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PLATO
STRATEGIC MARKETING

PROF. DR. IR. MARION DEBRUYNE
                                                 ©Marion Debruyne




         “MARKETING IS NOT THE ART OF FINDING CLEVER
         WAYS TO DISPOSE OF WHAT YOU MAKE. MARKETING
         IS THE ART OF CREATING GENUINE CUSTOMER
         VALUE. IT IS THE ART OF HELPING YOUR CUSTOMERS
         BECOME BETTER OFF. “
                PHILIP KOTLER




   © Vlerick Business School




                                                                    1
Why should a
                                              customer buy from
                                                    you?




                                    "I cannot give you a formula for success,
                            but I can give you a formula for failure, which is:
                                                    Try to please everybody.“
                                                                   Mark Twain




© Vlerick Business School




                                                                                  2
1. WHO IS THE CUSTOMER?




 © Vlerick Business School




              Not all customers are created equal




 © Vlerick Business School




                                                    3
© Vlerick Business School




                                    Z-Safety,
                             specialists in shutdown
                                      safety
                              Z-Safety is the Western European
                               specialist par excellence when it
                               comes to total safety during the
                            shutdown of petrochemical plants
                                     or power stations.
                            Z-Safety rents out safety equipment,
                                makes available trained safety
                                experts and coordinates safety
© Vlerick Business School
                                 operations from start to end.




                                                                   4
CURVES

  Fitness center for women only
  8000 locations in 10 years
  10th largest franchise company in the world (in
 units)




    © Vlerick Business School




 CHATEAUFORM

Focus on one target of customers
• Big multinational companies
• To meet their needs in terms of meetings, seminars, events
• Excluding any other target in order to be close to the needs of
the different segments:
    • Participants
    • Assistants
    • Decision makers
    • Facilitators and consultants




                                                                    10
                                © 2011 - Jacques Horovitz
    © Vlerick Business School




                                                                         5
2. DO YOU FOCUS?




   © Vlerick Business School




ALL BENEFITS VALUE PROPOSITION

 Value Proposition                            All benefits


 Consists of:                  A list of all benefits customers receive


 Answers the customer          “Why should our firm purchase your
 question:                     offering?”


 Requires:                     Knowledge of own market offering


 Has the potential pitfall:    Benefit assertion




                                                              (Anderson et al. 2006)
   © Vlerick Business School




                                                                                       6
"Simple messages travel
                              faster, simpler designs reach
                                  the market faster and the
                                elimination of clutter allows
                                    faster decision making.“
                                                  Jack Welch




                            LESS IS MORE


© Vlerick Business School




                                                                7
Result:Positional Advantage Sunparks




                                     POINT OF                    POINT OF
                                      PARITY                    DIFFERENCE
  SATISFIER

 QUALIFIER




QUALIFIERS VS SATISFIERS




QUALIFIERS                         :Baseline customer expectations
                                   :Under-performance is cause for
                                    dissatisfaction/defection
                                   :Over-performance doesn’t lead to higher
                                    satisfaction/loyalty
SATISFIERS                         :Customer value drivers above baseline expectations
                                   :Not all players excel at all of them
                                   :Over-performance leads to higher satisfaction/loyalty




                 Meet the qualifiers, outperform the differentiators!




  © Vlerick Business School




                                                                                            8
WHO ARE YOU COMPETING WITH?
 SMARTPHONES


Product View                    Demographic View            Job-To-Be-Done
                                                             View

Market Definition               Market Definition           Market Definition
                                The traveling salesperson   Use small snippets of
The handheld wireless
device market                                               time productively

                                Competitors                 Competitors
Competitors                     Notebook computers,                      Notebook computers,
                                tablet computers,              tablet computers, mobile phones
• Iphone, HTC,Samsung           mobile phones, e-readers    Wall Street Journal, CNN,
                                                            Airport News, listening to
                                                            boring presentations, doing
                                                            nothing




    © Vlerick Business School




FAVORABLE POINTS OF DIFFERENCE

 Value Proposition                      All benefits          Favorable points of
                                                                  difference

 Consists of:                     A list of all benefits     All favorable points of
                                  customers receive          difference relative to
                                                             next best alternative
 Answers the                      “Why should our firm       “Why should our firm
 customer question:               purchase your              purchase your offering
                                  offering?”                 instead of your
                                                             competitor’s?”
 Requires:                        Knowledge of own           Knowledge of own
                                  market offering            market offering and
                                                             next best alternative
 Has the potential                Benefit assertion          Value presumption
 pitfall:

