Reviews:
“Professor McDonald’s
research-based frameworks are timeless and universal and have been incredibly
useful to both academics and practitioners around the world. This latest book
on financially quantified value propositions continues to break new ground.”
— Philip Kotler, author,
consultant and the S C Johnson & Son Professor of International Marketing,
Kellogg School of Management, Northwestern University
“This book is both accessible and
rigorous. It is a great read for everyone involved in buying or selling.
Exploring how to quantify value propositions is a stimulating and highly
beneficial endeavour. This is a timely contribution to understanding how to
create differentiation and develop solid collaboration in fast-changing value
chains.”
— Hervé Legenvre PhD,
Director, Value Creation Observatory, The European Institute of Purchasing
Management
“This is the first book I’ve read
that offers a proven and time-tested formula for creating a value proposition.
It’s written in terms that both the experienced marketer and the layperson can
understand and, more importantly, can implement and thereby gain substantial
benefit.”
— Tom Poland, Chief
Leadsologist, Leadsology
“Value propositions are
simultaneously one of the most powerful ideas in business and one of the least
understood and worst executed. In this book two leading authors show how to
develop, use and profit from them.”
— Dr Diana Woodburn, Chairman,
The Association for Key Account Management
“It is so refreshing to see a
book focused on the impact good marketing can make on profit, since so much of
today’s marketing discussion is about digital tools, leads and nurture flows.
Anchored in tried and tested techniques, such as needs-based segmentation,
McDonald and Oliver’s book is action oriented. Its tools and templates will
help marketers create real value for their company and its customers.”
— Bev Burgess, Senior Vice
President and ABM Practice Leader, ITSMA
“Finally, here is a book that
explains clearly what the concept is and how to create a financially
quantifiable value proposition! You can now communicate to your ideal customers
why they should buy from you (unique differentiation), how you’ll improve their
situation (relevancy) and how they’ll financially benefit, all in language that
they understand. This book will shape your strategic marketing planning.”
— Stewart Barnes, Managing
Director, QuoLux Ltd
“Value is one of the most talked
about and least understood ideas in business today. This excellent book
provides a comprehensive review of the main concepts and also provides a series
of case studies to bring the ideas alive. Malcolm McDonald and Grant Oliver
pool their extensive business knowledge and experience to bring clarity,
helping to define what value means to us, our business and most importantly our
customers.”
— Richard Ilsley, Managing
Partner, Key Account Management Group
Description:
A value proposition is an
innovation or feature that clarifies a company’s core purpose and identity. In
the same way profit lies at the heart of every business, so does the value
proposition, communicating how its service or products fulfil the needs of
their customers. While many organizations understand the importance of having a
clearly defined value proposition to help them become more profitable, many
businesses struggle to use them effectively. Malcolm McDonald on Value
Propositions is a step-by-step guide to understanding exactly why
financially quantified value propositions will help readers to increase revenue
and deliver tangible results.
Highly practical and filled with
useful tools and checklists, this succinct guide explains the process of
developing a value proposition from start to finish, how to use segmentation
appeal to the relevant key accounts, and to ensure it is both financially
grounded and has resonance with customers. From understanding how buying
decisions are made, through to financial dashboards and value quantification
tools, Malcolm McDonald on Value Propositions is perfect for
anyone looking to integrate financial success into their proposition, and gain
understanding of how it can be used to deliver and communicate value.
