Lesson plan
Value proposition
In marketing, a value proposition is the economic value that a company or product delivers to its market segment of customers. The phrase was coined by McKinsey consultants Michael Lanning and Edward Michaels in 1988. Value propositions facilitate product differentiation and market positioning and form part of a company's overall marketing strategy. A customer's value proposition is the perceived subjective value of a product or service, and it may differ from the value proposition that a company has constructed as part of its marketing strategy. The creation of a value proposition can be based on various analytical tools, including the marketing mix, balanced scorecard, and cost-benefit analysis. A value proposition statement usually contains references to which sector the company is operating in, what products or services they are selling, who are its target clients, and which points differentiate it from other brands and make its product or service a superior choice for those clients.
Article summary
In marketing, a value proposition is the economic value that a company or product delivers to its market segment of customers. The phrase was coined by McKinsey consultants Michael Lanning and Edward Michaels in 1988. Value propositions facilitate product differentiation and market positioning and form part of a company's overall marketing strategy. A customer's value proposition is the perceived subjective value of a product or service, and it may differ from the value proposition that a company has constructed as part of its marketing strategy. The creation of a value proposition can be based on various analytical tools, including the marketing mix, balanced scorecard, and cost-benefit analysis. A value proposition statement usually contains references to which sector the company is operating in, what products or services they are selling, who are its target clients, and which points differentiate it from other brands and make its product or service a superior choice for those clients.
Key claims
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Discussion questions
- Summarise the article in your own words. Which single claim would you verify first, and why?
- Which claim in this article is most likely to be revised as the sources update? How would you check its current status?
- If two sources disagreed about one of these facts, what would you need in order to trust one over the other?
Bibliography
No sources recorded.
Key claims and bibliography are generated from the same tracked claims and sources as the article page.