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A collection of article and ideas that help Smart Marketers to become Smarter
Thank you - Marketing Canvas Method
These last months, Marketing Canvas Method has seen an increase of traffic and downloaded of the method. This initiative I started few years ago has grown up and is now more and more appreciated by startups and marketing enthusiasts.
The community is growing months after months! I see also some citations or references in books. I was not thinking it could go so far.
A new milestone has been reached today with the delivery of a new production batch of the Marketing Canvas Cards.
I am currently working on improving the templates and also working on an online training offer.
All the material (except the cards) can be freely downloaded on the website under creative common licence.
Thank you!!!!
Marketing Canvas - Step 1 - Market Assessment
Explore the intricacies of the Marketing Canvas method through an in-depth guide, enhanced with a case study from the eco-friendly cleaning products industry. Ideal for marketers and entrepreneurs seeking to build a robust marketing strategy.
Last update: 12/05/2023
Introduction
Understanding the concept of a 'market' is fundamental to crafting a successful marketing plan. But what does 'market' truly mean in a marketing context?
When you introduce products or services to fulfill specific needs, there's a high probability that alternatives already exist. These alternatives set a frame of reference for customers, leading them to compare your offerings against what they know:
Is it more expensive or cheaper?
Does it offer more or less perceived benefits?
Why should they switch to your product?
Three Crucial Questions for Your Market
Question 1: What is your playing field, and how would you describe your market dynamics?
In marketing, we often segment territories into groups exhibiting similar characteristics, referred to as 'market segments' or 'markets'. This segmentation streamlines sales efforts, as your primary goal becomes convincing customers within your targeted market to choose and retain your value proposition.
I rely on Bill Aulet's definition (Excerpt From: Bill Aulet. "Disciplined Entrepreneurship") to clarify what constitutes a market:
Customers within the market purchase similar products.
Customers within the market exhibit similar buying behaviors and anticipate similar value from the products.
There's "word of mouth" among customers in the market, meaning they serve as high-value references for each other in making purchases.
To illustrate, consider these examples:
Buying a car or a computer places you in the Car market and Computer market respectively. These markets align with Aulet's definition.
If you're a strategic consulting firm or a law firm, there likely exists a market for strategic consulting services and a market for legal services, respectively. Again, these markets align with Aulet's definition.
This concept of a market applies to both consumer and business services. Moreover, markets can be subdivided into sub-markets, providing a finer granularity to develop a marketing strategy. For instance, the Car market can be split into SUV and Sedan sub-markets, and the Computer market into Laptop and Desktop markets.
This subdivision forms a crucial step in devising a marketing strategy as it allows for an improved understanding of the context. The silver lining is that this work is often already accomplished, and markets are defined by the existing players. A wealth of data and statistics on different markets can be found on the internet, available free or for purchase.
Remark: you can compete in different markets, however the marketing canvas method has been designed for one market as competitors and conditions might change between markets. In case you would like to analyse multiple markets, you should do it one by one and then consolidate all the assessments in one strategy.
Case Study: Green Clean
Consider the eco-friendly cleaning products market. Companies like Method, Ecover, Seventh Generation, Mrs. Meyer's, and Green Clean offer alternatives to traditional cleaning products. They all compete within the eco-friendly cleaning products market, defined by customers' preference for environmentally conscious choices, similar buying behaviors, and the potential for word-of-mouth recommendations. These companies have different pricing strategies and perceived benefits, which customers will compare before making a decision.
CASE STUDY: Tesla Model S
Consider the Tesla Model S. It belongs to the broad market of cars, but we can further narrow this down into sub-markets. A common mistake is to categorize the Tesla Model S under the market of electric cars. However, being electric is a feature, not a market. Although both a Toyota Prius and a Tesla Model S are electric cars (one being a hybrid), they do not belong to the same market. The Tesla Model S fits into the Luxury E automobile or Executive/Mid-size luxury market, which also includes vehicles like the Porsche Taycan or the BMW 5 series.
As we delve deeper, we'll discover that once we have identified the market where our value proposition will compete, it's crucial to understand and follow a set of rules to shape our commercial strategy.
After identifying your company's competitive market, we need to delve into the specifics. Just like a painter cannot create art without understanding their canvas, a marketer cannot formulate a strategy without understanding their market.
1.1 Market Definition (M1)
To define your market, you must understand what product or service you are selling and who will likely buy it. For example, if you're selling eco-friendly cleaning products, your market might be environmentally conscious homeowners.
