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Business Market Management: Understanding, Creating, and Delivering Value

Business Market Management: Understanding, Creating, and Delivering Value

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Significant developments in the third edition of "Business Market Management":
  • Detailed discussion of customer value propositions in business markets. Arguably, "value proposition" has recently become one of the most widely-used terms in business marketing. Rather than formulating customer value propositions as all benefits or all favorable points-of-difference, as our research found that most suppliers do, we advocate instead that suppliers formulate resonating focus value propositions. Further, we contend that suppliers must substantiate their value propositions, drawing on value case histories or value calculators.
  • A revised view of gaining new business. In gaming new business, suppliers should differentiate amongst the various types of potential opportunities that they are typically faced with - orders and customers - and the differential consequences these potentially have on the suppliers' capabilities. We introduce the concept of a value stack, which enables suppliers to understand and construct potential value that they can create in any new business opportunity.
  • Updated thinking and discussion of managing customers. Suppliers must move beyond just focusing on select customer relationships to actively managing their entire portfolio of customer relationships over time. We contrast a foot-in-the-door versus an all-at-once approach to growing customer relationships, while ensuring an equitable sharing of the value they create. Next, suppliers can use customer loyalty and the cost-to-serve customers to construct a customer portfolio matrix. Insights from this matrix enable them to execute customer migration strategies that deliver superior customer value and enhance customer profitability over time.
  • 3-rd edition.