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MBA: Lecture 4
Marketing Management
Value Proposition
Strategy is based on a differentiated customer
value proposition. Satisfying customers is the
source of sustainable value creation. Strategy
requires a clear articulation of targeted customer
segments and the value proposition required to
please them. Clarity of this value proposition is
the single most important dimension of strategy.
(Strategy Maps, Robert S. Kaplan and David
P. Norton, HBS Press, 2004)
Output and
outcomes
Offerings
Benefits
Profitable growth
Enhanced offerings
Price
Corporate through
to sales messaging
Alternatives
Benefit: A Home
Sacrifices/costs:
An expensive Mortgage,
The risk that loan may increasingly
exceeded the assets value,
Worry, inability to pay,
The risk (reality) that wholesale
failure of these deals, could ultimately
threaten global financial stability
Source: Barnes, Blake and Pinder, (2009, p.26)
Price
Describe your
price/performance
position on
customer value map
Customer Value
propositions
Describe your
perceived
cost/performance
(benefits) over
competitions
Placement/Target
market
Describe the target
customer group and
estimate the market
unit volume
Promotion
Describe your plan
for communicating
the value
proposition for this
idea to customer
2. Value experience
Substantiated credibility
and believability of your
offerings
5. Alternatives and
Differentiations
Value
propositions
3. Offerings
Product Performance
Product Cost
Customer Role
the buyer role defines how a customer determines needs,
assesses suppliers, orders, and pays for and takes delivery
of a product or service
the user role describes how the end user derives the
expected performance from a product or service to satisfy a
specific set of needs
the co-creator role refers to how customers cooperate with
their suppliers to produce the expected value, often passing
it to another customer
the transferer role defines how customers dispose of a
product. For example, a physical product can be discarded,
recycled, or resold, while information know-how can be
stored, transferred to others, or resold.
Source: Kambil et al (1996, p.16)
Lawton (n.d)
Lawton (n.d)
Lawton (n.d)
Lawton (n.d)
Lawton (n.d)
Any Questions?