Roy's Blog

May 7, 2010

Marketing: Holistic Value Offers are NOT Bundles

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One of the essential planks of the BE DiFFERENT Marketing platform is the notion of Customerization. Customeriztion replaces the traditional marketing approach of developing products and services for the masses in favor of creating value-based Holistic Offers for the chosen few customers WHO you have selected to SERVE.

Many people relate the Offer concept to bundling, and they could not be further from the truth.

A Bundle:
- the whole = the sum of its parts. It is a collection of products and services kluged together from their a la carte origin.
- is driven by a price theme.
- the bundle total price represents a discount over what you would pay for all of the components individually. Bundles are governed by “the more you buy the less you pay for the component parts” principle.
- is branded usually as a “____ Bundle” like the “Home Office Bundle”, “Financial Services Bundle” “Home Telecom Bundle” and so on.
- forces the potential customer to define the value they would likely receive. Rarely is the value proposition offered anything else but cheaper prices.
- is easy to copy by competitors within an industry since it is really a lower price in disguise.
- consumes relatively few marketing resources. The price message over a collage of existing products and services doesn’t require a significant investment to go-to-market.

A Holistic Value Offer:
- the whole > the sum of its parts. Offer components are leveraged together to generate more value that they would by pasting them together.
- is driven by a Value theme and the truly BE DiFFERENT ones are built around the idea of creating new “experiences” for people.
- the Offer price is a premium to the sum of the individual product and service components. Value Offers are priced on the basis of the overall value created and not on the price points of the components.
- is branded as something NEW, and reflects the set of benefits created for the customer.
- makes the value explicit for the customer. The value proposition is expressed in terms of value received from the collection of components operating synergistically.
- is tough to copy by the competition since the Offer is the result of a value integration process.
- consumes more marketing resources associated with integrating value components, branding, strategic partnerships (for Offer components that must be ‘imported’ from another supplier).

Bundles are prolific in the market; Value Offers are more scarce. My book has examples. Also connect on my blog for examples as I come acoss them.

Cheers,
Roy

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