Value proposition

and
Unique selling proposition

Presented by Mark Kevin Nalic & Felix Allen Bacunawa

Before focusing on the topics of value
proposition and unique selling proposition, you
must first know the marketing process.
 Marketing Process

-Marketing is all about knowing the customers. Therefore, the

marketing process starts with identifying the customer’s needs where
you are tasked to create a meaningful value proposition. Next, you
study what the customers want or desire for you to build a unique
selling proposition.
 Value Proposition

A value proposition (VP) simply states why a customer should buy a

certain product or service.

Customers are very specific when it comes to their needs and their desired
benefits, and the value proposition should cater to those particular needs.
Thus, the value proposition is the major driver in customer purchase or
service availment.
 The startup entrepreneur will surely have a hard time thinking of a value
proposition for his or her business. The entrepreneur should bear in mind
that a value proposition has to be direct in addressing the problem of the
customers, should have benefits, and should differentiate itself from other
competitors.
The following are some tips for the entrepreneur on
how to create an effective value proposition to the
target customers:
1. Prepare a situation analysis that details the problem
(s) of the customers.

2. Make your value proposition straight to the point,

simple, and specific; In short, there should be no
complications. Your value proposition has to target your
main objective.
3. Highlight the value of your product or service so that
customers will easily get the benefits you can provide.

4. Adapt to the language of your market. Ensure that

your target market understands clearly what you are
trying to say and avoid putting unnecessary and
inexplicable phrases.
5. Add credibility-enhancing elements such as actual
testimonials from customers, partners, and other
stakeholders, putting specific assurance elements and
seek acceptability metrics found in social media or press
materials. Several quality management management
certifications, such as the ISO seal, add more credibility
to the product or service that you're trying to sell
6. Differentiate your value proposition with your
competitors. Examples of value proposition
differentiators are the originality of the product or
service, its functionalities, or if the product ir service
can be tailor-fitted to the customer's preference, among
others.
 To illustrate, here is a sample potential
value proposition from the most common
small business in the Philippines.
 Aling Tere’s Sari-sari Store

Situation analysis:
Prior to the establishment of a sari-sari store, Aling Tere notices that
there is a convenience store in her vicinity, where many cell center
agents, nurses, and construction workers buy food, beverages, and other
products during odd hours (from 10 pm to 6 am). She discovers that the
customers either ride a tricycle or a jeepney just to reach the convenience
store. There are two sari-sari stores nearby, but they close at 9 pm.
 Aling Tere’s Sari-sari Store

Situation analysis:
Aling Tere believes this is an opportunity for a sari-sari store business with a
twist. Aling Tere realizes she needs to address the needs of the customers to
differentiate her business from the competition.

She decides to establish a 24/7 sari-sari store. As an investment, Aling Tere

hires three employees who will help her run the sari-sari store like a semi-
convenience store, where customers can freely go and choose the product
they want. It is also air-conditioned. For security purposes, she also installs a
CCTV camera. Her task now is to craft a worthwhile value proposition for the
potential customers.
 Aling Tere’s Sari-sari Store

Situation analysis:

A Proposed value proposition: “Tindahang maasahan,

bukas kahit anong oras!”
 Unique Selling Proposition

On the other hand, a unique selling proposition (USP) refers to

how you will sell the product or service to your customers. It
addresses the customers' wants and desires.
 Unique Selling Proposition

After you create your value proposition, you have to figure out
how to advertise or promote certain unique features of the product
or service that you're trying to sell. You can do this in the form of
product or service characteristics, promotion strategies and tactics,
distribution centers and supply chains, pricing, physical attributes or
physical evidence, human resources or human capital, and market
positioning strategies. The ability to craft an effective USP is a
gauge on how well an entrepreneur knows his or her product or
service.
The following are some tips for the entrepreneur on
how to create an effective unique selling proposition
to the target customers:
1. Identify and rank the uniqueness of the product or
service attribute.

2. Be very specific. Put details that emphasize the

differentiator against the competitors.
1. Identify and rank the uniqueness of the product or
service attribute.

2. Be very specific. Put details that emphasize the

differentiator against the competitors.

3. KISS (Keep it short and simple).

7Ps Graph