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Transcript of ! Customer driven marketing 151204
November 2015 Dr. Ute Hillmer
A Customer Driven Marketing
Strategy: Creating and capturing
CUSTOMER VALUE in an
Online/Offline World
“Ourage ofanxiety is the result of
doing todays jobs with yesterdays
technology“M. McLuhan
November 2015 Dr. Ute Hillmer
WHO is Dr. Ute
Hillmer? an expert in positioning and promoting technology
products, with a carving for innovative products that
are not self-explaining.
With such products, human behavior is often outside the
boundaries of rationality -despite its economic context.
Buying behavior is here typically a result of social, cognitive
and emotional factors, along with the economic ones.
November 2015 Dr. Ute Hillmer
What did Ute do?
• 27 years of international marketing (HP, CoCreate, MFG Innovation
Agency State of BW, Better Reality Marketing)
• Dissertation in business administration, behavioral economics in
technology marketing: Technology Acceptance in Mechatronics
• Worldwide company and product communication;
mainly 3 continents (America, Europe, Asia)
• Product-, program-, channel-, partner marketing, marketing
communication, branding, positioning
• Responsible for operative, strategic + corporate marketing, branding,
sales training
• Experienced in large corporations, SMEs and freelance work as well as
political institutions.
• Responsible for the first international website of Hewlett Packard in 1993
November 2015 Dr. Ute Hillmer
What’s Ute’s
STORY?I am in business to change
the lives of my technology
clients by finding them
hungry customers that get
them into sustainable growth!
November 2015 Dr. Ute Hillmer
and turn their customers into raving fans!
November 2015 Dr. Ute Hillmer
To take the most
out of this lecture
… be in
STATE!
November 2015 Dr. Ute Hillmer
Agenda1. Marketing Today: the new Buying
Decision Process
2. Creating and Capturing Customer
Value
3. Your Ideal Customer
4. Positioning for the Ideal Customer
5. Create your Value Proposition
Creating and capturing CUSTOMER VALUE!
November 2015 Dr. Ute Hillmer
Marketing + Sales
Today:
a New Buying
Decision Process
November 2015 Dr. Ute Hillmer
Role-play to discover:“Has Marketing changed?”
“Must Marketing change?”
November 2015 Dr. Ute Hillmer
Funnel-Metaphor for a Buying Decision
active evaluation
many brands
Grafik close to Edelman 2010
buying decision
Initial
considerationTrigger
lesser and lesser brands
What brand creates
the most value to
me/us right now
and in the future?
November 2015 Dr. Ute Hillmer
Digitally supported Buying Decision
active
Evaluation
Post-Sales
Experience
Enlarged
Evaluation
Ambassador
Loyalty Loop
Active
Evaluation
Model close to Edelman 2010, p.65
Moment of Purchase
Initial
Consideration
Trigger
What brand creates
the most value to
me/us right now
and in the future?
November 2015 Dr. Ute Hillmer
Information Sources Today
The 2014 B2B Buyer Behaviour Survey
November 2015 Dr. Ute Hillmer
2014 B2B Buyer Behavior Survey
• Web search is the top source of information
• B2B buyers strategically browse social media
• The number of sources used to research and
evaluate purchase has increased
• There is an increased awareness of purchase
options
• The evaluation process is longer and more
satisfying
DemandGen Report Survey 2014
November 2015 Dr. Ute Hillmer
What Role does Social Media Play?
The 2014 B2B Buyer Behaviour Survey
November 2015 Dr. Ute Hillmer
The Core Consequences
1. Consumers and buyers connect with brands in fundamentally new ways – often beyond manufacturers’ or dealers' control.
2. They evaluate a shifting array of options during the evaluation process and remain engaged with the brand after purchase.
3. Customers can have as much information and knowledge, as vendors do.
Its no longer about “information” it’s about creating and
capturing CUSTOMER VALUE!
You need a customer driven marketing strategy!
