Toward a comprehensive framework of value proposition development: From strategy to implementation

• Published in: Industrial marketing management 2020-05, Vol.87, p.244-255
• Main Authors: Payne, Adrian, Frow, Pennie, Steinhoff, Lena, Eggert, Andreas
• Format: Article
• Language: English
• Subjects: Co-creative encounters; Learning; Value in use; Value proposition; Value proposition development; Value proposition implementation
• ISSN: 0019-8501; 1873-2062
• DOI: 10.1016/j.indmarman.2020.02.015

Value propositions (VPs) can play a major role for the strategy development and implementation process in B2B markets. While being recognized as one of the firm's most important organizing principles, the VP concept is still poorly understood and executed in many B2B firms and scholarly research provides limited guidance on how to develop and implement VPs in B2B markets. This article re-assesses the VP in the context of both strategy and implementation. It undertakes a review of extant conceptual frameworks and identifies key elements that are overlooked and/or not addressed. A new conceptual framework for addressing VP design and development is offered, which incorporates five key interrelated phases of implementation that need to be comprehensively addressed. This research provides a theoretically sound and practically applicable VP development framework, integrating the firm's strategic considerations, ensuring a fit between its business model and customers' needs, and reflecting the nature of B2B markets through its dynamic perspective. In addressing key implementation issues, the article provides firms with a robust approach to addressing the dynamic competitive environment, as well as taking into account changing customer needs. •Value propositions (VPs) can play a major role for the strategy development and implementation process.•This research provides a theoretically sound and practically applicable VP development framework, integrating the firm's strategic considerations and customers' needs.•Our framework also addresses implementation issues, providing firms with a robust approach to addressing the dynamic competitive environment.