Competing Along the Value Chain in B2B2C · 2020-02-20 · Step in Building Winning Strategies in...

Copyright Amphora Consulting 2019 0

Confidential – For The Intended Audience Only

Competing Along the Value Chain in B2B2C

Spartanburg, SCFebruary 6, 2020

Copyright Amphora Consulting 2019

Who is the Customer? B2B or B2C?

§ Video Cassette Recorder (VCR)?

§ Residential Thermostat?

§ Tackifier for Hot Melt Adhesive?

§ Bottled Water?

§ Automotive Tires?

§ Metallic Pigment for Automotive Paint?

§ Fiber for Military Body Armor?

1


Why it Matters – Because Business to Business Marketing is Different

Channels

Value

Segmentation

Brand

“Marketing”

B2C

§Established/Known

§Primarily Emotional

§ ”Personas”

§Leads

§A Department

2

B2B

§Specialized/Evolving

§Primarily Economic

§Needs

§Follows

§Cross Functional Skill Set

Understanding the entire value chain is the only way to win


Defining Markets: The Problem We Solve for a Set of Customers

Current Demand

AMPEX

3

• The most interesting market may not exist


The ‘Eco-system’ of Customer Problems

3-D Model – Thermostats

Product Solution

Applicati

on

Geo

grap

hyGlobal Energy Management

ClimateControl

Thermo-stats

4

• A Better End-User Experience Can Transform a Market


Value Mapping – Tackifier for Hot Melt Adhesives

‘Tackifier’ supplier Other ingredient suppliers

Adhesives Maker

Converter Brand Owner

End customer

Regulators – e.g., FDA

Packaging Consultants

Cares about supply, prices and breadth of applications

Often highly profitable – usually risk averse- Protect their brands

Cares about supply, prices and meeting needs of brand owners

5

$$

$ $$$$

$$ $

Influencers:

• Need to Understand Trade-offs at Every Level of the Value Chain

Copyright Amphora Consulting 2019 6

Consumer Choice: Water vs. Other

Options

1 – 6 Brands at the typical retail outlet

75 + Brands in the US

Bounded Choice: Bottled Water

• Need to Frame Key Decisions from the Customer Perspective


Automotive Tires – Who is the Customer…

7

• Your Direct Customer May Not Understand The Value of Their Offering…


Extracting Value from the Value Chain

8

Example: Metallic Pigment for Automotive Paint

• …Or They May Even Try to Hide the Value from You


Value Chain: Body Armor for the US Military

9

Polymer Supplier

Fiber Maker

Garment Maker

DoD Buyer

Soldier

Congress

NGO’s/Media/Etc.

Influencers:

Shield Maker

• The End-User’s VoiceMatters, Even if No One is Currently Asking Their Opinion


To Avoid These Traps: Become a Student of your Customer


Premise 1: A “Market” is the Problem You Solve


Premise 2: Observe, Don’t Just Ask

12


Premise 2A: Problem may already be ‘solved’

13


Premise 3: The Most Attractive Customer May Not Buy Directly From You (or may not buy anything today)

14


Premise 4: Understand and quantify value

15


Premise 5: Customers Are Not All the Same

16


Premise 5A: You Are Not the Customer

17


Summary: Understanding the Value Chain is a Critical Step in Building Winning Strategies in B2B2C

§ The most interesting market may not exist

§ A Better End-User Experience Can Transform a Market

§ Need to Understand Trade-offs at Every Level of the Value Chain

§ Need to Frame Key Decisions from the End-Customer Perspective

§ Your Direct Customer May Misinterpret The Value of Their Offering…

§ …Or They May Even Try to Hide the Value from You

§ The End-User’s Voice Matters, Even if No One is Currently Asking Their Opinion

18


A final word to the wise

“If there is a better solution for the end-customer, then someone will find it. Strive to have that someone be you.”

- Jeff Bennett 2007

19

“If there is a better solution for the end-customer, then someone has already found it and you just don’t know it yet!”

- Amphora Client 2017

Date post:	21-May-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

Competing Along the Value Chain in B2B2C · 2020-02-20 · Step in Building Winning Strategies in...

Documents