What is the value of a value proposition
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What is the Value of a Value Proposition?. John Cusimano Siemens. Agenda. Intro What is a value proposition? Why do I need one? A 10 step discovery process How do I test it?. Intro. One of the most misunderstood topics in marketing Most would say they have a general idea of what a VP is

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Agenda l.jpg
Agenda

  • Intro

  • What is a value proposition?

  • Why do I need one?

  • A 10 step discovery process

  • How do I test it?


Intro l.jpg
Intro

  • One of the most misunderstood topics in marketing

  • Most would say they have a general idea of what a VP is

  • Most would say they have a VP


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What is a Value Proposition?

  • A value proposition is generally a clear and succinct statement (e.g., 2-4 sentences) that outlines to potential clients and stakeholders a company's (or individual's or group's) unique value-creating features.

  • A value proposition is a clear statement of the tangible results a customer gets from using your products or services.

  • A value proposition is an offer to some entity or target in which they (the possessor) get more than they give up (merit or utility), as perceived by them.

  • A value proposition is the basic reasoning for why people should consider your product or service.

  • Describes what you do in terms of tangible business results. It draws interest and shares a success story within a few words.


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Examples:

  • It’s the most technologically advanced and robust system on the market

  • We improve communication and morale

  • We offer training classes in a wide variety of areas

  • My product was rated the best-in-class by leading authorities


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Why do you need a Value Proposition? by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • A strong VP will help you break through the clutter and get the prospect’s attention

  • Many are trying to use heavy force of marketing to overcome the weak force of their VP


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A Value Prop statement must contain by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Describe "What" we provide

  • Answer "So what?"

  • Quantify "How much"

  • Provide Proof


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Success Formula by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • S = 2V + C + P

  • S = prob of success

  • V = VP

  • C = marketing channel (amount of cost effective traffic)

  • P = Presentation of your offer (funnel)


Value proposition l.jpg

Value Proposition by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

A 10 Step Discovery Process


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10 Step Process by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • 1. Start with core competencies

  • 2. Study your customers

  • 3. Turn core competencies into values

  • 4. Study the competition

  • 5. Look at trends in your industry

  • 6. Articulate or define the company vision

  • 7. Identify one core value

  • 8. Build a value chain

  • 9. Articulate the value proposition

  • 10. Test the value


1 start with core competencies l.jpg
1. Start with core competencies by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • What are you really good at?

  • A value proposition has to be what you do and who you are. It can’t just be what you want to be and what you say you are.


2 study your customers l.jpg
2. Study your customers by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Who are your top customers?

  • What problems do you solve for them?

  • What problems do they want solved?

  • Is there a new trend in any of your key customer segments?


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3. Turn core competencies into values by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Ask yourself why someone should buy from you instead of a competitor.

  • Using the language of your customers, refine your core competencies as values.

  • If your answer is “best selection”, “best customer service” or “fast shipping” your potential success may be limited. These qualities do not make a business unique.


4 study the competition l.jpg
4. Study the competition by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Choose 3 or 4 competitors and study how they market their company and products

  • What is their value proposition?

  • Can they defend it?

  • Map their core competencies versus yours


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5. Look at trends in the industry by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Are things changing?

  • Can you take advantage of a trend and grab an exciting position in the market?

    • Process fieldbus

    • Process safety

    • Wireless

    • Industrial security


6 articulate or define the company vision l.jpg
6. Articulate or define the company vision by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Product Leadership

    • Unique products & services

    • State-of-the-art features

    • Innovative solutions

  • Customer Intimacy

    • Quality relationships with customers

    • Offer “complete” solutions

  • Operational Excellence

    • Excel at attributes such as price, quality, delivery, selection, availability, etc.

Reference: "The Discipline of Market Leaders", Michael Treacy and Fred Wiersema


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7. Identify one core value by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • A hiker cannot simultaneously go North, South and West at the same time… It’s impossible.

  • Be decisive about which of the three you choose

  • Sends a clear message to potential customers as to why they should buy from you and to employees as to what they should be doing.

  • Choosing makes a statement as to what your structure, core competencies, business process, and culture will look like, and provides the customer profile upon which you can build a well-constructed business strategy!


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8. Build a value chain by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Determine whether you can support your top value across every part of the company, from product design to your channels for delivery to your process for support.

  • Make sure to identify areas in your company where you are weak, where you may break the value chain.

  • Commit to beef up that area to support the value.


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9. Articulate the value proposition by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Refine your value proposition until you can articulate it in one sentence.

  • You should be able to communicate who your customers are, what you provide to them and why they buy from you.

  • You should develop a value proposition statement that everyone in marketing will use as the starting point for developing positioning or messaging for products or services.

  • If you can, back up your assertion by documenting what the customer saves or earns by choosing you.


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10. Test the value by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Test the final value proposition with customers to see whether it resonates. As you go through this process, continually ask yourself these questions:

    • Are you and your executives being honest, or are your using wishful thinking when you list your core values?

    • Can you defend the value? What are the proof points?

    • Can you quantify the value to your customers?


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References: by a minimum of 30-50% over the previous year. They accomplish this without working 80 hour weeks and sacrificing their personal lives.

  • Jill Konrath, The Sideroad, www.sideroad.com

  • In search of a value proposition, www.marketingexperiments.com


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