1. © 2012 Pearson Education, Inc. publishing Prentice Hall. Note 18 Generic Strategies—The Value Map

2. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 18-1 - The Value Map and Value Frontier or Fair Value Zone 2

3. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 18-2 - Value Map for Flat Screen TVs 3

4. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 18-3 - Strategies and Results within the Value Map 4

5. © 2012 Pearson Education, Inc. publishing Prentice Hall. Application of Customer Value Analysis  A customer value analysis serves two purposes:  It can be useful in the formulation of market databased strategies, which are preferable to vague definitions or blurry descriptions of strategies  This type of analysis helps identify clear measures to implement strategies 5

6. © 2012 Pearson Education, Inc. publishing Prentice Hall. Application of Customer Value Analysis  In order for an analysis to be successful, the marketer must have clear answers to the following questions, ideally based on market research data:  What is our target market?  Who are our competitors in the target market?  What are the customers’ buying criteria?  How important is each of these criteria? 6

7. © 2012 Pearson Education, Inc. publishing Prentice Hall. Application of Customer Value Analysis  How do customers evaluate our product and the competitors’ products on the basis of these buying criteria?  What are our prices and those of the competitors?  What is the customers’ price sensitivity? 7

8. © 2012 Pearson Education, Inc. publishing Prentice Hall. Application of Customer Value Analysis  Steps of analysis  Step 1: Definition of the target market  Step 2: Identification of competitors  Step 3: Identification of customers’ buying criteria and their relative importance  Step 4: Assessment of product performance and price  Step 5: Calculation of relative quality and relative price 8

9. © 2012 Pearson Education, Inc. publishing Prentice Hall. Application of Customer Value Analysis  Step 6: Estimation of customers’ price sensitivity  Step 7: Creation of the customer value map and formulation of strategies  Step 8: Definition of an action plan using importance- performance analysis 9

10. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 18-4 - Worksheet for Customer Value Analysis 10

11. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 18-5 - The Customer Value Map 11

12. © 2012 Pearson Education, Inc. publishing Prentice Hall. Figure Note 18-6 - Importance-Performance- Analysis 12

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