value proposition, positioning and messaging

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Marketing Terminology

Value Value PropositionProposition::Is the promise Is the promise

that differentiates that differentiates us in the market us in the market

place.place.

PositioningPositioning::Is the high-level Is the high-level

promise we promise we convey to convey to customerscustomers

MessagingMessaging::Is how we Is how we creatively creatively

advertise our advertise our positioningpositioning

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Pillars w/SupportPillars w/Support EffortEffort RiskRisk

PricePrice

Elements of a Value Proposition: Balance

Target Target AudienceAudience

What’s in What’s in it for me?it for me?

Why is yours Why is yours better?better?

Why should Why should I believe you?I believe you?

Is this for me?Is this for me?

What could What could go wrong?go wrong?

What does itWhat does itcost?cost?

PromisePromise DifferentiatiDifferentiationon

What do I What do I need to do to need to do to

make make it useful?it useful?

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Gmail’s Value Proposition

Gmail is a free, search-based webmail service that includes 1,000 megabytes (1 gigabyte) of storage. The backbone of Gmail is a powerful Google search engine that quickly recalls any message an account owner has ever sent or received. That means there's no need to file messages in order to find them again. When Gmail displays an email, it automatically shows all the replies to that email as well, so users can view a message in the context of a conversation. There are no pop-ups or untargeted banner ads in Gmail, which places relevant text ads and links to related web pages adjacent to email messages.

http://gmail.google.com/

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Dissecting the Gmail Value Proposition

PromisePower and elegance of Google search, now applied to email

AudiencePeople who already use GooglePower users who get lots of e-mail and need powerful searchPeople who like convenience of web-based mail but hate its limitations

DifferentiationGoogle search engine technologyReplies in context of conversationVirtually unlimited storage

Pillars1 GB storageGoogle brand equity

Price, Risk, and EffortFree, supported by advertisers But ads will be relevant to context, and unobtrusive

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<Product name> is a <definition> that provides <benefit>, <for whom and that does what>, <resulting in what outcome>

Primary: <Business Decision Makers & Technical Decision Makers>, Secondary: <Partners>

<Product> Value Proposition for <Market Segment>

Promise:

Target Audience:

Pillars

DifferentiationSupporting Points

validating differentiation

Customer Effort & Risk Required

Competitive/Alternative

solutionHow is <your product name> different?

<Most important Customer need 1 >

1State how your product versus is better for the customer in terms of addressing

this need than competitor 1. Identify proof points or supporting statements to

substantiate your differentiation claims

in the eyes of the customer.

State what the customer is required to do to acquire,

implement, or integrate your product for their usage in their

environment and what the risks are.

Be realistic and include any differentiated advantages.

2State how your product is better for the

customer in terms of addressing this need than competitor 2.

3State how your product is better for the

customer in terms of addressing this need than competitor 3.

Repeat this for the top 3-5 pillars that are your strongest solution points that the address the issues that the customer cares about when considering if your solution will address their need.

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PricePrice

Levers to strengthen value proposition


Provide more Provide more compelling compelling

benefitsbenefits

Add or Add or strengthen strengthen points of points of

differentiationdifferentiation

Provide Independent Provide Independent (trusted) data/proof (trusted) data/proof

pointspointsFind more Find more

receptive sales receptive sales prospectsprospects

Eliminate or Eliminate or reduce reduce

perceived perceived risks to buy, risks to buy,

deploy, or usedeploy, or use

Reduce pricing Reduce pricing or change or change

pricing modelpricing model


Reduce Reduce perceived perceived

effort to buy, effort to buy, deploy, or deploy, or

useuse

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From Value Proposition to Positioning

Positioning is derived from the value proposition. It is the way you choose to communicate the differentiated promise to customers.

Positioning focuses on outbound marketing & sales (what we say to customers) as opposed to inbound direction (what we need to communicate for engineering)

Positioning guides development of messaging themes for marketing communications.

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From Value Proposition to Positioning

Positioning: A formal definition

A high-level promise statement that defines how we want target customers to think and feel about our offering relative to competing alternatives, and the key customer perceptions we want to create or change.

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Product positioning aimed at customer The position is the place you want your offering to occupy in the hearts and minds of customers relative to alternatives they may consider.

