Formulating a Customer Value Proposition The customer value proposition is at the core of formulating the product strategy blueprint A key output of business strategy is the customer value proposition (CVP) with its tangible manifestation being the organization products/services. The CVP is the strategic guidepost for product design and product marketing (campaigns and messaging to the customers). All product management activities (market intelligence, customer research, product market position analysis) are in effect an input in defining the CVP (for new products) and enhancing the CVP appeal (for existing products). As such, formulating a CVP is a core element of product strategy process and output. Defining Customer Value Proposition elements At its highest level, a CVP is a statement defining your promise to your (target) customers, stating the benefits (value) they will receive by buying your product/service – it sets the value/price equation to the intended target market. The CVP should be a succinct customer centric statement that articulates how the product/service will benefit customers. The CVP design is informed by and should be aligned back to the organization overall corporate/business strategy. It should start by defining the customer target segment with clear articulation of what customer problems/pain points are being solved. See below the visualization of the CVP design elements and where it fits between high level corporate strategy and marketing- the high level strategy shapes the CVP and marketing communicates and sells the CVP. Formulating a Customer Value Proposition The customer value proposition is at the core of formulating the product strategy blueprint A key output of business strategy is the customer value proposition (CVP) with its tangible manifestation being the organization products/services. The CVP is the strategic guidepost for product design and product marketing (campaigns and messaging to the customers). All product management activities (market intelligence, customer research, product market position analysis) are in effect an input in defining the CVP (for new products) and enhancing the CVP appeal (for existing products). As such, formulating a CVP is a core element of product strategy process and output. Defining Customer Value Proposition elements At its highest level, a CVP is a statement defining your promise to your (target) customers, stating the benefits (value) they will receive by buying your product/service – it sets the value/price equation to the intended target market. The CVP should be a succinct customer centric statement that articulates how the product/service will benefit customers. The CVP design is informed by and should be aligned back to the organization overall corporate/business strategy. It should start by defining the customer target segment with clear articulation of what customer problems/pain points are being solved. See below the visualization of the CVP design elements and wh

1. CUSTOMER VALUE
PROP TEMPLATE
A “HOW TO” GUIDE TO RESEARCH, EVALUATE AND
CREATE COMPELLING CUSTOMER VALUE PROPOSITIONS
MKTG 615 ONLINE – SPRING 2019
MKTG 615 Online
Contemporary Marketing
Professor Barth
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Due Date: Friday,
February 22, 2019
by 11:59pm
Late submissions not accepted

2. Signature Assignment – Customer Value Prop
Two Components:
1. Identify and evaluate Customer Value Propositions of 5 modern-day, innovation-leading
Companies (approved by Professor). Follow criteria outlined in CVP PPT
2. Write an original Customer Value Proposition
Instructions and format requirements – MUST USE CVP TEMPLATE PROVIDED HERE.
Above Assignment Due Friday, February 22, 2019, 11:59pm.
Late submissions will not be accepted. Maximum of 15 Slides (Plus Appendix)
Students are to submit assignment electronically via Blackboard:
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3. Signature Assignment – Customer Value Prop
Students will work individually to research and identify Customer Value Propositions of 5
modern-day, innovation-leading Companies (to be approved by Professor) and analyze
elements of each company’s CVP, its effectiveness and where CVP may fall short
(following the format and guidelines provided by Professor).
Students will write an original Customer Value Proposition (from scratch) following
requirements outlined in the course. Details will be outlined in the “Assignment
Requirements” document posted on Blackboard and reviewed online. Students must
follow the prescribed format.
Students must conduct original research and submit documentation of their research.
Original research means that students must review at least two academic journals and
not less than five additional references (applied trade and or commercial/business
press references).
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4. [Your CVP Title]
INSERT SUBTITLE HERE
ADD YOUR NAME | EMAIL | DATE
Keep Title
Short, Concise,
Compelling
MKTG 615 Online
Contemporary Mktg
Professor Barth
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Due Date: Friday,
February 22, 2019
by 11:59pm
Late submissions not accepted

