Value Management Flashcards
What are the different costs which Customers incur?
- Purchase cost
- Deployment cost
- Admin & Maintainance cost
What is Value?
The difference between the lifetime objective and subjective benefits from the product and the cost incurred by the customer (purchase + deploy + maintain) to get the product
What are the types of benefits products provide?
2 TYpes - Objective benefits which are similar for all users (eg. processing power/battery life)
Subjective benefits differ for each user and focus on how the user feels upon using the product (I phone makes people feel richer)
Which are different segments in B2B market?
Large Corporates Small corporates Medium size corporates Governments Education institutions Not for profit orgs
Who do you create value for?
We create value for a specific segment of the market who we think will be our customers
Why segmenting is important?
Every segment of the market has specific needs, pains, and characteristics
Customers in a particular segment respond to our marketing efforts in a similar manner (if your creating a product for the teenage segment, you will market on IG still everyone is there)
What is a Persona?
A Persona is an accurate representation of the segment of the market we are targeting as a customer
How are personas made?
Personas are made by conducting a survey and personal interviews of people in the same segment and then bifurcated with their key qualities
What is value management?
Its the Productizing process of taking an idea all the way into the hands of users and includes 5 essential steps
1) Understanding Value
2) Creating Value
3) Capturing Value
4) Communicating Value
5) Delivering Value
Explain the Understanding Value process
We try to understand
- Who is our customer
- What do they want?
- What pains are they going through?
- What products they currently use?
- How those competitive products are bad?
- What makes them buy products?
- How much they are willing to pay for products?
Explain Creating Value process
What are we actually going to create?
What user experience should be?
We understand the features. resources needed to develop features. how will we provide our solution to the user (app/ physical product/ saas) how much money is needed to develop this solution
Explain Capturing value process
This is all about monetizing strategy and business model!
Who will pay?
How will the users pay?
How much will they pay?
For what services will they pay?
Which services should be free? and chargeable?
How does our price compare with other competitors?
Explain communicating value process
This is all about marketing!
Tell customer about our product in compelling manner
How will we tell customers about our product and its features?
How will we market our product?
Most efficient way to market it?
COMPELLING POSITIONING STATEMENTS
What things PM helps create to communicate value?
Explainer Videos Demo videos Testimonials White papers Data sheets
Explain Delivering Value process?
Understanding how your product will be sold
Will it be online or through offline participants
What are the obstacles in the way of sales?
Become aware of where the customer is?
