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Developing a Value Proposition

Guest post by: Scott Van Wagner

Article Overview: This article provides detail concerning the development of a Value Proposition. Value Propositions are an internal tool to assist organizations in the creation of their communications. By recognizing what the organization does well that is recognized by the customer the Value Proposition serves as a guide for more meaningful contact with the customer.

Developing a Value Proposition

Value propositions answer the question "What value do I offer to others?" in the majority of cases those others will be your customers. Value propositions, however, can also be used for job seekers and those seeking to lead others in a cause.

A value proposition is different from a Vision or Mission Statement in that the audience for the value proposition is internal to the organization. The purpose of a Value Proposition is to identify the capabilities inherent to the organization that make it valued by their customers. The Value Proposition by identifying value within the firm becomes a tool for the development of various communications messages such as Tag Lines and Selling Propositions. The Value Proposition aids in creating these different communications by ensuring that they align with the identified value.

In terms of form a Value Proposition is typically a concise 3 or 4 sentence statement summarizing what it is that makes the organization unique, special, interesting, or in a word valuable to others.

In terms of creating a Value Proposition the organization needs to follow a five step process as represented in the Table above and the points below:

1.Start by identifying those competencies that it possesses which are believed to represent its' core strengths. Suggestions for where to look for these competencies would include:

• ¨ What significant "Firsts" has the organization achieved?
• ¨ Do you offer any truly unique products?
• ¨ Is there an element of your customer service which could be considered exceptional?
• ¨ Has the organization been recognized for excellence by others outside of the organization? If so how?
• ¨ Is there a specific knowledge base within the organization that is not easily replicated by competitors?

2. Determine the proof points that support the identified competencies and confirm their validity.

3.Identify what the value is to the customer of the competency that you have identified. By having this particular competency what problem do you help to solve for the customer?

4. Identify what benefit the customer receives from the fact that you possess a particular competency.

5. Use the information gathered above to craft your Value Proposition.

Once the Value Proposition has been created it should be measured against the various functional areas of the company to confirm that they are supporting it. If you have parts of your organization that do not support the Value Proposition the reason for the non support must be identified and addressed. Value Propositions are not piecemeal in nature and must be supported across the entire organization in order to be of use. It also makes sense to test the value proposition with selected customers to ensure that it truly does resonate positively with them.

Once completed the Value Proposition becomes a guide to follow when communicating to others. A final point would be that as we move more and more to having multiple conversations with our customers, as opposed to targeted one way communications, from a wider cross section of the organization it is increasingly important that the Value Proposition message is widely understood internally. Having knowledge of the Value Proposition and what it represents will serve to enhance the quality of the customer conversations.

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Article Tags: Marketing, Marketing Communications, Marketing Strategytegy, Value Proposition
Referred by: http://www.connectuscanada.com