November 2015 Dr. Ute Hillmer
Customer Driven
Marketing –
What does that
mean?
November 2015 Dr. Ute Hillmer
From Product- Focus to Customer Focus
Product
Price
Place
Promotion
Customer Needs
Customer Cost
Convenience / Access
CommunicationMcCarthy: Basic Marketing: A managerial approach, 1960
Schullz, Stanley I. Tannenbaum, Robert F. Lauterborn, Integrated Marketing Communications, 1993
November 2015 Dr. Ute Hillmer
From Product- Focus to Customer Focus
• Making a sale
• Abundance of products in
the nearby shopping
centers
• Television, magazine, and
direct-mail ads
• Satisfying customer needs
• Imaginative Web sites and
mobile phone apps, blogs,
online videos, and social
media
• Reach customers directly,
personally, and
interactively
Traditional View Contemporary View
Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
Marketing: Creating Customer Value and Engagement
Amazon.com’s deep-down passion
for creating customer engagement,
value, and relationships has made it
the world’s leading online retailer.
Amazon has become the model for
companies that are obsessively and
successfully focused on delivering
customer value.
November 2015 Dr. Ute Hillmer
• Objective 1: Understand the fundamental change in marketing
• Objective 2: Identify the key elements of a customer-driven
marketing strategy
• Objective 3: Apply the steps of a customer driven marketing
strategy to your project
Learning Objectives
Marketing: Creating Customer Value and Engagement
November 2015 Dr. Ute Hillmer
The Aim of Marketing
• Marketing involves creating value for customers and building strong customer relationships in order to capture value from customers in return.
• Goals:
– Attract new customers by promising superior value
– Keep and grow current customers by delivering satisfaction
– influence the buyer and buying center in the place and at the moment when they are most open on their way to brand choice and a buying decision
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
The Marketing Process
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
What is a prerequisite to create Customer Value?
November 2015 Dr. Ute Hillmer
Customer Needs, Wants and Demands
Understanding the Marketplace and Customer Needs
• States of felt deprivation
• Physical needs - food, clothing, warmth, and safety
• Social needs - belonging and affection
• Individual needs - knowledge and self-expression
Needs
• Form taken by human needs when shaped by culture and individual personality
Wants
• Human wants that are backed by buying power
Demands
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
Learning Objective 3
• Identify the key elements of a customer-driven marketing strategy
and discuss the marketing management orientations that guide
marketing strategy.
Designing a Customer Value-Driven Marketing Strategy
Preparing an Integrated Marketing Plan and Program
Learning Objective
Marketing: Creating Customer Value and Engagement
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
This is a 2 Day Work Session on
Customer-Driven Marketing Strategy
Day 1: Designing a Customer Value-Driven Marketing Strategy
1. Selecting customers to serve
– Find your Ideal Customer
2. Creating value for these selected customers
– Define the Value Proposition
Day 2: Effectively communicate Customer Value
– Define a (digital) launch plan
Applying the 20/80
rule to this marketing
lecture …
November 2015 Dr. Ute Hillmer
What does that mean for
you:
Market + sell YOUR
PROJECT in your Internal
and/or External Market
November 2015 Dr. Ute Hillmer
• What is your business goal for the PSA 3?
• What is your business goal for the Master Thesis?
• What is so important about the goal?
• Why is it important?
• Ultimately, what would having that do for you?
Task:
Your WHY!
Write it down on a sheet of paper for you!
November 2015 Dr. Ute Hillmer
PSA3: Goal Definition + Communication
Planning
November 2015 Dr. Ute Hillmer
Creating Value for Customers
• Market Segmentation
• Targeting
• Differentiation
• Positioning
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrongcartoon: fotalia
November 2015 Dr. Ute Hillmer
Contrasting Selling and Marketing Concepts
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Marketing Management in a Customer Driven Marketing Strategy
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
Designing a Customer Value-Driven Marketing Strategy
Marketing Management is the art and science of choosing target
markets and building profitable relationships with them.