                                                                          (Anderson et al. 2006)
    © Vlerick Business School




                                                                                                   9
RESONATING FOCUS

Value                                   All benefits        Favorable points           Resonating
Proposition                                                   of difference              focus
Consists of:                      A list of all benefits   All favorable points     One or two points of
                                  customers receive        of difference relative   difference with the
                                                           to next best             greatest customer
                                                           alternative              value
Answers the                       “Why should our firm     “Why should our firm     “What is most
customer                          purchase your            purchase your            worthwile for our
question:                         offering?”               offering instead of      firm about your
                                                           your competitor’s?”      offering?”
Requires:                         Knowledge of own         Knowledge of own         Knowledge of how
                                  market offering          offering and next        own offering delivers
                                                           best alternative         superior value
Has the                           Benefit assertion        Value presumption        Requires customer
potential                                                                           value research
pitfall:
                                                                                      (Anderson et al. 2006)
      © Vlerick Business School




   3. WHOSE LANGUAGE DO YOU SPEAK?




      © Vlerick Business School




                                                                                                               10
SEGMENT SPCECIFIC
                                                                FEATURES


                                            Reason to believe
                                                                BENEFITS




                                                                 VALUE



© Vlerick Business School




                                          UNIQUE VALUE PROPOSITION
                                                For (target customer)
 who (statement of the need or opportunity),
                             the (product/service name) is a
                               (product/service category)
                                          that (statement of benefit).




                                                                           11
6. DO YOU DELIVER ANYTIME
                ANYWHERE ANYPLACE?

                            Do you implement your value proposition?




                            Value Proposition
                                     results
                                          in
                                 Positioning
                  What do customers perceive as the
                   advantages you offer relative to
                             competitors?




© Vlerick Business School




                                                                       12
DETECT THE DIFFERENCES…




  © Vlerick Business School




YOUR VALUE PROPOSITION IS A PROMISE FULFILLED AT
EVERY CUSTOMER TOUCH POINT



                                                  Awareness
                                   Maintenanc
                                                              Informatio
                                     e and
                                                               n search
                                    Disposal



                              Customer
                                                                       Sales
                               service




                                 Billing                            Ordering



                                            Product
                                                         delivery
                                           experience


  © Vlerick Business School




                                                                               13
HOW TO LEVERAGE SOCIAL MEDIA?




   © Vlerick Business School




                                28




                                     14
TIME FOR SOME INTROSPECTION




                              What is our value proposition?
                              How do you implement
                              your value proposition?




  © Vlerick Business School




WORKSHOP

15 min for each to be the topic of discussion
Your role:
 Present your value proposition to the group
 Show how your value proposition gets
 implemented
The group’s role:
 To ask critical questions
 To give advice on:
      How to fine-tune your value proposition
      How to implement your value proposition

  © Vlerick Business School




                                                               15
THANK YOU!

Prof. dr. ir. Marion Debruyne
Associate Professor & Partner
Vlerick Business School




Contact me:
Marion.Debruyne@vlerick.com


Follow me:

