QDI’s Value Management Workbook™
QDI has developed the Value Management Workbook™, a market modeling tool to quantify and clarify the drivers of market share and your relative performance versus competition. Starting with your definition of an addressed market, you can define and quantify your benefits and costs relative to your customer’s alternatives to define the relative value of your offering. Combining this information with your market presence that you can also model in the workbook, you can project market share and revenue based on your overall marketing performance.
To download a copy of QDI’s Value Management WorkbookTM, click here.
Market share is a function of being present at the sale and winning when you are present.
QDI’s Value Management Workbook™ provides the analytical framework to challenge your perceptions of the market, your product and your competition. The exercises model the impact of three key decisions that drive your overall performance:
- Addressed Market: Who are your customers and what are you offering them?
- Market Presence: What portion of the time is your product considered when a customer is making the decision to purchase?
- Value: How do your product’s benefits and costs compare to the competition, and what do you offer beyond the core product to add value?
The workbook findings provide a measure of your market share relative to your competition based on your market presence and the value assessments you have made. Use the Value Management Workbook™ as a diagnostic tool to identify how your strengths and weaknesses have led you to your current position in the marketplace.
QDI’s Value Management WorkbookTM also helps you challenge the way you view your business by providing tools to assess the key decisions that drive your overall performance.
The concepts behind QDI’s Market Share model are simple. A company’s Market Share is a function of three variables:
The Addressed Market, which is the definition of the market the company is addressing and the portion of that market for which the company has competitive offerings.
The Presence the company’s offerings have to the customer at the time of sale. This Presence requires the customer be aware of the company’s offering and consider the offering.
The Close Rate is the percentage of time the customer chooses the company’s offering versus alternatives. These alternatives usually include a directly competitive product, but also could include products that indirectly compete and the customer’s option to make the decision not to purchase.
Close rate is driven by perceived value. As shown below, perceived value (ValueP) is a function of the customer-perceived benefits (BP) and the total cost ($CT) a customer incurs in purchasing and using your product or service. How customers perceive the value of your offering versus the value of competitive offerings determines your close rate.
Your market performance, measured in terms of share or revenue, is the product of your close rate, the value of the addressed market, and market presence.
QDI’s powerful value analytics tools provide the framework to develop strategies for growth. Begin with the Value Assessment Workbook™ by defining your value relative to the competition. Expand your analysis by looking at your market presence. Using these two dimensions, you can model your market share. Once you have a base model, simply change any score or weighting and see the impact on market share and revenue. You will identify areas where you could modify your strategy to grow share.
The ability to project the impact of different product line and channel strategy changes reduces the risk of costly mistakes and increases your odds for achieving success. In today’s highly competitive environment, QDI’s value analytics tools help you pinpoint which strategy initiatives will generate more sales out of the same sales and marketing investment. QDI consultants can help drive value in your business.