Competing for Customers and Winning with Value

Reginald W. Goeke, R. Eric Reidenbach

Description

This book brings together, for the first time, two very powerful concepts: customer value and competitive planning. Together they create a powerful tool that will generate breakthrough strategies for market dominance. The previously fashionable metrics of customer satisfaction have proven to be poor predictors of business performance, whereas the linkages between customer value and performance measures such as market share and profitability have been identified and documented. Value has been shown to be one of the best predictors of market share and customer loyalty available. Developing a system to harness value as a competitive weapon is an essential next step.Competing with Customers presents a competitive planning template that enables organizations to actually harness their value creation and delivery systems to enhance their market performance. It is a planning system that focuses at the level where the organization makes money: selling products or services to people in specific markets or market segments. Readers will discover a clear blueprint for crafting breakthrough, value-added strategies. For many readers, it will challenge the way they look at their competition, their markets, and their industries. Competition will never look the same.!

Sujets

• Business
• Qualité, hygiène, sécurité, environnement
• Vente
• Customer Relations
• Marketing et communication
• Economics
• Gestion des ventes

Informations

• Publié par: ASQ Quality Press
• Date de parution: 02 janvier 2006
• Nombre de lectures: 0
• EAN13: 9780873895439
• Langue: English
• Poids de l'ouvrage: 1 Mo

Extrait

Competing for Customers and Winning with Value

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To request a complimentary catalog of ASQ Quality Press publications, call 800-248-1946, or visit our Web site at http://qualitypress.asq.org.

Competing for Customers and Winning with Value

Breakthrough Strategies for Market Dominance

R. Eric Reidenbach and Reginald W. Goeke

ASQ Quality Press Milwaukee, Wisconsin

Quality Press,

American Society for Quality, © 2006 by ASQ Quality Press All rights reserved. Published 2006 Printed in the United States of America

12 11 10 09 08 07 06

5 4 3 2 1

Milwaukee 53203

Library of Congress Cataloging-in-Publication Data

Reidenbach, R. Eric. Competing for customers and winning with value : breakthrough strategies for market dominance / R. Eric Reidenbach and Reginald W. Goeke.-- 1st ed. p. cm. Includes bibliographical references. ISBN 0-87389-680-7 1. Business planning. I. Goeke, Reginald W. II. Title.

HD30.28.R4193 2006 658.4'012--dc22

ISBN-13: ISBN-10:

978-0-87389-801 0-87389-807

2005035019

No part of this book may be reproduced in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher.

Publisher: William A. Tony Acquisitions Editor: Annemieke Hytinen Project Editor: Paul O’Mara Production Administrator: Randall Benson

ASQ Mission: The American Society for Quality advances individual, organizational, and community excellence worldwide through learning, quality improvement, and knowledge exchange.

Attention Bookstores, Wholesalers, Schools, and Corporations: ASQ Quality Press books, videotapes, audiotapes, and software are available at quantity discounts with bulk purchases for business, educational, or instructional use. For information, please contact ASQ Quality Press at 800-248-1946, or write to ASQ Quality Press, P.O. Box 3005, Milwaukee, WI 53201-3005.

To place orders or to request a free copy of the ASQ Quality Press Publications Catalog, including ASQ membership information, call 800-248-1946. Visit our Web site at www.asq.org or http://qualitypress.asq.org. Printed on acid-free paper

Contents

List of Tables and Figures . . . . . . . . . . . . . . . . . . . . . . Preface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

Part I The Competitive Foundation Chapter1 PlanningforCompetition . . . . . . . . . . . . . . . 3 Corporate-LevelPlanning . . . . . . . . . . . . . . . . . . . . 5 StrategicBusinessUnitPlanning . . . . . . . . . . . . . . . . 6 Product/Market-LevelPlanning . . . . . . . . . . . . . . . . . 7 Chapter2 TheValueAdvantage . . . . . . . . . . . . . . . . . 13 WhatIsCustomerValue? . . . . . . . . . . . . . . . . . . . . 13 ValueProperties . . . . . . . . . . . . . . . . . . . . . . . . . 16 WhyValueandNotSatisfaction? . . . . . . . . . . . . . . . . 18 What Factors Make Value a Better Strategic Measure? . . . . . Chapter 3 Growing Market Share with Value: Customer Acquisition . . . . . . . . . . . . . . . . . . . . . . . 23 TheValueModel: TheInformationPlatform . . . . . . . . . . 24 The Competitive Value Matrix: The Strategic Radar Screen . . Driver-LevelAnalysis . . . . . . . . . . . . . . . . . . . . . . 28 Attribute-LevelAnalysis . . . . . . . . . . . . . . . . . . . . . 29 TheVulnerabilityMatrix: APowerfulAcquisitionTool . . . . . 31

