Know-How Exchange : Strategy

Laura, there is an article on MarketingProfs that is good -- look for "What’s Your Value Proposition?" by Michael L. Perla.

In our December newsletter, we talked about a value proposition -- see https://www.rethinkmarketing.com/newsltrs/2004/v04_is11.htm#QA . This article should provide relevant information on a value proposition. Here are a few quotes:

"An organization’s value proposition is a reflection of its brand promise, and answers the question “Why should I buy your product?” It identifies the tangible value customers can expect to receive..."

"It speaks to what the client values as an outcome of buying a product and doing business with the company..."

"...developing the organization’s true value proposition comes from an intimate knowledge of the client’s needs and expectations."

"Primary customer research, however, is needed to accurately identify client needs preferences, challenges and pain points – the information required to pinpoint the value an organization brings to the customer's table.."

Finally, in your question, you asked about a model. First understand that different customer groups may need different value propositions. In fact, large companies often develop value propositions for single large-account customers. Overall, here is basic strategy I use:

1. Identify the targeted customer segment and its shared needs, objectives and challenges
2. Identify your company's competencies and distinct advantages
3. Define the competitive landscape and your differentiation
4. From this correlated knowledge, develop the value proposition that speaks to what the customer segment values as an outcome of buying your product and doing business with your company

A lot of background is necessary to get to a simple, powerful, and meaningful value proposition -- after all, it is what the customer values, not us!

Good luck.

The Perla article is here:
What's your value proposition?

Also see these MarketingProfs articles:
Is your value proposition strong enough?
Why brand when positioning will do?