2. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
What directs all future
decisions, innovations,
and target customers in a
business?
2
3. Learning
Objectives
ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
At the end of the
lesson, you should
be able to do the
following:
3
● Recognize and understand the
market.
● Describe the value proposition
that differentiates one’s product
or service from existing products
or services.
3
4. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
1. What were the offerings or benefits of your
school presented to you when you enrolled?
2. What benefits did you get from school now?
3. Why is your school better than any
alternatives? Write your justifications.
4
5. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Value Proposition
Value proposition is a
business or
marketing statement
indicating the worth
that the business
offers to customers.
5
6. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example of Value Propositions
6
Business Product Value Proposition
Walmart Products offered virtually Save money, Live better
Spotify Online music streaming Soundtrack your life
Vimeo Online video streaming Makes life worth watching
8. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Value Proposition Builder Model
The value proposition builder model is a six-
step interactive process in building value or
worth to the customer experience.
8
9. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Value Proposition Builder Model
9
Steps
1. Market
2. Value experience
3. Offerings
10. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Value Proposition Builder Model
10
Steps
4. Benefits
5. Alternative and differentiation
6. Proof
11. Tip
11
In writing the value proposition, think
about two main things:
1. Experience of the customers, and
2. Capabilities of the products or
services.
12. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
The Value Life Cycle
The value proposition must be studied
throughout the entire life cycle of value
perceived by customers.
An entrepreneur must create an attribute that
captures the five stages of the value life cycle.
12
13. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Stages of Value Life Cycle
13
1. Value Creation
2. Value Appropriation
3. Value Consumption
4. Value Renewal
5. Value Transfer
14. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
14
14
An individual who sells pizza in a school canteen
may go through stages in the value life cycle.
Below are the following examples.
Situationer
15. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
15
15
1. Value Creation
The business owner will create a product that his
customers will surely like. The key partners are
the business owner, including all his sales staff.
Key activities include the creation of the actual
product, such as cooking.
16. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
16
16
1. Value Creation
The key resources will be the materials and
ingredients needed to create the finished
product. The entrepreneur also chooses a value
proposition that will fit the business.
17. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
17
17
2. Value Appropriation
The business owner notices that most of the
students in the school do not like the flavor of
pizza he offers. He decided to innovate his
product. Instead of selling only one flavor, he
adds a variety of flavors to choose from. Most of
the flavors he chose to add are unique and tasty.
18. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
18
18
3. Value Consumption
The customers start to patronize the product.
They now see and feel the value and benefit they
get in the product.
19. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
19
19
4. Value Renewal
The customer now doesn’t like the product
because of their changing preferences. The
entrepreneur will improve the product by adding
features like additional toppings for the pizza.
Through this, customer value also increases.
20. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Example: Value Life Cycle
20
20
5. Value Transfer
Customer transfers to another store or product
because the received value did not match with
the value proposition. When value did not meet
the expectation, there is a possibility that
customers may transfer.
21. 21
What are the advantages of a value
proposition to a business?
22. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Value Proposition Advantages
22
1. Gives direction.
2. Creates focus.
3. Breeds confidence.
4. Customer understanding and engagement.
5. Focus on clarity of value.
23. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Activity
Choose a product you mostly use. It can be a
household product or product you use
personally.
Assess why this product is better than any
alternatives.
23
24. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Questions
Part A. Explain the meaning of the following concepts
that are related to the lesson discussed.
1. Value proposition
2. Value creation
3. Value transfer
4. Offerings
5. Value experience
24
25. ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
ENGAGE EXPLORE EXPLAIN EXTEND
EVALUAT
Questions
Part B.
Craft a value proposition statement for your
school. Follow and answer the questions in the
study guide to serve as your guide in analyzing
and evaluating the school before you come up
with the value proposition.
25
26. Wrap Up
26
A Value Proposition is a business or marketing
statement indicating the worth that the business
offers to customers.
The value proposition gives direction, creates
focus, breeds confidence, improves customer
understanding and engagement, and focuses
on clarity of business value.