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Contents

Chapter 4 Growing Market Share with Value: CustomerRetention . . . . . . . . . . . . . . . . . . 35 TheValueofCustomerLoyalty . . . . . . . . . . . . . . . . . 37 AssessingCustomerLoyalty . . . . . . . . . . . . . . . . . . . 39 Using the Customer Loyalty Matrix for Interventions . . . . . .

Part II The Competitive Planning Process Chapter5 ChoosingWheretoCompete . . . . . . . . . . . . . 49 Focus, Focus, Focus . . . . . . . . . . . . . . . . . . . . . . . 50 Chapter 6 What Is the Organization’s Current Value Proposition? . . . . . . . . . . . . . . . . . . . . . . 63 WhatIsYourCurrentValueProposition? . . . . . . . . . . . . 63 CompetitiveValueAnalysis . . . . . . . . . . . . . . . . . . . 65 ValueStrengthsandWeaknesses . . . . . . . . . . . . . . . . . 66 IdentificationofMarketOpportunities . . . . . . . . . . . . . 70 CustomerAcquisition . . . . . . . . . . . . . . . . . . . . . . 74 CustomerRetention . . . . . . . . . . . . . . . . . . . . . . . 76

Chapter 7 What Does the Organization Want Its CompetitiveValuePropositiontoBe? . . . . . . . . Product/MarketObjectives . . . . . . . . . . . . . . . . . . . . 82 DevelopaProduct/MarketStrategy . . . . . . . . . . . . . . . 84

Chapter 8 How Does the Organization Manage Its Value Proposition? . . . . . . . . . . . . . . . . . . . . . . 99 MarketingMixObjectives . . . . . . . . . . . . . . . . . . . . 99 Product/MarketActionPrograms . . . . . . . . . . . . . . . . 103 BudgetsandForecasts . . . . . . . . . . . . . . . . . . . . . . 105

81

Chapter9 TheValue-Strategy-ProcessLinkage . . . . . . . . . 109 CalculateCriticalValueGaps . . . . . . . . . . . . . . . . . . 111 IdentifytheKeyValueStream . . . . . . . . . . . . . . . . . . 112 ConstructingtheCTQ/ProcessMatrix . . . . . . . . . . . . . . 115 TargetProcessesforSixSigmaorLeanProjects . . . . . . . . 117 EstablishPrioritiesforLeanorSixSigmaProjects . . . . . . . 119

Chapter10 MonitoringPlanEffectiveness . . . . . . . . . . . 123 InternalPerformanceMetrics . . . . . . . . . . . . . . . . . . 124 TransactionalMeasuresofCustomerValue . . . . . . . . . . . 126 DiagnosticSnapshots . . . . . . . . . . . . . . . . . . . . . . 132 AlignmentofBusinessInformationSystems . . . . . . . . . . 134

Part III Competitive Planning Deployment Chapter11 FourteenKeystoSuccessfulDeployment . . . . . 137 Short-TermKeystoSuccessfulDeployment . . . . . . . . . . 139 KeystoSuccessfortheLongHaul . . . . . . . . . . . . . . . 147