5. Evaluating Customer
Value Props –
Step-by-step Guide
RESEARCH, EVALUATE AND CRITIQUE REAL-WORLD
CUSTOMER VALUE PROPOSITIONS OF FIVE COMPANIES.
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6. CVP Assignment – Part 1
Slide 1 Company # 1 – CVP Critique
Slide 2 Company # 1 – CVP Checklist & Assessment
Slide 3 Company # 2 – CVP Critique
Slide 4 Company # 2 – CVP Checklist & Assessment
Slide 5 Company # 3 – CVP Critique
Slide 6 Company # 3 – CVP Checklist & Assessment
Slide 7 Company # 4 – CVP Critique
Slide 8 Company # 4 – CVP Checklist & Assessment
Slide 9 Company # 5 – CVP Critique
Slide 10 Company # 5 – CVP Checklist & Assessment
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7. CVP Critique
Based on your research, critique this CVP.
Why this Value Proposition works?
The CVP focuses on the brands biggest benefit
which is being a trusted medium of providing unique
accommodation experiences around the globe.
It answers WIIFM. Answers benefits in one
sentence.
To Be a trusted marketplace for people to list,
book and discover unique accommodations
around the world.
Why this Value Proposition doesn’t work… AND HOW
YOU WOULD IMPROVE IT?
It fails to identify who the competitors as well as how
these unique experiences are affordable, it isn’t
Measurable
How to improve it: I would identify the competition
and state the value parity in cost and experience.
(Home Away from home & BRBO)
Target Market:
Travellers looking for unique accommodation experience as
well as hosts looking to monetize their properties while
facilitating a cultural Experience.
Primary benefit:
A Tailored Accommodation experience.
Customer Promise:
Belong Anywhere
Company # 1
Airbnb
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8. CVP Checklist
Check the criteria that reflects this CVP
Insert short version of this Company’s CVP
Belong Anywhere in the World
Company # 1
Airbnb
IN YOUR OWN WORDS… Write 3-4 concise sentences
that support the boxes you checked. Well written.
1. Focuses on a unique Value experience
2. Addresses pressing high value problem of unique
trusted accommodations, outside of the traditional
ones.
3. It Answers WIIFM being able to feel at home
anywhere in the world
 States how customers will benefit
 Addresses a pressing high-value problem
 Focuses on Value, promise of Value
 Clearly identifies target customer/segment
 Answers WIIFM (the customer)
 Provides evidence, proof points
 Differentiates from competition
 Difficult to duplicate
 Memorable
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9. This Photo by Unknown Author is licensed under CC BY-NC-ND
CVP Critique
Based on your research, critique this CVP.
Why this Value Proposition works?
This Value Proposition works because it answers
WIIFM resoundingly.
The Proposition focuses on the brands number one
benefit of commission free Investing something that
none of the other competitors offer.
Insert Company’s CVP here.
Invest in stocks, ETFs, options, Cryptocurrencies,
all commission-free, right from your phone or
desktop.
Why this Value Proposition doesn’t work… AND HOW
YOU WOULD IMPROVE IT?
The CVP is very narrow it competes on a single element
of no fees. It fails to highlight other important investing
tools that factor into decision making.
How to improve it: I would mention the availability or
real-time trading information, availability of charts and
other items to make informed investment descisions.
RobinHood
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Target Market:
Independent individual securities traders with small capital amounts to trade
securities with.
Primary benefit:
No transaction costs and fees that are typical with securities trading
Customer Promise:
We put our customers first-whether it is deciding which features to build,
keeping your cash and securities protected , or offering products that allow
everyone to participate in and benefit from the financial system.

10. CVP Checklist
Check the criteria that reflects this CVP
Insert short version of this Company’s CVP
Invest For Free
Company # 2
Robinhood
IN YOUR OWN WORDS… Write 3-4 concise sentences
that support the boxes you checked. Well written.
The customer Benefit is clear and concise.
it Addresses a very pressing high value problem that is
the costs of investing and participating in the financial
markets by the small retail investors with small sums to
invest.
Without a doubt it answers WIIFM for the end user.
 States how customers will benefit
 Addresses a pressing high-value problem
 Focuses on Value, promise of Value
 Clearly identifies target customer/segment
 Answers WIIFM (the customer)
 Provides evidence, proof points
 Differentiates from competition
 Difficult to duplicate
 Memorable
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11. CVP Critique
Based on your research, critique this CVP.
Why this Value Proposition works?
Insert Company’s CVP here.
Why this Value Proposition doesn’t work… AND
HOW YOU WOULD IMPROVE IT?
Company # 3
________Insert Name_______
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Target Market:
Primary benefit:
Customer Promise:

12. CVP Checklist
Check the criteria that reflects this CVP
Insert short version of this Company’s CVP
Company # 3
________Insert Name_______
IN YOUR OWN WORDS… Write 3-4 concise sentences
that support the boxes you checked. Well written.
 States how customers will benefit
 Addresses a pressing high-value problem
 Focuses on Value, promise of Value
 Clearly identifies target customer/segment
 Answers WIIFM (the customer)
 Provides evidence, proof points
 Differentiates from competition
 Difficult to duplicate
 Memorable
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13. CVP Critique
Based on your research, critique this CVP.
Why this Value Proposition works?
Insert Company’s CVP here.
Why this Value Proposition doesn’t work… AND
HOW YOU WOULD IMPROVE IT?
Company # 4
________Insert Name_______
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Target Market:
Primary benefit:
Customer Promise:

