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

2. 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

3. 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

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

5. 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

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

7. 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

8. 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

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

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

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

12. 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

13. 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)

14. The Pathway to Brand Loyalty
attribute
benefit
value
emotional
connection

16. Pioneered a new frontier

21. 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”