What Is Your Value Proposition?
April 15, 2010 4 Comments
Value Proposition is a business or marketing statement that summarizes the customers need to buy a product or use a service from an organization. The term “Value proposition” became a buzz word lately and many people started abusing the term for the wrong purpose. Marketing Manager main goal is developing a marketing plan that details how the company would meet its strategic objectives. The plan will show analysis of the cost, benefits and values that the organization would deliver to the stakeholders. The value proposition model explains how the supplier would fulfill the customer’s needs. The value proposition “specifies the interdependence between the performance attributes of a product or service and the fulfillment of needs” (Kulonda, 2009). The value proposition model would list six steps for the marketing manager to set for his or her goals :
- First step is identifying the market in which the organization is going to create value for. The market would include the consumers, environment and the shareholders.
- The second step would be listening to the customers and stakeholders to addressing their concerns and requests. The organization should recognize the valuable feedback from the customers. The feedback should be real and confirmed by the organization’s representatives. The organization would not consider exaggerations and political statements that some people would use to draw the media’s attention.
- The third step would be describing the services and products offered by organization to the stakeholders. The stakeholders would receive the right information for the organization without distortion.
- Fourth step for marketing manager is to list the benefits expected from the organization business. Where and how the benefits would be felt and how it would be materializing.
- The marketing manager would address the stakeholder’s concern by discussing the alternatives for their existing business. Show why the organization have chosen certain suppliers, why the supplier is local or offshore. Alternatives are always available for the organization but the marketing manager would explain why the current supply chain and current products are the best business model a company would choose in the current business environment.
- Finally, the marketing manage would display the organization’s road map to deliver what it promised to do in the above steps.