4

2

Contents

Chapter12 CompetingforCustomers . . . . . . . . . . . . . . 157 What Is the Organization’s Current Value Proposition? . . . . . What Is the Organization’s Intended Value Proposition? . . . . HastheOrganizationAchievedItsObjectives? . . . . . . . . . 161 AppendixA TechnicalNotesonValueMeasurement . . . . . . 163 Attributes/ValuePerformanceCriteria . . . . . . . . . . . . . . 163 ImportanceScores: StatedversusDerived . . . . . . . . . . . . 163 Multicollinearity . . . . . . . . . . . . . . . . . . . . . . . . . 164 RSquares . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165 ModelCharacteristics . . . . . . . . . . . . . . . . . . . . . . 165 AppendixB EnvironmentalTrendAnalysis . . . . . . . . . . . 167 AppendixC CompetitiveMarketPlanningForms . . . . . . . 171 Product/MarketMatrix . . . . . . . . . . . . . . . . . . . . . . 173 EnvironmentalScanning . . . . . . . . . . . . . . . . . . . . . 174 QualifyingNeedsofSegment . . . . . . . . . . . . . . . . . . 175 DeterminingNeedsofSegment . . . . . . . . . . . . . . . . . 176 MarketShareandTrends . . . . . . . . . . . . . . . . . . . . 177 ValuePropositionAssessment . . . . . . . . . . . . . . . . . . 178 DifferentialValueAdvantage/Disadvantage . . . . . . . . . . . 179 MarketOpportunityIdentification . . . . . . . . . . . . . . . . 180 StrategyandObjectives . . . . . . . . . . . . . . . . . . . . . 181 Product/MarketActionPrograms . . . . . . . . . . . . . . . . 182 BudgetandMarketForecast . . . . . . . . . . . . . . . . . . . 183 Glossary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Index . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

vii

159 159

185 189 191

Figure1.1 Figure1.2 Figure2.1 Figure2.2 Figure 3.1

Figure 3.2

Table3.1 Table3.2 Figure3.3 Table3.3 Figure 4.1

Figure4.2 Table 4.1 Table4.2 Table4.3 Figure4.3 Figure5.1 Figure5.2 Figure 5.3 Figure5.4 Table5.1 Table5.2 Figure5.5 Figure5.6 Figure5.7 Figure 5.8 Figure 6.1

List of Tables and Figures

TheContextofCompetitiveDecisionMaking . . . . . . . . . 4 GrowthStrategies . . . . . . . . . . . . . . . . . . . . . . . . 5 AComprehensiveViewofValue . . . . . . . . . . . . . . . . 14 CustomerValueDrivesProfitability . . . . . . . . . . . . . . 20 Competitive Value Model: Printing Equipment/Large ContainerManufacturers . . . . . . . . . . . . . . . . . . . . 24 Competitive Value Matrix: Printing Equipment/Large ContainerManufacturers . . . . . . . . . . . . . . . . . . . . 27 Driver-LevelAnalysis . . . . . . . . . . . . . . . . . . . . . 28 VPC-LevelAnalysis . . . . . . . . . . . . . . . . . . . . . . 29 CompetitiveVulnerabilityMatrix—Competitor1 . . . . . . . 31 QualityDriverAnalysis—Competitor1 . . . . . . . . . . . . 33 Customer Value Matrix: Printing Equipment/Large ContainerManufacturers . . . . . . . . . . . . . . . . . . . . 40 TheCustomerLoyaltyMatrix . . . . . . . . . . . . . . . . . 41 Recommendation and Switching Intentions by Value Group . . . 42 QualityandDriverScoresbyValueGroup . . . . . . . . . . . 43 SalesProcessVPCRatingsforValueGroup4 . . . . . . . . . 44 ValueGroupsbyDistributorTerritories . . . . . . . . . . . . 45 PlanningLevelsandPurposes . . . . . . . . . . . . . . . . . 50 Product/MarketMatrix . . . . . . . . . . . . . . . . . . . . . 51 Product/Market Matrix: Plastics Equipment Manufacturer . . 54 Product/MarketMatrix: Heavy-EquipmentDealership . . . . 56 MarketAttractiveness . . . . . . . . . . . . . . . . . . . . . . 57 AbilitytoCompete . . . . . . . . . . . . . . . . . . . . . . . 58 MarketSegmentInvestmentMatrix . . . . . . . . . . . . . . 59 Heavy-EquipmentDealer’sPriorities . . . . . . . . . . . . . . 59 Product/MarketMatrix: FinancialServices . . . . . . . . . . 60 Aligning National and Local Competitive Opportunities . . . 61 Competitive Value Model—Disability Insurance/Large Businesses . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

ix