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Where’s the Value…? © Dr Matthew Rogers-Draycott 2024

Agenda • What’s Value? • Who’s your customer? • Link these ideas… • Explore how to develop a Value Proposition • Understand how to analyse competitors • Combine our learning!

What does Value mean to you?

Value = The worth (in monetary terms) attributed to the economic, social, technological or environmental benefits of a product (or service) by a consumer.

Value = The worth (in monetary terms) attributed to the economic, social, technological or environmental benefits of a product (or service) by a consumer.

Value = The worth (in monetary terms) attributed to the economic, social, technological or environmental benefits of a product (or service) by a consumer. Customer User

Benefits… F eatures - characteristics of the product. A dvantages - what the features do. B enefits - the value a consumer derives from the advantage.

Example Feature - “Polair Snug Lining” Advantage - retains body heat on cold nights. Benefit - you’ll have a nice warm night's sleep and wake-up ready for the day!

Economic Benefit Technological Benefit Experience Benefit A Few More…

NOT Everyone Consumer is your

Consumers… Diffusion of Innovation (DOI) Theory was developed by E.M. Rogers in 1962. It was later adapted by Geoffrey Moore in 1991 in Crossing the Chasm.

Base on work by Everett Rogers in his 1962 book, Diffusion of Innovations Diffusion of Innovation (DOI) Theory was developed by E.M. Rogers in 1962. It was later adapted by Geoffrey Moore in 1991 in Crossing the Chasm.

They have a problem(or need) … …they are actively seeking a solution! …they know they have a problem(or need) … Innovators and Early Adopters

1. Identify all the potential consumers for your solution. Each consumer should occupy their own segment.

1. Identify all the potential consumers for your solution. Each consumer should occupy their own segment. 2. Describe each consumer, focus on important demographic information so that you can build a ‘pre- persona’.

1. Identify all the potential consumers for your solution. Each consumer should occupy their own segment. 2. Describe each consumer, focus on important demographic information so that you can build a ‘pre- persona’. 3. Describe the benefits that each pre-persona derives from your solution.

1. Identify all the potential consumers for your solution. Each consumer should occupy their own segment. 2. Describe each consumer, focus on important demographic information so that you can build a ‘pre- persona’. 3. Describe the benefits that each pre-persona derives from your solution. 4. Identify if there are any barriers which will stop the pre-persona adopting your solution.

For Each Pre-Persona you need to ask these three questions. Ideally, you are searching for an instance where your solution is: 1. A Painkiller; 2. A Big Gain Maker; and 3. Essential. If you find this combination, it’s likely that the pre-persona will be an early adopter. However, lots of other combinations can work very successfully!

Towards a Value Proposition Once you have identified the pre-personas (2-3 is a good starting point) that you believe to be your early adopter(s), you need to draw a clear link between their problem (or need) and the benefits of your solution. This statement should also address the key barrier that might exist which could stop their purchase. Ideally you should be able to communicate this in one or two sentences which clearly summarises this information and differentiates you from your competitors.

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Direct - a rival company operating in the same market segment as you, selling similar goods or services. Competitors In - Direct - a company operating in the same/similar industry whose product/service might appeal to your customers

Name, location and business size Product/service Price (Regula Back Americano) Strengths Weaknesses Starbucks Coffee, Drinks, Snacks. £1.95 Brand, Loyalty Programme Customer Perceptions of Brand Costa Coffee, Drinks, Snacks. £2.20 Brand, Loyalty Programme, Location Sustainability, Quality Local Cafe Coffee, Drinks, Snacks. £1.85 Building, Brand, Customer Loyalty Location, Sustainability Pub (Wetherspoons) Beer, Food, Snacks, Coffee, Drinks. £1.40 (Free Refills) Price Environment

Summary Sheet: Pre-Personas Problem/Need: Key Barrier: Other Options: Your Value Proposition:

Feel free to reach out! Any questions?