– What customers will we serve?
– How can we best serve these customers?
Market Segmentation refers to dividing the markets into segments
of customers.
Target Marketing refers to which segments to go after.
1. Selecting Customers to Serve
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
Task: What
do you
„Sell“
November 2015 Dr. Ute Hillmer
Segmenting a
Market
November 2015 Dr. Ute Hillmer
What is Market Segmentation?
Market segmentation requires dividing a market into
smaller segments with distinct needs, characteristics,
or behaviors that might require separate marketing
strategies or mixes. Kottler, Armstrong 2014
Segmentation is used to identify and further define
your ideal customer
November 2015 Dr. Ute Hillmer
• Segmenting consumer markets?
• Segmenting business markets?
• Segmenting international markets?
• Effective segmentation?
Criterias for
November 2015 Dr. Ute Hillmer
Segmenting Consumer Markets
• The big 4
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Geographic Segmentation
Regions following ACNielsen
Geographic
segmentation
divides the market
into different
geographical units
such as nations,
regions, states,
counties, cities, or
even neighborhoods.
November 2015 Dr. Ute Hillmer
Demographin Segmentation
Sinusmilieu
Demographic
segmentation
divides the market
into segments based
on variables such as
age, life-cycle stage,
gender, income,
occupation,
education, religion,
ethnicity, and
generation.
November 2015 Dr. Ute Hillmer
Demographin Segmentation
Age, Gender, Income, …
Age and life-cycle stage segmentation divides a market into different age and life-cycle groups.
Gender segmentation divides a market into different segments based on gender.
Income segmentation divides a market into different income segments.
November 2015 Dr. Ute Hillmer
Psychographic Segmentation
Sinusmilieu
Psychographic
segmentation divides
a market into different
segments based on
social class, lifestyle,
or personality
characteristics.
November 2015 Dr. Ute Hillmer
Behavioral Segmentation
Behavioral
segmentation
divides a market into
segments based on
consumer knowledge,
attitudes, uses of a
product, or responses
to a product.
• Occasions
• Benefits sought
• User status
• Usage rate
• Loyalty status
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Task:
Consumer Market Segmentation for GoPro
November 2015 Dr. Ute Hillmer
Discussion on
Segmenting
Consumer vs.
Business Markets
November 2015 Dr. Ute Hillmer
Segmenting Business Markets
• Consumer and Business have many of the same segmenting
variables. Additional variables include:
Customer Operating
Characteristics
Situational Factors
Purchasing Approaches
Personal Characteristics
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
Geographic segmentation
Demographic segmentation
Psychographic segmentation
Behavioral segmentation
November 2015 Dr. Ute Hillmer
Segmenting International Markets
Geographic location
Economic factors
Political and legal factors
Cultural factors
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Intermarket segmentation involves forming
segments of consumers who have similar needs
and buying behaviors even though they are
located in different countries.
7-21
Segmenting International Markets
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Task: Market Segmentation for UPS
November 2015 Dr. Ute Hillmer
Requirements for Effective Segmentation
Measurable Accessible Substantial
Differentiable Actionable
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
When Segmenting Markets, watch out for:Measurability
• “otherwise the scheme will not be operational”
• next to impossible in some markets, hard in most markets => most companies use
qualitative and intuitive methods
Substantiality
• “the variable should be relevant to a substantial group of customers”
• Challenge: find the right size / balance: large group segment: risk of diluting
effectiveness
• Too small: you lose the benefits of economies of scale
• Sometime one large customer
Operational Relevance (Actionable)
• Segmentation should enable to offer the suitable product/service to the chosen
segment, e.g. faster delivery service, special 24-hour technical support, etc.
Source: Webster, 2003
November 2015 Dr. Ute Hillmer
Market
Targeting
November 2015 Dr. Ute Hillmer
Selecting Target Market Segments
.
