SOCIAL ENTREPRENEURSHIP

SOCIAL VALUE PROPOSITION

During our first semester, we learned that Social entrepreneurship is the process by
which individuals, startups and entrepreneurs develop and fund solutions that directly address
social issues.In our last meeting, we already had a preview about social entrepreneurship.
Today, we will discuss social value propositions and their related topics.

I. Learning Objectives
When you have completed this chapter you will be able to:
1. Define what social value proposition is.
2. Discuss the importance of social value propositions.
3. Identify and give examples of social value propositions.
4. Understand and explain the components of social value propositions.

II. Materials Needed

● Laptop or cellphone
● Google meet
● Powerpoint Presentation

III. Discussion
A. What is a social 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.

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.
B. Understanding Value Propositions

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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.
C. Value Proposition: meaning for traditional businesses and social enterprises
Value Proposition: meaning for traditional businesses
● According to Investopedia, “value proposition” refers to the benefits a company promises
to create and deliver to its customers. Written down as a statement, it points out the
reasons why someone should buy a product/service from that business. However, when it
comes to the social sector, we believe a broader definition of “value proposition” is
needed. As a matter of fact, successful social enterprises like Specialisterne
simultaneously create value for both customers and beneficiaries. By looking at such
examples, value creation goes beyond the target's ability, interest or even willingness to
pay. So, “value proposition” should get re-defined accordingly.
Value Proposition: meaning for social enterprises
● As said, social businesses aim to create social and economic value at the same time.
When it comes to defining “value proposition” within social contexts, the book “Value
Proposition Design” might come in handy. Here, book’s author Alex Osterwalder breaks
down this concept into three main pillars. According to Osterwalder, businesses can
generate value for their audiences if they help them:

__ 1) complete tasks or get things done;

__ 2) solve problems or relieve pains;

__ 3) fulfill wishes or create gains.

Only then, they might consider using and eventually buying a product or service. We believe this
framework perfectly applies to social businesses too. In a way, Osterwalder seems to suggest that
“value proposition” shouldn’t focus on “reasons to buy” something, but rather on the “reasons to
use” it. A way broader definition and scope, that embraces both customer and beneficiary
segments, moving past people’s ability or willingness to pay.
D. Components of a Value Proposition
A company's value proposition communicates the number one reason why a product or service is
best suited for a customer segment. Therefore, it should always be displayed prominently on a
company's website and in other consumer touch points. It also must be intuitive, so that a

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customer can read or hear the value proposition and understand the delivered value without
needing further explanation.

Value propositions that stand out tend to make use of a particular structure. A successful value
proposition typically has a strong, clear headline that communicates the delivered benefit to the
consumer. The headline should be a single memorable sentence, phrase, or even a tagline. It
frequently incorporates catchy slogans that become part of successful advertising campaigns.3

Often a subheadline will be provided underneath the main headline, expanding on the
explanation of the delivered value and giving a specific example of why the product or service is
superior to others the consumer has in mind. The subheading can be a short paragraph and is
typically between two and three sentences long. The subheading is a way to highlight the key
features or benefits of the products and often benefits from the inclusion of bullet points or other
means of highlighting standout details.

This kind of structure allows consumers to scan the value proposition quickly and pick up on
product features. Added visuals increase the ease of communication between business and
consumer. In order to craft a strong value proposition, companies will often conduct market
research to determine which messages resonate the best with their customers.
E. What Is the Purpose of a Value Proposition?
A value proposition is meant to convince stakeholders, investors, or customers that a company or
its products/services are worthwhile. If the value proposition is weak or unconvincing it may be
difficult to attract investment and consumer demand.
F. Importance of a Value Proposition
The development of a value proposition is a vital part of a company’s business strategy. Since the
proposition provides a company with a method to influence the decision-making of customers, it
is frequently displayed on the company’s marketing materials, such as a website.

The value proposition is a powerful tool to drive sales and build a customer base. Additionally, a
perfect and compelling value proposition can advance the effectiveness of the company’s
marketing strategies. Generally, it is regarded as the most effective and wide-reaching marketing
activity.

G. How to Create a Value Proposition

As we’ve already determined, the perfectly tailored value proposition can become a huge success
factor for a company. However, the creation of a powerful proposition is a challenging yet
rewarding task for every business. Below, we have listed some tips that will help you to create an
effective one:

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1. Know your customers

Before creating your value proposition, you must analyze the market and potential customers.
Identify your target customers and target market segment to understand their desired benefits.
2. Understand your costs and benefits
Identify and assess the benefits delivered by your company and its products or services, along
with the costs incurred to provide them. It is important to do this because the value to your
customers is essentially the difference between the benefits and costs of your product or service.
3. Don’t forget about your competitors
After the analysis of target customers and your own company, evaluate the competitive
landscape in the market. Determine the strengths and weaknesses of your major competitors and
identify ways you can differentiate your business from them.
4. Be clear and concise
Don’t forget that an effective value proposition is clear and concise. Your target customers must
quickly grasp the message you want to convey. It should not exceed two or three sentences.
5. Design is king!
Make your proposition visible and appealing on all marketing materials (e.g., website).
Remember that if you have created a powerful value proposition, but no one can see it, the effect
of the proposition will be zero!

IV. CHAPTER SUMMARY

Every value proposition should speak to a customer's challenge and make the case for
your company as the problem-solver. A great value proposition may highlight what makes you
different from competitors, but it should always focus on how customers define your value. A
business's value proposition is arguably the most important element of your overall marketing
messaging. A value proposition tells prospects why they should do business with you rather than
your competitors, and makes the benefits of your products or services crystal clear from the
outset. The value proposition is the ultimate goal, the raison d’être or the telos of our business
plan. It is about reflecting on who we want to be and why we want to be like this. Their response
will require a deep knowledge of the recipients and will be key to addressing the issues of
distribution, communication, partnerships, etc. Now, the value proposition, as the heart of the
company, is not static but an organ that breathes and evolves: it adapts to changes in society. So
we must define it, true, but not set it in stone. This will allow us to revisit and redefine it in the
future.

V. REFERENCES

● https://corporatefinanceinstitute.com/resources/knowledge/strategy/value-proposition/
● https://www.investopedia.com/terms/v/valueproposition.asp
● https://sociology-tips.com/library/lecture/read/38093-what-is-a-social-value-proposition#
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● https://socialbusinessdesign.org/social-value-proposition-meaning-and-concepts-social-e
nterprises/

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● https://www.bbvaopenmind.com/en/economy/finance/the-value-proposition-in-the-social-
enterprise/
● https://sixads.net/blog/value-proposition-examples/
● https://www.wordstream.com/blog/ws/2016/04/27/value-proposition-examples

Submitted by:
DE CASTRO, JENG JENG H.
CASABAL, ALYSSA JOYCE
BULANHAGUI, JORGE G.
DE OCAMPO, VHIA BIANCA
MAGDAMIT, ANGELICA M.