mktg 5604 - value prop & brand positioning - october 2021

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October 20, 2021

MKTG5604

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Tonight’s Plan6:00p Welcome, Agenda, &

Learning Goals

6:05p Announcements

6:15p Upcoming Case Assignments

6:35p Value Proposition

7:05p Break

7:20p Branding Discussion

7:45p Group Breakout Activity

8:40p Case Study Review

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GENERAL DISCUSSION

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MID-SEMESTER REVIEW

STOP – START - CONTINUE

Thanks for taking some time to complete the Stop-Start-Continue survey. I appreciate everyone’s feedback and have already started to implement changes.

THANK YOU!

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course learning goalsSTRATEGY PLANNING INNOVATION

Develop a research-informed marketing strategy for a new

product, new service, or other innovation.

Assess the relevance of innovations and their impact

on multiple industries and organizations.

Evaluate customer segmentation, value

proposition development, and brand positioning as a

foundation of strategy.

Craft a comprehensive marketing plan to execute on

a marketing strategy for a new innovation.

Effectively incorporate digital innovation into your

industry or business.

Apply the 4Ps – product, place, price, and promotions

– to build-out a marketing strategy.

Identify opportunities for digital innovation throughout

the marketing strategy formation process.

Use digital innovation & marketing strategy principles

to solve complex problems.

Identify new innovations with disruptive potential.

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Our learning goals center on value proposition development & brand positioning.

• Discover and describe unsolved problems.

• Identify customer needs, pain points, and gains.

• Outline a value proposition that solves a problem and meets an unmet customer need.

• Differentiate from competitors.

• Develop and articulate a unique brand position.

• Describe the difference between the value proposition and the brand position.

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VALUE PROPOSITION + BRANDING

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Complex problems are non-linear. They have

multiple facets and stakeholders. Solutions are

not clear and require creativity & innovation.

COMPLEX

Wicked problems are the most difficult to address. They are undefined, with

many factors and conditions. Rather than solving the problem in

totality, solutions to wicked problems are often

evaluated by “better” or “worse.” *

WICKED

Tame problems are well-defined problem with

clear solution options.

TAME

FIRST, LET’S TALK ABOUT PROBLEMS.

* Rittel, H. & Webber, M. (1973) Dilemmas in a General Theory of Planning. Policy Science.

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VALUE PROPOSITION:THE CORNERSTONE OF MARKETING INNOVATION

The value proposition stems from the business strategy and clearly articulates the fundamental value that the firm’s product and/or service will offer customers. The value proposition addresses specific customer jobs, pains, and gains – it addresses a problem. It’s goes beyond a list of features to express those features in a way that ensure customers will easily, readily understand the value that they will receive.Today’s reading on Value Proposition Design provides tools for developing value propositions that align with customer needs. This reading outlined 3 stages of “fit”:• On Paper | The Problem – Solution Fit. You’ve

identified customer pains, gains, and jobs and designed a value proposition to address them.

• In the Market | The Product – Market Fit. You’ve tested the value proposition in the market and it’s gaining traction among customers.

• In the Bank | The Business Model Fit. You’ve developed a business model that’s financially viable and scalable.

WE WORKY-COMBINATOR STARTUPS ZOOM

https://www.cbinsights.com/research/biggest-startup-failures/

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Use the Value Proposition canvas tool to outline a value proposition to

address this problem. You’ll need to start by identifying the customer and

their pains/gains/jobs. From there, brainstorm what a product might do to

address those.

STEP TWOCOMPLETE THE VALUE PROPOSITION

CANVAS

Select one of this week’s Innovation Now posts. This post should outline a problem and describe an innovation to address it.

STEP ONESELECT AN INNOVATION NOW POST FROM THIS WEEK

ACTIVITY: OUTLINE A VALUE PROPOSITION

After a short brainstorming session, narrow down possibilities to refine the proposed innovation and articulate a value proposition that works.

STEP THREE DEFINE AN INNOVATION & VALUE PROPOSITION TO ADDRESS THE PROBLEM

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BREAK

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BRAND POSITIONINGA guide that leads tactical

execution. Brand positioning stakes out a piece

of mental real estate in the

consumer’s mind.

WORK 124/0

7Frequently, your initial

font choice is taken

out

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DIFFERENTIATING WATER

71% of the earth’s surface is

comprised of water, and yet

firms are able to differentiate

bottled water brands from one

another. Each brand promises

something different than the

other 125+ brands.

