Lesson Planning and Creating A Value Proposition The Offer

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Lesson "Planning and Creating A Value Proposition The Offer" with content that helps readers know how to analyze the market, define goals and give a timeframe for implementation. Develop strategies with optimal solutions to bring profits and revenue to the business. Hope the document will help you in your work and life.

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Nội dung Text: Lesson Planning and Creating A Value Proposition The Offer

Planning and Creating A Value Proposition: The Offer
Opening Vignette Smart Spacing Hangers
What is the Offer?  The offer is the value proposition to the customer stating what you will give the customer in return for taking the action your marketing communication asks him/her to take.  It includes:  The manner of presentation (media, creative, etc.)  The request for a response
Creating NeedSatisfying Offers  Is part of ongoing customer relationship management (CRM) that drives the direct and interactive marketing process.
When creating the Offer or Value Proposition … Always remember the 40/40/20 rule!
The “40/40/20 Rule” states… The success of any DM effort is determined by:  The right lists (40%)  The right offer (40%)  The right creative (20%)
3 Characteristics of an Effective Offer (Lois Geller) Believability  It has to make sense to the consumer Involvement  It must attempt to get the customer involved Creativity  It sets you apart from all the others
Planning the Offer: 4 Steps 1: Establish Objectives of the Offer  “What is the offer designed to do?”  Continuity sell? Crosssell? Upsell? 2: Decide on Attractiveness of the Offer  Make attractive as possible, as “freebies” 3: Reduce Risk of the Offer  Offer free trial or examination period of offer a money back guarantee 4: Select a Creative Appeal  Offer appeals can be either rational or emotional
Continuity Selling  Continuity refers to offers that are continued on a regular (weekly, monthly, quarterly, annually) basis.  AKA “club offers”  Examples  Book clubs, CD clubs, and magazine subscriptions
CrossSelling  Cross selling is when new, related or even unrelated products are offered to the customer.  Beneficial strategy of direct marketing for profit maximization from current customer base. Copyright© 2010 Pearson Education, Inc. Publishing as Prentice Hall
UpSelling  Upselling is the promotion of more expensive products or services over the product or service originally discussed or purchased.
8 Components of the Offer 1. Product or Service 2. Pricing/Payment Terms 3. Trial or Examination Period 4. Guarantees 5. Sweepstakes or Contests 6. Gifts and Premiums Let’s now 7. Time Limits examine each 8. Continuity component …
Product or Service  It must satisfy the needs or wants of the target consumer to whom it will be presented  Product or service features must be understood
Pricing/Payment Terms  Price skimming begin price at highest level  Penetration strategybegin with low price  Price elasticity measures the consumer's responsiveness or sensitivity to price changes  COD, BML, Delayed payment, & installments  Price expression in the offer
Examples of Ways to Express Price in an Offer  Basic price statement “One year supply for only $12.99”  Price stated as a fraction “Onehalf off when ordered by May 1st”  Price stated by unit “Now only $2.49 an issue”  Price savings stated by percentage “Save 30% when ordered by May 1st”  Price savings stated by unit “First two issues are free”  Price savings stated by dollar amount “Save $25”  Price savings based on introduction “Save $15 on your initial subscription”  Price savings based on multiple purchases “Save $2.98 one two”  Price based on promotional offer “Buy one, get one free”
Trial or Examination Period  Helps overcome the risk factor of DM  Very effective
Guarantees  Instrumental in overcoming a potential buyer’s reluctance to purchase an unseen product from a remote location Example:  30 day money back guarantee  Double your money back
Sweepstakes or Contests  Often perforated tearoffs, diecuts, tokens, and stamps, as well as answers to questions, problems, or puzzles, are used.  Check state & local regulations.
Gifts and Premiums  Effective device for stimulating or increasing response  Can be offered for buying, trying, or inquiring
Time Limits  A part of the offer often involves limited quantity as well as specified time period  “While supplies last”