Topic 6 VALUE PROPOSITION

INTRODUCTION

A value proposition is a simple statement that summarizes why a

customer would choose your product or service. It communicates the clearest
benefit that customers receive by giving you their business. 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.

Conversations around brand strategy and taglines should stem from a

value proposition, but they are not one and the same.

You may wondering why bothering learning how to write a value

proposition? It’s like investing in the foundation of a house. You may not see the
foundation, but everything you do see – and the long term safety and security of your
structure – rest on it having a strong place to start from.

Specific Learning Outcomes:

At the end of the chapter the students would be able to:

· Discuss how to create value proposition

MOTIVATION

If you want to launch a product, what would it be?

What will be your tagline or headline to make it

appealing and to attract to customers online?

I’ll give you 30 second to think.

CONCEPTS

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 part of a company's overall marketing strategy
· 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
· presented as a business or marketing statement that a company uses to
summarize why a consumer should buy a product or use a service
· proposition these days, are typically referring to the opening statement of a
webpage (McMillen, 2019)
· it is similar to an elevator pitch but instead to 20 – 30 seconds in an
elevator, you have less than 15 seconds to
grab the attention of you website visitors and convince them to stay on your page
· just like the headline, the ultimate goal of a value proposition is to convince
the right visitors to stay and continue reading
 According to Twin in 2020 a value proposition is:

 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.

To create an integrated, cohesive values proposition, start by brainstorming as a

group around these three questions:

· Which customer are you going to serve?

· Which needs are you going to serve?
· What relative price will provide acceptable value for customers and
acceptable profitability for the customer?

Also, you may consider the 4 Ps of Marketing in your Value Proposition

The four Ps are the key categories involved in the marketing of a good or service.
The four Ps refers to the product, price, place, and promotion.

The Three Components of Value Proposition

· Clearly define the offer – the most important part, what is being offered, and
why it’s uniquely valuable
· Specify who its’s for – discuss who is your target clients or customers
· Differentiate your value - the trickiest part in writing value proposition, use
paragraph or statements to differentiate your value

Five Steps in Writing Value Proposition According to McMillen in 2019

· Ask and answer the right questions – you need to understand the offer,
understand the customer, and connect the value of the offer to the needs of the
customer
· Fill in the value proposition formula – I help [audience/niche] to [achieve
result/solve problem] by [service/product]
· Expand the copy & experiment with formatting –when someone lands on a
webpage, they are going to see an entire screen’s worth of content, and that’s the
real estate you have to work with, remember value proposition is not limited to
headline
· Brainstorm Multiple Version – brainstorming can be time consuming, but it’s
worth it to spend extra time on the value proposition, because it’s probably the
single most important statement website
· Test and finalize the value proposition copy – select a winner or handful of
winners, and then continue improving them, improve the wording, the flow, and
ultimately, the message