Value Propostion ppt.pdf PPPPTTTPPPPPPP;

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1. What is the Value of a What is the Value of a
Value Proposition?Value Proposition?
By:By:
Jeremi BauerJeremi Bauer

2. AgendaAgenda
IntroIntro
What is a value proposition?What is a value proposition?
Why do I need one?Why do I need one?
A 10 step discovery processA 10 step discovery process
How do I test it?How do I test it?

3. IntroIntro
One of the most misunderstood topics in marketingOne of the most misunderstood topics in marketing
Most would say they have a general idea of what a Most would say they have a general idea of what a
VP isVP is
Most would say they have a VPMost would say they have a VP

4. What is a Value Proposition? What is a Value Proposition?
A value proposition is generally a clear and succinct statement A value proposition is generally a clear and succinct statement
(e.g., 2-4 sentences) that outlines to potential clients and (e.g., 2-4 sentences) that outlines to potential clients and
stakeholders a company's (or individual's or group's) unique stakeholders a company's (or individual's or group's) unique
value-creating features. value-creating features.
A value proposition is a clear statement of the tangible results A value proposition is a clear statement of the tangible results
a customer gets from using your products or services.a customer gets from using your products or services.
A value proposition is an offer to some entity or target in which A value proposition is an offer to some entity or target in which
they (the possessor) get more than they give up (merit or they (the possessor) get more than they give up (merit or
utility), as perceived by them.utility), as perceived by them.
A value proposition is the basic reasoning for why people A value proposition is the basic reasoning for why people
should consider your product or service.should consider your product or service.
Describes what you do in terms of tangible business results. It Describes what you do in terms of tangible business results. It
draws interest and shares a success story within a few words. draws interest and shares a success story within a few words.

5. Examples:Examples:
It’s the most technologically advanced and robust It’s the most technologically advanced and robust
system on the marketsystem on the market
We improve communication and moraleWe improve communication and morale
We offer training classes in a wide variety of areasWe offer training classes in a wide variety of areas
My product was rated the best-in-class by leading My product was rated the best-in-class by leading
authoritiesauthorities

6. Our clients grow their business, large or small, Our clients grow their business, large or small,
typically by a minimum of 30-50% over the previous typically by a minimum of 30-50% over the previous
year. They accomplish this without working 80 hour year. They accomplish this without working 80 hour
weeks and sacrificing their personal lives.weeks and sacrificing their personal lives.

7. Why do you need a Value Why do you need a Value
Proposition?Proposition?
A strong VP will help you break through the clutter A strong VP will help you break through the clutter
and get the prospectand get the prospect’’s attentions attention
Many are trying to use heavy force of marketing to Many are trying to use heavy force of marketing to
overcome the weak force of their VPovercome the weak force of their VP

8. A Value Prop statement A Value Prop statement
must containmust contain
Describe "What" we provideDescribe "What" we provide
Answer "So what?"Answer "So what?"
Quantify "How much"Quantify "How much"
Provide ProofProvide Proof

9. Success FormulaSuccess Formula
S = 2V + C + PS = 2V + C + P
S = prob of successS = prob of success
V = VPV = VP
C = marketing channel (amount of cost effective C = marketing channel (amount of cost effective
traffic)traffic)
P = Presentation of your offer (funnel)P = Presentation of your offer (funnel)

10. Value PropositionValue Proposition
A 10 Step Discovery ProcessA 10 Step Discovery Process

11. 10 Step Process10 Step Process
1. Start with core competencies1. Start with core competencies
2. Study your customers2. Study your customers
3. Turn core competencies into values3. Turn core competencies into values
4. Study the competition4. Study the competition
5. Look at trends in your industry5. Look at trends in your industry
6. Articulate or define the company vision6. Articulate or define the company vision
7. Identify one core value7. Identify one core value
8. Build a value chain8. Build a value chain
9. Articulate the value proposition9. Articulate the value proposition
10. Test the value10. Test the value

12. 1. Start with core 1. Start with core
competenciescompetencies
What are you really good at? What are you really good at?
A value proposition has to be what you A value proposition has to be what you dodo
and who you and who you areare. It can. It can’’t just be what you t just be what you
wantwant to be and what you to be and what you saysay you are. you are.

13. 2. Study your customers2. Study your customers
Who are your top customers? Who are your top customers?
What problems do you solve for them?What problems do you solve for them?
What problems do they want solved?What problems do they want solved?
Is there a new trend in any of your key customer Is there a new trend in any of your key customer
segments?segments?