   MarionDebruyne

  © Vlerick Business School




                                16

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Strategic Marketing

  • 1. PLATO STRATEGIC MARKETING PROF. DR. IR. MARION DEBRUYNE ©Marion Debruyne “MARKETING IS NOT THE ART OF FINDING CLEVER WAYS TO DISPOSE OF WHAT YOU MAKE. MARKETING IS THE ART OF CREATING GENUINE CUSTOMER VALUE. IT IS THE ART OF HELPING YOUR CUSTOMERS BECOME BETTER OFF. “ PHILIP KOTLER © Vlerick Business School 1
  • 2. Why should a customer buy from you? "I cannot give you a formula for success, but I can give you a formula for failure, which is: Try to please everybody.“ Mark Twain © Vlerick Business School 2
  • 3. 1. WHO IS THE CUSTOMER? © Vlerick Business School Not all customers are created equal © Vlerick Business School 3
  • 4. © Vlerick Business School Z-Safety, specialists in shutdown safety Z-Safety is the Western European specialist par excellence when it comes to total safety during the shutdown of petrochemical plants or power stations. Z-Safety rents out safety equipment, makes available trained safety experts and coordinates safety © Vlerick Business School operations from start to end. 4
  • 5. CURVES Fitness center for women only 8000 locations in 10 years 10th largest franchise company in the world (in units) © Vlerick Business School CHATEAUFORM Focus on one target of customers • Big multinational companies • To meet their needs in terms of meetings, seminars, events • Excluding any other target in order to be close to the needs of the different segments: • Participants • Assistants • Decision makers • Facilitators and consultants 10 © 2011 - Jacques Horovitz © Vlerick Business School 5
  • 6. 2. DO YOU FOCUS? © Vlerick Business School ALL BENEFITS VALUE PROPOSITION Value Proposition All benefits Consists of: A list of all benefits customers receive Answers the customer “Why should our firm purchase your question: offering?” Requires: Knowledge of own market offering Has the potential pitfall: Benefit assertion (Anderson et al. 2006) © Vlerick Business School 6
  • 7. "Simple messages travel faster, simpler designs reach the market faster and the elimination of clutter allows faster decision making.“ Jack Welch LESS IS MORE © Vlerick Business School 7
  • 8. Result:Positional Advantage Sunparks POINT OF POINT OF PARITY DIFFERENCE SATISFIER QUALIFIER QUALIFIERS VS SATISFIERS QUALIFIERS :Baseline customer expectations :Under-performance is cause for dissatisfaction/defection :Over-performance doesn’t lead to higher satisfaction/loyalty SATISFIERS :Customer value drivers above baseline expectations :Not all players excel at all of them :Over-performance leads to higher satisfaction/loyalty Meet the qualifiers, outperform the differentiators! © Vlerick Business School 8
  • 9. WHO ARE YOU COMPETING WITH? SMARTPHONES Product View Demographic View Job-To-Be-Done View Market Definition Market Definition Market Definition The traveling salesperson Use small snippets of The handheld wireless device market time productively Competitors Competitors Competitors Notebook computers, Notebook computers, tablet computers, tablet computers, mobile phones • Iphone, HTC,Samsung mobile phones, e-readers Wall Street Journal, CNN, Airport News, listening to boring presentations, doing nothing © Vlerick Business School FAVORABLE POINTS OF DIFFERENCE Value Proposition All benefits Favorable points of difference Consists of: A list of all benefits All favorable points of customers receive difference relative to next best alternative Answers the “Why should our firm “Why should our firm customer question: purchase your purchase your offering offering?” instead of your competitor’s?” Requires: Knowledge of own Knowledge of own market offering market offering and next best alternative Has the potential Benefit assertion Value presumption pitfall: (Anderson et al. 2006) © Vlerick Business School 9
  • 10. RESONATING FOCUS Value All benefits Favorable points Resonating Proposition of difference focus Consists of: A list of all benefits All favorable points One or two points of customers receive of difference relative difference with the to next best greatest customer alternative value Answers the “Why should our firm “Why should our firm “What is most customer purchase your purchase your worthwile for our question: offering?” offering instead of firm about your your competitor’s?” offering?” Requires: Knowledge of own Knowledge of own Knowledge of how market offering offering and next own offering delivers best alternative superior value Has the Benefit assertion Value presumption Requires customer potential value research pitfall: (Anderson et al. 2006) © Vlerick Business School 3. WHOSE LANGUAGE DO YOU SPEAK? © Vlerick Business School 10
  • 11. SEGMENT SPCECIFIC FEATURES Reason to believe BENEFITS VALUE © Vlerick Business School UNIQUE VALUE PROPOSITION For (target customer) who (statement of the need or opportunity), the (product/service name) is a (product/service category) that (statement of benefit). 11
  • 12. 6. DO YOU DELIVER ANYTIME ANYWHERE ANYPLACE? Do you implement your value proposition? Value Proposition results in Positioning What do customers perceive as the advantages you offer relative to competitors? © Vlerick Business School 12
  • 13. DETECT THE DIFFERENCES… © Vlerick Business School YOUR VALUE PROPOSITION IS A PROMISE FULFILLED AT EVERY CUSTOMER TOUCH POINT Awareness Maintenanc Informatio e and n search Disposal Customer Sales service Billing Ordering Product delivery experience © Vlerick Business School 13
  • 14. HOW TO LEVERAGE SOCIAL MEDIA? © Vlerick Business School 28 14
  • 15. TIME FOR SOME INTROSPECTION What is our value proposition? How do you implement your value proposition? © Vlerick Business School WORKSHOP 15 min for each to be the topic of discussion Your role: Present your value proposition to the group Show how your value proposition gets implemented The group’s role: To ask critical questions To give advice on: How to fine-tune your value proposition How to implement your value proposition © Vlerick Business School 15
  • 16. THANK YOU! Prof. dr. ir. Marion Debruyne Associate Professor & Partner Vlerick Business School Contact me: Marion.Debruyne@vlerick.com Follow me: MarionDebruyne © Vlerick Business School 16