Commanding, controlling or
prevailing over all others.
Strategic programs and new partners don’t directly generate growth – value added products and
services do.  The most fundamental concept here is differentiation – defining product attributes
that provide measurable benefits to customers and are unique from the competition.  If you have
differentiation, you can avoid competing as a commodity (on price) and leverage the value you
provide the customer to gain higher margins.


Positioning & Differentiation

  • Define the current basis of competition.
  • Stimulate creative thinking about how customer needs (often unarticulated) can be met
    with unique product attributes or support programs.
  • Convert sources of competitive advantage into product development and business
    process roadmaps.

Strategic (Value Based) Pricing

  • Assess the current pricing process, customer leverage / behavior, cost of product options
    and resulting margins.
  • Model the financial impact to the customer of unique product and service capabilities.
  • Create a pricing structure based on customer value and your cost to deliver – aligning
    product offerings with customer segments.
  • Define pricing policy authority and process flow.
  • Develop communication tools and help implement the new prices and pricing policy.

Value Added

  • Stimulates critical thinking about how your current and future products add value to the
    customer.
  • Establish the discipline that every product must have this value defined prior to design
    and clearly communicated when available for sale.
  • Deliver the roadmap for action via prioritized R&D, Marketing and Sales programs.
  • Recommended pricing to capture customer value (100% of any price improvement falls to
    the bottom line).
  • Implement any required changes in the pricing process.
  • Modified the customer dialog – keeping the focus on value and moving negotiations from
    “beating the supplier” to discussion of constructive product and service alternatives.
“Differentiation”
Discrimination between things as
different and distinct.
“Dominant”
“Positioning”
To determine or place in an
advantageous location; to occupy
a strategic area.
Strategic Pricing
Click on the link below for a white paper on this topic:
Product Road Maps – Transforming Strategy into Growth.
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