Manage for profit not for market share

Manage for Pro+it Not for Market Share

Authors: Hermann Simon, Frank F. Bilstein, Frank Luby Publisher: Harvard Business School Press Summary By Sung U. Choi


Chapters Chapter Titles Subtitles Tools

2 Learn to Compete Peacefully

• Identify the Aggressors in Your Market • Use a Competition Map to Guide Decision Making Competition Map

3 Change the Way You From Your Assumptions

• Base Views of Customers on Facts Not Conventional Wisdom • Don’t Let Customers Take You For Granted • Beware the Competitive Benchmark

Price-Profit Grid

4 Use Internal Data to Find Profit Opportunities

• Use Status Data to Identify Your Profit Opportunities • Generate Response Data to Quantify Your Profit Opportunities

Expert Judgement (Response Analysis)

5 Uncover Preferences and Willingness to Pay

• Make Sure Your Customer Research Is Hypothesis Driven and Focused • Transform Your Sales and Service Forces Into Information Sources • Keep Customer Research Investment in Line with the Stakes Involved

Various Research Approaches

6Optimize Your Marketing

Mix to Capture the Highest Additional Profit

• Segment Your Customers by Preferences and Willingness to Pay • Reshape Your Product Offering According to Customers’ Willingness to

Pay • Promote Your Products Heavily If You Know the Real Impact

Bundle-Unbundle

7 Raise Your Prices to Get the Profit You Deserve • Understand the Implications of Price Increases Price-Value

Constancy Corridor

8 Don’t Ingratiate Yourself with Customers • Learn When to Sacrifice Customer Satisfaction in Favor of Profit Price-Value

Constancy Corridor

9 Align Your Incentives to Focus on Profit

• Get the Monetary Incentives Right • Reward Channel Partners for Performance Not Just for Volume • Lead By Example If You Want a Culture of Profit

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10Get Your Market

Communication Under Control

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Chapters and Subtitles

• The goal is to attract and secure customers.

• In mature markets, it is important to not force the competitor to do something reckless.

• In mature markets, customers tell more about the competitors. It is more important to observe customers than competitors.


Lessons Learned