Capiz State University Techno 101 Value Proposition Handout

Republic of the Philippines CAPIZ STATE UNIVERSITY ROXAS CITY MAIN CAMPUS Fuentes Drive, Roxas City, Capiz website: www.capsu.edu.ph email address: [email protected] College of En...

Republic of the Philippines CAPIZ STATE UNIVERSITY ROXAS CITY MAIN CAMPUS Fuentes Drive, Roxas City, Capiz website: www.capsu.edu.ph email address: [email protected] College of Engineering, Architecture, and Technology TECHNO 101 - TECHNOPRENEURSHIP S.Y. 2024 - 2025 VALUE OF PROPOSITION Content: 1. Value Proposition 2. Elements of a Successful Value Proposition 3. Value Proposition Formula 4. Writing Unique Value Proposition 5. Value Proposition Canvas 6. Value Proposition Vs Positioning Statement 7. Purpose of a Value Proposition 8. Four Types of Value Proposition 9. What if Value Proposition fails? What is a Value Proposition? A value proposition is a concise statement that communicates the unique benefits and value a product or service offers to its target audience. It highlights the specific problem it solves, the advantages it provides, and why it is superior to its competitors. A good value proposition helps differentiate a business and attract customers. Three Elements of a Successful Value Proposition A compelling value proposition meets three criteria: It's specific: What are the specific benefits your target customer will receive? It's pain-focused: How will your product fix the customer's problem or improve their life? It's exclusive: How is it both desirable and exclusive? How well does it highlight your company's competitive advantage and set you apart from competitors? Your value proposition should focus on the superpowers that potential customers get, not the product. Rarely is your value proposition the product itself or its features. Instead, it's the way the brand or product fixes a meaningful pain point, improves the lives of your target market, and the way it makes them feel (like they have superpowers, for example).  A value proposition should be front and center when a visitor arrives on your site. Although it's often found above the fold on the homepage, you should be aware of other common entrance points (e.g., a landing page, category pages, blog posts, and product pages). Value proposition formula The basic value proposition formula is: Value proposition = [adjective] [product or service/ for laspiration/ This version of the formula is adaptable enough that any business can use it. How to write a unique value proposition 1. Understand your customer and their voice 2. Focus on clarity before creativity. 3. Emphasize benefits, not hype 4. Use a template Where to begin writing a value proposition statement: 1. Understand your customer and their voice A good value proposition uses the exact words of your current customers to hook your future customers. Interview your customers or send out a survey to better understand how they speak about you, both to other people and to themselves. Pay attention to common words and phrases they use. 2. Focus on clarity before creativity Above all, you must ensure your value proposition is clear. Sounds obvious, right? Your value proposition needs to serve many purposes, so achieving crystal clarity can be quite difficult. When evaluating your draft, ensure it answers the following questions: What product are you selling? Who should buy your product? How will buying your product improve the visitor or their life? Why should the visitor buy from you and not your competitors? When will the value be delivered? Your value proposition should be relatively short-two or three short sentences, maximum. Every word should improve clarity or make your main selling point more compelling, otherwise it needs to be cut. 3. Emphasize benefits, not hype If you need to use hype to sell your products, it's a sign that your value proposition is not well defined. Or, perhaps, even that your product is not as valuable as you think. Don't let the love for your product or service get in the way of viewing your brand objectively. 4. Use a template When it comes to something as daunting as distilling your product's value into a sentence or two, having a guide can help. This is where you can use value proposition templates to help you organize your thoughts. Consider printing out a hard copy of this free downloadable template so you can brainstorm without digital distractions. What is a value proposition canvas? Customer jobs Customer pains Customer gains Customer jobs Your product should help the customer accomplish specific jobs-tasks they might struggle to achieve without it. What job would your target customer hire your product to do? What would its job description look like? Customer pains You can also use your value proposition to highlight how your product addresses customer pains, or common frustrations. Think of your product as a solution to your customer's pain points. What problems or obstacles or risks does your product help alleviate? Customer gains Customer gains are the positive outcomes your target customers want: saving money, saving time, feeling good, looking good, etc. What is the difference between a value proposition and a positioning statement? A positioning statement is an internal document describing what's unique about your brand or product and how you plan to market it. A value proposition is a shorter, customer-facing statement that communicates the same unique value. What is the purpose of a value proposition? A value proposition shows potential customers why they should choose your product or service over the alternatives. What are four types of value propositions? Company Value Proposition: Describes the overall value the company provides, distinct from its products. Homepage Value Proposition: The main value statement on the homepage, tailored to the type of store and range of products. Category Value Propositions: Specific value propositions for each product category, often seen on search engine results pages. Product Value Propositions: Individual value statements for each product, highlighting specific benefits and features. What if my value proposition fails? If your value proposition fails, it means you're not effectively communicating the unique benefits of your product or service. You'll get less sales, lower customer retention, and ultimately less profit