articulating your value proposition - hvac |...
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Articulating your Value PropositionLinda Couch, BS, MBA
Chief Operating Officer, Parrish ServicesFormer IBM Global Strategist and Marketing Consultant
ACCA Office & Operations Managers Forum 2016
Why a value proposition• Because you are a content or subject matter
expert; and
• You are (most likely) not a marketing expert
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So here’s what you do...
And here’s how that works out for you...
What can a value proposition do?
Hire a marketing expert
Spend a lot of money and you’re still not thrilled
Even if your marketing expert doesn’t understand what you do, a value prop gives them what they need to develop great marketing strategies and content for you. If you are doing the development in house, it helps keep you on point and consistent.
Do it yourself anyway
Spend too much time and definitely not thrilled
Do nothing Spend neither time nor money, but have no customers, either
Sorry, this can’t help you...
Strategy First
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Defining strategy
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“The essence of strategy is in the activities – choosing to perform activities differently or to perform different
activities than rivals do. Otherwise, a strategy is nothing more than a marketing slogan that will not
withstand competition”
Michael Porter
ACCA Office & Operations Managers Forum 2016 – Linda Couch
Identifying strategies
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InboundLogistics Operations
OutboundLogistics
Marketing&
Sales
Service
Primary activities
Support activities
Procurement
Firm Infrastructure
Human Resource Management
Technology Development
Doing different things:
Netflix v. Regal Cinemas
Doing similar things
differently: Southwest v.
United Airlines
Competitive
Advantage
Competitive strategies:
• are unique and
sustainable; or
• Have linkages that
create value.
Competing
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Att
rac
tiv
en
ess
of
the
ov
era
ll m
ark
et
Our relative ability to compete in this market
Best opportunityProblems
Dogs Cash cows
The business unit strategy is about where and how to compete. For example:
Markets• Residential
• Commercial
• Public sector
• Niche (data centers,
marijuana growers,
schools, vineyards,
restaurants, etc.)
Methods• Acquire competitors
• Grow organically
• Subcontract
ACCA Office & Operations Managers Forum 2016 – Linda Couch
Market segmentation
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Customers differ by
• Benefits they want
• Amount they are able
to or willing to pay
• Media (e.g. television,
newspapers, and
magazines) they see
• Amount they buy
• Time and place that
they buy
There are various methods (or “bases”) a
business can use to segment a market.
Some of the most popular are:
Market planning
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Current customers New customers
Current marketsGrow wallet share
Selling more services to
existing customers
Grow market share
Acquire competitors’
customers
New marketsGrow the opportunity
Sell new services to
current customers
Grow the market
Developing new services
for prospects
ACCA Office & Operations Managers Forum 2016 – Linda Couch
Attributes of successful strategies
Influence demand and build customer loyaltyInvest in brand names or reputation
Raise barriers to entryMake preemptive investments
Reduce the threat of substitutionIncorporate their benefits
Assess leverage along the supply chainBuild alliances with intermediaries or customers
Diagnose the competitive gameUnderstand and acknowledge relative strengths and weaknesses in the marketplace
Build superior activity systems that in turn create superior capabilities
Identify and exploit the role of network positioning and capability leveraging
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The Value Proposition
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Value propositionsWhat the business or offering stands for; i.e., a promiseto deliver a specific benefit to the customer and themanner in which you will do so.
Objectives of defining the Value Proposition
• Concisely and clearly describe who and what youare
• Provide focus for your business and your colleagues
• Guide long-term and short-term planning decisions
• Drive strategic decisions and tactical executions
• Inspire and rally employees
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What it is (and isn’t)It is the foundation It is not the presentation
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FunctionA Value Proposition is one element of a marketing plan and
is based on the business strategy, but it informs all else.
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Marketing and Sales Materials
Value Proposition Not visible to clients
Visible to clients
Advertising Public RelationsSales
Enablement
Channel
EnablementWeb Content
Messages Proof Points
ImagesTag lines
Business Strategy
Constructing a value propThe elements of the value proposition are:
• Target customers - who specifically (including both demographics
and psychographics) do we want to have listen to our marketing
message
• Defined market - who we are, understanding who else may be
speaking to them
• Differentiating points - why they should do business with us versus any
alternative
• Reasons to believe - what overarching support do we offer to
provide credibility
• Proof points – specific examples that support the value proposition
statement
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Value prop template
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Target customer For ....
Defined market of all providers of ....
Differentiating
pointsonly ....
Reasons to
believebecause ...
Proof points
that support the
value
proposition
• xxx
• yyy
• zzz
A winning value proposition
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Differentiating sets the offering apart and
talks about what few, if any,
competitors can do
Relevantcustomers care about and
can benefit from the value
we provide
Compellinggives the customer a
credible reason to buy,
either logical or emotional
Enduringis long lasting, not easily
duplicated by existing
competitors or potential new
entrants
Example
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For risk-sensitive government leaders focused on addressing the economic, health and welfare issues of their societiesTarget
Customer:
Desired Benefits:
Differentiating Point:
Reasons to Believe:
providers of infrastructure solutions and servicesMarket Definition:
Help governments proactively deliver new/better services to citizens and businesses. Enable greater access to
information and resources to improve government responsiveness and efficiency. Keep information, resources, and
other assets secure. Build an infrastructure for economic growth in a global environment.
Enable and protect collaboration between government organizations, levels, external suppliers and international
entities. Build in flexibility to adapt to changing priorities, regulations and events
Enable a more proactive
government
Enable collaboration
AllStar methodologies
enable their staff to
mitigate risk more
effectively
AllStar has a large
number of satisfied
existing clients
AllStar has the experience, commitment, ability, and nationwide presence to establish long-term partnerships with governments in order to enable a
proactive, collaborative, cost-effective government with a portfolio of long-term, successful contracts with both public and private sector agencies that have
resulted in efficient, effective best practices and the flexibility of a small, yet experienced, minority and veteran-owned provider
Perform the contract without major problems. Deliver benefits as planned.Mitigate risk
Proof points:
1. Reference A
2. Reference B
3. No. of contracts
4. Satisfaction ratings
5. Years in business…
6. ….
1. Project Plan Type A
2. No. of PMP certified
staff
AllStar has a well-
integrated network of
skilled partners that
enable flexibility
1. Recruiter A
2. Specialist in XYZ
3. Hardward & sofware
partner x
ResultsBefore After
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• Spaghetti
• Testimonial
• Tech Pride
Value prop tool
Download an Excel spreadsheet to help evaluate
your value proposition
www.parrish.pro/valueproptool
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