Related Forum Posts
Re: This is Marketing Warfare! - Hey GT, I guess this was from a while back, and it'll test your memory a bit but could you possibly elaborate on Unique Selling Proposition? Can you give us some examples of good USPs?
Re: This ones a winner - Dear Sboggs Congratulations on your networking idea. The guys that want $20K might be trying to bleed you or perhaps their approach is just to complex and expensive. I'm a hardware guy so I can't help with your issue. Have you studied networking and programming? You might be able to make your idea fly with some training. You can buy a website and have it online in 20 minutes. Developing a web site that generates traffic requires some work.
niche forum categories - I think Kevin just touched on the point that I was going make... and that is developing 'categories' that stick. Sales and Marketing may be too broad for example. However I can almost guarantee you that you would see many more sign-ups if you tailored a category to 'internet marketing' for newbies. I've seen this work on other forums, however, [i:1i903wkn]it can get a little frantic[/i:1i903wkn]... Fine tuning the categories, or expanding the scope should be effective. I think a lot of IM folks are surfing right on by because they're not finding what they're looking for here... Just a few thoughts: Better Blogging Developing Info Products Internet Marketing Presentation Skills More How to's Another point is... a lot of people don't know that they can benefit from participating in forums. The signature links to their site - if they have one - can / should be motivation enough to get more involved. The more internet savvy members that have signatures seem to stick around more... Don't you think?
Re: Boosting Confidence - Kevin, I am so glad you asked that question! It's the missing link for so many people (and a huge key to confidence and entrepreneurial endurance). Since you asked the question hypothetically, when I say "you", I'm not meaning you personally, Kevin (unless you identify with it). Our purpose is like our personal mission statement. It's something we need to consciously sit down and think about. The problem is that so many have blocked their own voice and focused on outside influence instead. We need to practice listening to our own inner self. Confidence is found within so this is where we need to start. It means we need to trust that we actually do have the answers to what it is we need to know for our own personal success. They key to our purpose is actually tied in with what we really love to do. To start discovering what your purpose is, start discovering what you are really passionate about. Then begin asking yourself what you would love to do that would make a huge difference in that particular area. For example, if you love technology and also desire to help people, ask yourself how you can really help people using your technology. If your business is already established, start considering how you can develop the next phase of it to match your sense of purpose. Perhaps it's even time to delegate your work so that you can be freed up to pursue what you REALLY love to do. The great side effect is that most of us do a far better job at what we love to do anyway. Many people don't even get to this point because they disqualify their sense of passion and purpose before they even really discover the way to build financial success based on what they love to do. Some consider it a "pipe dream", but I say, "Why not?" You mention money, but what some people don't realize is that you must discover you purpose or your personal mission FIRST if you are to tap into passion to create the kind of wealth that is really satisfying. If you talk to people with money, you will discover that financial success is not what truly makes you happy. Satisfaction is the key ingredient. Developing a business which matches your passion and your purpose ensures you will enjoy the success when you get there. When you pursue developing your business from this place, confidence comes along side you because you are aware you have a personal mission to help others or create change in some way. It takes the focus off you and gives you confidence to overcome what could seem like incredibly challenging obstacles. If you are simply chasing money, there will come a point that you will really question if it is all even worth it. You may be faced with this question regardless, but if you have purpose, you often find the fortitude to really press forward anyhow. I hope that answers your question, Kevin. Warm regards, Tami
Women Entrepreneurs On The Rise - Are you a women who owns her own business? I believe that empowered, successful women are one of the keys to causing our world to change to a more peaceful and community oriented society. Did you know that women are now contributing to nearly half of all new small businesses?. Maybe through your business you want to make a difference and of course you also want to have prosperity. According to the Woman's Financial Network, women start businesses at two times the rate of men. While women are starting more businesses than men, they often find it harder to get things going and to sustain them over the long term. What can women do to be more sustainable in the long haul? Business is all about relationships. You have probably noticed that women are more relationship oriented and having that natural bent serves well in the business world. Women tend to be better listeners and develop stronger relationships with customers, clients, and vendors. Developing supportive relationships is also what sustains women. One women I have worked with shares, " Building my business has been about creating a team and investing energy into teach person, knowing that I cannot do all this alone. Men like to be the alpha male and do it themselves. But I need and want to be part of a community." Another women shares. "Mentoring has been crucial for me. I have enjoyed having a female mentor that shows that it is possible for me as a woman to make it." Women need a community and to be with other women entrepreneurs. Fulfillment comes from sharing business, personal, financial and spiritual fulfillment through connections with other like-minded women. Women's support comes from being in a circle, talking, and sharing. In the earliest women's enterprises, this is how it has worked, whether it was quilting bees or canning vegetables in the kitchen. Women have always needed to connect with one another and talk. Women business owners benefit from sharing with each other in many ways including, • Reducing work stress • Confidence building • Self- esteem growth • Laughter • Sharing challenging situations • Life-work balance • Learning from each other Does all this sound good? Here are three suggestions. 1. Find a couple other women who own businesses in your area and set up a regular meeting at a cafe. It is a nice break from work and also can offer support and sharing of resources. 2. Join a women's networking group. Not only will you meet other women but you might benefit from the monthly presentations. 3. Join a facilitated women in business group. This has the benefit of being more focused and committed. Whatever your business make sure you are one of those who succeed in the long run. Find support, find other women to talk to, and once you are successful be a mentor to a new business woman. Being able to give back is the icing on the cake.


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