Articulating your Value Proposition - HVAC |...

Articulating your Value PropositionLinda Couch, BS, MBA

Chief Operating Officer, Parrish ServicesFormer IBM Global Strategist and Marketing Consultant

ACCA Office & Operations Managers Forum 2016

Why a value proposition• Because you are a content or subject matter

expert; and

• You are (most likely) not a marketing expert

October 26, 2016ACCA Office & Operations Managers Forum 2016 – Linda Couch 2

So here’s what you do...

And here’s how that works out for you...

What can a value proposition do?

Hire a marketing expert

Spend a lot of money and you’re still not thrilled

Even if your marketing expert doesn’t understand what you do, a value prop gives them what they need to develop great marketing strategies and content for you. If you are doing the development in house, it helps keep you on point and consistent.

Do it yourself anyway

Spend too much time and definitely not thrilled

Do nothing Spend neither time nor money, but have no customers, either

Sorry, this can’t help you...

Strategy First


Defining strategy

October 26, 2016 4

“The essence of strategy is in the activities – choosing to perform activities differently or to perform different

activities than rivals do. Otherwise, a strategy is nothing more than a marketing slogan that will not

withstand competition”

Michael Porter

ACCA Office & Operations Managers Forum 2016 – Linda Couch

Identifying strategies


InboundLogistics Operations

OutboundLogistics

Marketing&

Sales

Service

Primary activities

Support activities

Procurement

Firm Infrastructure

Human Resource Management

Technology Development

Doing different things:

Netflix v. Regal Cinemas

Doing similar things

differently: Southwest v.

United Airlines

Competitive

Advantage

Competitive strategies:

• are unique and

sustainable; or

• Have linkages that

create value.

Competing

October 26, 2016 6

Att

rac

tiv

en

ess

of

the

ov

era

ll m

ark

et

Our relative ability to compete in this market

Best opportunityProblems

Dogs Cash cows

The business unit strategy is about where and how to compete. For example:

Markets• Residential

• Commercial

• Public sector

• Niche (data centers,

marijuana growers,

schools, vineyards,

restaurants, etc.)

Methods• Acquire competitors

• Grow organically

• Subcontract


Market segmentation

October 26, 2016 7ACCA Office & Operations Managers Forum 2016 – Linda Couch

Customers differ by

• Benefits they want

• Amount they are able

to or willing to pay

• Media (e.g. television,

newspapers, and

magazines) they see

• Amount they buy

• Time and place that

they buy

There are various methods (or “bases”) a

business can use to segment a market.

Some of the most popular are:

Market planning

October 26, 2016 8

Current customers New customers

Current marketsGrow wallet share

Selling more services to

existing customers

Grow market share

Acquire competitors’

customers

New marketsGrow the opportunity

Sell new services to

current customers

Grow the market

Developing new services

for prospects


Attributes of successful strategies

Influence demand and build customer loyaltyInvest in brand names or reputation

Raise barriers to entryMake preemptive investments

Reduce the threat of substitutionIncorporate their benefits

Assess leverage along the supply chainBuild alliances with intermediaries or customers

Diagnose the competitive gameUnderstand and acknowledge relative strengths and weaknesses in the marketplace

Build superior activity systems that in turn create superior capabilities

Identify and exploit the role of network positioning and capability leveraging

October 26, 2016 9ACCA Office & Operations Managers Forum 2016 – Linda Couch

The Value Proposition


Value propositionsWhat the business or offering stands for; i.e., a promiseto deliver a specific benefit to the customer and themanner in which you will do so.

Objectives of defining the Value Proposition

• Concisely and clearly describe who and what youare

• Provide focus for your business and your colleagues

• Guide long-term and short-term planning decisions

• Drive strategic decisions and tactical executions

• Inspire and rally employees


What it is (and isn’t)It is the foundation It is not the presentation


FunctionA Value Proposition is one element of a marketing plan and

is based on the business strategy, but it informs all else.


Marketing and Sales Materials

Value Proposition Not visible to clients

Visible to clients

Advertising Public RelationsSales

Enablement

Channel

EnablementWeb Content

Messages Proof Points

ImagesTag lines

Business Strategy

Constructing a value propThe elements of the value proposition are:

• Target customers - who specifically (including both demographics

and psychographics) do we want to have listen to our marketing

message

• Defined market - who we are, understanding who else may be

speaking to them

• Differentiating points - why they should do business with us versus any

alternative

• Reasons to believe - what overarching support do we offer to

provide credibility

• Proof points – specific examples that support the value proposition

statement


Value prop template


Target customer For ....

Defined market of all providers of ....

Differentiating

pointsonly ....

Reasons to

believebecause ...

Proof points

that support the

value

proposition

• xxx

• yyy

• zzz

A winning value proposition


Differentiating sets the offering apart and

talks about what few, if any,

competitors can do

Relevantcustomers care about and

can benefit from the value

we provide

Compellinggives the customer a

credible reason to buy,

either logical or emotional

Enduringis long lasting, not easily

duplicated by existing

competitors or potential new

entrants

Example


For risk-sensitive government leaders focused on addressing the economic, health and welfare issues of their societiesTarget

Customer:

Desired Benefits:

Differentiating Point:

Reasons to Believe:

providers of infrastructure solutions and servicesMarket Definition:

Help governments proactively deliver new/better services to citizens and businesses. Enable greater access to

information and resources to improve government responsiveness and efficiency. Keep information, resources, and

other assets secure. Build an infrastructure for economic growth in a global environment.

Enable and protect collaboration between government organizations, levels, external suppliers and international

entities. Build in flexibility to adapt to changing priorities, regulations and events

Enable a more proactive

government

Enable collaboration

AllStar methodologies

enable their staff to

mitigate risk more

effectively

AllStar has a large

number of satisfied

existing clients

AllStar has the experience, commitment, ability, and nationwide presence to establish long-term partnerships with governments in order to enable a

proactive, collaborative, cost-effective government with a portfolio of long-term, successful contracts with both public and private sector agencies that have

resulted in efficient, effective best practices and the flexibility of a small, yet experienced, minority and veteran-owned provider

Perform the contract without major problems. Deliver benefits as planned.Mitigate risk

Proof points:

1. Reference A

2. Reference B

3. No. of contracts

4. Satisfaction ratings

5. Years in business…

6. ….

1. Project Plan Type A

2. No. of PMP certified

staff

AllStar has a well-

integrated network of

skilled partners that

enable flexibility

1. Recruiter A

2. Specialist in XYZ

3. Hardward & sofware

partner x

ResultsBefore After


• Spaghetti

• Testimonial

• Tech Pride

https://www.youtube.com/watch?v=KHtO03khJqs&feature=youtu.be

https://www.youtube.com/watch?v=hPw-Y0gviZA

https://www.youtube.com/watch?v=xnant1zWU4o

Value prop tool

Download an Excel spreadsheet to help evaluate

your value proposition

www.parrish.pro/valueproptool


http://www.parrish.pro/valueproptool

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