Product, Presence, Hit Rate (PPH)® Model
Frank Lynn & Associates’ PPH® model puts market share, sales and profit into an actionable channel context. Companies with the highest market share are market leaders who can reliably generate price premiums, customer loyalty and better share earnings than their competitors. But, how can a market share measure be turned into action? Even for market leaders, this can be a source of frustration. Frank Lynn & Associates has used its “PPH® Formula” for over 30 years to help clients maximize the effectiveness of their sales/marketing initiatives. This framework has never been more relevant than it is today.
Winning a sale requires that all the elements (product fit, presence to the market and hit rate) meet the customer’s needs and are aligned:
If any of these elements are missing then the sale cannot be won. The most perfect product still cannot win a sale where it is not available for the customer to consider and the best sales process in the world cannot overcome a product that does not meet the customer’s needs.
By breaking market share into its contributing elements, a company can build a valuable tool for measuring performance and managing growth. Each element can be used to identify a part of the market opportunity that can be targeted. Overall, the PPH® model identifies where companies should best put their marketing dollars to work, while addressing market share gaps.