From a theory point of view, consumer purchase decisions are usually based on marketing messages that attempt to establish and communicate a “value proposition” – people almost invariably buy for one reason and that is that they recognise value for money and are confident they will get the quality they expect.

It’s therefore essential that we understand what the value proposition is for our products and services and be able to clearly and simply articulate that understanding to the market.

Do you think your value proposition is well communicated through your marketing material including your website?

As part of this articulation process, a specific challenge is to communicate the value linkages between core services with those that have the potential to add extra benefit. This approach when combined with the value generating series of functions encompassed in the “value chain” can help to define core competencies and the activities in which an enterprise can pursue a distinct and competitive advantage.

There can be many functions involved in the value chain ranging from initial sourcing of raw product from suppliers, through the processes of in-house manufacturing, inventory and operational controls, logistics and distribution management, marketing and sales channels, and customer commitment and service delivery through to successful end sale to the consumer.

The extent to which a business can effectively manage the value chain and the systems, people and technologies that underpin it can materially influence both customer loyalty and profitability.

Case studies, success stories and testimonials are highly effective in demonstrating the value proposition and the value chain that supports it and in the process can assist to create interest and build desire.

Does your approach to value chain management generate superior value for your customers?

Do you focus on core competencies and capabilities within the value chain in order to perform them better than your competitors?