Value discipline vs. value proposition

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Mohd. Yaseen Khan

Value discipline vs. value proposition

What is the difference between a value discipline and a value proposition?

  Jaap de Jonge
Editor, Netherlands

Value Proposition

A value discipline is a STRATEGIC orientation, describing how a COMPANY will provide value to its customers. A value proposition is a MARKETING statement, that clearly states why a customer should buy a particular PRODUCT OR SERVICE. Both are about realizing value, but the levels are different.

  Linton Fernando


There is a very simple equation for Value:
Selling Price = Cost + Profit
Profit for Customer = Value - Selling Price.
An organization should try to increase this.



I think that the value for the customer equals the selling price of the good or service quality. We should optimize this relation with the purpose to obtain a win-win relationship between the customer and the company.

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