers?
4. What are the ethical values that should drive an organization in understanding how to create fair and equitable enduring value for themselves and their customers.
The book shows how Value propositions are in effect an alignment tool within an organization that manifests the core ethical nature of the business. In a business world where returns appear volatile and business cycles are disruptive, Dr. Reilly proves a guidebook that shows that a core and ethical value proposition in business will always endure and guide an organization to sustained success.

Sujets

• Proposal
• Value
• Economics
• Business
• Profit

Informations

• Publié par: AuthorHouse UK
• Date de parution: 20 juillet 2023
• Nombre de lectures: 0
• EAN13: 9798823083119
• Langue: English
• Poids de l'ouvrage: 3 Mo

Extrait

Navigating Value Price Profit

HOW ORGANIZATIONS CREATE AND SUSTAIN PROFITABLE GROWTH




DR. COLM REILLY


© 2023 Dr. Colm Reilly. All rights reserved.

No part of this book may be reproduced, stored in a retrieval system, or transmitted by any means without the written permission of the author.

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ISBN: 979-8-8230-8312-6 (sc)
ISBN: 979-8-8230-8311-9 (e)

Published by AuthorHouse 08/31/2023





CONTENTS
1 BACKGROUND AND A LITTLE MORE THAN
Background
Book Structure
What Are Customers and Who Are They?
What Do You Really Think about Customers?
The Lessons of Childhood
All You Need
Technology and Customer Power
Alphabet Street
Client-Focused, Not Client-Run
2 VALUE PROPOSITION
Why Do You Need to Build a Value Proposition?
Some Definitions
Exploring the Value-Proposition Concept
Value = Benefits Minus Costs
Introducing the Value-Proposition Builder
Focus
From Top Level to Specific
BRAIN
Top Level
Market
Opportunity
Function
Conclusion
3 THE VALUE-BASED APPROACH TO BUSINESS
The Value-Focused Enterprise
Value Creation, Alignment, and Decision-Making
Strategic Intent
The Value Pyramid
Level 1: Component
Level 2: Offer
Level 3: Solution
Level 4: Co-Created Value
Transactional and Consultative Selling
B2B Service and Solutions Providers and the Consultative Selling Imperative
Strategic Value Pathway: Customer Intimacy. Sales Mode: Consultative
4 CREATING A VALUE PROPOSITION
5 UNDERSTANDING MARKETS
Define the Specific Group(s) of Customers to Target
Key Questions to Ask
Narrow and Deep Beats Broad and Shallow
Understand How to Enter Those Markets
And Never Forget Critical Thinking
6 IMMERSIVE PROFITABILITY
Focus on Customer (I,E., Delivers Profit)
The Value of Research
The No-Research Option
Worthless Research
Types of Research
Become the Customer
Spend Time with Your Customer
Avoid Intermediaries
Be in Your Customer’s Business
Observation
Understanding versus Listening
Understand Competing Alternatives
Ascertaining What the Customer Values
Value Challenge
The Value Interviews
Background to Relationship
Value
Cost (Including Price and Risk)
General
Price
Risk
An Observation on Risk
Offerings
Marketplace
Recommendations and Suggestions
Output
Summary
7 THE OFFER
Step 1. Categorize your current portfolio
The Whole Product or Whole Service
Map to the Value Pyramid
Profitability
8 BENEFITS
Potential Benefits
Translating Benefits into Messages
Value Experience is Critical
The So What? Challenge
The Value Difference
9 ALTERNATIVES AND DIFFERENTIATION
Assessing Alternatives and Differentiation by Looking at Substitutes
What’s Your Difference?
To Sum It Up
10 VALIDATION
TCO
ROI
C–B
11 COMPLETING THE TEMPLATE
12 MESSAGE DEVELOPMENT
Don’t Throw Your Money Away
Augmented Benefits
Creating a Message Framework and Hierarchy
ONE
Prioritize the Value Messages
THREE
Categorize by Message Type
FOUR
Draw It All Together
13 IMPLEMENTATION
Four Constituencies, One Goal – Alignment of Value
ONE
Information Systems
TWO
Channel Partners and Strategic Alliances
THREE
Co-Creative Teams
FOUR
Individual Relationships
FIVE
Suppliers
What Does It All Mean for Sales and Marketing?
Selling Costs
Salespeople and Tools
Interfunctional Issues
Tools to Help Salespeople Create Value
Recognition of Need
Evaluation of Options
Resolution of Concerns
Settling Terms
People
Understanding the Who
Transform the Sales Team into Value Merchants
Value Compensation
Selecting and Developing Salespeople and Teams
Sales Opportunity and Qualification Tools
Selecting the Right Sales Opportunities