for your brand. INTERNET MARKETING MIX What is Marketing Mix? A marketing mix is a combination of elements that make up a product's or service's marketing plan. The four major elements are PRODUCT, PRICE, PLACE, and PROMOTION. Hence, we can either refer to them as the marketing mix or the 4Ps.Developed in place and 1960s. Another type of marketing mix is called the 7Ps Developed in the 1980s Internet Marketing Mix Internet Marketing Mix, we mean providing exceptional digital presence on all the leading portals and sites. INTERNET MARKETING MIX: THE “ESSENTIAL” WEB MARKETING FOR YOUR BUSINESS Today, every business’s success depends on their online visibility and in our Internet Marketing Mix Services we devise certain customized plans to use social media for the betterment of your business. With the constant efforts put into this segment, you and your business will rank higher on search engines and you will have higher brand visibility on Facebook, Twitter, Instagram, Pinterest and many more. WHY DOES YOUR BUSINESS NEED INTERNET MARKETING STRATEGIES? Internet is expanding: Internet has grown immeasurably in the last years and it will continue to do so. Having no internet or online presence means no success, no limelight for your business. The Internet drives your decisions: Whether to buy or not? You certainly consider what the internet is saying about the product. You check ratings, comments, feedback, complaints, discussion forums before you buy. Therefore it is important to have an online presence that sustains your brand identity. No Strategy means Your Competitors are at Advantage: The Internet is not an easy platform. If you do not have any concrete internet marketing plan you are surely to lose the battle to your competitor. Your Customers are no more on the Roads, they are on the Internet: Find them and Target them. It will be rewarding. Social Network Communities influence your Customers’ Decisions: Internet Communities are influencing every person’s buying behavior. Therefore, you need to utilize social media cyberspace to make the most out of it. WHAT WE DO IN OUR INTERNET MARKETING MIX INITIATIVE We help our clients in prioritizing their objectives wherein we make consistent efforts towards improving customer engagement and enhancing brand value through social media platforms. Online or Digital Marketing Mix The online or digital marketing mix refers to the strategic blend of tactics and strategies that businesses use to promote their products or services online. We will go through the 7 P’s online marketing that completely models and expects every aspect of a marketing mix to be online and to apply digital technologies to create a marketing mix for modern business. 7 P’ s of Marketing Mix 1. Product - refers to anything that is being sold. 2. Price - it is the value of money in exchange to a product or service to enjoy the benefits. 3. Place - it represents the location where the buyer and seller exchange goods or services. 4. Promotion - refers to the communication that aims at promoting a product, activity or brand among the target customers. 4 Components: Advertising Public Relations Selling Sale promotions 5. People - They are the target consumers of the company. 6. Process - This determines the capability of the product to supply the demand of the consumers. 7. Physical Evidence - refers to everything your customers see when interacting with your business.  COMPETITIVE ADVANTAGE What is Competitive Advantage? Competitive advantage refers to factors that allow a company to produce goods or services better or more cheaply than its rivals. These factors allow the productive entity to generate more sales or superior margins compared to its market rivals. Attributed to a variety of factors including cost structure, branding, the quality of product offerings, the distribution network, intellectual property, and customer service. Types of Intellectual Property 1. Patents Allows the inventor exclusive rights to the invention, which could be a design, process, an improvement, or physical invention such as a machine. Technology and software companies often have patents for their designs. Example: the patent for the personal computer was filed in 1980 by Steve Jobs and three other colleagues at Apple Inc. 2. Copyrights Provides authors and creators of original material the exclusive right to use, copy, or duplicate their material. 3. Trademarks A symbol, phrase, or insignia that is recognizable and represents a product that legally separates it from other products. A trademark is exclusively assigned to a company, meaning the company owns the trademark so that no others may use or copy it. 4. Franchises A license that a company, individual, or party-called the franchisee- purchases allowing them to use a company's-the franchisor-name, trademark, proprietary knowledge, and processes. 5. Trade Advantage A company's process or practice that is not public information, which provides an economic benefit or advantage to the company or holder of the trade secret. Example of Competitive Advantage : -Access to natural resources that are restricted from competitors -Highly skilled labor -A unique geographic location -Access to new or proprietary technology -Ability to manufacture products at the lowest cost -Brand image recognition Constructing a Competitive Advantage: 1. Benefit - a company must be clear what benefit(s) their product or service provides. It must offer real value and generate interest. 2. Target Market - a company must establish who is purchasing from the company and how it can cater to its target market. 3. Competitors - important for a company to understand other competitors in the competitive landscape. Four Types of Competitors 1. Direct competitors - businesses offering the same product or services in the same niche or target market. 2. Indirect competitors - businesses solving the same problem with a different product or service but compete for the same customers. 