Writing a value proposition using the value proposition
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The document provides guidance on developing a value proposition statement. It defines a value proposition as a statement that anchors a business's strategy to deliver superior value to customers. A good value proposition clearly identifies the target customer, their needs, the product/service offering, key benefits, and how it differs from alternatives. The document includes a template and example of completing a value proposition worksheet that identifies these elements for a specific customer segment and product.
![[ Segment Value Proposition Worksheet ]
Segment Name Affluent North American Appliance Market
The Samsung RS2623SL provides a stylish
Final Value alternative to the Sub-Zero 661/P stainless
Proposition steel box, while providing more and more
Statement convenient storage at less overall cost.](https://image.slidesharecdn.com/writingavaluepropositionusingthevalueproposition-130311082736-phpapp02/85/Writing-a-value-proposition-using-the-value-proposition-9-320.jpg)
Writing a value proposition using the value proposition
- 1. Brian Keith Seitz Intellectual Arbitrage Group Managing Director
- 2. Overview Throughout this tutorial Process Steps you will see one of the following Icons in the Methods upper right hand corner. Tools These Icons are a key to Exercises the type of information contained on the page. References Tips & Hints Review
- 3. What is a Value Proposition Statement of business strategy: a statement of the way a business proposes to use its resources to deliver superior value to its customers What is the Benefit of a Value Proposition A Value Proposition provides an anchor point to the market from which all of the business design and marketing actions are aligned. Defining and using a Value Proposition helps to ensure that the Business’s efforts match the market’s wants and needs.
- 4. Benefit of a Value Proposition The general market positioning statement is as follows : For (which )target customers who need (which) products that deliver (which )benefits, our products have (these) as primary differentiation, unlikely (which ) primary competitive alternatives by competitors For (target customers) : Who (needs) : The (product name) : Is a (category) : That provides (key benefit) : Unlike (primary competitive alternative) : Our product (primary differentiation) :
- 5. 1.Identify target market/customer; enter into worksheet 2.Define offering name; enter into worksheet 3.Define offering category; enter into worksheet 4.Identify/define key benefit and differentiation from market, customer, offering, and competitive analysis. 5.Edit basic value proposition (template) into final form of value statement Segment Name 1 Target Customer 1 Target customers’ needs 1 Model 2 Final Value Proposition 5 Statement Offering Category 3 Benefits derived from offering 4 Competitor’s alternative offering 4 Differentiation 4 Value Proposition 5
- 7. Packaging Visual evaluation / Availability Bundling Performance Customers complete buying Customer $APPEALS What functionality & experience - including the channels performance characteristics through which they buy Packaging are wanted? wt: .094 Availability Performance Ease of Use wt: .031 wt: .252 What constitutes ease of $ Price use, installation, $Price Ease of Use administration, etc. ? How much do customers expect wt: .172 wt: .079 to pay for the value they seek? Social acceptance Assurances wt: .289 wt: .053 Assurances Life Cycle Costs wt: .030 Provided by the whole Social product/ service acceptance What "image" will facilitate a purchase decision and Life Cycle Costs how do customers acquire What lifecycle cost considerations this information? influence the purchase decision?
- 8. Target Customer Affluent, North American, Home Owners with 4 or more family members Storage of perishable food items, convenient Target customers’ needs access to commonly used items Model Samsung RS2623SL 26" cu. ft. Side by Side Refrigerator Offering Category Household Appliances Benefits derived from offering Storage of perishable food items, convenient access to commonly used items Competitor’s alternative offering Sub-Zero Model 661/P Modern Styling Provides more storage of perishable food items (26cu ft vs 21.3 cu ft) Differentiation More convenient access to commonly used items through large through door access and better shelf organization More cost effective to operate through advance temperature sensing Value Proposition More convenient storage for large families for less
- 9. [ Segment Value Proposition Worksheet ] Segment Name Affluent North American Appliance Market The Samsung RS2623SL provides a stylish Final Value alternative to the Sub-Zero 661/P stainless Proposition steel box, while providing more and more Statement convenient storage at less overall cost.
- 10. McDonald, Malcom, Marketing Plans How to prepare them, how to use them, ISBN 0-7506- 5625-5 Kotler, Philip, Marketing Management, ISBN 0-13-012217-3 Hiam, Alexander, The Vest-Pocket CEO, ISBN 0-13-948209-1 Marks, Pete, Customer$APPEALS --Design Insight Corp. San Jose Ca.