Developing and implementing value proposition

Lecture 11 Marketing Management (MBA)

Three Kinds of Value Propositions

All benets Favorable points of difference Resonating focus
(Anderson et al, 2006)

Three Kinds of Value Propositions (2)

The Building Blocks of a Successful Customer Value Proposition

the essential question is, "How do these value elements compare with those of the next best alternative? There are three ways to develop successful value proposition
Points of parity are elements with essentially the same performance or functionality as those of the next best alternative. Points of difference are elements that make the suppliers offering either superior or inferior to the next best alternative. Points of contention are elements about which the supplier and its customers disagree regarding how their performance or functionality compares with those of the next best alternative.

Examples of value proposition

Value proposition builder (Barnes et al, 2009)

Value proposition template and value proposition statement

Ten-point value proposition template Corresponding areas in Figure Functional Responsibility

Who is the intended customer?

Market

VP team with Board sponsor

What will the customers experience be of the offering and the company, and what price will they pay?
What offerings will we create to deliver the intended experience to the intended customer? What purchase or usage of offerings do we want from the intended customer? What benets will the customer derive from the experience and at what cost? What competing alternatives do the customers have? How are we different?

Value experience
Offerings

VP team with Board sponsor

VP team with Board sponsor

benefits Alternatives and differences

VP team with Board sponsor VP team with Board sponsor

How will we substantiate our ability to deliver the resulting customer experience measurably and specically?
Over what time frame will the proposition be delivered to the customer? How will the value proposition be communicated internally and externally?

Proofs

VP team with Board sponsor

VP team with Board sponsor Marketing & sales

How will the value proposition be operationalized throughout the business?

How will we measure and monitor the effectiveness of the proposition on our business?

Operations & HR
Balanced scorecard and nance

An example: Values proposition statement

You are important to us and, through our partner-led approach, we work with you to ensure planning and tax compliance is fully integrated and operates effectively within the context of your business, enabling you to minimize risk, while delivering clarity and effectiveness in your tax philosophy. Our account management approach ensures one single partner has a comprehensive overview of the tax service delivery. This provides you with a single point of contact, allowing you to achieve rapid decision making, solve problems and maximize efficiency. Our prices remain competitively aligned with the value we deliver and are 10% less than the top global rms

Illustration of using the template

Illustration of using the template (2)

Illustration of using the template (3)

Illustration of using the template (4)

Illustration of using the template (5)

An example: Intel

An example: Intel -2

An example: Intel -3

Class exercise
Ten-point value proposition template

Who is the intended customer? What will the customers experience be of the offering and the company, and what price will they pay? What offerings will we create to deliver the intended experience to the intended customer? What purchase or usage of offerings do we want from the intended customer? What benets will the customer derive from the experience and at what cost? What competing alternatives do the customers have? How are we different? How will we substantiate our ability to deliver the resulting customer experience measurably and specically? Over what time frame will the proposition be delivered to the customer? How will the value proposition be communicated internally and externally? How will the value proposition be operationalized throughout the business? How will we measure and monitor the effectiveness of the proposition on our business?

Implementation