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Developing superior value propositions: a strategic marketing imperative

Adrian Payne (School of Marketing, University of New South Wales, Sydney, Australia)
Pennie Frow (Discipline of Marketing, University of Sydney, Sydney, Australia)

Journal of Service Management

ISSN: 1757-5818

Article publication date: 14 April 2014




Scholars identify the value proposition as representing the essence of strategy and the firm's single most important organizing principle. However, research suggests less than 10 per cent of companies formally develop value propositions. The purpose of this paper is to undertake case study research investigating the process by which leading companies develop their value propositions.


The research identifies that the financial services and telecommunications vertical markets are viewed as the highly sophisticated industry sectors in terms of customer management. These industry sectors are selected for investigation. The paper develops case studies of two companies’ approaches to developing value propositions in the business-to-business (B2B) and business-to-consumer (B2C) sectors within these vertical markets.


This paper contributes to the marketing literature by examining how two large and complex service enterprises have adopted structured processes for developing innovative value proposition within the B2B and B2C sectors. The authors argue that innovation in value proposition development represents a substantive opportunity for marketing to reassert its influence in the boardroom.

Practical implications

This case study research provides guidelines of the processes by which enterprises can successfully develop innovative value propositions.


This research is considered to be the first case-based academic exploration of the formal processes by which large organizations develop value propositions.



Payne, A. and Frow, P. (2014), "Developing superior value propositions: a strategic marketing imperative", Journal of Service Management, Vol. 25 No. 2, pp. 213-227.



Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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