I found this articles titled "Value Proposition - Does Yours Help or Hurt?" written by Debra Murphy, Vista Consulting. I adapted the articles in this post.
The author said that if the value proposition can't be clearly defined company, it will be more difficult to sell your product or service.
The author also quote that no value proposition is better than an ineffective one. This article also said that many Web sites have entire pages dedicated to their “Value Proposition”. What most of these describe is why that company is wonderful, not how they help you solve your business challenges.
Finally the author give some tips before developing Value Proposition.
First, answer the following questions:
- What does my target audience want and why? What does my customer value the most?
- What are our core competencies and capabilities?
- What are the core competencies and capabilities of our competitors?
After answering these questions, we can start developing the value proposition statement and tailor a message that addresses target customer needs and make it unique to in the competition market.
This is the linkhttp://www.vista-consulting.com/marketing-articles/valueproposition.htm
4 comments:
How do you post new blog/topic? As u can see I know ways to comment a blog but just cannot figure out to make new blogs.....
Thanks Muneer for your input. I learn from your article that creating value proposition required that we understand our customer, ourselves, and our competitor.
I think the most important part is we need to understand our own business and the benefit that we can offer. Then, we can utilize customer profiling techniques in order to segment our target market. By profiling customer, we might be able to identify their needs and their problems. Then we can match those needs with our benefits to see how we can best solve customer problems. Solving customer's problem is critical part of our value proposition that we can see example from successful company such as eBay . eBay has been so successful in the U.S not because they have the best web design or the most advance consumer web but their business solve people's problem. They fulfill the need for people who need to sell used goods. And finally, in the world of free market we need to understand our competitor. For this, I believe we can use SWOT analysis to point out point of parity, point of different, and point of contention. But, the ultimate goal is understand the game and make ourselves standout in the eyes of customers.
Additionally, I found article by Markplus Inc Value Proposition That Works asserting your article as well as providing additional useful tips.
The article discussed how to make effective value proposition. The author recommends that value proposition should not based solely on a product feature, functions, performance and pricing but more toward value outside the product such as your customer services and the responsiveness of company. This is due to the fact that those price, features, function, and other product related properties can be easily replicated while outside value need an incremental effort thus harder to imitate.
All in all, I believe that value proposition can be a powerful tool for us to communicate our value to customers. In order to do so we need to understand their needs, match those needs with our product feature, and make ourselves stand out from the other lads. To make it more effective, we should look into creating values that competitor can hardly replicate.
This comment may not directly relate to this posting however it’s an observation that I think will make you think ;-)(I hope so!)
Some companies these days focus on being eco friendly as a part of their CSR strategy (can we call this strategy as a part of their 'value proposition'?). Here are some examples: Body Shop (http://www.thebodyshop.com/_en/_ww/values-campaigns/index.aspx), Google's Blackle (http://www.blackle.com/)or Eco-ogle (http://www.eco-ogle.com/about.html), Apple uses eco-friendly packaging these days according to this blog.
What do you think?
dear Anoloth
I agreed that creating value was crucial task in this competetive market. My opinion is that a company with strong value proposition will have a success.
dear yacoob
thanks for your commment. i agree that these eco frindly thingy was another method of 'value proposition' in very competetive market.
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