Value Proposition

What is Value Proposition?

Definition, examples, and importance

Value Proposition

A value proposition is a promise of value stated by a company

that summarizes how the benefit of the company’s product or
service will be delivered, experienced, and acquired. Essentially, a
value proposition specifies what makes the company’s product or
service attractive, why a customer should purchase it, and how
the value of the product or service is differentiated from similar
offerings.
Your value proposition should include the
following:

1. What your product is

2. The target customer
3. The value you provide for them

Take note of the parts in the following examples

 What is it?
For whom?
Values?

Bad
• “Bench is an off-price
department store owned by TJX that
employs international sourcing and
buying power."
Good
• “Bench is a department store that
offers fashion conscious consumers
the latest brand names for up to 60%
off!”
 What is it?
For whom?
Values?

Bad
• “Bench is an off-price
department store owned by TJX that
employs international sourcing and
buying power."
Good
• “Bench is a department store that
offers fashion conscious consumers
the latest brand names for up to 60%
off!”
 What is it?
For whom?
Values?

Bad
• Bad: "Al Industries has discovered
a chemical isomer additive that
allows for a reduction of
VOC emissions."
Good
• "Al Industries has developed an
economical and easy-to-use
chemical additive that allows
paint manufacturing companies to
reduce the environmental impact
of their products
 What is it?
For whom?
Values?

Bad
• Bad: "Al Industries has discovered
a chemical isomer additive that
allows for a reduction of
VOC emissions."
Good
• "Al Industries has developed an
economical and easy-to-use
chemical additive that allows
paint manufacturing companies to
reduce the environmental impact
of their products
A more in-depth explanation

A value proposition refers to the value a company promises to deliver to

customers should they choose to buy their product. A value proposition is part
of a company's overall marketing strategy. The value proposition 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.
A value proposition can be presented as a business or marketing statement
that a company uses to summarize why a consumer should buy a product or use
a service. This statement, if worded compellingly, convinces a potential
consumer that one particular product or service the company offers will 
add more value or better solve a problem for them than other similar offerings
will.
A value proposition is not…

A tagline/ an ad compliment

• “We find ways”

• “The City that never sleeps”
• “Taste the difference”
A value proposition is not…

A mission statement, a statement of the purpose of your business

“Google’s mission is to organize the world’s information and

make it universally accessible and useful”
Importance of a Value Proposition

The development of a value proposition is a vital part of a

company’s business strategy. Since the proposition provides a
company with a method to influence the decision-making of
customers, it is frequently displayed on the company’s marketing
materials, such as a website.
The value proposition is a powerful tool to drive sales and build
a customer base. Additionally, a perfect and compelling value
proposition can advance the effectiveness of the company’s 
marketing strategies. Generally, it is regarded as the most effective
and wide-reaching marketing activity.
 It is important to expend the necessary time and effort to craft a
compelling value proposition since it will form the basis for all your sales,
marketing, and product development efforts.
4 Key Elements in Writing a Good Value
Proposition

1. Customer
2. Problem
3. Solution
4. Differentiators
10 step core process
How to Create a Value Proposition
1. Start with core competencies

• What are you really good at?

• A value proposition has to be what you do and who you are. It

can’t just be what you want to be and what you say you are.
2. Study your customers

• Who are your top customers?

• What problems do you solve for them?
• What problems do they want solved?
• Is there a new trend in any of your key customer segments?
3. Turn core competencies into value

• Ask yourself why someone should buy from you instead of a competitor.
• Using the language of your customers, refine your core competencies as
values.
4. Study the competition

• Choose 3 or 4 competitors and study how they market their company and
products
• What is their value proposition
• Can they defend it?
• Map their core competencies versus yours
5. Look at trends in the industry

• Are things changing?

• Can you take advantage of a trend and grab an exciting position in the
market?
6. Articulate or define the company vision

• Product Leadership
• Customer Intimacy
• Operational Excellence
7. Identify one core value

• Be decisive about which path you choose

• Choosing makes a statement as to what your structure,
core competencies, business process, and culture will
look like, and provides the customer profile upon which
you can build a well-constructed business strategy.
8. Build a value chain

• Determine whether you can support your top value across every
part of the company, from product design to your channels for
delivery to your process for support.
• Make sure to identify areas in your company where you are
weak and commit to strengthen that area.
9. Articulate the value proposition

• Refine your value proposition until you can articulate it

in one sentence.
• You should be able to communicate who your
customers are, what you provide to them and why they
buy from you.
10. Test the value

• Test the final value proposition with customers to see

whether it resonates. As you go through this process,
continually ask yourself these questions:
• Are you and your executives being honest, or are you using
wishful thinking when you list your core values?
• Can you defend your value? What are the proofs?
• Can you quantify the value to your customers?
Thank you for listening.

Report by Group 7:
Bequio, Shiela Jhean
Flores, Dawson Jay
Pacinos, Bernadette M.
Tria, Lorenz Z.