Building a Value Proposition

What is a Value Proposition?

We have talked a lot about value propositions in the past, but what exactly is a value proposition?

A value proposition is “the compelling promise, with the desired set of deliverables and experiences, that an offering provides to a defined target audience that outweighs its total perceived cost while being differentiated from available alternatives and supported by reasons to believe.”

For each marketplace in which you compete, you must choose, be driven by, and communicate a clear statement of

A customer’s incentive to purchase is the value the customer perceives, balanced by the total perceived ownership cost.

Value propositions should be written from the customer perspective.

Develop Your Go-to-Market Business Strategy

Learn more about how your value proposition relates to your business strategy and your go-to-market strategy.

What Customers Say About Value

Market leaders choose to excel in delivering extraordinary levels of one particular value, and their customers recognize them for it. The role of marketing is to get more people to buy more stuff more often for more money, and to achieve this goal more efficiently than your competitors. Marketing leads the development of the strategy that translates customer or consumer needs, values, and behaviors into offerings that result in profitable growth, providing sustainable competitive advantage. Marketing needs to

Understand the marketplace strategies

Develop marketing strategies

Define the offering

Position the offering—products and services

Determine the marketing mix

Develop marketing programs

Provide marketing tools

Manage marketing resources

Understand and communicate competitive strategy

Be accountable for share, end user market penetration, and brand equity growth

Building a Value Proposition

There are a few things your business needs to address in order to come up with a successful value proposition.

Assess the Market
Segment and Target
Design the Market Mix
Create Customer Demand
Deliver and Capture Value
Manage Performance
Learn more about our tools that can help you build your value proposition.

1 Mohan Sawhney, PhD, Kellogg School of Management

years of industry experience helping businesses transform

Meet Jade™, our premier AI Assistant designed to empower your marketing strategies with unparalleled insights and automation. Discover how Jade can transform your marketing efforts and drive exceptional growth for your business.

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