3. Potential competitors - potential competitors are those not currently in your market but have the capability to enter it. 4. Replacement competitors - also called substitute competitors, they offer an alternative product that customers might use instead of yours. To construct a competitive advantage, a company must be able to detail the benefit that they provide to their target market in ways that other competitors cannot. Strategies for Competitive Advantage: 1. Cost Leadership In this strategy, the objective is to become the lowest-cost producer. If a company is able to utilize economies of scale and produce products at a cost lower than that of its competitors, the company is then able to establish a selling price that is unable to be replicated by other companies. Therefore, a company adopting a cost leadership strategy would be able to reap profits due to its significant cost advantage over its competitors. 2. Differentiation In differentiation, a company's products or services are differentiated from that of its competitors. This can be done by delivering high-quality products or services to customers or innovating products or services. If a company is able to differentiate successfully, the company would then be able to set a premium price on its products or services. 3. Focus In this strategy, a company focuses on a narrow target market segment. This strategy is successful if the company is able to successfully create products/services that can cater to these customers. How to Conduct a Competitive Market Analysis Competitive Analysis A way to identify competitors, and understand competitor's strengths and weaknesses in relation to yours. It helps you gauge how to curb competitors and refine your strategy. Who are my Competitors? -What is the range of products and services they offer? -Are their products or services aimed at satisfying similar target markets? -Do they operate in the same geographic area? Identifying Competitor Objectives and Strategies Identifying your competitor's objectives and strategies will provide you with viable strategy ideas to try on your target market. First, ask the following questions to help you identify your competitor's objects. Are your competitors trying to: Maintain or increase market share? Maximize short-term or long-term profits? Introduce technologically improved products into your market? Establish themselves as the market leaders? Develop new markets for existing products? Once you have identified what your competitors are trying to achieve, you will need to determine what type of strategy they have employed so you can eventually counteract with a strategy of your own. Some possible strategies are: Reducing prices. Advertising in new publications, or advertising more frequently. Buying out a competitor to increase market share and customer base. Improving a product with a new innovation. How to Analyze Your Competitive Information 1. Evaluate Their Product Features and Benefits 2. Determine Your Competitor's Market Share 3. Define the standards for a particular product or service. 4. Influence the popular perception of the product or service. 5. Devote resources to maintaining their market share. Other Factors to Consider: 1. Price - it's best to look for trends in pricing rather than momentary rises and falls. 2. Financial resources - are they withstanding financial setbacks? How are they funding new product development and improvement? 3. Operational efficiencies - are they able to save time and cost with clever production and delivery techniques? 4. Product line breadth - how easily can they increase revenues by selling related products?  5. Strategic partnerships - what kinds of relationships do they have with other companies? 6. Company morale/personnel - what is the motivation, commitment, and productivity level of the employees? VALUE PROPOSITION IN THE INTERNET What is an Online Value Proposition? An online value proposition is defined by entrepreneur, Michael Skok, as a positioning statement that explains what benefit you provide and how you do it uniquely well. It describes your target buyer, the pain point you solve, and why you’re distinctly better than the alternatives. The crucial element in this definition is the term “uniquely”. A truly persuasive value proposition will make it abundantly clear how you are set apart from your competition. Why does your business need it? 1. It differentiates from competitors and proves its superiority. 2. It provides a clear focus to marketing efforts. 3. Supplement PR and word of mouth recommendations. 4. It can echo wider sentiments of the company or product. Benefits of Online Value Proposition 1. Helps to separate from competitors. 2. Helps provide a focus to marketing efforts and enables company staff to be clear about the purpose of the site. 3. Used for PR and word-of-mouth recommendations. 4. Links to the normal product propositions of a company or its product. 5. Builds trust and credibility with consumers. 6. Improves conversion rates. 7. Improve customer acquisition cost. Formulating an OVP It follows from our exploration of what comprises a value proposition, that to create a successful online value proposition, marketers must understand specific characteristics of online channels and the benefits they offer to customers. Chaffey’S the 6C’s of customer motivation 1. Connect: ‘right content’ including more detailed product or service information or value-adding content; ‘right context’ of content for the site visit; ‘right media’ including interactive services, tools, and video. 2. Customization: personalization of content or products for individuals or groups. 3. Community: customer forums, such as for troubleshooting or exchanging tips. 4. Convenience: 24/7 availability, turnaround time, after-sales service, refund guarantee. 5. Choice: roader range of products and services additional methods of payment: flexible delivery, including ‘on-demand’ options for digital content; ease of return. 6. Cost reduction: informed perception of lower costs; no middle man; online exclusive pricing. The 7C’s of Rayport and Jaworski 1. Context – website design.  2. Content – information on the website. 3. Community – communication between users. 4. Customisation – extent to which the site can be customized. 5. Communication – site to user communication. 6. Connection – relationship between this and other sites. 7. Commerce – e-commerce functionality or the ability to conduct transactions or purchases. 7 steps to help you get started or refine your existing proposition 1. Review potential OVPs. 2. Select your target audience. 3. Research your audience. 4. Benchmark OVPs. 5. Define your OVP. 6. Communicate OVPs. 7. Deliver, review and improve.