Value
The role of ‘Value’ in B2B marketing
In B2B, Value comprises Five Factors: Response, Service, Time, Quality and Price.
These are the criteria that influence and motivate B2B buying decisions. This extract from an ealier post looks at analysing how products, services and processes create Value in relation to each of the Five Factors.
It is a simple approach, but it produces bottom [...]
Measuring B2B marketing performance
Performance is easier to assess when it’s measured against the two objectives of B2B marketing:
Cultivating consistent customers – CCC
Preventing price pressure – PPP
CCC is about keeping your customers loyal and finding more like them: sales and volumes. PPP deals with building and maintaining margins: delivering the right Value to the right people.Â
Are we asking the right questions?
Data, [...]
Preventing price pressure
As one of the two objectives in B2B marketing, the task of preventing price pressure has a lot to do with communication.
In terms of the Five Factors of Value, Price is ranked as the least influential of the five B2B buying motivators. It’s also the component of Value with the most straightforward definitions: Competitive, Rational [...]
B2B marketing is about buying: What? How? Who?
Marketing is not about selling. Marketing is all about buying:
What are customers buying?
How does buying contribute to their success?
Who is buying?
These are the must-knows that determine tactics in B2B marketing. Cultivating consistent customers and preventing price pressure – CCC & PPP - provide the strategic direction, but What-How-Who drives implementation.
1. WHAT are customers buying?
Customers [...]
So what is Value? The five B2B buying motivators
Here’s a couple of definitions of ‘value’ from the Encarta Dictionary:
To rate something according to its perceived worth, importance, or usefulness
An amount expressed in money or another medium of exchange that is thought to be a fair exchange for something
In these definitions, two phrases stand out for me: ‘perceived worth’ and ‘thought to be’. So, [...]
Is your marketing doing its job? Is it achieving its two objectives?
There are only two objectives in B2B marketing:
Cultivating consistent customers
Preventing price pressure
These are the objectives that should motivate all B2B marketing activities – the two goals that have to be achieved: CCC and PPP.
If your marketing activities are not delivering bottom-line results in terms of CCC and PPP, then two things are probably happening:
The activities are not [...]
Making B2B marketing work
The PQRS&T in B2B marketing
Price, Quality, Response, Service and Time.
These are the Five Factors of Value. That may not sound very significant, so let me put it another way:
They are the five reasons that make customers buy, the reasons that deals get done. The five buying motivators. The Big Five.
This Big Five are particularly important [...]
