Definition Value Proposition. Description.
A (Customer) Value Proposition is a marketing statement
by a firm that summarizes how it can provide value for a prospective customer.
In other words: why a consumer should buy its product or use its service.
It is the sum total of benefits a customer is promised to receive in return
for the customer's associated payment (or other value transfer).
A sound value proposition is clear and concise and appeals
to the customer's strongest decision-making drivers. Also, it should convince
potential customers that the particular product or service will add more value
than other similar offerings by other firms.
A Value Proposition is a key element of a Business Model.
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Future Customer Value
"Research about customer value is valuable, but does not generate direct insight into what customers will consider important in the FUTURE.
However, future customer value is more important than knowing the current situation.
To come up with a prognosis of what customers will value in the future, you can do the following:
1. Perform regular customer research
2. Consult other sources about trends in customer wishes such as sellers, researchers, consultants, and other experts.
3. Analyze the tracking data and attempt to link changes in customer values to factors such as economic fluctuations and social-cultural developments.
4. Discuss these findings from the customer analysis, the other sources, and the company's self-analysis in brainstorming sessions to arrive at prognoses collectively." |
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Purpose of Value Proposition
"Generally it's the same as a unique selling proposition. Because a firm would give that statement to the customers by which it can score over other competitors or by that statements it'd try to convey the customers how the product is more valuable than the competitor's product. So, according to me we use it to score points over competitors... or to make our products more saleable." |
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Value Proposition Special Interest Group
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Compare with:
Customer Satisfaction
Model |
Unique Selling Proposition
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Positioning |
Relationship Marketing
| Customer Relationship
Management |
Competitive Advantage
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Value Proposition Sponsor
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Special Interest Group Leader
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