Product Messaging
Crafting a Differentiated Value Proposition
Gerardo A. Dada@gerardodada
Useful tools for product marketers
Why is Segmentation and Targeting Important?• Focus
– You can’t go after all market segments and customers
• All customers are not equal– Better understanding of your target customers– Every product offers different value for different customers– Different lenses, different needs
• Relevance– Different ways to market to them – Context is important– Tools 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 buyers
A subset of the market that shares certain characteristics
A small market segment with unique needs
The market segment(s) where a company focuses its efforts
A complete picture of the person making the buying decision
A personification of the buyer profile in a fictional character
Market
Segment
Niche
Target
Buyer profile
Persona
4
Types of SegmentationDEMOGRAPHICS
Role: Mom, CEO, Student, etc.
Age: Tween ,young families, retirees, etc.
GenderIncomeGeographic, Etc.
ATTITUDINAL(Psychographic - clusters based on data)
Lifestyle, Personality, Attitude
• Hobbyist, Advanced Amateur, professional
• Soccer mom. Diva, Working professional, Social
• Compulsive, Extrovert, Ambitious, etc.
NEEDS-BASED
What job does the product do for customers?
-Transport 9 kids to school-Express my individuality/social class/style -Enjoy driving-Save money, save the environment
FUTURIST PRAGMATIST LAGGARDTRANSFORMATION
BEHAVIORIAL
How 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.”
Segment Need Emotional NeedHigh School Kids Start saving, build
credit scoreFeel special because you now have a card
College-Bound Students
Convenience of ATM, receive money from parents, financial planning
Need to be smart about my limited budget
Families who are relocating
Convenience, branch proximity, more services
Simplicity, 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 profile-Keep it simple, relevant and concise-Avoid information that is not actionable
Examples of real-worldexplicit personas
Positioning 101 Brands occupy a single position in the
mind of the customer
• Positioning is the marketing effort to influence this position
• There is only one position for each idea or brand (you need to give up to own a position)
• Position is relative to competition or alternatives
• Aim for a unique position – differentiation
• Bur differentiation is not enough: good positioning is differentiated and valuable for your target customers
= safe
Positioning must align with StrategyPICK ONE, AND ONLY ONE VALUE DISCIPLINE
Product Leadership
Differentiation is building your business on a strategy to target a specific type of buyer and offering a specific value that competitors can’t match
Apple, MercedesNespresso
R&D investment, early adopters,margins over share, etc.
Customer Intimacy
Ritz Carlton, Lexus, Harrah’s
Data, relationship mktg., Customer experience, loyalty, etc.
Operational ExcellenceDell, McDonald’s, Amazon
Process, metrics, ROI, efficiency, Cust Acquisition
Messaging inefficiency Inefficient marketing develop messaging for each deliverable
Website Press Release Collateral Packaging Advertising
Messaging FrameworksRequire more time and intellectual effort up-front. Much more effective and efficient in the long run
Website Press Release Collateral Packaging Advertising
Messaging Document
Market Research Strategy Target
Customer Positioning
Traditional Positioning Statement FrameworkPositioning Statement
FOR [target customer] WHO [have specific need]BRAND X IS [position] that [benefit or capability] BECAUSE OF [proof points[
Customer Need 1 Customer Need 2 Customer Need 3 Customer Need
Benefit
Proof Points
Target CustomerTarget description
25 Word DescriptionValue proposition statement in 25 words
50 Word DescriptionValue proposition statement in 50 words
Useful 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 execution• Who is the ideal customer
• What problems is he or she trying to solve (JTBD/use cases)
• Where and how they research to solve this problem or need
• Triggers, buying criteria, alternatives
• Key messages, differentiators, proof points, secondary features
@gerardodadawww.TheAdaptiveMarketer.com
THANKYOU
