customer analysis and value creation chapter four m arket-based management, 4 th edition
TRANSCRIPT
Customer Analysis and Value Creation
Chapter FourChapter Four
MMarket-Basedarket-Based Management, 4Management, 4thth editionedition
4-2
Customer Analysis and Value Customer Analysis and Value CreationCreation
Chapter Four
– Customer Value and Benefits
– Value Creation
– Various Types of Value
– Price and Associated Costs of Purchase
– Customer Analysis Tools
4-3
Customer Value And BenefitsCustomer Value And Benefits
• What is Customer Value (CV)?– CV =Benefits – Cost
• What are Customer Benefits?
• How do we Create Value?– Value Creation Process
Service Benefits
Brand Benefits
Product Benefits
Price &OtherCosts
Customer Value
4-4
Discovering Customer BenefitsDiscovering Customer Benefits
• Why is it important?
• Methods:1. A Day in the Life of a Customer2. Empathic Design3. Lead User Analysis4. Staple Yourself to an Order5. The Kano Method
4-5
Life Cycle Costs and Value Life Cycle Costs and Value CreationCreation
How do we Create Customer Value?
Reduce Lifecycle Costs…Price Paid, Acquisition Costs, Usage Costs, Ownership Costs, Maintenance Costs, Disposal Costs
4-6
Price Performance and Value Price Performance and Value CreationCreation
• How do we quantify the performance of products?– Relative
Performance– Relative Price– Relative Customer
Value
Product PerformanceAverage Performance
Product PriceAverage Price
Relative Performance – Relative Price
4-7
Price Performance and Value Price Performance and Value CreationCreation
4-8
Customer Value and Relative Customer Value and Relative Performance Performance
4-9
Perceived Benefits and Value Perceived Benefits and Value CreationCreation
• Types of Perceived Benefits – Product Benefits– Service Benefits– Brand/Company Benefits
• How Do We Measure Perceived Benefits?
• What is the Value of Perceived Benefits?
4-10
Value Of Perceived BenefitsValue Of Perceived Benefits
4-11
Transaction Costs and Value Transaction Costs and Value CreationCreation
• What are Channel Intermediaries?
• How do they Create Value? – Use of Space– Inventory Turnover– M&S Expenses
• Quantifying Space Value and Transaction Value
Manufacturer
Products Services
Intermediary
Manufacturer
Benefits Costs
Conjoint Analysis and Value Conjoint Analysis and Value DriversDrivers
4-12
4-13
Conjoint Analysis and Value Conjoint Analysis and Value DriversDrivers
4-14
Value Drivers and PositioningValue Drivers and Positioning
4-15
Customer Analysis ToolsCustomer Analysis Tools
How do we Evaluate Customer Benefits?
4-16
TakeawaysTakeaways//ReviewReview
• Analyzing Customers and Discovering Value
• Creating Value and Associated Costs– Economic – Relative– Perceived– Emotional– Transaction
• Identifying Value Drivers
• Positioning to Create Value
4-17
Marketing Performance ToolsMarketing Performance Tools
Lifecycle Cost Analysis
Cost of Purchase Sepcific Product A Product B Lifecycle
Generic Category Cost AirCap Competitor Cost
Price Paid (after discounts and rebates) Packing Material $1.05 $0.80 $0.25
Shipping Cost Shipping Cost $2.40 $2.60 ($0.20)
Installation/Handling Packing Box $0.55 $0.55 $0.00
Inventory (holding costs ) $0.00
Financing Costs (loan interest) $0.00
Ow ning Costs (insurance) $0.00
Usage Costs (cost to use) Labor to pack $0.13 $0.83 ($0.70)
Maintenance (cost of routine maintenance) Breakage/1000 $0.05 $0.10 ($0.05)
Disposal Cost (cost to get rid of product) $0.00
Re-Sales Value (input as a negative number) $0.00
Lifecycle Cost and Economic Value $4.18 $4.88 ($0.70)
4-18
Marketing Performance ToolsMarketing Performance Tools
Lifecycle Cost Analysis and Economic Value
Competitor$4.88 AirCap
$4.18
Economic Value$0.70
$0.00
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
Competitor Company
To
tal
Lif
ecyc
le C
ost
4-19
Marketing Performance ToolsMarketing Performance Tools
Customer Determined Relative Competitor Relative
Product Benefits Importance A B C Advantage
Machine Up-time 40 0 40 40 27
Print Speed 30 0 30 30 20
Image Quality 20 0 0 0 0
Paper 10 -10 -10 -10 -10
100 37
Relative Product Benefits 137
Customer Benefits
Customer Determined Relative Competitor Relative
Service Benefits Importance A B C Advantage
Repair Time 60 -60 0 0 -20
Response Time to Problems 30 0 0 30 10
Quality of Service 10 0 0 0 0
100 -10
Relative Service Benefits 90
4-20
Marketing Performance ToolsMarketing Performance Tools
Customer Determined Relative Competitor Relative
Company/Brand Benefits Importance A B C Advantage
Customer Commitment 60 0 60 60 40
Reputation for Quality 40 0 0 0 0
100 40
Relative Company/Brand Benefits 140
Customer Benefits
Customer Relative Relative Overall
Benefits Importance Advantage Benefits
Product Benefits 0.60 137 82.2
Service Benefits 0.30 90 27.0
Company/Brand 0.10 140 14.0
1.00 123.2
4-21
Marketing Performance ToolsMarketing Performance Tools
Customer Cost Total Cost of Purchase
Customer Perceptions Relative Competitive Cost Overall Cost
Total Cost of Purchase Importance Position Multiplier of Purchase
Purchase Price 40 15% 1.15 46
Service and Repair 30 10% 1.10 33
Toner 20 0% 1.00 20
Paper 10 -20% 0.80 8
100 107
4-22
Marketing Performance ToolsMarketing Performance Tools
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50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130 135 140 145 150
Value Map
InferiorValue
SuperiorValue
FairValueLine
Customer Value and Value Map
Company Benefits14.0
Service Benefits27.0
Product Benefits82.2
Non-Price Costs61
Price46
Customer Value16
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
Customer Benefits Cost of Purchase