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Page 1: Value proposition

• Value proposition

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Page 2: Value proposition

Value proposition

1 A 'value proposition' is a promise of value (economics)|value to be delivered and a belief from the

customer that value will be experienced. A value proposition can

apply to an entire organization, or parts thereof, or customer accounts,

or products or services.

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Page 3: Value proposition

Value proposition

1 Creating a value proposition is a part of business strategy. Robert S. Kaplan|Kaplan and Norton say

Strategy is based on a differentiated customer value proposition.

Satisfying customers is the source of sustainable value creation.Kaplan,

pg. 10

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Value proposition

1 Developing a value proposition is based on a review and analysis of the Cost-benefit

analysis|benefits, Economic cost|costs and value that an organization can deliver to

its customers, prospective customers, and other Part (disambiguation)|constituent

groups within and outside the organization. It is also a positioning of

value, where Value = Benefits - Cost (cost includes economic risk).Barnes, pg. 28

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Value proposition - Models

1 One model, the Value Proposition Builder for creating a value

proposition states six stages to the analysis: Barnes, pg. 30

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Value proposition - Models

1 #Market: for which market is the value proposition being

created?

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Value proposition - Models

1 #Value experience or customer experience: what does the market

value most? The effectiveness of the value proposition depends on

gathering real customer, prospect or employee feedback.

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Value proposition - Models

1 #Proof: what evidence is there to substantiate

your value proposition?

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Value proposition - Models

1 Neil Rackham believes that a value proposition statement should consist of four main parts: capability, impact,

proof, and cost [that is, the price a customer is expected to pay] .Neil

Rackham, John De Vincentis. Rethinking the Sales Force;

Redefining Selling to Create and Capture Customer Value, McGraw Hill, 1999. ISBN 0-07-134253-2

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Value proposition - Models

1 Some of the ways that organizations use value propositions include in

marketing communications material or in sales proposals.Anderson, James; Kumar, Nirmalya; Narus,

James

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Value proposition - Strategy and marketing

1 Organizations can use value propositions to position value to a range of constituents such

as:

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Value proposition - Strategy and marketing

1 * Customers: to explain why a customer should buy from a supplier (see customer

value proposition).

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Value proposition - Strategy and marketing

1 * Internal departments: to influence the outcome of business decisions.

For example, an Information technology|IT department may use a

value proposition to convince its Board of directors|board to support

funding its projects.

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Value proposition - Strategy and marketing

1 * Employees: to sell the company when Recruitment|recruiting new

people, or for retaining and motivating existing employees. This

is sometimes called the human resources|HR or employee value

proposition.

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Interim management - The interim management value proposition

1 There are several factors that make the interim management offering

increasingly popular and cost-effective to client organisations.

These factors are characterised as a ‘value proposition’ that interim managers offer to their clients.

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Interim management - The interim management value proposition

1 Although there is some variation at the margins of interim management (with

temporary workers, freelancers, contractors and consultants) the

following factors are typical of the interim management value proposition:.Institute of Interim Management, Introduction to

Interim Management (2009). http://www.iim.org.uk/articles/value-

proposition 19/11/2009

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Customer value proposition

1 In marketing, a 'customer value proposition' (CVP) consists of the

sum total of benefits which a vendor promises a customer will receive in return for the customer's associated payment (or other value-transfer).

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Customer value proposition

1 Value Proposition

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Customer value proposition - Why CVPs are important

1 Develop your Value Proposition

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Customer value proposition - Creating a strong CVP

1 Strong value propositions are also expressed from the customer's perspective and talk about the

experiences and benefits that they will have when using the product.

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Customer value proposition - Competitive Advantage

1 A product with a successful consumer value proposition is

directly linked to a products actual and sustained performance versus

competition

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Customer value proposition - Types of CVP

1 #'All Benefits' - Most managers when asked to construct a customer value

proposition, simply list all the benefits they believe that their offering might deliver to target customers. The more

they can think of the better. This approach requires the least knowledge about customers and competitors and, thus, results in a weaker marketplace

effort.https://store.theartofservice.com/the-value-proposition-toolkit.html

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Customer value proposition - Types of CVP

1 #'Favorable Points of Difference' - The second type of value proposition

explicitly recognizes that the customer has alternatives and

focuses on how to differentiate one product or service from another

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Customer value proposition - Types of CVP

1 Suppliers can provide a customer value proposition by making their

offerings superior on the few attributes that are most important to target customers in demonstrating and documenting the value of this

superior performance, and communicating it in a way that

conveys a sophisticated understanding of the customer's

business priorities.https://store.theartofservice.com/the-value-proposition-toolkit.html

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Customer value proposition - Types of CVP

1 Anderson, J. C., Narus, J. A., Rossum, W. v. (2006) v84(3), p. 90-99.

Customer Value Propositions in Business Markets. Harvard Business

ReviewParasuraman, A. (1997). Reflections on gaining competitive

advantage through customer value. Journal of the Academy of Marketing

Science, 154-161

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Customer value proposition - Automobiles

1 other luxury car manufacturers' - BMW, the ultimate driving machine, is a key value proposition for BMW

(Bavarian Motor Works)

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IEEE Technology Management Council - TMC Value Proposition

1 The TMC works to enable technology professionals and managers to

optimize their career opportunities and organizational effectiveness.

Supporting this value proposition are products and services of the Council,

including publications and conferences.

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Private banking - Value proposition

1 Most Private Banks define their value proposition along one or two

dimensions, and meet the basic needs across others. Some of the

dimensions of value proposition of a private bank are parent brand, one-

bank approach, unbiased advice, strong research and advisory team

and unified platform.

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Private banking - Value proposition

1 A couple of banks also define their value proposition on their unified

platform, their ability to comply with all regulations, yet serve the client

without restrictions.

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Employee value proposition

1 'Employee Value Proposition' ('EVP') is the balance of the rewards

and benefits that are received by employees in return for their

performance at the workplace.

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Employee value proposition

1 Minchington (2005) defines an Employee Value Proposition (EVP) as a set of associations and offerings

provided by an organization in return for the skills, capabilities and

experiences an employee brings to the organization

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Employee value proposition

1 Contained within the value proposition are the central reasons that people will choose to commit

themselves to an organization

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