3 Basics of Calculating the Value of a Product or Service
For a business organization, the value of any product or service is based on how it affects financial performance. The best definition of value in a B2B setting is the total monetary worth of the benefits that a company obtains by purchasing and using a product or service. A product or service can create value for a business in three basic ways. It can enable a business to:
· reduce existing costs,
· avoid future costs, or
· increase revenues.
The value of MAM marketing solutions is based on the same principles and will be explored in this four-part blog series.
MAM for Improved Efficiency of Content Creation and Effective Marketing
A marketing asset management solution as part of a distributed marketing platform will provide two broad types of benefits for most companies. One group of benefits includes those that improve the efficiency of content creation and marketing materials fulfillment. These benefits create value primarily by enabling a company to reduce existing costs or avoid future costs. The second group of benefits includes those that improve the effectiveness of a company’s marketing efforts. These benefits from local marketing management create value primarily by enabling a company to increase revenues and to maintain brand consistency through strongerbrand compliance and brand control.
Estimate the Value: Start With the Elements That Originate in Cost Reductions
When you’re estimating the value of a marketing asset management solution as part of creating a business case, we recommend that you start with those elements of value that originate in cost reductions and/or cost avoidance. Value that is based on cost savings is usually more certain and easier to quantify that value based on revenue increases. Therefore, value based on cost savings will usually be more credible to senior executives, especially CFO’s.
The creation of marketing content has traditionally involved one person, at one machine, creating one output. Certainly in cases of versioning existing content for local markets, the graphic artist doesn’t always begin the content creation process from scratch, but a single individual is involved in retrieving, altering, and saving/ storing a single output file. This is a highly inefficient and costly workflow scenario.
Distributed marketing software platforms approach content creation differently, treating all content as dynamic. In this environment, a graphic artist still creates original content. However, instead of creating a single layout designed for a single use, the graphic artist creates a template to which marketing content items can be mapped and sets guidelines for how that mapped content should be displayed (e.g., font, font size, color options, image size, copy localization/personalization). The result is a highly flexible marketing collateral customization assembly template which can be used over and over again without the involvement of a graphic designer.
By Stephen Tucker
This worksheet provides a glimpse into cost savings available through this new approach.
This worksheet and others in this blog series are found in the Saepio whitepaper "Assessing Your Cost Savings Opportunities with Distributed Marketing Management Platforms.”