1.2 Key Expected Benefits (M2)
This involves identifying what the players in the market hope to gain. This includes both functional benefits (e.g., eco-friendly cleaning products that effectively clean the house) and emotional benefits (e.g., feeling good about contributing to environmental conservation).
1.3 Market's Position on Growth Curve (M3)
Every market undergoes stages: introduction, growth, maturity, and decline. Understanding where your market is on this curve helps you strategize accordingly. For instance, an emerging market might require more education and awareness efforts.
1.4 Experience Economy Curve of the Market (M4)
This refers to how the market evolves from selling simple commodities to providing sophisticated experiences. For instance, coffee can be sold as a commodity (beans), a product (packaged coffee), a service (brewed coffee in a cafe), or an experience (gourmet coffee tasting).
1.5 Total Available Market (TAM) and Serviceable Available Market (SAM) (M5)
TAM is the total market demand for a product or service, while SAM is the segment of TAM targeted by your company's products and services within your geographical reach. These metrics help assess the market size and opportunity.
Question 2: who is your main important competitors?
Identifying and analyzing your competitors is just as crucial as understanding your market.
2.1 Competitors' Identification (M6-M10)
Identify up to five main competitors in your market. For each, identify the product price per unit (M7), perceived price (M8), perceived benefits (M9), and any additional remarks (M10).
2.2 Perceived Price (M8)
Perceived price is a metric that reflects how customers perceive your price relative to the competition. It is not always about the actual cost but rather the perceived value for money. The perceived price is calculated using a formula: M8 = 24/(E-C) * (M7-C) - 12.
Here, E is the maximum price per unit in the market, C is the lowest price per unit, and M7 is your product's price per unit. The calculation generates a score on a scale of -12 to +12, helping you understand your product's perceived price positioning in comparison to competitors.
Let's consider an example in the eco-friendly cleaning products market. We'll analyze five companies: GreenClean (our company), EcoPure, NatureFresh, Clean&Green, and BioWash.
Here's the calculation for GreenClean's perceived price:
M8 = 24/($15-$6) * ($10-$6) - 12 = 24/9 * 4 - 12 = 10.67 - 12 = -1.33
The same calculation is applied to find the perceived prices for the rest of the companies. This table helps you understand how your product's price is perceived relative to the competitors in the market.
In this case, GreenClean's price is perceived to be lower than most of its competitors, which can be an advantage if customers are price sensitive. However, you also need to ensure that the lower price doesn't lead customers to perceive it as lower quality.
2.3 Perceived Benefits (M9)
This is a measure of the benefits a customer perceives when interacting with a company. The perceived benefit score is calculated by summing up the scores of four questions related to the Brand, Value Proposition, Customer Journey, and Conversations offered by the company in the chosen market.
Here's how to handle each question:
Brand Perception: Ask yourself, "Is the company's brand the highest perceived amongst all the alternatives in the market?" This isn't just about brand recognition; it's about the positive associations customers make with your brand. It could be related to quality, trust, innovation, or social responsibility.
Value Proposition: Consider, "Is the company's value proposition the highest perceived amongst all the alternatives in the market?" The value proposition is the unique mix of product, price, placement, and promotion that the company offers. It answers why a customer should buy from you rather than your competitors.
Customer Journey: Query, "Is the company's customer journey the highest perceived amongst all the alternatives in the market?" The customer journey comprises all interactions between the customer and the company. It can include the ease of navigating your website, the clarity of product information, the efficiency of the checkout process, after-sales service, and more.
Conversation: Reflect on, "Is the company's conversation the highest perceived amongst all the alternatives in the market?" Conversations refer to the communication between the company and its customers. This could include advertising messages, social media interactions, customer service interactions, and more.
For each of the four questions, rate your agreement on a scale of -3 (completely disagree) to +3 (completely agree). Sum up these ratings to derive the Perceived Benefits score (M9).
This score gives you an understanding of your company's strengths and areas of improvement from the customer's perspective. It provides insights into how you can enhance your customers' experience, strengthen your value proposition, and ultimately, increase your market share.
These perceived benefits scores indicate how each company's offerings are viewed in the market. GreenClean, for instance, scores fairly well, suggesting its customers appreciate its brand, value proposition, customer journey, and conversations. However, there's room for improvement, especially when compared to competitors like EcoPure and BioWash. This analysis can help guide strategic decisions to improve these areas and enhance customer perception.
question 3: what are the trends influencing your market?
