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Unformatted text preview: ions events, trade shows, newspaper, or
radio? • What about telemarketing, the World Wide Web, or even multilevel marketing? Are you satisﬁed with how this is working for you now, or is it a problem area that needs to be
addressed? Are you meeting your needs, and in line with your opportunities?
How does your promotion strategy ﬁt with the rest of your strategy? Check for alignment between
what you say here and what you say in your strategy pyramid, and your value proposition. As you
described market trends and target market segments, did you see ways to improve your promotion
strategy? HURDLE: THE BOOK 18.4 ON BUSINESS PLANNING Value-Based Marketing
Value-based marketing is another conceptual framework. Like the strategy pyramid described in the
previous topic, it doesn’t have to be in your business plan at all, but we add it here because some
people ﬁnd that the framework helps them develop their strategy. Obviously, this has to be a quick
treatment. There are textbooks written about value-based marketing, and the business literature on
this topic is rich and varied.
This framework begins with deﬁning your business offering as a value proposition. The value
proposition is beneﬁt offered minus price charged, in relative terms. The deﬁnition encourages
you to think in broad conceptual terms, with emphasis on the real beneﬁt offered, rather than the
speciﬁc tangible. For example, a national fast food chain probably offers the value of convenience
and reliability, probably at a slight price premium (at least when compared to the weaker chains). A
prestigious local restaurant, on the other hand, is offering a completely different set of beneﬁts (luxury,
elegance, prestige, for example) at a marked price premium. A graphic designer is probably selling
beneﬁts related to communication and advertising, not just drawings.
Once you have a value proposition deﬁned, then look at your business — and your business plan
— in terms of how well you:
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- Winter '09