Products Services Delivery 1 What are my products

Products, Services, Delivery 1

What are my products and/or services? l How do I describe my products? l How do I describe my services? l What is the value proposition for each product or service? l Which Market segment does the product or service satisfy? Why? l What will be my competitive advantage? 2

What is a Value Proposition? l A business or marketing statement that summarizes why a consumer should buy a product or use a service. l l l This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings. The tangible benefits gained by the customer Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition is concise and appeals to the customer's strongest decision-making drivers. Companies pay a high price when customers lose sight of the company's value proposition. 3

What is my Competitive Advantage? l A competitive advantage is an advantage over competitors gained by offering consumers greater value, either by means of lower prices or by providing greater benefits and service that justifies higher prices. l l Porter identifies two basic types: l l l Ability to sustain profits that exceed the average for its industry. Cost Advantage Differentiation advantage Value Chain 4

How do I get my product and or service to my customer? l l l Do I use storefront, online, both, other means of distribution? What is the advantage of each distribution method chosen? Describe how each means of distribution will work? l Layout of store l Theme l Layout of webpage What is the advantage of locating the outlet at this site? l Why this part of town? Who are my suppliers? 5

On-line vs Store Front Online Advantages l l l Broader customer base Open 24/7 Take multiple orders simultaneously Lower overhead costs Offer more variety Storefront Advantage l l Customize sales presentation Meet immediate customer needs Lower advertising costs Greater service to local customers 6

Sources How to write a Strong Value Proposition Template Competitive Advantage Value Chain Competitive Advantage Strategy 7

Assignment l Your description of your product should be sufficient that we are sure you know your products, including value proposition. (2+ pages) l Your discussion of distribution should be detailed enough that we can get a mental picture of the process of selling your products. (2 + pages) 8