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FOUR COMPONENTS OF BRAND VALUE

REPUTATION RELATIONSHIP EXPERIENTIAL SYMBOLIC

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CHANNELSCAMPAIGNS

MESSAGEPOSITIONING ELEMENTS

THE ELEMENTS OF BRANDING

The logos, images, colors, and fonts associated with a

brand.

A strategic guide that leads the tactical execution of a brand.

The marketing copy and slogans associated with a

brand.

Expressing brand elements & messaging in marketing

campaigns.

Marketing communication outlets in which the brand

message is placed.

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It describes a specific target segment.

This is a straightforward description of the value

from the customer’s perspective.

A brief description of the firm’s competitive set.

SegmentFor Whom? For When?

For Where?

ValueWhat value does

it offer?

CompetitorsRelative to

Whom?

Evidence to support the value statement

EvidenceWhy & How?

IT CONTAINS 4 ELEMENTS.

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TO (target segment) , (firm/product)

IS THE (category/competitive set)

THAT (value proposition / what can customer’s expect

BECAUSE (supporting evidence / reasons to believe) .

COMBINE IT, MADLIB STYLE.

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TO millennial consumers who are socially conscious, Ethos

IS THE brand among bottled waters

THAT cares about solving the clean water crisis

BECAUSE it donates 5 cents for every bottle sold to clean water

initiatives.

AN EXAMPLE DERIVED FROM OUR WATER ILLUSTRATION

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WRITE A BRAND POSITIONING STATEMENTFOR 2 DIFFERENT PEDIALYTE SEGMENTS.POST YOUR STATEMENT ON YELLOWDIG.

SEGMENT 1: LAST NAMES A - L SEGMENT 2: LAST NAMES M - Z

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THE IMPORTANCE OF THE COMPETITIVE LANDSCAPE

This food startup offers an online platform for customers to shop and purchase from local farmers, bringing together customers in a large urban market and the farmers

who live & work in the surrounding counties. The firm offers both single-shop and subscription models. With so much competition in the market – from traditional supermarkets increasing local farm suppliers to Instacart’s convenience to the

subscription models offered by traditional CSAs – this firm struggled to find its niche.

POSITIONING A LOCAL FOOD BUSINESS

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A SEA OF COMPETITORS

Market Opportunity

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PROJECT ACTIVITY

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THE PURPOSE OF A POSITIONING STATEMENT

TACTICAL EXECUTIONSets the direction for the

firm to develop the brand,

marketing messages, and

campaigns.

INTERNAL AUDIENCESIt’s designed as a guide

for internal audiences.

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AN ANALYTICAL TOOL TO HELP YOU BUILD A BRAND POSITION

COMPETITORConduct a competitive

analysis to fully understand the most relevant

competitors, what they offer, and how they address the customer’s needs. Look

for opportunities to differentiate.

The resulting brand positioning must be

distinctive, defensible, and durable.

CUSTOMERConduct market research to

understand the target customer’s needs. This

relates to the jobs, pains, gains that we discussed

during the value proposition section of

today’s class.

The resulting brand position must be relevant, resonant,

and realistic.

COMPANYAssess your firms capabilities and

competencies to ensure that it’s able to execute on

the brand promise. Consider the firms mission and values to ensure that the brand position aligns.

The resulting brand position must be feasible, favorable,

and faithful.

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PROJECT ACTIVITY #5VALUE PROPOSITION + BRAND POSITIONING

TASK REFERENCEDefine your target market. Use segmentation variables reviewed in class on September 25.

Project Activity from 9/22

Describe the problem that you are solving. What is the customer job / pain / gain that you are addressing?

Value proposition canvas; 10/20

What is the value proposition? This is a succinct description of how your product uniquely meets this need.

Value proposition canvas; 10/20

What is the potential competitive framework for your product? Map it out. Brand Positioning Note, page 4; 10/23

What superior benefit(s) does your product/solution offer over competitors? Brand Positioning Note; 10/20How does the main benefit(s) deliver a point of differentiation? Brand Positioning Note; 10/20What is the “reason why” associated with each benefit? Brand Positioning Note; 10/20Craft your brand positioning statement. Brand Positioning Note; 10/20

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CASE REVIEWS: SEGMENTATION