.
.
.
..
.
.
A target market is a set of buyers who share
common needs or characteristics that the
company decides to serve.
November 2015 Dr. Ute Hillmer
Undifferentiated marketing targets the whole
market with one offer
• Mass marketing
• Focuses on common needs rather than
what’s different
Copyright © 2016 Pearson Education, Inc.
Selecting Target Market Segments
November 2015 Dr. Ute Hillmer
Differentiated marketing targets several different
market segments and designs separate offers for
each.
• Goal is to achieve higher sales and stronger
position
• More expensive than undifferentiated marketing
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Concentrated marketing
targets a large of a smaller
market
• Limited company
resources
• Knowledge of the
market
• More effective and
efficient
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Micromarketing is the
practice of tailoring products
and marketing programs to
suit the tastes of specific
individuals and locations.
• Local marketing
• Individual marketing
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Local marketing
involves tailoring brands
and promotion to the
needs and wants of local
customer segments.
• Cities
• Neighborhoods
• Stores
Copyright © 2016 Pearson Education, Inc. 7-32
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Individual marketing involves
tailoring products and
marketing programs to the
needs and preferences of
individual customers.
• Also known as:
– One-to-one marketing
– Mass customization
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Choosing a targeting strategy depends on
• Company resources
• Product variability
• Product life-cycle stage
• Market variability
• Competitor’s marketing strategies
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Socially Responsible Target Marketing
• Benefits customers
with specific needs
• Concern for
vulnerable segments
Selecting Target Market Segments
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
• What different market segment strategies are of
relevance in your master thesis project?
• What are 3-5 relevant market segments that you
could target in your internal and/or external
communication?
• Prioritize your market segments and make a short
note on your decision criteria.
Task:
Your Market Segmentation
November 2015 Dr. Ute Hillmer
Segmenting by
Buying (User)
Behavior
November 2015 Dr. Ute Hillmer
Consumer buyer behavior is the buying
behavior of final consumers—individuals and
households that buy goods and services for
personal consumption.
Consumer markets are made up of all the
individuals and households that buy or acquire
goods and services for personal consumption.
Consumer Markets and Buyer Behavior
Copyright © 2016 Pearson Education, Inc.
November 2015 Dr. Ute Hillmer
Model of Consumer Behavior
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer 5-10
Characteristics Affecting Consumer
Behavior
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Business Markets and
Business Buyer Behavior
Business buyer behavior refers to the buying behavior of the
organizations that buy goods and services for use in the
production of other products and services that are sold, rented,
or supplied to others.
The business buying process is the process where business
buyers determine which products and services are needed to
purchase, and then find, evaluate, and choose among
alternative brands.
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Business buyers usually face more complex buying
decisions than do consumer buyers. Compared with
consumer purchases, a business purchase usually
involves:
• More decision participants
• More professional purchasing effort
• More buyer and seller interaction
The Buying Unit
Copyright © 2016 Pearson Education, Inc.. Kotler, ArmstrongCopyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
Major Types of Buying Situations
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong
November 2015 Dr. Ute Hillmer
User Typologies
„Personas“
November 2015 Dr. Ute Hillmer
Archtypes:Roger’s
Innovation Adopter
Categories Foto by: ehoyerEverett Rogers, 1995 “Diffusion of Innovations”
