Business Marketing
College 3 Chapter 4 Developing a strategy for competitve advantage & creating
value for the customer Jurne Sleddens
Contents of this lecture;
1. Developing a strategy for competitive advantage
On which kinds of customers should we target?
What determines the value of a vendor/seller/supplier offers to the customer? (= Why
should the customer buy from you and not from your competitor
2. Creating value for the customer:
Which customers do we want to target?
Determining the value to offer to the customers?
The customer activity cycle revisited: What value to offer in which stage of the cycle?
Developing the value proposition
Designing the value network
Making value measurable
1. Developing a strategy for competitive advantage:
Where to start with to get a strategic position?
Step 1: Define your business (mission and vision, you identity)
Be specific enough, avoid misunderstandings in e.g. in what market tot invest.
2. Selecting the customers: From strategy to value proposition.
2A: Who will be your target customer groups?
What products can we make? = Who needs them?
What are the customer needs? = What to produce?
What are our core competences?
Many companies do all three but make clear choices.
Build strategic options and select the best:
Suitability (usefulness)
Feasinbility
Acceptability
2B: How to select customers? Depends on:
Customer Lifetime Value of the potential. use the customer activity cycle (= look for ways to
add value in each of the stages)
The nature of the customer needs/ buying criteria
Your company’s core competences (your s/w)
Your competitor’s competences (their s/w)
Now that we have a strategy and customers:
Do we want transactions or relationships?
In old days: Seller meets purchaser <-> convinces him transactions
Nowadays: Several disciplines from the vendor meet several disciplines of the buying
company <-> Relationships <-> Value chain thinking, co-designership and co-makership.
College 3 Chapter 4 Developing a strategy for competitve advantage & creating
value for the customer Jurne Sleddens
Contents of this lecture;
1. Developing a strategy for competitive advantage
On which kinds of customers should we target?
What determines the value of a vendor/seller/supplier offers to the customer? (= Why
should the customer buy from you and not from your competitor
2. Creating value for the customer:
Which customers do we want to target?
Determining the value to offer to the customers?
The customer activity cycle revisited: What value to offer in which stage of the cycle?
Developing the value proposition
Designing the value network
Making value measurable
1. Developing a strategy for competitive advantage:
Where to start with to get a strategic position?
Step 1: Define your business (mission and vision, you identity)
Be specific enough, avoid misunderstandings in e.g. in what market tot invest.
2. Selecting the customers: From strategy to value proposition.
2A: Who will be your target customer groups?
What products can we make? = Who needs them?
What are the customer needs? = What to produce?
What are our core competences?
Many companies do all three but make clear choices.
Build strategic options and select the best:
Suitability (usefulness)
Feasinbility
Acceptability
2B: How to select customers? Depends on:
Customer Lifetime Value of the potential. use the customer activity cycle (= look for ways to
add value in each of the stages)
The nature of the customer needs/ buying criteria
Your company’s core competences (your s/w)
Your competitor’s competences (their s/w)
Now that we have a strategy and customers:
Do we want transactions or relationships?
In old days: Seller meets purchaser <-> convinces him transactions
Nowadays: Several disciplines from the vendor meet several disciplines of the buying
company <-> Relationships <-> Value chain thinking, co-designership and co-makership.
