Your-Marketing-ToolkitSM
The Value Proposition and Repositioning
The profitability and success of all businesses rests in the marketplace. Product value of those successful businesses must also be recognized by the customers. Therefore, effective business planning requires a Pervasive Marketplace Awareness based on reliable data. However, merely understanding the marketplace is insufficient. The information must be engaging and compelling of action through answering provocative what-if questions. These questions must include the selection of the “value proposition” and the market position. Your-Marketing-Toolkits provide the Pervasive Marketplace Awareness” and facilitates this type of customer information driven business development based on affordable quantitative marketing research.
The concept of an “offering” includes not only the product with its tangible features, but a host of other attributes and properties including its branding, its product name and its value proposition or its position. Two products may be technically identical but can be perceived by the market in vastly different ways and successfully priced vastly differently. Success or failure of a business is often depends on the positioning of its products. The toolkits are design to provide the “hands-on” testing of these positioning options.
Positioning can be thought of a selection of potential product claims based on customer benefits. There are five areas that can be examined using the toolkit: (1) price/value strategy (2) attribute position, (3) value of benefits, (4) product association of benefits, and (5) creditability of achieving benefits.
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What is the competitive attribute product
position? Products are differentiated based on the perceived values and
performance in the marketplace.
Perceptual Maps are used to provide the overview of these differences. Other tools such as Quadrant and Importance
Maps allow for detailed views of competitive advantage. These are the basis of seeking out
differentiating value propositions. Your-Marketing-Toolkit facilitates
these explorations through a broad range of positioning maps. |
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What is the overall price/value position? Products compete on value and price.
The overall marketing positions of products reflect the most
desirable combination of price and value.
However, that may change from product to product and change with the
situation. Changes in the perceived
values of the product and the price will shift the effective strategic
position. The Value Map, generated by Your-Marketing-Toolkit, is design to
help locate the strategic position of the new concept based on value and
price. |
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What is the value of customer benefits? Product value propositions focus on the benefits that the products
are intended to deliver compared to the competition. The fundamental question is what are these
features and benefits worth to the customer?
Your-Marketing-Toolkit
indicates the distribution of those values for individual benefits and
bundles. |
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To whom should the products be
positioned? “The marketing battlefield is in the mind of the customer”. The purpose of the value proposition is to put the product favorably in the mind of the customers. But for which customers? Your-Marketing--Toolkit provides a number of segmentations approaches including those based on the perceived benefit values. Benefit market segments are selected to identify those customers that have common needs and attitudes towards these products. |
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Applications of Your-Marketing-Toolkit · Overall · Branding |
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CDS |
For more information on developing Your-Marketing Toolkits: Eugene B. Lieb Custom Decision Support, LLC (831) 854-2256 |
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