November 2015 Dr. Ute Hillmer
Time
Mar
ket s
ize
technology life cycle and its buyer
categories
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Chart based on Rogers 1995, p. 262 and Moore 1999, p. 12
November 2015 Dr. Ute Hillmer
Persona: Techy
Time
Mar
ket s
ize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Chart based on Rogers 1995, and Moore 1999
November 2015 Dr. Ute Hillmer
Time
Mar
ket s
ize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Persona: Visionary
Chart based on Rogers 1995, and Moore 1999
November 2015 Dr. Ute Hillmer
Time
Mar
ket s
ize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Persona: Pragmatist
Chart based on Rogers 1995, and Moore 1999
November 2015 Dr. Ute Hillmer
Time
Mar
ket s
ize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Persona: Conservative
Chart based on Rogers 1995, and Moore 1999
November 2015 Dr. Ute Hillmer
Time
Mar
ket s
ize
Laggards
16%
Late
Majority
34%
Early
Adopters
13,5%
Early
Majority
34%
Innovators
2,5%
Personas: Laggard
Chart based on Rogers 1995, and Moore 1999
November 2015 Dr. Ute Hillmer
LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
Mainstream Behaviour
Increasingly conforming behaviour
Hillmer, Technology Acceptance in Mechatronics, 2009
Zeit
Mar
ktgr
öße
November 2015 Dr. Ute Hillmer
LaggardsLate
Majority
Early
Adopters
Early
Majority
Innovators
Individualistic Behaviour
Increasingly individualistic
behaviour
Zeit
Mar
ktgr
öße
Hillmer, Technology Acceptance in Mechatronics, 2009
November 2015 Dr. Ute Hillmer
Archtypes:Schein’s
Career Anchors
Foto by: ehoyer
Edgar H. Schein, 2006 “Career Anchors”
November 2015 Dr. Ute Hillmer
Technical / Fictional Competence
Foto by merkapt
November 2015 Dr. Ute Hillmer
General Management Competence
Foto by merkapt
November 2015 Dr. Ute Hillmer
Autonomist / Independent
Foto by merkapt
November 2015 Dr. Ute Hillmer
Security and Stability
Foto by merkapt
November 2015 Dr. Ute Hillmer
Entrepreneurial Creative
Foto by merkapt
November 2015 Dr. Ute Hillmer
Service and Goodwill
Foto by merkapt
November 2015 Dr. Ute Hillmer
Challenge and Variety
Foto by merkapt
November 2015 Dr. Ute Hillmer
Lifestyle
Foto by merkapt
November 2015 Dr. Ute Hillmer
Schein’s Career Anchors
Adopted for the 21st Century
Chart by SR&A, Stuart Robertson
November 2015 Dr. Ute Hillmer
What Stereotype is
your „Ideal Customer“?
November 2015 Dr. Ute Hillmer
Learn about your
Target Market
November 2015 Dr. Ute Hillmer
Where to get AnswersQuick Content Analysis: The right Product/Problem
description
1. Google Search with your key words from this morning
2. Google Adwords / Keyword Planner
Detailed Content Analysis: What exactly are people
looking for?
1. Amazon Booktitel-Search
2. Amazon 3-Star Search
3. Google Analytics
Interviews: In-Depth Understanding
November 2015 Dr. Ute Hillmer
Task: Do a Google Search Analysis
Take your product/project description to Google Search
1. What wording does Google-Autofil suggest?
2. What topics, web-pages, blogs, companies come up
what is their wording?
what is their content?
Who is there?
3. Results:
– What are your new 2-4 keywords?
– Who are your 3-5 key competitors?
November 2015 Dr. Ute Hillmer
Google Advanced Search
Video: https://www.youtube.com/watch?v=yc6ssZnCyuA
November 2015 Dr. Ute Hillmer
Why Google? The Online Search Ecosystem 2013
November 2015 Dr. Ute Hillmer
Task: Do a Google AdWords Analysis
Take your product/project description to Google Adwords
1. Open Google Adwords (maybe register), go to → Tools
→ Keyword Planer
2. Enter your keywords and take notes:
Keyword mtl. Search Competition Price (CPC)
November 2015 Dr. Ute Hillmer
Task: Do the Amazon Booktitle Search
1. Start looking for book titles
2. What seems to be the core concern of people interested in this topic?
3. Modify the answers and the wording in your workbook based on your learnings
November 2015 Dr. Ute Hillmer
Task: Do the Amazon 3-Star Search
1. Look at the 3-Star Reviews
2. What seems to be the core concern of people interested in this topic? What are they looking for and praise or can’t find?
