Business Plan Preparation Frank Moyes (w/ Aaron on vocals) Leeds College of Business University of Colorado Boulder, Colorado Product & Service, Elevator Speech 1

Tonight’s Agenda Topics Read BP pp 6-7 Features & Benefits Margins Read BP pp 6-7 In the Fire – team meetings, last hour Preliminary Market Analysis Results Preliminary Interview Results Product & Service, Elevator Speech 2

Next Week Marketing Plan Revenue Model Read BP pp 14-18 In the Fire Prelim Industry Analysis Model company description Hand in 10 Call Reports Preliminary Competitive Matrix Model company Product & Service, Elevator Speech

Product/Service Sections Features Benefits Brand Loyalty Involvement Levels Product & Service, Elevator Speech

Features Detailed description What is unique? Attributes (cost, design, service, durability, availability, etc.) Environment What is unique? What is evidence that customers want these features? How produce & deliver – systems approach Don’t assume people know or understand your product/service Description Specifications Drawings Photographs Rendering Other Product Issues Customer support Warranty Repair service Training Technical Support Product & Service, Elevator Speech 5

Benefits Describe major benefits - be specific What is the evidence that benefits are understood by the market? Product & Service, Elevator Speech

Objective is to distinguish between features and benefits Emotional: ambition, power, independence, achievement, ambition, pride of ownership, comfort, love, friendship, security, style, self Improvement, etc. Social: status, image, popularity with friends or family members, reputation of brand, personal relationships, style, fashionable, etc. Health: stress, fitness, mental capacity, strength, sex life, quality of life, muse, etc. Financial: revenue, costs, savings, productivity, pricing, profitability, market share, save time, productivity, etc. Convenience? Objective is to distinguish between features and benefits Product & Service, Elevator Speech

Features & Benefits FEATURES are about the product or service and are often tangible attributes BENEFITS are about the customer and are often about their needs, desires, dreams

Features & Benefits FEATURES justify a product’s existence. BENEFITS motivate (re)purchase.

Features & Benefits FEATURES are rational. BENEFITS are emotive. To define the key benefits, keep asking: “why does my customer care about that?”

Breathe Right Nasal Strips FEATURES Flexible, spring-like bands gently lift nasal passages. Special adhesive holds strip comfortably in place. Improves airflow by 31%.

Breathe Right Nasal Strips BENEFIT (L1) BENEFIT (L2) Reduces Snoring My spouse sleeps My spouse is cheerful My marriage thrives Relieves Congestion Great night’s sleep I feel energetic Higher performance I achieve my dreams

Other Examples… FEATURE BENEFIT Overnight delivery Saves your job “When it absolutely… Inexpensive Biz Lodging Peak Performance “No, but I did sleep at a Holiday Inn last night” Intoxicating refreshment Look sexy, get the girl (every beer ad)

The Pathway to Brand Loyalty attribute benefit value emotional connection

Pioneered a new frontier

How Much Do Your Customers Care? High Involvement Low Involvement Easy to get attention Hard to get attention Will invest to upgrade Will delay upgrading Will try new brands Hard to change About “wants” About “needs”