Qualify or Die
Research
Good Question
Follow the Process
Offering Management
Step 2. Offering Management Process
Organizing and Managing Offering Developments
To Proceed or Not to Proceed?
The Gateways to Development
Who Makes the Decisions?
Step 3. Offering Life Cycle Mapping
Step 4. New Offerings
New Strategic Tools
A Portfolio of Value Propositions
Crossing the Technology Chasm
14 PRICING
Price Elasticity of Demand
Competition-Based Pricing Strategy
Competition-Based Pricing Strategy in Marketing
Cost-Plus Pricing Strategy
Cost-Plus Pricing Strategy in Marketing
Dynamic Pricing Strategy
Dynamic Pricing Strategy in Marketing
Freemium Pricing Strategy
Freemium Pricing Strategy in Marketing
High-Low Pricing Strategy
High-Low Pricing Strategy in Marketing
Hourly Pricing Strategy
Hourly Pricing Strategy in Marketing
Skimming Pricing Strategy
Skimming Pricing Strategy in Marketing
Penetration Pricing Strategy
Penetration Pricing Strategy in Marketing
Premium Pricing Strategy
Premium Pricing Strategy in Marketing
Project-Based Pricing Strategy
Project-Based Pricing Strategy in Marketing
Value-Based Pricing Strategy
Value-Based Pricing Strategy in Marketing
Bundle Pricing Strategy
Bundle Pricing Strategy in Marketing
Psychological Pricing Strategy
Psychological Pricing Strategy in Marketing
Geographic Pricing Strategy
Geographic Pricing Strategy in Marketing
How to Create a Pricing Strategy
Evaluate Pricing Potential.
Determine Your Buyer Personas.
Analyze Historical Data.
Strike a Balance between Value and Business Goals.
Look at Competitor Pricing.
Pricing Models Based on Industry or Business
Product Pricing Model
Digital Product Pricing Model
Restaurant Pricing Model
Event Pricing Model
Services Pricing Model
Non-Profit Pricing Model
Education Pricing Model
Real Estate Pricing Model
Agency Pricing Model
Manufacturing Pricing Model
E-commerce Pricing Model
Pricing Analysis
How to Conduct a Pricing Analysis
1. Dynamic Pricing Strategy: Ryanair
2. Freemium Pricing Strategy: Zoom
3. Penetration Pricing Strategy: Netflix
4. Premium Pricing: Away
5. Competitive Pricing Strategy: Shopify
6. Project-Based Pricing Strategy: Wedding Planners
7. Value-Based Pricing Strategy: Ticketmaster
8. Bundle Pricing: Insurance
9. Geographic Pricing: Pharmaceuticals
Get Your Pricing Strategy Right
15 STARTING AND SUSTAINING
Are the Conditions Right?
Examine Strengths Not Weaknesses
Change Your Measurement and Reward System
Exercise Customer Selectivity
Shelter from the Storm
Provide Leadership
The Weather System
Starting the Process
Building Your Value Proposition
Market
Value Experience
Offerings
Benefits
Alternatives and Differentiation
Proof
Create Your Value-Proposition Template and Write Your Value-Proposition Statement
Ways to Use Your Value Proposition
Message Development
Sales and Marketing Tools
Sustaining the Lead
16 THE VALUE-FOCUSED ENTERPRISE
Check the Rulebook: It’s Different Now
Decision-Making, Value Creation, and the CEO Paradox
Decisive Value-Creating Companies Kick Sand in the Face of Ditherers
Capability Gaps and Unwritten Rules Sabotage Value Creation
We’ve Got a Great Solution! Where’s the Client?
Orchestrating Alignment – The Way to Value
Don’t Discount Human Nature
Where Have We Got To? This Looks like a New Planet


FIGURES
Figure 1: Inside Out and Outside In
Figure 2: Outside In and Inside Out
Figure 3: Technological Trends and Key Drivers
Figure 4: The Value-Proposition Process (VPP)
Figure 5: Value Propositions Are Developed for Each Layer of the Sales Process
Figure 6: Value Propositions Layer within a Sale Opportunity
Figure 7: Cost-Benefit Analysis
Figure 8: The Value-Proposition Builder
Figure 9: Value-Proposition Hierarchy
Figure 10: Broad Components of a Value Proposition
Figure 11: Traditional Business Framework
Figure 12: The VFE Framework
Figure 13: Value Pyramid
Figure 14: Value Pyramid: Transactional versus Consultative Sales
Figure 15: Buying Cycle Sequence
Figure 16: Garbage-Can-Model Outcomes
Figure 17: Value-Proposition Builder
Figure 18: Key Questions to Ask when Targeting
Figure 19: Focusing on Maximizing Customer Opportunities
Figure 20: Software Companies and Manufacturers Understand Customer Experience
Figure 21: Market Research Techniques
Figure 22: Customer Empathy
Figure 23: The Value Interview
Figure 24: Key Marketplace Conside