1. Value Based Marketing

2. P.Doyle
“I argue that the purpose of marketing is to contribute to maximising shareholder value and that marketing strategies must be evaluated in terms of how much value they create for investors”

3. Yesterday… It was possible to talk about marketing
that relies mostly on qualitative arguments
(erratic arguments about the consumer
being satisfied, the growing market share
and a soaring company value).

4. Today …
The question arises of how to provide value for customers and shareholders.

5. Current and potential market
Marketing determines market
needs and analyses
environment
Company’s market orientation
Marketing sets objectives
and determines strategies
Objectives and marketing strategy
Functional units will have
input to devise strategies
The strategies of
functional units:
R&D; Supplies; Production; Logistics; IT;
Personnel; Marketing; Sales; Service.
Each unit has its role in customer satisfaction
Marketing will assist
functional units to
determine their
role in customer satisfaction
In the cooperation of all
units the best solution
will be created
Offer: value to the customer
The enterprise will evaluate
if the needs were met and
at what cost
Result of the offer: value to the firm
Marketing will get feedback
and will undertake
improvements
Feedback to marketing process

6. Value Proposition: Key Marketing Concept

7. Value Proposition Definition (I)
A clear statement of how company’s product or service:
Solves a customer problem
Delivers a benefit
Improves their situation

8. Value Proposition Definition (II)
A business or marketing statement that summarizes why a consumer should buy a product or use a service.
This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

9. Value Proposition Definition (III)
A value proposition is the collection of reasons why a person or company benefits from buying something

10. Value? What is value?
Something of relative worth and importance or desirable; a fair return for goods or services; estimated or appraised worth

11. Value Proposition 1. Define target audience 2. Understand target:
- Issues / problems
- Needs
- Value
3. How do you help
4.Use their language
5.Craft your value proposition
6.Add additional distinction
7.Test it…Refine it

12. First WHO, Then What Value is in the eye of the beholder
Start with your ideal target client
The value proposition needs to speak to some one – your target
Varies according to client, segment and timing

13. Understand Their Issues
What are their most pressing issues or problems?
What are their pain points?
What is keeping them up at night?

14. What Does Your Target Value?
To create a value proposition you need to know what customers value:
What do they value?
What language do they use describe value?
What are the 3 to 7 things they value above all else?

15. What Do They Value? The answer lies inside customers head. Ask them:
Why did they buy?
What did you say that persuade them?
What stories did you tell?
Why did they choose you over everyone else…or doing nothing?

16. How Do You Help? How does your business solve their problem?
What are you promising do for them? (emotional gratification) - Brand Promise

17. Use Customers Language
Translate your selling points (features) into a compelling message (benefits)
Do not use industry language or “jargon” Clear always trumps clever

18. Creating Your Value Proposition
Use a 3 part process:
Part 1 = Top anxieties target faces
Part 2 = Anxiety relief you offer
Part 3 = Result target experiences working with you

19. Test It & Refine It Take your draft and share it Ask or survey clients
Test it…do your results improve when using it? T
Tweak it and refine it…use it

20. Template for Strong Value Proposition/Positioning
For ____________________(target customer/segment)…
…that need _________________(the problem we solve)…
Our Brand’s ____________________(the offering)…
…provides ____________________(quantified benefit)…
…unlike _______________________(next best alternative).
We do this by ____________________(how do we do it)…
…As demonstrated by ________________(proof points).

21. Value Propositions: Key Concepts
Points of Parity
Points of Difference
Points of Contention

22. Points of Parity (POP)
POP are associations that are not necessarily unique to the brand but may in fact be shared with other brands.
These types of associations come in two basic forms category and competitive.
These are features and benefits offered by basically everyone. 

23. Points of difference (POD)
POD attributes or benefits consumers strongly associate with a brand, positively evaluate, and believe that they could not find to the same extent with a competitive brand.
Strong, favorable, and unique brand associations that make up points of differences may be based on virtually any type of attribute or benefits.
Examples are:
FedEx (guaranteed overnight delivery),
Nike (performance),
Lexus (quality)

24. Points of Contentions (POC)
POC are elements about which the supplier and its customer disagree regarding how their performance or functionality compares with those of the next bets alternatives

26. What the value proposition consists of
The value proposition is usually a block of text (a headline, sub-headline and one paragraph of text) with a visual (photo, hero shot, graphics).
Headline. What is the end-benefit you’re offering, in 1 short sentence. Can mention the product and/or the customer. Attention grabber.
Sub-headline or a 2-3 sentence paragraph. A specific explanation of what you do/offer, for whom and why is it useful.
3 bullet points. List the key benefits or features.
Visual. Images communicate much faster than words. Show the product, the hero shot or an image reinforcing your main message.

28. Four Actions Framework: Key to Value Curve
Reduce
The key to discovering a new value curve lies in answering four basic questions
What factors should be reduced well below the industry standard?
Eliminate
What factors that the industry has taken for granted should be eliminated?
Create/Add
What factors that the industry has never offered should be created or added?
Creating new markets:
a new value curve
Raise
Cirque du Soleil example
What factors should be raised well above the industry standard?

30. Eliminate-Reduce-Raise-Create
Star Performers
Animal shows
Aisle concession sales
Multiple show arenas
Raise
Unique venues
Reduce
Fun and humor
Thrill and danger
Create
Theme
Refined environment
Multiple productions
Artistic music and dance

31. The Strategy Canvas of Cirque du Soleil
Eliminate
Reduce
Raise
Create
high
Ringling Brothers
Theme
Refined Viewing Environment
Multiple
Productions
Artistic Music
& Dance
Cirque du Soleil
offering level
Smaller Regional Circus
low
Price
Animal Shows
Multiple Show
Arenas
Thrills & Danger
Star Performers
Aisle Concessions
Fun & Humor
Unique Venue
© Kim & Mauborgne 2006