Value Proposition
Value Proposition: A concise statement of the compelling promise that a product, brand, or company makes to a defined target audience that outweighs its total perceived cost while being differentiated from available alternatives and supported by reasons to believe.
The customer/target audience weighs in
The promise, the differentiation and the supporting evidence
Against the costs/price and the risks.
Essentially weighing costs against benefits
Components of benefits
Promise is a crisp articulation of the primary benefits—functional, emotional, and economic—that customers get from buying, using, endorsing our brands, products, or initiatives.
Differentiation is the distinctive claim that sets us apart in a meaningful way from the competing alternatives that the target audience may consider, including the status quo alternative.
Supporting arguments are the reasons the prospects should believe the promise and the claims of differentiation we make for our products, brands, or company.
The customer/target audience weighs in
The promise, the differentiation and the supporting evidence
Against the costs/price and the risks.
Essentially weighing costs against benefits
Components of benefits
Promise is a crisp articulation of the primary benefits—functional, emotional, and economic—that customers get from buying, using, endorsing our brands, products, or initiatives.
Differentiation is the distinctive claim that sets us apart in a meaningful way from the competing alternatives that the target audience may consider, including the status quo alternative.
Supporting arguments are the reasons the prospects should believe the promise and the claims of differentiation we make for our products, brands, or company.
posted by Ashvin Naik @ 6:06 PM
2 Comments:
At 5:19 PM,
Ashvin Naik said…
Developing a value proposition
1. Understand/define the Environment.
2. Identidy and define the set/s of target audience/s
3. Define the problems of this/these audience/s
4. Define the costs incurred by the problem
5. Clearly state how your product will overcome these costs.
6. Clearly state the costs involved in deriving the benefits from your product
7. Provide evidence to prove your claim on cost and benefits.
and you're done.
At 2:33 PM,
Ashvin Naik said…
Benefits translated to Promise(functional, emotional & economic), differentiation and support.
Perceived costs addressed by price, risk and effort required.
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