STUDENT/TEAM

Value Proposition

To: Marketing Assistant Trainees

From: Porter Gamble, Vice President of Marketing
RE: Understanding the Product Concept

You have talked with consumers about OTC products, but we haven’t really looked at the overall
product concept. This is critical to understanding how products satisfy consumer needs, and to
developing product refinements and promotional activities.

All products are multifaceted, consisting of Actual, Core, Promised and Augmented dimensions.

 The Actual features of the product are all of the tangible product characteristics we see,
including: features, packaging, brand name, appearance, and assurances of quality.
 The Core benefit of the product is that which the product delivers (e.g., it relieves coughs).
 The Promise can be summarized in a statement that captures the basic brand promise being
made to customers who use the product. This statement is often referred to as a value
proposition.
The value proposition has been defined as “…a marketplace offering that fairly
and accurately sums up the value that the customer will realize if he or she
purchases the product or service.” (Solomon, Marshall, and Stuart 2006). It is a
“promise” to customers that the product benefits they are purchasing will satisfy
their needs, and thus are considered valuable.
 The Augmented Product consists of additional features, often times intangible (such as
warranties), which enhance the product’s attractiveness and value proposition.

Use the attached worksheet to organize the market research information on the actual features
of the products in MarketShare. Then, identify the core benefits consumers are purchasing with
each of the features. Having identified features and benefits, synthesize this information to
develop a value proposition, or statement of promise. Finally, brainstorm tag lines that best
represent the value proposition and positioning that would have the most appeal to your target
consumers.

Complete the worksheet (see: next page).

STUDENT/TEAM

Brand Name: ________________________________________

Actual
Core Product Promised Product
Product Tag Line
(Benefits) (Value Proposition)
(Features)