The position is defined in terms of key customer perceptions you want to change or influence.

Positioning emphasizes the competitive frame of reference and the key differentiators from a customer perspective.

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Customer viewpoints: From Mind to Heart

Functional benefitsWhat the product does

Economic benefitsWhat it means in time and money

Emotional benefitsHow it makes

you feel

THINK(MIND)

FEEL(HEART)

• Capability (Quality/Performance)• Reliability• Flexibility• Maintainability• Usability • Upgradeability • Interoperability• Disposability

• TCO (Total Cost of Ownership)• EVC Economic Value to Customer)• ROI (Return on Investment)• Reduced time• Reduced cost• Reduced errors• Increased productivity

• Style• Self-actualization• Self-expression• Control • Freedom• Independence• Affiliation

Customer

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Positioning as “taking hills”: Volvo

Reliability

SafetyPerformance

Luxury

Style

1. Attributes: Baseline of positioning attributes is all of the attributes by which the audience views the market landscape in which all competitors hold a position.

2. Identify ‘hilltops’ that can be credibly owned by your brand. In the case of Volvo, the brand naturally owns safety, but needed to add another dimension, luxury, to compete against imports such as BMW and Lexus

Affordable

Reliability

1. Safety1. SafetyPerformance

2. Luxury2. LuxuryStyle

Affordable

Functional Benefit: Protects My Family

Attributes SafetyLuxury

Features Safety- Inflatable Side Curtains- Whiplash Protection Seats- Deformation ZonesLuxury- Bi-Xenon Headlights- 8- way adjustable lumbar seats- Audio-Max stereo system

Emotional Benefit: Peace of Mind

3. The positioning builds an emotional benefit around the combination of ‘hilltop’ attributes that yield a functional benefit. Features scroll up to the functional benefit

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Example PositioningShort

MessageOne sentence that you can easily say…not a long run on sentence.

ExtendedMessage

Paragraph that explains what your product is in more detail. Describe differentiated benefits to customer and the resulting value to the customer.

Target Audience

Primary: Car PurchaserSecondary: Other drivers of the car

Detailed Positioning Statement

For <auto buyers and drivers>Who <want a car that provides safety and comfort to that protects the family without sacrificing the latest comfort features.><Volvo offers safety and luxury>That <is affordable in a reliable vehicle>Unlike <higher priced luxury auto manufacturers, Volvo surrounds the driver and its passengers with safety and luxury.>

Top Customer

Needs

Pillar 1 <Piece of mind & protects my family>Specific unmet needs (pain points): • Want latest security features available on the market.• Don’t want to have to sacrifice security to also get luxury features as well• Car needs to fit primary driver and secondary driver’s desires.

Pillars Piece of mind & protects my family Pillar 2 Pillar 3

Differentiated Benefit

Volvo has superior safety features such as inflatable Side Curtains, Whiplash Protection Seats, and Deformation Zones

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From Positioning to Messaging

Messaging is way you articulate the positioning verbatim in the advertising campaigns you create for specific segments and audiences.

Key pointsMessaging is creative, positioning is strategic.

Messaging is campaign-specific, positioning is enduring.

Messaging is localized, positioning is global.

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PricePrice

How to get started? Research!



1a. Market Opportunity / Segmentation:Is there a well--defined and relevant target audience?

1b. Habits & Practices Research:What are unmet/unarticulated needs?How important is a solution?How are needs met today?How good is existing solution?

2. Concept Value Research:Are the benefits inherently compelling?How do we stack up against alternatives?What will customers pay for the benefits?What are the barriers and bridges?

3. Positioning & Messaging Research:What is the best way to articulate the benefit?What are the compelling differentiators?What claims and proof points will be most effective?

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Want more assistance?Product Management & Marketing LeaderInnovative, analytical, and results-driven Product Management leader with 20 years of experience.

Able to create and drive winning product strategies, communicate complex ideas effectively to diverse audiences, and manage virtual teams.

Efficient at multi-tasking within rapidly changing markets that require agility to adjust direction and priorities while delivering exceptional quantifiable results.

Contact me for advise if you are a Greater Seattle area startup or looking to hire an Experienced Product Manager or advisor.

value proposition, positioning and messaging

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