A guide to values and benefits proposed by corporations, products or services to clients. A great application for candidates at interviews and how to use PVP to pass interviews successfully

1. Value
Propositions

2. A value proposition is a promise of
value to be delivered, communicated,
and acknowledged

3. It is also a belief from the customer
about how value (benefit) will be
delivered, experienced and acquired.

4. A value proposition can apply to an
entire organization, or parts thereof,
or customer accounts, or products or
services.

5. Creating a value proposition is a part of
business strategy. Kaplan and Norton
say "Strategy is based on a differentiated
customer value proposition.

6. Satisfying customers is the source
of sustainable value creation

7. Developing a value proposition is based
on a review and analysis of the benefits,
costs, and value that an organization can
deliver to its customers

8. A value proposition is a statement which
identifies clear, measurable and
demonstrable benefits consumers get
when buying a particular product or
service.

9. It should convince consumers
that this product or service is
better than others on the market

10. The phrase “value proposition” (VP) is
credited to Michael Lanning and Edward
Michaels, who first used the term in a 1988
staff paper for the consulting firm McKinsey
and co. In the paper, which was entitled “a
business is a value delivery system”

11. the authors define value proposition as “a
clear, simple statement of the benefits, both
tangible and intangible, that the company
will provide, along with the approximate
price it will charge each customer segment
for those benefits”.

12. Consequently, as the environment changes, and the customer experience and their
desires change, the value they seek changes. As a result, companies are pressured
to invest more resources in marketing research in order to gain deep customer
insights, improve value proposition.

13. Value Proposition Building Model

14. Market: Analysing and identifying the market segments, or specific clients, or target individuals within those
clients for whom the solution has the potential to deliver value and profitably.
Analyse and define the value experience that clients get from the organization from its current activities. You
need to define good, bad and neutral experiences, The effectiveness of the value proposition depends on
gathering real customer prospect or employee feedback.
Define the offerings mix capable of leveraging the value experience with the defined target market group.
Assess the benefits of the offerings in the context of the value experience you are able to deliver to the market
group. There is a cost component of benefits here which includes price and customer risks, enabling the
calculation of value where Value = Benefits minus Cost.
Alternatives and differentiation is the next aspect to analyse, what alternative options does the market have to the
product or service?
... and back it all up with relevant proof, to ensure there is substantiate value proposition in place.

15. Value Focused Enterprise Model

16. Value-centered strategic intent: Where do you intend the organization to be in the foreseeable future and
what principles will guide the journey?
Value proposition: What is the Value Propositions (market, Value experience, Offerings, Benefits,
Alternatives and Differentiation and Proof) and how is it congruent with the Strategic Intent?
Value-focused operating model: What are the ‘How’ factors (organization, process and so on) for the
operationalization of the Value Proposition to achieve the strategic Intent?
Value-creation-based management and execution: How will you execute and manage all of this to ensure
maximum Value Delivery

17. The Value Cycle

18. Value Creation: The traditional view of the value creation process doesn’t allow customers to take
part in feeling the value. Marketing and research and development are mainly responsible for
adding value at this stage based on historic data and observation. However, in modern times, the
customers of several companies are included in this stage.
Value appropriation: value can be created in this stage by developing, improving and facilitating
customers buying experience. This can be done in two steps, firstly improving how transactions are
made, and secondly, considering the fulfillment of customers.
Value Consumption: This is core to the value proposition. At this stage customers see and feel the
value through the actual use of the product or the service.

19. Innovation and Value Proposition

20. It is believed by Lindic & Marques that
Value Proposition is a significant catalyst
for customer focused innovation.

21. Kambil and Baragheh claim innovation
is a phenomenon that requires a
multidisciplinary approach for analysis
due to its sheer complexity

22. Lindic used the example of Amazon.com; the
transformation from an online bookstore to one of
the world’s most important online shopping
services. Amazon.com has evolved through
diversification from their struggling brand prior to
the internet bubble burst in 2000, allowing for a
great example for analysis and explanation of the
potential innovation resulting from value
proposition.

23. Bonner states that the performances of
innovations or new goods or services offered
to customers is a result of a superior
company’s offering in terms of quality,
technical performance, features and ability to
meet customer needs and demands. This
perspective emphasises innovation as a
generator of performance in a customer-
oriented way.