CHAPTER III

Business Planning and the Value Proposition

Value

 Is defined in a number of ways, the most relevant being “Worth in usefulness or

importance to the possessor; utility or merit”, (www.thefreedictionary.com).
 Like beauty, is often 'in the eye of the beholder‘. Typically we associate the receiving of
value as, in a civil case, a preponderance of benefits,a financial sense,benefits minus
costs greater than zero,

The terms benefits and costs includes both tangible and intangible factors and thus need to be
defined by the person receiving the benefits and paying the costs Value as seen by the customer may not
be the same as we see it.

Proposition

From the same source is “A plan suggested for acceptance; a proposal”.

Value proposition (VP)

 Is a statement that clearly identifies what benefits a customer will receive by purchasing a
particular product or service from a particular vendor.
 Is an essential element of an elevator pitch, should be simple and easy to remember.
 The phrase "value proposition" is credited to Michael Lanning and Edward Michaels, who first
used the term in 1988 staff paper for the consulting firm McKinsey and Co.
 In the paper, which was entitled "A business is a value delivery system," the authors define value
proposition as "a clear, simple statement of the benefits, both tangible and intangible, that the
company will provide, along with the approximate price it will charge each customer segment for
those benefits."
 Is a promise of value to be delivered. It’s the primary reason a prospect should buy from you.

In a nutshell, value proposition is a clear statement that

 explains how your product solves customers’ problems or improves their situation (relevancy),
 delivers specific benefits (quantified value),
 tells the ideal customer why they should buy from you and not from the competition (unique
differentiation).
 You have to present your value proposition as the first thing the visitors see on your home page,
but should be visible in all major entry points of the site.
 It’s for people to read and understand

Value proposition is something real humans are supposed to understand. It’s for people to read

 Use the right language

 Your value proposition needs to be in the language of the customer.
 It should join the conversation that is already going on in the customer’s mind.
 In order to do that you need to know the language your customers use to describe your offering
and how they benefit from it.
  You cannot guess what that language is. The way YOU speak about your services is often very
different from how your customers describe it . The answers are outside of your office. You have
to interview your customers to find it out, or use social media.

What the value proposition is NOT

 It’s not a slogan or a catch phrase. This is not a value proposition: L’Oréal. Because we’re worth
it.
 It’s not a positioning statement. This is not a value proposition: America’s #1 Bandage Brand.
Heals the wound fast, heals the hurt faster.

Positioning statement is a subset of a value proposition, but it’s not the same thing.

What a value proposition consists of?

 The value proposition is usually a block of text (a headline, sub-headline and one paragraph of
text) , with a visual (photo, hero shot, graphics).
 There is no one right way to go about it, start it with the following formula:
Headline.
Sub-headline.
Visual
1. Headline. What is the end-benefit you’re offering, in 1 short sentence. Mention the product and/or
the customer.
2. Sub-headline. A 2-3 sentence paragraph. A specific explanation of what you do/offer, for whom
and why is it useful. List the key benefits or features.
3. Visual. Images communicate much faster than words. Show the product, the hero shot or an
image reinforcing your main message.

Evaluate your current value proposition by checking whether it answers the questions below:

 What product or service is your company selling?

 What is the end-benefit of using it?
 Who is your target customer for this product or service?
 What makes your offering unique and different?

Ways to create a winning value proposition

 Clear
 Research

Ways to make a good value proposition

 Clarity
 It communicates the concrete results a customer will get from purchasing and using your
products and/or services.
 It says how it’s different or better than the competitor’s offer.
 It avoids hype, superlatives and business jargon
 It can be read and understood in about 5 seconds.
 There is a difference between the value proposition for your company and your product. You
must address both.
Here’s a value proposition worksheet you might find useful

1. To craft a unique value proposition.

A key role for the value proposition is to set you apart from the competition. Most people check
out 4-5 different options / service providers before they decide.
2. Create something.
The unique part needs to be something customers actually care about. No point being unique for
the sake of being unique (“the ball bearings inside our bicycles are blue”).

Boosters for your value proposition

 Free shipping
 Fast shipping / Next day shipping
 Free bonus with a purchase
 Free setup / installation
 No setup fee
 No long-term contract, cancel any time
 License for multiple computers (vs 1)
 (Better than) Money-back guarantee
 A discounted price (for a product)
 Customizable

Chapter IV

Intellectual Property Rights

Intellectual property (IP) refers to creations of the mind, such as inventions; literary and artistic
works; designs; and symbols, names and images used in commerce.

IP is protected in law by, for example, patents, copyright and trademarks, which enable people to
earn recognition or financial benefit from what they invent or create. By striking the right balance between
the interests of innovators and the wider public interest, the IP system aims to foster an environment in
which creativity and innovation can flourish.

Types of intellectual property

1. Copyright

Copyright is a legal term used to describe the rights that creators have over their literary and artistic
works. Works covered by copyright range from books, music, paintings, sculpture and films, to computer
programs, databases, advertisements, maps and technical drawings.

2. Patents

A patent is an exclusive right granted for an invention. Generally speaking, a patent provides the patent
owner with the right to decide how - or whether - the invention can be used by others. In exchange for this
right, the patent owner makes technical information about the invention publicly available in the published
patent document.

