article 2: customer value propositions in business markets

Question 1

3 kinds of value propositions

Answer 1

1. All benefits= simply list all the benefits that the offering delivers to target customers, this requires the least knowledge about customers and competitors.
   Drawback:
   - benefit assertion= claim advantages for features that actually provide no benefit.
   - benefits may be points of parity with the next best alternative.
2. Favourable points of difference = recognize that customers have an alternative and focus on the point of difference from the next best alternative.
   Drawback:
   value presumption = assuming that favourable points of difference must be valuable for the customer.
3. Resonating focus = making their offerings superior on a few elements that matter most to the target customer, they demonstrate, document, and communicate its value to customers.

Question 2

distinctive value proposition (DVP)

Answer 2

= one point of parity and two points of difference

Question 3

value word equation

Answer 3

= expresses in words and simple mathematical operations how to access performance between the particular alternative and the next best alternative and how to convert this into dollars

Question 4

value case histories

Answer 4

= document the cost savings or added value that reference customers have actually received from their use of the supplier’s market offering.

Question 5

value calculators

Answer 5

= show the value of their offerings to prospective customers in advance.

Question 6

each value proposition must be

Answer 6

• Distinctive= superior to those of the competitor.
• Measurable= based on tangible points of differnce that can be quantified in monetary
  terms.
• Sustainable= execute the value proposition for a significant period of time