3. Make a list of the core problems people seem to have
November 2015 Dr. Ute Hillmer
Now: What
do you
„Sell“
November 2015 Dr. Ute Hillmer
Your Ideal
Customer
November 2015 Dr. Ute Hillmer
Your Ideal Customer
This isn’t about your most common customer –
it’s about who you want as your most wanted
customer! The 20% that create 80% of your revenue.
If you have more than one ideal customer, create
multiple copies, but set a limit to 3-5 max.
Your most hungry customer!
November 2015 Dr. Ute Hillmer
Your Ideal Customer Profile - Outline
November 2015 Dr. Ute Hillmer
Your Ideal Customer Profile - Motivations
November 2015 Dr. Ute Hillmer
Your Ideal Customer Profile – Business Goals
November 2015 Dr. Ute Hillmer
Your Ideal Customer Profile – Narrative + Letter
November 2015 Dr. Ute Hillmer
Positio-
ningFoto: Pepe Laja
November 2015 Dr. Ute Hillmer
What is Positioning?
Positioning defines where your product or service stands in relation to others
offering similar products and services in the marketplace as well as the mind of
the consumer.
Positioning always starts with a “product” (merchandise, a service, a company, an
institution, or even a person….)
but positioning is not what you do to that product. Positioning is what you do to
the mind of the prospect or customer.
Positioning is the act of designing the company’s
offering and image to occupy distinctive place in
the mind of the target market.
Kottler Keller
November 2015 Dr. Ute Hillmer
What is Positioning?
Image by talk2frank from Stock.Xchng
November 2015 Dr. Ute Hillmer
What is Positioning good for?
Position, differentiate and communicateThink from your customers perspective, before you talk to them
#1 Relevance – avoid price warsIs the promised added value of relevance to your target segment? Does your customer care?
#2 Differentiation – avoiding replicabilityAre you unique? Do you offer something „more“ that what your customers offer?
#3 everybody and everywhere, the message is the sameOne core message from every employee + partner and through every channel
November 2015 Dr. Ute Hillmer
Value
PropositionFoto: Pepe Laja
November 2015 Dr. Ute Hillmer
A brand’s value
proposition is the set
of benefits or values it
promises to deliver to
customers to satisfy
their needs.
Choosing a Value Proposition
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
Value proposition is the #1 thing that
determines whether people will bother
reading more about your product or hit the
back button. It’s also the main thing you
need to test – if you get it right, it will be a
huge boost.
Why choosing a Value Proposition
A VP explains the bottom line of what
your company doeshttp://conversionxl.com/
November 2015 Dr. Ute Hillmer
A Value Proposition is
a promise of value to be delivered. It’s the primary reason a prospect should buy from you.
In a nutshell, value proposition is a clear statement that explains how your product
• solves customers’ problems or improves their situation (relevancy),
• delivers specific benefits (quantified value),
• tells the ideal customer why they should buy from you and not from the competition (unique differentiation).
It’s for people to read and understand!http://conversionxl.com/
November 2015 Dr. Ute Hillmer
What a Value Proposition is not
It’s not a slogan or a catch phrase:
L’Oréal. Because we’re worth it.
Nike: Just do it
It’s not a positioning statement (positioning statement is a subset of a value proposition, but it’s not the same thing):
Germany’s #1 Skin Care. Trusted skincare for life.
And a bad example of a Value Proposition:
“Revenue-focused marketing automation & sales effectiveness solutions unleash collaboration throughout the revenue cycle”
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
A Value Proposition Consists of
• a block of text (a headline, sub-headline and one paragraph of text) with a visual (photo, hero shot, graphics).
There is no one right way to go about it, but I suggest you start with the following formula:
• 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.
