FRIANEZA, ZARAH JOY C.
BSCE-3-2
Assignment 1
Research on the following: Give examples.
The Value Proposition
· Value
· Crafting a good value proposition
What Is a Value Proposition?
A value proposition refers to the value a company promises to deliver to customers should
they choose to buy their product. A value proposition is part of a company's overall marketing
strategy. The value proposition provides a declaration of intent or a statement that introduces a
company's brand to consumers by telling them what the company stands for, how it operates, and
why it deserves their business.
A value proposition can be presented as a business or marketing statement that a company
uses to summarize why a consumer should buy a product or use a service. This statement, if worded
compellingly, convinces a potential consumer that one particular product or service the company
offers will add more value or better solve a problem for them than other similar offerings will.
A value proposition isn't just the product or service you agree to deliver to the customer -- it's
the ingredient of your business that solves a problem competitor can't.
Your value proposition is your unique identifier. Without it, people don't have a reason to work with
you over somebody else.
While your value prop should help differentiate you from the rest of the industry, keep in
mind it's not a slogan, tagline, or even a way to position yourself in the market. Those types of copy
are important accessories to your brand, but your potential customers and employees don't choose
one business over the other based on a high-level mission statement.
Your value proposition goes deep into the problems you want to solve for people, and what
makes you the right one for the job.
KEY TAKEAWAYS
A company's value proposition tells a customer the number one reason why a product or
service is best suited for that particular customer.
A value proposition should be communicated to customers directly, either via the company's
website or other marketing or advertising materials.
Value propositions can follow different formats, as long as they are "on brand," unique, and
specific to the company in question.
A successful value proposition should be persuasive and help turn a prospect into a paying
customer.
Understanding a Value Proposition
A value proposition stands as a promise by a company to a customer or market segment. The
proposition is an easy-to-understand reason why a customer should buy a product or service from
that particular business. A value proposition should clearly explain how a product fills a need,
communicate the specifics of its added benefit, and state the reason why it's better than similar
products on the market. The ideal value proposition is to-the-point and appeals to a customer's
strongest decision-making drivers.
Companies use this statement to target customers who will benefit most from using the
company's products, and this helps maintain a company's economic moat. An economic moat is a
competitive advantage. The term—coined by super-investor Warren Buffett of Berkshire Hathaway—
states that the wider the moat, the bigger and more resilient the firm is to competition.
EXAMPLES:
The value of something such as a quality, attitude, or method is its importance or usefulness. If you
place a particular value on something, that is the importance or usefulness you think it has.
The value of this work experience should not be underestimated.
Further studies will be needed to see if these therapies have any value.
The value of something is how much money it is worth.
The value of his investment has risen by more than $50,000. [+ of]
The company's market value rose to $5.5 billion.
The country's currency went down in value by 3.5 per cent.
That cup is priceless. You can't put a value on it.
How to Write a Value Proposition
Identify all the benefits your product offers.
Describe what makes these benefits valuable.
Identify your customer's main problem.
Connect this value to your buyer's problem.
Differentiate yourself as the preferred provider of this value.
Your value proposition is the core of your competitive advantage. It clearly articulates why
someone would want to buy from your company instead of a competitor.
It's also one of the most important conversion factors (learn all about conversion best practices
with this free guide). A great value proposition could be the difference between losing a sale -- and
closing it.
