A CVP can be described as “The compelling promise of value that a product, service, brand or company makes to a defined customer segment . . . that outweighs its total perceived cost, while being differentiated from, and superior to, available competing alternatives and supported by reasons-to-believe”
Let’s take a closer look at perceived value versus perceived cost.
If you bear in mind the above, try using the below framework to help you build your CVP statement.
Once you have drafted a CVP statement, it’s important to test it to ensure that it’s robust. The 4 ‘D’s provide a useful check list. Is your CVP :
- Distinctive: propositions that stand out because they meet the needs of specific segments
- Differentiated: propositions that are differentiated from each other and our competitors
- Defensible: propositions that are not easily copied
- Deliverable: most importantly, the CVP must be Deliverable
Businesses that can make their value propositions both clear and compelling and subsequently deliver on their promises are more likely to win new customers and retain existing customers. CVP development is therefore not just at the heart of marketing, it is the essence of business.
The next step is to develop a document which sets out the Marketing Strategy taking into account all the work done so far
- The findings from the situation analysis
- The guidance on segmentation
- The desired positioning in the target segments
- The 7Ps and the CVP statements
- A summary resource plan (which includes the financial resources required to implement the plan)
This document should provide adequate direction for the next stage that will be the development of Implementation Plans. All the planning and strategy needs to come together with excellent delivery in the market.