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
Create a Good Value Proposition
• A key role for the value proposition is to set you apart from the competition. Most people check out 4-5 different options / service providers before they decide. You want your offering to stand out in this important research phase.
• How do you make your offer unique? Often it’s hard to spot anything unique about your offering. It requires deep self-reflection and discussion.
• If you can’t find anything, you better create something. Of course the unique part needs to be something customers actually care about. No point being unique for the sake of being unique (“the ball bearings inside our bicycles are blue”).
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
Use the Right Language
• Your value proposition needs to be in the language
of the customer. It should join the conversation that
is already going on in the customer’s mind.
• You cannot guess what that language is. The way
YOU speak about your services is often very
different from how your customers describe it.
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
• BMW promises “the ultimate driving machine”
• Nissan Leaf electric car is “100% electric. Zero gas. Zero tailpipe.”
• New Balance’s Minimus shoes are “like barefoot only better.”
• Vibram FiveFingers shoes: “You are the technology.”
• Facebook helps you “connect and share with the people in your life”
• YouTube “provides a place for people to connect, inform, and
inspire others across the globe.”
Useful Value Proposition Examples
Copyright © 2016 Pearson Education, Inc.. Kotler, Armstrong 2014
November 2015 Dr. Ute Hillmer
Examples of Value Propositions in Crowded
Markets: Sell a Customer Experience!Car Repair Shop
• Simple fix for blown head gaskets
• Repairs blown head gaskets in just one hour
Domino Pizza
• “You get fresh, hot pizza, delivered to you in under 30
minutes – or it’s free!”
http://conversionxl.com/
November 2015 Dr. Ute Hillmer
Customer Experiences Online Buyers want
• Low Prices (38%)
• Shopping Convenience (35.1%)
• Easy To Compare (33.1%)
• Free Shipping (31.5%)
• Time Saving (30.8%)
• Easy To Buy (29.2%)
• Range of Products (17.4%)
Infographic by Invesp (sources data from eMarketer and Internetretailer.com)
Don’t take these things at face value, because not everything
is as it seems. Ask your customers or test it
November 2015 Dr. Ute Hillmer
• USP (Unique Selling Proposition). USP is the most closely related concept. It’s often considered
synonymous with value proposition (especially in relation to copywriting). But it only focuses on
what makes your product better than competing options. And that’s just a part of a strong value
proposition.
• FAB (Feature-Advantage-Benefit). FAB is a process that helps you figure out what each of your
product’s features means to your customers, which enables you to address their concerns,
desires, wants, and needs. You start by listing your product’s features (e.g., stainless steel as the
material of a knife). Then consider what advantages it creates (it won’t corrode). And finally turn
that into the practical benefit (you don’t need to buy a new knife every year).
• POP-POD (Points of Parity – Points of Difference). POP-POD is a process used to find
differentiating factors between businesses. You start by finding “points of parity,” or the factors
you have in common with your competitors. And then you find “points of difference;” the aspects
of your business thatdifferentiate you from your competitors.
• UVP (Unique Value Proposition). UVP sounds nearly the same as value proposition. But the
strong focus on uniqueness makes it less useful (much like USP).
ValueProp-USP-FAB-POP-POD-UVP
November 2015 Dr. Ute Hillmer
Value Proposition Canvas
Products &Services
• Welche Produkte oderDienstleistungen helfen dem Kd. seinen funktionalen, sozialen oderemotionalen Job zu machen. Was stilltBedürfnisse?
• Produkte in Kundenprio setzen.
Gain creators
• Wir ermöglichen Produkte oderDienstl. Chancen (funktional, sozial, emotional, monetär)
Pain-Reliefers
• Wie verhindern oder verringern d. Produkte/Dienstl. Kunden-Schmerzen(funktional, sozial, emotional, monetär)
Job-to-be-doneWelchen Job (funktional, sozial, emotional) versuchen die Zielkunden zuerledigen:• Welche Aufgaben erledigen sie• Welches Problem versuchen sie zu
lösen?• Welche Bedürfnisse versuchen sie zu
erfüllen?
