Most current reservoir-characterization workflows are based on classic amplitude-variation-with-offset (AVO) inversion techniques. Although these methods have generally served us well over the years, here we examine full-waveform inversion (FWI) as an alternative tool for higher-resolution reservoir characterization. An important step in developing reservoir-oriented FWI is the implementation of facies-based rock physics constraints adapted from the classic methods. We show that such constraints can be incorporated into FWI by adding appropriately designed regularization terms to the objective function. The advantages of the proposed algorithm are demonstrated on both isotropic and VTI (transversely isotropic with a vertical symmetry axis) models with pronounced lateral and vertical heterogeneity. The inversion results are explained using the theoretical radiation patterns produced by perturbations in the medium parameters.