14. CVP Checklist
Check the criteria that reflects this CVP
Insert short version of this Company’s CVP
Company # 4
________Insert Name_______
IN YOUR OWN WORDS… Write 3-4 concise sentences
that support the boxes you checked. Well written.
 States how customers will benefit
 Addresses a pressing high-value problem
 Focuses on Value, promise of Value
 Clearly identifies target customer/segment
 Answers WIIFM (the customer)
 Provides evidence, proof points
 Differentiates from competition
 Difficult to duplicate
 Memorable
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15. CVP Critique
Based on your research, critique this CVP.
Why this Value Proposition works?
Insert Company’s CVP here.
Why this Value Proposition doesn’t work… AND
HOW YOU WOULD IMPROVE IT?
Company # 5
________Insert Name_______
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Target Market:
Primary benefit:
Customer Promise:

16. CVP Checklist
Check the criteria that reflects this CVP
Insert short version of this Company’s CVP
Company # 5
________Insert Name_______
IN YOUR OWN WORDS… Write 3-4 concise sentences
that support the boxes you checked. Well written.
 States how customers will benefit
 Addresses a pressing high-value problem
 Focuses on Value, promise of Value
 Clearly identifies target customer/segment
 Answers WIIFM (the customer)
 Provides evidence, proof points
 Differentiates from competition
 Difficult to duplicate
 Memorable
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17. Value Prop Design –
Step-by-step Guide
RESEARCH AND WRITE AN ORIGINAL CUSTOMER
VALUE PROPOSITION OF YOUR OWN FOLLOWING
THE PRINCIPLES AND STEPS OUTLINED.
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18. Let’s Get Started
Design a Customer Value Prop!
Keep it simple
WIIFM -- What’s in it for me (the
customer)
Focus on value – What’s the promise
of value
Memorable
Iterate – revise, tweak, realign
Start with these basic questions:
 Who are my customers?
 What are their needs?
 What are their problems?
 How will my product solve these
problems?
 Why am I better than my
competition?
 How will my customers benefit?
 What proof points can I provide?
 Would people refer your product or
service to their friends (refer to Net
Promoter Score -- NPS)
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19. Instructions: Value Prop Design
This is an abbreviated simulation using the Value Prop TEMPLATE to
experience the thought process that is essential in structuring an
effective value prop.
Select a Company: For the purpose of this exercise, select a Company that you know, one that you
are familiar with.
Conduct Research: Do a quick scan of the company (gather elements essential to an effective CVP).
Then prepare abbreviated SWOT Analysis using SWOT Template provided.
Map your customer: Using stick-ems and the Value Prop Template (the CIRCLE), begin to map the
CUSTOMER side of your value prop including: WANTS, FEARS, NEEDS. Find a large space, a white
board or a roll of paper and draw a large circle with 3 sections/quadrants for: Wants, Fears, Needs.
Make it visual!
Map your product/service: Using stick-ems and the Value Prop Template (the SQUARE), begin to
map the PRODUCT/SERVICE side of your value prop including: FEATURES, BENEFITS, EXPERIENCE.
This time, draw a large square divided into 3 quadrants: Features, Benefits, Experience. Make it
visual!
Now, prioritize: What’s the most relevant, the most significant? Note: Do not ‘boil the ocean”.
Individual
Exercise
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20. CVP Assignment – Part 2
Slide 11 SWOT Analysis
A SWOT of the Company – Use SWOT Template
Slide 12 Populate “Value Proposition Design Template”
Slide 13 Your written Customer Value Proposition
Slide 14 Supporting references, citations (minimum 5 sources)
Final Step: Test your finished CVP on friends/colleagues.
Final/Final Step: Edit and Proofread!
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21. Situation Analysis – aka SWOT Analysis
Akin to an audit, the SWOT assesses “Where is the business/Company now?”
Strengths Weaknesses
Opportunities Threats
SWOT
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22. Value Proposition Design Template
Source:
Peter J. Thomson,
Digital Brand Strategy
https://www.peterjthom
son.com/2013/11/value-
proposition-canvas/
Author Statement:
“I’ve made the PDF (Value
Proposition Canvas.pdf)
... files available for you to
download so that people
can print out the canvas,
edit it and create their own
versions. No need to
attribute it to me, just say
thanks on Twitter
at @peterjthomson.”

23. Now Design Your Value Prop – TEMPLATE
For… the target customer
Who wants…
specific needs, requirements, demands, buying
criteria
We provide… solution name/description
That… gives specific business benefits/value to clients
Unlike… the competition
Who… provide solution, features, functions, benefits
Our company… more/better approach, solution, functions, benefits
That… offers a better customer experience
Source: https://www.itsma.com/training/value-props/
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24. Now Design Your Value Prop – TEMPLATE
Our ___________________
(products / services)
Help(s) ______________________
(customer segment, ideal customer)
Who need to __________________________
(job to be done, task, problem)
By ________________________________ To Avoid______________
(action word: by building, increasing) (a customer pain)
Unlike________________________________
(Competitor’s value prop)
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25. APPENDIX
SUPPORTING DOCUMENTATION AND CITATIONS
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26. Sources
Site external sources to back up your research. Use APA style annotation and
referencing system. Minimum five properly-cited sources.
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