What truly separates a winning marketing strategy from a mediocre one? According to Professor Malcolm McDonald, it’s a business’s ability to define and communicate a clear, compelling, and customised value proposition. This presentation dives deep into the process of identifying what customers actually value — and how to express and price it in a way that drives profitable growth.
With real-world examples from brands like Bloomberg, Nalco, and Tetra Pak, the deck illustrates how to craft meaningful value propositions and then translate them into value-based pricing models that benefit both customer and supplier.
Why It Matters
- Most companies talk about value — few can articulate or quantify it clearly
- A strong value proposition must show how you help customers create advantage, not just avoid disadvantage
- Value-based pricing aligns product worth with customer success — not procurement pressure
Key Topics Covered
- Definition and structure of effective value propositions
- The McKinsey and McDonald frameworks
- Common mistakes (e.g. benefit assertion, vague claims)
- The role of emotion, trust, and “hassle reduction” in B2B buying
- Value Chain and Customer Value Mapping techniques
- Case studies: Bloomberg’s “Hassle Map”, Tetra Pak’s supply chain integration, Sonoco’s measurable value delivery
- Value-Based Pricing (VBP) formula:
- RP = Reference Price
- NRG = Net Revenue Gain
- NCR = Net Cost Reduction
- EC = Emotional Contribution
Insight
“You must prove that dealing with you will create advantage for the customer — not merely help them avoid disadvantage.” – Professor Malcolm McDonald
Download the Full Value Proposition Guide
This summary captures the essence, but the full slide deck includes diagnostic tools, buying behaviour models, and pricing calculators for real-world application.