Value proposition
DESCRIPTION
An element of a firm’s marketing strategy that is a definable statement which spells out what value a firm’s offering provides a buyer and user of the offering.
An element of a firm’s marketing strategy that is a definable statement which spells out what value a firm’s offering provides a buyer and user of the offering.
KEY INSIGHTS
The value proposition of a firm’s offering is ultimately that which it provides to its customers. As such, the value proposition is not limited to an offering’s functional benefits but can include benefits which are social, emotional, or self-expressive, for example.
The value proposition of a firm’s offering is ultimately that which it provides to its customers. As such, the value proposition is not limited to an offering’s functional benefits but can include benefits which are social, emotional, or self-expressive, for example.
KEYWORDS Proposed value, value provision, benefits
IMPLICATIONS
As part of the firm’s marketing strategy, the value proposition of an offering should also strive to be consistent with the overall business strategy (Lawler 2005) and the firm’s overall value proposition. Marketers should seek to develop value propositions that not only highlight important consumer needs and wants but also take into consideration the firm’s distinctive competencies, resources, capabilities, and limitations and assist with the firm’s efforts to achieve a competitive advantage that is sustainable. In support of its effective delivery in the marketplace, marketers should ensure that the firm’s value propositions are also communicated effectively throughout the organization.
As part of the firm’s marketing strategy, the value proposition of an offering should also strive to be consistent with the overall business strategy (Lawler 2005) and the firm’s overall value proposition. Marketers should seek to develop value propositions that not only highlight important consumer needs and wants but also take into consideration the firm’s distinctive competencies, resources, capabilities, and limitations and assist with the firm’s efforts to achieve a competitive advantage that is sustainable. In support of its effective delivery in the marketplace, marketers should ensure that the firm’s value propositions are also communicated effectively throughout the organization.
APPLICATION AREAS AND FURTHER READINGS
Marketing Strategy
Kaplan, R. S., and Norton, D. P. (2000). ‘Having Trouble with your Strategy? Then Map it,’ Harvard Business Review, 78(5), 167–176.
Kaplan, R. S., and Norton, D. P. (2000). ‘Having Trouble with your Strategy? Then Map it,’ Harvard Business Review, 78(5), 167–176.
Marketing Management
Srivastava, R. K., Shervani, T. A., and Fahey, L. (1999). ‘Marketing, Business Processes, and Shareholder Value: An Organizationally Embedded View of Marketing Activities and the Discipline of Marketing,’ Journal of Marketing, 63(SPI/1), 168–179.
Srivastava, R. K., Shervani, T. A., and Fahey, L. (1999). ‘Marketing, Business Processes, and Shareholder Value: An Organizationally Embedded View of Marketing Activities and the Discipline of Marketing,’ Journal of Marketing, 63(SPI/1), 168–179.
Online Marketing
Porter, M. E. (2001). ‘Strategy and the Internet,’ Harvard Business Review, 9(3), 62–79.
Porter, M. E. (2001). ‘Strategy and the Internet,’ Harvard Business Review, 9(3), 62–79.
Services Marketing
Lovelock, Christopher H. (1991). Services Marketing. Englewood Cliffs, NJ: Prentice Hall.
Lovelock, Christopher H. (1991). Services Marketing. Englewood Cliffs, NJ: Prentice Hall.
Webster, Frederick E. (1979). Business-to-Business Marketing: Industrial Marketing Strategy. New York: Wiley.
Levina, N., and Ross, J. (2003). ‘From the Vendor’s Perspective: Exploring the Value Proposition in IT Outsourcing,’ MIS Quarterly, 27(3), 331–364.
BIBLIOGRAPHY
Aaker, David A. (2005). Strategic Market Management. New York: John Wiley & Sons, Inc.
Aaker, David A. (2005). Strategic Market Management. New York: John Wiley & Sons, Inc.
Lawler, Edward E., III (2005). ‘Creating High Performance Organizations,’ Asia Pacific Journal of Human Resources, 43(1), 10–17.
variability see service characteristics
variable costs see cost
variable proportions, law of see diminishing returns, law of
variable costs see cost
variable proportions, law of see diminishing returns, law of