27. Wrap Up
27
The value proposition builder model consists
of six steps, namely: market, value experience,
offerings, benefits, alternatives and
differentiation, and proof.
29. Bibliography
Barnes, Cindy, Helen Blake, and David Pinder. Creating and Delivering Your Value
Proposition: Managing Customer Experience for Profit. Kogan Page Publisher, 2009.
Bhasin, Hitesh. “The relation between USP and value proposition.” Marketing91. Accessed
March 31, 2020. https://www.marketing91.com/usp-value-proposition/.
Fernandez, Mary. “32 of the best value propositions (plus how to write your own)”.
Optinmonster. Accessed March 27, 2020. https://optinmonster.com/32-value-
propositions-that-are-impossible-to-resist/.
Miranda, Gregorio. Basic Marketing Revised Edition. L & G Business House, 1997.
Osterwalder, Alexander and Yves Pigneur. Modeling value propositions in e-business.
University of Laussane, 2003.
Sukhraj, Ramona. “The 31 best value propositions examples you wish you had.”
Impact. Accessed March 27, 2020. https://www.impactbnd.com/blog/value-
proposition-examples.
29
Editor's Notes
GENERAL PARTS of this presentation:
Engage- this is meant to capture the students’ attention, link their prior knowledge to the new topic, and set their expectations about the lesson.
Explore- this is meant to elicit discussion, and encourage students to explore and derive ideas from questions, scenarios, activities, or discussion.
Explain- this is meant for the teacher to use to synthesize students’ ideas from EXPLORE, and to emphasize on the key understandings needed for this lesson.
Extend- this is an optional activity meant for guided practice.
Evaluate- this is a quick check of students’ understanding of the lesson.
Wrap Up- this is a reiteration of the key concepts of the lesson.
Note to teacher:
You may discuss this in class to check prior knowledge and ideas of students about value propositions.
Note to teacher:
You may ask the class to do this activity, individually, by pair, or by group.
Afterwards, you may call some students to share to the class their answers.
You may process the answers given by each students so that the class can have a common understanding of the topic.
Model Answer:
Value proposition is a business strategy wherein a statement is created which contains promises of benefit and explains the reasons why the customers should buy their product. The value proposition can be applied to the whole business organization, its customers, or its product and services.
It is a stage in the value life cycle where entrepreneurs create value for their customers. This also includes the set of activities that aims to provide benefit for the customers. Entrepreneurs should identify who should be the key partners, what are the key activities, and what are the key resources that are needed in order to produce the product.
This is the final stage in the value life cycle. This happens when a customer can no longer gain value from a product or service. When entrepreneurs fail to renew the value of the product, it means that customers are no longer satisfied. As a result, these customers transfer to another product where they can gain higher value or benefits.
It is a step in value proposition builder model wherein the entrepreneur identifies the product or service he will offer to customers. It should be clearly studied if the product or services that would be offered to the customer has the capacity to leverage the customer experience with the target market group.
Value experience is a step in the value proposition builder model wherein entrepreneurs analyze and define the experience that customers may get from the business and its activities. The effectiveness of the value proposition depends on the gathering of customer feedback.
Model Answer:
The answers in Part B activity may depend on the services offered by the school. Please see the attached model answer provided below. The correctness of the output will be based on the judgment of the teacher using the discussion in the explain and elaborate part of the study guide.
1. Who will be the target market or specific clients of the school?
The senior high school students near the location of the school.
2. How do the students describe the value of service they get from the school?
The student receives a good and quality service from the school.
3. What are the unique features or services offered by the school?
The school offers free wifi for all students, free use of laboratories, and it has only three-day classes within one week.
4. What are the benefits the student may get from the school?
The school has competent teachers. It is the reason why the students learned a lot and attain quality education at a low cost.
5. Who are the competitors of the school around the vicinity?
The students may enumerate a list of schools around the vicinity of their school.
6. What did the school provide to prove the credibility and believability of its services?
The school posted a name and picture of students who pass the entrance exam of different universities or a student who won in a quiz bee to show that they really offer quality education.