3. Trademarks
 A trademark is a sign capable of distinguishing the goods or services of one enterprise from those of
other enterprises. Trademarks date back to ancient times when craftsmen used to put their signature or
"mark" on their products.

4. Industrial designs

An industrial design constitutes the ornamental or aesthetic aspect of an article. A design may consist
of three-dimensional features, such as the shape or surface of an article, or of two-dimensional features,
such as patterns, lines or color.

5. Geographical indications

Geographical indications and appellations of origin are signs used on goods that have a specific
geographical origin and possess qualities, a reputation or characteristics that are essentially attributable
to that place of origin. Most commonly, a geographical indication includes the name of the place of origin
of the goods.

Intellectual property rights are customarily divided into two main areas:

(i) Copyright and rights related to copyright.

The rights of authors of literary and artistic works (such as books and other writings, musical
compositions, paintings, sculpture, computer programs and films) are protected by copyright, for a
minimum period of 50 years after the death of the author.

Also protected through copyright and related (sometimes referred to as “neighbouring”) rights are
the rights of performers (e.g. actors, singers and musicians), producers of phonograms (sound
recordings) and broadcasting organizations. The main social purpose of protection of copyright and
related rights is to encourage and reward creative work.

(ii) Industrial property.

Industrial property can usefully be divided into two main areas:

One area can be characterized as the protection of distinctive signs, in particular trademarks (which
distinguish the goods or services of one undertaking from those of other undertakings) and geographical
indications (which identify a good as originating in a place where a given characteristic of the good is
essentially attributable to its geographical origin).

The protection of such distinctive signs aims to stimulate and ensure fair competition and to protect
consumers, by enabling them to make informed choices between various goods and services. The
protection may last indefinitely, provided the sign in question continues to be distinctive.

Other types of industrial property are protected primarily to stimulate innovation, design and the
creation of technology. In this category fall inventions (protected by patents), industrial designs and trade
secrets.

The social purpose is to provide protection for the results of investment in the development of new
technology, thus giving the incentive and means to finance research and development activities.

A functioning intellectual property regime should also facilitate the transfer of technology in the form of
foreign direct investment, joint ventures and licensing.
 The protection is usually given for a finite term (typically 20 years in the case of patents).

While the basic social objectives of intellectual property protection are as outlined above, it should
also be noted that the exclusive rights given are generally subject to a number of limitations and
exceptions, aimed at fine-tuning the balance that has to be found between the legitimate interests of right
holders and of users.

The Intellectual Property Office of the Philippines (IPOPHL) renders the following services:

Grant and Registration of IP Rights

1. Grant of Letters Patent for Invention. The Letter Patent is a grant given to an invention that embodies a
technical solution to a problem. The solution offered must be new, involve an inventive step, and possess
industrial applicability. The term of letters patent is 20 years from the filing date of the application with no
renewal.

2. Registration of Utility Models. A certificate of registration for a utility model is granted when the
technical feature of the technology is new and industrially applicable. The term of registration is seven
years from the date of filing of the application with no renewal

3. Registration of Industrial Designs. A certificate of registration for an industrial design is granted to a

composition of lines or colors or any three-dimensional form of an article of manufacture that is new or
original. The term of registration is five (5) years from the filing date of the application and renewable for
two consecutive five year periods.

4. Registration of Integrated Circuits. A certificate of registration is a grant afforded to the topography of

an integrated circuit, in its final form, in which the elements, at least one of which is an active element,
and some or all of interconnections are integrally formed in/on a piece of material, and which is intended
to perform an electronic function. The term of registration is 10 years from the date of filing of the
application with no renewal.

5. Registration of Trademarks. "Marks" are visible signs capable of distinguishing the goods (trademarks)
or services (service marks) of an enterprise. Marked or stamped containers are considered also "marks".
The registration is for a period of 10 years, renewable for subsequent 10 periods as long as the mark is
being used in trade and commerce.

Legal Remedies

6. Adjudication of Inter Partes Cases. This involves hearing and deciding on opposition to the application
for registration of marks; cancellation of trademarks; cancellation of patents, utility models, industrial
designs, and layout designs; and petitions for compulsory licensing of patents

7. Adjudication of IP Violations Cases. Hearing and deciding on administrative complaints for violation of
laws involving IP rights where the total damages claimed are not less than P200,000

Enterprise Development

8. Patent Search for the Public. This involves processing and organizing patent documents for
classification and developing of search retrieval tools; developing of training modules for patent searches
on Philippine patents and providing specialized trainings on search retrieval tools.
9. Technology Transfer Agreement Registration. This involves evaluating compliance of Technology
Transfer Agreements to provisions of the IP Code and developing training modules for technology
transfer.

10. Mediation. This involves settling disputes on issues involving technology transfer payments and
author's rights.

11. External Training. This involves organizing training for the public to increase awareness, knowledge,
and utilization of IP rights.

12. Advisory Services. This involves providing advisory in patenting, trademark registration, copyright,
technical, and search.

Copyright Industries Development

13. Accreditation System. This involves establishing and administering an accreditation mechanism for
collection societies.

14. Advisory Services. This involves assisting in the strengthening of collection societies.

15. Information, Training, and Educational Support. This involves providing information and education
about IP rights for copyright industries.