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Value proposition https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 2 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 3 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 4 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 5 Value proposition - Models 1 One model, the Value Proposition Builder for creating a value proposition states six stages to the analysis: Barnes, pg. 30 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 6 Value proposition - Models 1 #Market: for which market is the value proposition being created? https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 7 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 8 Value proposition - Models 1 #Proof: what evidence is there to substantiate your value proposition? https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 9 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 10 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 11 Value proposition - Strategy and marketing 1 Organizations can use value propositions to position value to a range of constituents such as: https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 12 Value proposition - Strategy and marketing 1 * Customers: to explain why a customer should buy from a supplier (see customer value proposition). https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 13 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 14 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 15 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 16 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 17 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). https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 18 Customer value proposition 1 Value Proposition https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 19 Customer value proposition - Why CVPs are important 1 Develop your Value Proposition https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 20 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 21 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 22 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 Slide 23 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 24 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 Slide 25 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 26 Customer value proposition - Automobiles 1 other luxury car manufacturers' - BMW, the ultimate driving machine, is a key value proposition for BMW (Bavarian Motor Works) https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 27 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 28 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 29 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 30 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. https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 31 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 https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 32 Employee value proposition 1 Contained within the value proposition are the central reasons that people will choose to commit themselves to an organization https://store.theartofservice.com/the-value-proposition-toolkit.html Slide 33 For More Information, Visit: https://store.theartofser