Pains
• Welche negativen Gefühle, unerwünschte Kosten oderSituationen, welche Risiken könnenvor, während oder nachAufgabenerledigung aufkommen
Gains• Welche Vorteile erwartet, wünscht der
Kunde (funktional, sozial, emotional, monetär)
Value Proposition Customer Segment(s)
based on: businessmodelgeneration.com
November 2015 Dr. Ute Hillmer
Value Proposition Canvas Video
https://www.youtube.com/watch?v=gB-YwlBrVVs
November 2015 Dr. Ute Hillmer
Your Customer‘s Job
The tasks your target customer has (for now, forget the buying center)
What urgent needs do they have?
What are their
Compelling desires?
…
……
…
November 2015 Dr. Ute Hillmer
What are the• largest wins you can gain for our customer
• the biggest benefit, customers can obtain?
• Biggest pains we can offer relief for?
…
November 2015 Dr. Ute Hillmer
The biggest result
Determine the biggest result your customers get
… it must be a big one!
What is your big promise?
People buy results and the
benefits they get from
these results
November 2015 Dr. Ute Hillmer
When and how do you keep our promisses?
When were your
customers really
happy?
Why?
What was the right
fit?
…
…
November 2015 Dr. Ute Hillmer
What product(s) do we offer?
…
November 2015 Dr. Ute Hillmer
Task:
Lead your Project to
Huge Success:• Position your project innovation with the VP Canvas
- 30 Min each one individually
- Discuss it in teams of 3 (20 Min each)
• Present your Value Proposition (1 Min each)
November 2015 Dr. Ute Hillmer
Our promise (1)
We help…
…
…
November 2015 Dr. Ute Hillmer
Our promise (2)
What we help our customers do is:
…
…
…
November 2015 Dr. Ute Hillmer
Our promise (3)
Why we do what we do to serve our customers:
…
Our Vision, what we hope to achieve:
…
November 2015 Dr. Ute Hillmer
Our Promise (4)
How we differenciate from alternatives in the
market
…
November 2015 Dr. Ute Hillmer
Positionierung: Value Proposition
• Operative excellence
• Product excellence
• Customer insight
You have a choice:
economic benefits
emotional benefits
functional benefits
November 2015 Dr. Ute Hillmer
Value Proposition
We help …
(do the following things) …
in order to …
November 2015 Dr. Ute Hillmer
Task:
Built the Value Proposition für Your PSA Project
November 2015 Dr. Ute Hillmer
Tomorrow:Designing a Customer Driven
Marketing Strategy in an Online
World
Production concept
Product concept
Selling concept
Marketing concept
Societal Marketing concept
November 2015 Dr. Ute Hillmer
Suggested Reading
• Value Proposition Design by A. Osterwalder, Y.Pigneur
• Groundswell by Charlene Li, Josh Bernoff
• Positioning by Trout and Ries
• In Pursuit of Wow! + The Tom Peters Seminar by Tom Peters
• What would Google do by Jeff Jarvis
• All Marketeers tell Stories by Seth Godin
• 1 to 1 Marketing Future by Don Peppers
• CRM at the Speed of light by Paul Greenberg
• The Long Tail by Chris Anderson
• The Wisdom of Crowds by James Surowiecki
• Crossing the Chasm by Geoffery Moore
• Selling the Dream by Guy Kawasaki
November 2015 Dr. Ute Hillmer
November 2015 Dr. Ute Hillmer
Dankeschön!
175 von EndSeitenzahl
HERZLICHEN DANK FÜR
IHRE AUFMERKSAMKEIT!
GIBT ES FRAGEN?
© 2015 School of International Business and Entrepreneurship (SIBE) der Steinbeis-Hochschule Berlin I www.steinbeis-sibe.de I Dr. Ute Hillmer