Running head: VALUE PROPOSITION 1

Value proposition

Haitham H. Alhadid

Stratford University
VALUE PROPOSITION 2

Value Proposition

Creating and delivering the value proposition are critical issues that marketing planners

should consider in planning strategies. Many definitions of the value proposition concept have

been made, and the concept is widely used. A value proposition is an explicit promise made by a

company to its customers that it will deliver a bundle of value creating benefits (Bhat, 2009).

According to Tuominen (2004), “competitive advantage and superior value flow from whatever

unique ability a firm has to shape, reshape, configure and reconfigure those assets to serve

customer needs”.

Osterwalder and Pigneur (2003) describe value proposition building block as the bundle

of value that the target customers could benefit from using the certain products or services. The

value propositions are approached by the customers via the channels. In its simplest terms, a

value proposition is a positioning statement that explains what benefit you provide for who and

how you do it uniquely well. It describes your target buyer, the problem you solve, and why

you’re distinctly better than the alternatives. Without this statement, you lose an opportunity to

tell consumers why they should pick you over competitors. An important goal in a business is to

convince customers that they are getting many more benefits.

Developing strong value propositions not only makes it easier to connect with target

audiences but it establishes a foundation upon which a company’s marketing and sales activities

can be built upon. It also provides employees with a consistent and cohesive way to talk about

what they’re doing.
VALUE PROPOSITION 3

In my project, I’ll be looking at Uber value proposition example I’ve come across. I’ll go

over what makes it so compelling, and things we should bear in mind when incorporating the

value proposition.

Uber – The Smartest Way to Get Around:

Without explicitly saying so, Uber expertly highlights everything that sucks about taking

a traditional taxi and points out how its service is superior. excellently conveys the simplicity and

ease that lies at the heart of what makes it such a tempting service:

 One tap and a car come directly to you.

 Your driver knows exactly where to go.

 Payment is completely cashless.

Everything about this directly contrasts the typical experience of getting a taxi –

no phone calls to disinterested dispatchers, no painful conversations trying to explain to a

stressed-out cabbie about where you need to be, and no fumbling for change or worrying

you’ve got enough bills in your wallet. Just a fast, efficient way to get where you’re

going. This is reinforced by the aspirational messaging toward the top of the Uber

homepage, which states that “Your day belongs to you.” (Uber.com, 2017, February 10).

Hopefully, this example has given some ideas on how we can improve or clarify the

importance of understanding the value proposition. We don’t need an immense marketing or

design budget to put what makes our business the best front-and-center in your messaging – just

a little focus and a moment or two to consider your site from the perspective of our users.
VALUE PROPOSITION 4

References:

Bhat, H. (2009). What’s the Value Proposition? Retailers Need to Offer Strong, Well-articulated
Benefits to Consumers to Drive Sales Growth in this Downturn. [Online] Available:
http://www.livemint.com/2009/04/03003227/What8217s-the-value-proposi.html

Tuominen, M. (2004). Channel Collaboration and Firm Value Proposition. [Online] Available:
www.emeraldinsight.com

Osterwalder, A., & Pigneur, Y. (2003). Modeling Value Propositions in E-Business. [Online]
Available: http://www.hec.unil.ch/yp/Pub/03-ICEC.pdf

https://www.uber.com.