This stage involves compiling all the information gathered above and creating a comprehensive view of your market.
Describe your chosen market, ensuring it aligns with the market definition of Bill Aulet.
Fill in a template (template #2) with information on your company and a maximum of 4 other companies.
Identify the average unit price for the company value proposition in the market (M7).
Map this average price for all companies using the formula: M8= 24/(E-C)*(M7-C)-12.
Calculate for each company the Perceived Benefits M9 by summing up the results of the 4 questions.
Map these results on a graph with perceived benefits (M9) on the horizontal axis (scale -12 to + 12) and perceived prices (M8) on the vertical axis (scale -12 to +12). This visualization (template #4) gives a clear picture of where each competitor stands in terms of value for money in the eyes of customers.
In conclusion, the market you're operating in, or planning to penetrate, defines the rules of the game. Understanding these rules, and how to play within them, will significantly influence your chances of success.
Whether it's the luxury electric car market or the eco-friendly cleaning products market, your marketing strategy should be rooted in a deep understanding of the market dynamics. This includes not only identifying your competitors but also comprehending the perceived price and benefits that your product or service brings to the table.
Marketing Canvas Method - Market Assesment Process
Tips for non-marketers and entrepreneurs
1. Stay Curious: Regularly research and keep up with trends in your market. It's not a one-time activity but a continuous process.
2. Talk to Customers: They can provide valuable insights that even the most sophisticated analysis might miss. Regular feedback from customers is a goldmine of information.
3. Keep an Eye on Competitors: Competitors can provide valuable lessons. Their successes and failures can provide insights for your own strategy.
4. Iterate: A marketing strategy is not set in stone. It evolves with your business, market trends, and customer preferences. Regularly revisit and update your strategy based on new data and insights.
Remember, understanding the context is just the first step in the marketing canvas method. It sets the foundation for the other steps in the process, guiding the direction of your marketing strategy.
Marketing Canvas - Proofs
In this comprehensive guide, we explore the concept of "proofs" in marketing - the crucial elements that make your value proposition compelling and credible. We delve into various types of proofs such as studies, expert recognition, social proof, and certifications, demonstrating how each contributes to a solid marketing strategy. To illustrate this concept, we look at a real-world example of a company that successfully utilized proofs. The guide also includes a unique framework for evaluating and improving your proofs, helping you fine-tune your marketing strategy. Whether you're a seasoned marketer or an entrepreneur starting your marketing journey, this guide provides practical insights that can enhance your marketing effectiveness.
Last update: 8/11/2024
In a nutshell
The Proofs sub-dimension in the Marketing Canvas focuses on the evidence and validation that support your value proposition. Proofs help build trust and credibility by demonstrating how your offering delivers on its promises, reducing customer uncertainty and reinforcing your brand’s reputation. This evidence may include testimonials, case studies, certifications, third-party endorsements, and other trust-building tools.
For example, Green Clean might use certifications like "Certified Organic" or endorsements from environmental organizations to validate its claims of sustainability and safety, reassuring customers of its commitment to quality and eco-conscious practices.
Introduction
The Proofs sub-dimension is a vital element of the Value Proposition category in the Marketing Canvas. It addresses the need to substantiate your claims with clear and credible evidence. In an age of increasing skepticism, especially around sustainability claims, providing proof is critical to gaining customer trust, avoiding greenwashing, and reinforcing your brand's reputation.
Proofs help bridge the gap between what a brand promises and what customers believe, ensuring alignment and confidence in your value proposition.
What are proofs?
Proofs are the tangible and credible elements that validate your value proposition, providing customers with the confidence to trust and invest in your offering. These can include:
Operational Context: Demonstrations, examples, or case studies that show your value proposition in action.
Clarification Tools: Detailed explanations, technical specifications, or visual aids that reassure customers about your product or service.
Third-Party Endorsements: Recognized certifications, awards, or endorsements from trusted authorities.
Brand Reputation: References to your brand’s history, achievements, or well-known attributes.
Greenwashing Avoidance: Ensuring that your claims are transparent, accurate, and verifiable.
For instance, Green Clean might showcase customer testimonials, certifications like “EcoCert,” and its long-standing reputation for sustainable innovation to provide robust proof of its eco-friendly claims.
