MarketAbility's Marketing Briefing

Dear Marketeer

Welcome to the first of our periodic email Marketing and CVM Briefings, which is aimed at bringing some interesting and challenging marketing perspectives, news, views and items to our readers.
We hope you find it interesting and we would welcome your comments. If you would like to contribute, please send your idea or contribution using the contact at the end of the Newsletter. There is no charge for this email. If you do not wish to receive future issues, you can unsubscribe at the base of the email.

Thanks for your interest and support
Phil Allen, CEO MarketAbility

• What's new in Marketing and CVM ?

Benchmarking CVM Practice in Chemicals and Plastics
MarketAbility is conducting a major CVM benchmarking study amongst the major players in the chemicals and plastics industry. You still have a chance to benchmark your performance and get feedback for free. Just call Phil Allen +41 1 783 8777 or Niki Heimann +32 486 42 67 31. Using the CVM Diagnostic Best Practice model feature in the new book "Value-Based Marketing for Bottom-Line Success: 5 Steps to Creating Customer Value", (De Bonis, Balinski & Allen, published McGraw-Hill December 200), co-author Phil Allen is benchmarking CVM practice across the chemicals and plastics
industry.
" The picture is not a rosy one," says Phil "and many companies fool themselves into thinking they are customer focused - speaking the words and writing them in their website. But words are meaningless without deeds and this is where many companies let themselves down. The do not <<walk the talk>>. Of the leading 150 global chemicals and plastics players, two-thirds CLAIM to be customer-focused, but our study reveals that only ten percent of them actually ARE customer- focused."
(Source: MarketAbility)

ChemConnect doubles transactions.
Online chemical marketplace ChemConnect (Houston) says its transaction volume doubled in 2002, to over 16,000 transactions valued at some $8.8 billion. In addition, the group says over 1,000 deals were completed last year via its online auctions. Over 40 percent of the auctions were run by companies selling products. In 2002, more than 30 companies exchanged in excess of 250,000 messages via ChemConnect, following its hub-to-hub connection with Global eXchange Services (GXS) and alliance with IntelliTrans, a supply chain software and technology firm.
“ The acquisitions and strategic partnerships we have made combined to promote product liquidity and build bridges to our customers’ trading partners in other industries,” says ChemConnect CEO John K. Robinson. The group says it now has some 30,000 individual members in 150 countries.
(Source: e-Chemmerce.com; and e-epoxy.com)

Toward a More Complete CRM Strategy
by Adhanda Enterprises, LLC, A technology digest
One of the primary goals of CRM is to cultivate long-term relationships, whether with existing customers or new prospects. To do that effectively, a company needs a well-defined strategy if it wants to successfully meet its customers’ increasing demands for higher levels of service.
Put another way, any investment a company makes to acquire a good customer has to result in a long-term relationship; otherwise, it is not a profitable investment. The right CRM program must help accomplish that.
(Source: http://www.crmcommunity.com/
Read more...

• Sales & Marketing for Chemicals Europe & USA 2003

MarketAbility lead Interactive Workshop Session on Customer Value Management at Eyeforchem Conferences in Amsterdam and San Antonio

Learn how the 150 top companies in the industry compare when it comes to customer value management: Who's leading the pack and who's lagging behind? Get the low-down of best practice and discover how your company can increase revenue and profits through a more customer-driven sales & marketing strategy. This interactive session will enable you to question the theories, discover the practicalities of implementing the 5 step model and uncover the particulars that will help add value to your sales and marketing strategies. As featured in the book "Value-Based Marketing for Bottom- Line Success: 5 Steps to Creating Customer Value", De Bonis, Balinski and Allen.

Facilitated by Phil Allen, Marketability (co-author of the book)

For more information click this link:
Amsterdam, March 27-28, 2003
San Antonio, April 03-04, 2003

• Marketing and CVM in Practice

Three of our current favourite marketing successes

South-West Airlines
Yes, OK, so everyone's heard it all before, but have another look. This company really has developed a very special and highly successful business model and it goes beyond just words about customer focus. South-West Airlines has built a customer-focused mind-set throughout the organisation. They are very targeted towards chosen customer segments and for those customer segments they hit the mark in terms of a value offering second to none. South-West remains the only airline to have been consistently profitable throughout its (more than thirty years) history.

Easyjet and Ryanair
Are Easyjet and Ryanair the South-West Airlines of Europe. Some would make that claim. Certainly they appear to have adopted a similar business model. But have they really built the mind-set? Easyjet is also moving away from the South-West model by ordering a different aircraft for its next series of purchases and by moving into some larger hub airports instead of sticking with the smaller (less expensive and less congested) airports. How will that impact their success?

Dow Corning Corporation/Xiameter
We admire also the success of the past year achieved by Dow Corning Corporation with its "differentiated commodity" business model Xiameter. This very courageous move away from the more traditional commerical thinking in the chemicals and plastics industry is truly pioneering and trend-setting, and - as Dow Corning's competitors are discovering - it is difficult to emulate quickly, because it is built on the foundation of a detailed and in-depth understanding of real customer need and value.

• Editorial Abstract

Markets are Customers not Product

For many in B2B industries marketing is something of a black art, with little or no scientific substance, unclear processes and concepts – and that’s just what the marketers themselves think about it!!
I’d like to try and shed some light on the true substance and value of marketing to any industry or business. Let’s just start by examining the word “MARKETING”, which suggests that it is about “MARKETS” or perhaps “GETTING TO MARKETS”. But what is a “MARKET”? And how do I “GET TO A MARKET”?
A market is a group of customers who have a need for certain products and services which provide a valued benefit to them and for which they are prepared to pay a certain amount of money, based upon the value of the benefit they derive from the product(s) and service(s). This amount is generally reflected in the price of the products and services. Not so very complicated. But why is it then that so many industrial marketers struggle?

MarketAbility featured Practitioners

Phil Allen

Transplanted Englishman in Switzerland, who claims to have
always been a European at heart.
Marketing and CVM Practitioner, CEO of MarketAbility.
Self-confessed work-a-holic, who still finds time to have
fun both at work and outside. Quote of the moment:
" When you blame others, you give up your power to change"
(thanks to Douglas Noel Adams )

• MarketAbility News

Ecademy Launched
MarketAbility has launched an internet-based Ecademy. The Marketing and Sales Ecademy offers a comprehensive range of learning programmes for all levels of marketers and busy business managers and executives.
Learning takes place from your home or office location or wherever you are - provided you have a decent internet connection. You choose your times. You choose the speed and pace of learning to suit your needs. The programme is open to business managers and executives any where in the World in any business or market.

Look out for more details in our next emailer or contact us directly for more details

MCE Customer Relationship Management
Phil Allen will lead the next Customer Relationship Management 3-day Executive Programme at Management Centre Europe (MCE) in Brussels, April 7-9.
A strategic and highly pragmatic perspective of Customer Value Management, following the 5-Step Model featured in the book Phil co-authored: "Value-Based Marketing for Bottom-Line Success: 5 Steps to Creating Customer Value" De Bonis, Balinski and Allen, published McGraw-Hill, December 2002
Read programme description...