Value Proposition


We have classified the ways that suppliers use the term “value proposition” into three types: all benefits, favorable points of difference, and resonating focus. All benefits: Our research indicates that most managers, when asked to construct a customer value proposition, simply list all the benefits they believe that their offering might deliver to target customers. The more they can think of, the better. This approach requires the least knowledge about customers and competitors and, thus, the least amount of work to construct. Favorable points of difference: The second type of value proposition explicitly recognizes that the customer has an alternative.Resonating focus: Although the favorable points of difference value proposition is preferable to an all benefits proposition for companies crafting a consumer value proposition, the resonating focus value proposition should be the gold standard. This approach acknowledges that the managers who make purchase decisions have major, ever-increasing levels of responsibility and often are pressed for time.

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