developing effective messaging and value propositions
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Product MessagingCrafting a Differentiated Value PropositionGerardo A. Dada@gerardodadaUseful tools for product marketers
Why is Segmentation and Targeting Important?FocusYou cant go after all market segments and customersAll customers are not equalBetter understanding of your target customersEvery product offers different value for different customersDifferent lenses, different needsRelevanceDifferent ways to market to them Context is importantTools to align your products with the right customers
Without these tools your Marketing will be vanilla: a shotgun approach
Basic DefinitionsAn industry or universe of buyersA subset of the market that shares certain characteristicsA small market segment with unique needsThe market segment(s) where a company focuses its effortsA complete picture of the person making the buying decisionA personification of the buyer profile in a fictional characterMarketSegmentNicheTargetBuyer profilePersona
Types of Segmentation4
DEMOGRAPHICSRole: Mom, CEO, Student, etc.Age: Tween ,young families, retirees, etc.GenderIncomeGeographic, Etc.
ATTITUDINAL(Psychographic - clusters based on data)Lifestyle, Personality, Attitude Hobbyist, Advanced Amateur, professionalSoccer mom. Diva, Working professional, SocialCompulsive, Extrovert, Ambitious, etc.
NEEDS-BASEDWhat job does the product do for customers?Transport 9 kids to schoolExpress my individuality/social class/style Enjoy drivingSave money, save the environment
FUTURISTPRAGMATISTLAGGARDTRANSFORMATIONBEHAVIORIALHow they buy, how often, usage rate, etc.
Hypothetical Example: BankGeneric message: We have a great savings/checking account with an ATM card for you. Get a free toaster when you sign up.
SegmentNeedEmotional NeedHigh School KidsStart saving, build credit scoreFeel special because you now have a cardCollege-Bound StudentsConvenience of ATM, receive money from parents, financial planningNeed to be smart about my limited budgetFamilies who are relocatingConvenience, branch proximity, more servicesSimplicity, time savings
PersonasHow do we market to the college student?
Meet Kate Lives on a limited budget, supported by her parents Spends most of her free time with friends Owns a Smartphone, a laptop and a tablet Uses Instagram (not so much Facebook or twitter) Familiar with BofA, Wells Fargo and Citi Concerned about fees and overages
Personas represent a target segment buyer profileKeep it simple, relevant and conciseAvoid information that is not actionable
Examples of real-worldexplicit personas
Positioning 101 Brands occupy a single position in the mind of the customerPositioning is the marketing effort to influence this positionThere is only one position for each idea or brand (you need to give up to own a position)Position is relative to competition or alternativesAim for a unique position differentiationBur differentiation is not enough: good positioning is differentiated and valuable for your target customers
Positioning must align with StrategyPick one, and only one value disciplineProduct LeadershipDifferentiation is building your business on a strategy to target a specific type of buyer and offering a specific value that competitors cant matchApple, MercedesNespressoR&D investment, early adopters,margins over share, etc. Customer IntimacyRitz Carlton, Lexus, Harrahs Data, relationship mktg., Customer experience, loyalty, etc.Operational ExcellenceDell, McDonalds, Amazon Process, metrics, ROI, efficiency, Cust Acquisition
Messaging inefficiency Inefficient marketing develop messaging for each deliverableWebsitePress ReleaseCollateralPackagingAdvertising
Messaging FrameworksRequire more time and intellectual effort up-front. Much more effective and efficient in the long runWebsitePress ReleaseCollateralPackagingAdvertising
Messaging DocumentMarket ResearchStrategyTarget CustomerPositioning
Traditional Positioning Statement Framework
Positioning StatementFOR [target customer] WHO [have specific need]BRAND X IS [position] that [benefit or capability] BECAUSE OF [proof points[Customer Need 1Customer Need 2Customer Need 3 Customer NeedBenefitProof Points
Target CustomerTarget description25 Word DescriptionValue proposition statement in 25 words50 Word DescriptionValue proposition statement in 50 wordsUseful as a starting point, but slightly academic and incomplete
Comprehensive Value Proposition and Messaging DocTemplate available here http://www.slideshare.net/gerardodada/product-value-proposition-and-messaging-template-plus-sales-card
A complete template captures customer knowledge and provides useful information for marketing executionWho is the ideal customerWhat problems is he or she trying to solve (JTBD/use cases)Where and how they research to solve this problem or needTriggers, buying criteria, alternativesKey messages, differentiators, proof points, secondary features