Value Creation
Process in B2B
Markets
as. prof. Teodora Daneva
teodora.daneva@ue-varna.bg
ue-varna.bg
Marketing Planning Process:
A quick review...
Mission:
• Promise made to your
customers
• Customer-driven
• Represents who you are
and what you deliver to
your customers
Example: Callboxs
Promise: help companies find
and implement successful
business models in the
shortest amount of time.
What is value?
Customer Value is the difference between total
customer value and total customer cost.
Total customer value = total bundles of
benefits customers expect from a given
product/service.
Example: Callboxs - to react quickly and adapt in a
dynamic and rapidly changing world.
Understanding Who Your Customers are...
B2B marketers might focus
on:
Industry
Number of employees
Location
Revenue
Purchasing power
Customer lifetime value
Customer profitability
Product usage
Example: ACME Corporation
• "small businesses" and "large businesses." This allows Acme Corporation to create tailored
marketing and sales campaigns for each segment, and improve the overall customer
experience.
• "frequent buyers" and "occasional buyers."
Ways of creating Value
• An outside-in strategy observes the market, gets
to know consumers first, and the thinks of offering
what consumers really need. These strategies
move forward from the back; In other words, they
observe what clients want before finding the
solution.
Example: Apple, BestBuy
• An inside-out innovation strategy is guided by the
belief that an organization’s inner strengths and
capabilities will produce a sustainable future. All
new ideas are born inside the organization,
typically generated by management or the
innovation and R&D departments.
Identifying the Value Drivers
Differentiation value is the value
associated with product features that
are unique and different from
competitors.
Economic value represents the cost
savings and/or revenue gains that
customers realize by purchasing the
firm’s product instead of the next-best
alternative.
Cost + Revenue Drivers = Economic
value
01
02
Commodity value, then, is the value
that a customer assigns to product
features that resemble those of
competitors’ offer?ings.
03
Quantifying the impact of the firm’s
product or service on the customer’s
business model
Creating the Value Proposition
Value – the ability to live in a more
sustainable way
Value #
Product
Understanding the Marketing Mix
• Product
Core benefit – the fundamental benefit that the customer is
really buying
Example: Competence
Generic product – the basic version of the product
Example: Textbook
Expected product – a set of attributes and conditions that
buyers expect and agree to when they purchase the product
Example: Hardcover, pictures, examples etc.
Augmented product – all additional services and benefits that
distinguish the offer from competitors`
Example: Case-studies with real companies, interviews, etc.?
Understanding the Marketing Mix
• Product
• Product Line Analysis
• Product Line Sales and Profit- Product –
Line market Profile
Line – Stretching Decisions – when a company
lengthen its product line beyond its current range
Downward Stretch - when a company is located in the
upper end of the market and subsequently stretch
their line downward.
Upward Stretch - when a company is located in the
lower end of the market and subsequently stretch their
line upward.
Two –way Stretch – when a company is serving in the
middle market end and decide to stretch their line in
both directions.
Understanding the Marketing Mix
• Product
In simple terms, what is being sold to the
customer is the product. It is the ‘Core’ which is
offered to the customer.
How companies can use products so as to
create value?
• Technology
• Quality
• Innovation
Example: Arduino
Understanding the Marketing Mix
• Product
How companies can use products so as to create value?
• Design
• Personalization
Understanding the Marketing Mix
• Experience:
AI Chatbots and virtual assistants
Chatbots can be used to:
* Assists in resolving customer queries and querie
* Enable people to interact with a chatbot on a
messaging platform
* Empower people to buy products, get informatio
about products, and perform various actions
* Let people know what to do next
Case study:
https://days.arduino.cc/about
Value - Based Pricing
Priicing Objectives
Achieving a Target
ROI
Achieving a Market
Share Goal
Meeting
Competition
• Target Costing: The firm identifies and targets the most attractive market segments. It
then determines what level of quality and types of product attributes are required to
succeed in each segment, given a predetermined target price and volume level
• Skimming, appropriate for a distinctly new product, provides an opportunity to profi tably
reach market segments that are not sensitive to the high initial price. As a product ages, as
competitors enter the market, and as organizational buyers become accustomed to
evaluating and purchasing the product, demand becomes more price elastic
Value - Based Pricing
• Penetration: by taking a large share of new sales, a firm can gain experience
when the growth rate of the market is large.
A penetration policy is appropriate when there is:
• high price elasticity of demand,
• strong threat of imminent competition,
• opportunity for a substantial reduction in production costs
as volume expands.
Understanding the Marketing Mix
7ps
• Marketing Communications:
• The value created by business marketers must be effectively communicated. For their larger and
more so phisticated customers, marketers are using multi-functional sales forces that satisfy the
“partnering” needs of their larger customers. Therefore, the experts in the buying firm can
communicate directly with the experts of the selling firm. For smaller customers, they may use
in?bound telemarketing in order to communicate efficiently. Firms are providing value by
becoming customer experts. For example, firms such as DuPont and Xerox are developing vertical
market experts that sell products from different business units to the same customer through a
single sales representative. According to DuPont, the average cost of face-to-face calls is $1,700.
By streamlining the sales organization, the company pro?vides better service at lower cost
People
Orci varius natoque penatibus et magnis dis
parturient montes, nascetur ridiculus mus.
Pellentesque pretium vehicula nisi. Proin eu
enim sed tellus luctus porta ac vitae neque.
Donec sed ligula convallis, fringilla elit sit
amet, ornare nunc.
Lorem ipsum dolor sit amet, consectetur
adipiscing elit. Aliquam tincidunt odio eu
magna tristique gravida et in quam. Morbi et
arcu sed nisl facilisis commodo at eu libero.
In erat mi, varius condimentum felis eleifend,
mattis semper leo.
References
Choose two companies that produce similar products for
similar users. Explain the type of distribution channels used by
both companies? How do they look alike and how do their
distribution strategies differ? Discussion 3. Explain the influence
of digital technology on marketing channels. t
Factors influencing Pricing Strategies
Price Elasticily
Demant
determinants
2022 Archive
Lorem ipsum dolor sit
amet,
consectetur
adipiscing elit. Aliquam
tincidunt
odio
eu
magna
tristique
gravida et in quam.
Morbi et arcu sed nisl
facilisis commodo at eu
libero. In erat mi, varius
condimentum
felis
eleifend, mattis semper
leo.
Information
Contact Us
Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Aliquam tincidunt odio eu magna tristique gravida et in
quam. Morbi et arcu sed nisl facilisis commodo at eu
libero. In erat mi, varius condimentum felis eleifend,
mattis semper leo.
+123-456-7890
www.reallygreatsite.com
hello@reallygreatsite.com
123 Anywhere St., Any City
Thank You
For Your Attention
teodora.daneva@ue-varna.bg
ue-varna.bg