Contents:
About the authors
About the contributors
An important introduction:
getting the best out of your value proposition
Chapter 1: How financially
quantified value propositions will make you richer • Introduction • The dreaded website copy • The problems facing
most organizations today • Let’s get the dreaded price issue out of the way •
Sales velocity • Actions • References
Chapter 2: Quantifying the
emotional elements of value propositions • Introduction
• There is no such thing as a ‘rational’ customer • So what is a brand and why
is it so important? • Brand valuation • Market segmentation: the bedrock of
profitable growth • Summary so far • Putting it into action • Actions •
References
Chapter 3: What exactly is a
financially quantified value proposition? • Introduction
• Understanding the real meaning of customer value • Value proposition • The
emotional contribution of value propositions • Conclusion • Actions •
References
Chapter 4: An overview of the
value proposition process – where to start •
Introduction • Strategic marketing planning • SWOT analyses • Putting the value
proposition process in the context of marketing and KA planning process •
Define target market • Actions
Chapter 5: Why it is critical to
understand how key buying decisions are made • 1 How major
customers buy • Introduction • The need to define who the customer is • The
need to understand who ‘the buyer’ is • There are two types of buying
professional • Actions • 2 How other customers buy • Identifying the key
decision-makers • Segmentation • Actions • References
Chapter 6: Which key accounts
should you develop value propositions for? •
Introduction • Which key accounts are ‘strategic’? How to select and define
them • Classifying key accounts: how to understand their differences •
Interdependent KAM • Integrated KAM • Disintegrating KAM • Be realistic about
key account relationships • The relevance of this to the development of value
propositions • Actions • References
Chapter 7: Which segments should
you develop value propositions for? • Introduction
• Targeting mid-sized B2B customers by their potential to succeed • Further
refinement and focus • Actions • Reference
Chapter 8: Understanding key
account and segment needs before building a value proposition • Introduction • Key account analysis • Step 3: industry driving
forces analysis • Step 4: customer’s objectives analysis • Step 5: customer’s
annual report summary and financial analysis • Step 6: customer internal value
chain analysis • Step 7: the customer’s buying process • Step 8: your sales
history with the client • Step 9: competitive comparison and competitor
strategy • Next steps • Summary • Actions • References
Chapter 9: Understanding our own
asset base and capabilities • Introduction • A case
history of a value proposition from a commodity supplier • Understanding our
own capabilities • Competitive analysis • Actions • References
Chapter 10: Developing value
propositions • Introduction • Section 1:
value propositions for segments • Section 2: value propositions for key
accounts • The final piece • In conclusion • Reference
Chapter 11: Creating and
financially quantifying value propositions • Des
Evans, former CEO at MAN Truck and Bus UK Ltd • A case study contribution
about MAN Truck and Bus UK Ltd: delivering value and communicating value •
Answering question 1: who are the target markets? • Answering question 2: what
is your differential advantage? • Conclusions and lessons learned • Final
comments
Chapter 12: Developing and
presenting value propositions that resonate with customers • Todd Snelgrove, former Global Vice President of Value, SKF
• Quantifying your value so customers are willing and able to pay for it • Why
spend the time and effort to quantify your company’s value? • The ‘ability to
sell value’ component • The ‘want to sell value’ component • To keep the
programme alive and flourishing • References
Chapter 13: Value-celling: how to
maximize value creation in supply chains • Mark
Davies, Managing Director of Segment Pulse Limited and Visiting Fellow at
Cranfield School of Management • What is the chapter about? • Introduction
• A supply chain story • Value in business marketing • Easing the value
tensions in supply chains • Ten steps to build supply chain capability • Ten
tips to help you create value with your supply chain • Reference
Chapter 14: Financial analysis,
value quantification tools and financial dashboards • Value chain model • Defining the numbers for improving sales
and marketing and scenario-building • An ROI contribution from the industry •
Actions • References
Chapter 15: Summary of the value
proposition process • Step 1: define the target
market • Step 2: identify buyers • Step 3: added value analysis • Step 4:
categorize • Step 5: financial quantification • Step 6: communication to target
customers/markets • Summary • Reference
Index
About the Authors:
Professor Malcolm McDonald is Emeritus Professor at Cranfield & Honorary Professor at
Warwick Business School. He is Chairman of six companies, and works with the
operating boards of some of the world’s leading multinationals. He has written
over 40 books including the best-selling Marketing Plans: How to prepare
them, how to use them.
Grant Oliver is MD at 90 Day Action Plan, and has over 20 years’ experience in
software and management consultancy. He has been interim IT director in the
NHS, Finance Director of a software company, and Non-Executive Director of a
Housing Association.
Target Audience:
It is a great read for everyone
involved in buying or selling.