The Management Tip of the Week blog will present one tip each week based on content in the MDM Archives. Sign up for the RSS Feed for this blog here.A distributor that delivers a breakthrough solution or creates a new market standard for performance doesn't always reap a corresponding share of the rewards. The distributor also has to demonstrate the value of those activities to create a sustainable competitive advantage, according to The Extended Value Index.
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The first step for effectively demonstrating value is to identify customer needs and specific opportunities to match the distribution company's capabilities with those needs. For example, a distributor may develop a line card focused on a particular customer segment problem; the accompanying marketing program then outlines the distributor's method for solving the problem.
Proving value is an extension of the selling process. Make sure the value you are providing holds value for the customer. As Tom Gale writes in What Do Customers Want? Tough Question, there are subtle and not-so-subtle distinctions between 'want' versus 'need' versus 'willing to pay for.'