Laurent Bouty - Marketing Canvas Method - Proofs
Proofs: an in-depth perspective
To effectively reinforce your value proposition, your proofs must:
Show Operational Relevance: Provide real-world examples or demonstrations of how your product delivers value.
Reassure Through Clarity: Offer clear explanations or visualizations that address customer concerns.
Leverage Trusted Endorsements: Highlight third-party validations or certifications that strengthen credibility.
Reference Brand Reputation: Connect your value proposition to widely acknowledged elements of your brand’s history or achievements.
Maintain Integrity: Ensure your claims are truthful, avoiding exaggeration or greenwashing.
For example:
Operational Context: Green Clean shares a case study showing how its products helped a customer reduce household toxins by 80%.
Third-Party Endorsements: Certifications like “Leaping Bunny” verify its cruelty-free claims.
Reputation: Green Clean highlights its recognition as a leader in sustainable cleaning solutions.
Translating proofs into action
Providing proof requires an intentional strategy to communicate and display evidence across all customer touchpoints. From marketing materials to customer service, every interaction should reinforce your value proposition with credible and relevant proof points.
Questions to consider:
Have you demonstrated your value proposition in an operational context that customers can easily relate to?
Have you clarified how your value proposition works to reassure potential customers?
Are your claims backed by trusted third-party endorsements?
Do you reference widely acknowledged elements of your brand’s reputation to reinforce your value proposition?
Are you transparent in your claims, ensuring you avoid any perception of greenwashing?
Statements for self-assessment
For a comprehensive evaluation of your understanding and application of the Proofs concept, rate your agreement with the following statements on a scale from -3 (completely disagree) to +3 (completely agree):
You have presented your value proposition in an operational context that makes it possible to see the promised benefit(s).
You have provided elements to clarify exactly how the value proposition operates and reassure the customer.
Your value proposition is supported by means of a recognized third party: i.e., a celebrity ambassador, a label, or other trusted sources.
Your value proposition has made a direct reference to a widely acknowledged element of your brand's reputation.
Your value proposition avoids any form of Greenwashing.
Interpretation of the scores
Negative scores (-1 to -3): Negative scores indicate a lack of sufficient or credible proof to support your value proposition. Customers may be skeptical of your claims, leading to reduced trust and missed opportunities to build loyalty. Immediate steps are needed to integrate credible and transparent evidence into your messaging.
A score of zero (0): A neutral score reflects uncertainty or incomplete application of proof elements. While you may provide some evidence, it is not compelling or consistent enough to fully reassure customers. Further development of proof strategies is necessary to strengthen customer trust and confidence.
Positive scores (+1 to +3): Positive scores suggest that your value proposition is well-supported by clear, credible, and impactful proof elements. Your evidence reassures customers, leverages third-party endorsements, aligns with your brand’s reputation, and avoids greenwashing. This strengthens customer trust and reinforces your value proposition.
Case study: Green Clean’s proofs
Misaligned understanding (-3, -2, -1): Green Clean fails to provide sufficient proof to support its claims, relying only on vague or generic statements. Without tangible evidence, such as certifications or case studies, customers are left skeptical of its eco-friendly promises, weakening trust and reducing purchase intent.
Surface understanding (0): Green Clean offers some proof, such as basic product descriptions or minimal certifications, but lacks consistency or depth. Customers may perceive the brand as credible but not fully reassured, limiting the impact of its value proposition.
Deep understanding (+1, +2, +3): Green Clean provides robust proof points, including certifications like “EcoCert,” testimonials from satisfied customers, and endorsements from environmental organizations. These elements demonstrate operational relevance, clarify its value proposition, and highlight the brand’s reputation as a sustainability leader, building strong trust and loyalty.
Conclusion
The Proofs sub-dimension is essential for building trust and credibility in your value proposition. By demonstrating your claims through operational context, third-party endorsements, and references to your brand’s reputation, you reassure customers and strengthen their confidence in your offering. Transparency and honesty are critical to avoiding greenwashing and maintaining integrity, ensuring that your proofs reinforce long-term loyalty and advocacy.
Sources
Neil Patel, Dominate your Market, https://neilpatel.com/blog/dominate-your-market/
HubSpot, Principles of Persuasion, https://blog.hubspot.com/sales/cialdini-principles-of-persuasion
More on the Marketing Canvas
Marketing Canvas by Laurent Bouty