“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.