14. 3. Turn core competencies into 3. Turn core competencies into
valuesvalues
Ask yourself why someone should buy from you Ask yourself why someone should buy from you
instead of a competitor. instead of a competitor.
Using the language of your customers, refine your Using the language of your customers, refine your
core competencies as values.core competencies as values.
If your answer is If your answer is ““best selectionbest selection””, , ““best customer best customer
serviceservice”” or or ““fast shippingfast shipping”” your potential success your potential success
may be limited. These qualities do not make a may be limited. These qualities do not make a
business unique. business unique.

15. 4. Study the competition4. Study the competition
Choose 3 or 4 competitors and study how they Choose 3 or 4 competitors and study how they
market their company and productsmarket their company and products
What is their value proposition?What is their value proposition?
Can they defend it? Can they defend it?
Map their core competencies versus yoursMap their core competencies versus yours

16. 5. Look at trends in the 5. Look at trends in the
industryindustry
Are things changing? Are things changing?
Can you take advantage of a trend and grab an Can you take advantage of a trend and grab an
exciting position in the market? exciting position in the market?
Process fieldbusProcess fieldbus
Process safetyProcess safety
WirelessWireless
Industrial securityIndustrial security

17. 6. Articulate or define the company 6. Articulate or define the company
visionvision
Product LeadershipProduct Leadership
Unique products & servicesUnique products & services
State-of-the-art featuresState-of-the-art features
Innovative solutionsInnovative solutions
Customer IntimacyCustomer Intimacy
Quality relationships with customersQuality relationships with customers
Offer Offer ““completecomplete”” solutions solutions
Operational ExcellenceOperational Excellence
Excel at attributes such as price, quality, delivery, Excel at attributes such as price, quality, delivery,
selection, availability, etc.selection, availability, etc.
Reference: "The Discipline of Market Leaders", Michael Treacy and Fred Wiersema

18. 7. Identify one core value7. Identify one core value
A hiker cannot simultaneously go North, South A hiker cannot simultaneously go North, South
and West at the same time… It’s impossible. and West at the same time… It’s impossible.
Be decisive about which of the three you Be decisive about which of the three you
choosechoose
Sends a clear message to potential customers Sends a clear message to potential customers
as to why they should buy from you and to as to why they should buy from you and to
employees as to what they should be doing. employees as to what they should be doing.
Choosing makes a statement as to what your Choosing makes a statement as to what your
structure, core competencies, business structure, core competencies, business
process, and culture will look like, and provides process, and culture will look like, and provides
the customer profile upon which you can build a the customer profile upon which you can build a
well-constructed business strategy!well-constructed business strategy!

19. 8. Build a value chain8. Build a value chain
Determine whether you can support your top Determine whether you can support your top
value across every part of the company, value across every part of the company,
from product design to your channels for from product design to your channels for
delivery to your process for support. delivery to your process for support.
Make sure to identify areas in your company Make sure to identify areas in your company
where you are weak, where you may break where you are weak, where you may break
the value chain. the value chain.
Commit to beef up that area to support the Commit to beef up that area to support the
value. value.

20. 9. Articulate the value 9. Articulate the value
propositionproposition
Refine your value proposition until you can Refine your value proposition until you can
articulate it in one sentence. articulate it in one sentence.
You should be able to communicate who your You should be able to communicate who your
customers are, what you provide to them and customers are, what you provide to them and
why they buy from you.why they buy from you.
You should develop a value proposition You should develop a value proposition
statement that everyone in marketing will use as statement that everyone in marketing will use as
the starting point for developing positioning or the starting point for developing positioning or
messaging for products or services. messaging for products or services.
If you can, back up your assertion by If you can, back up your assertion by
documenting what the customer saves or earns documenting what the customer saves or earns
by choosing you. by choosing you.

21. 10. Test the value10. Test the value
Test the final value proposition with customers to Test the final value proposition with customers to
see whether it resonates. As you go through this see whether it resonates. As you go through this
process, continually ask yourself these questions: process, continually ask yourself these questions:
Are you and your executives being honest, or are Are you and your executives being honest, or are
your using wishful thinking when you list your core your using wishful thinking when you list your core
values? values?
Can you defend the value? What are the proof Can you defend the value? What are the proof
points? points?
Can you quantify the value to your customers? Can you quantify the value to your customers?

22. References:References:
Jill Konrath, The Sideroad, Jill Konrath, The Sideroad, www.sideroad.comwww.sideroad.com
In search of a value proposition, In search of a value proposition,
www.marketingexperiments.comwww.marketingexperiments.com