Business Basics: Value Proposition

A value proposition is what makes a business different from all other competitors in the market. After completing this course, you’ll know the steps and strategies involved in creating a compelling value proposition.

A value proposition is the first thing a business must create before marketing their products or services to the public.

It explains how the products or services solve customers’ problems, improves their situation and delivers specific benefits.

As a business, it tells the ideal customer why they should buy from you and not from other competitors offering similar products or services.

Here’s an example of a good value proposition:

“We help large companies reduce the cost of building new software without impacting product quality.”

That’s a good value proposition because it’s simple, targeted and straight to the point. 

Value propositions should always be very easy to understand and include the main benefits of a product or service.

Businesses must always ask these three questions when creating a value proposition:

What is it?

For whom?

How is it useful? 

If they answer those questions, they’ll always end up with a clear and concise value statement.

Keep in mind that the way a company talks about their product or service is often very different from how their customers describe it. 

As a result, companies have to rely on interviews with their customers, or use social media to find the right voice for their products.

Businesses don’t need to be completely unique. They only have to be unique in the customer’s mind. 

Just remember that a value proposition is not the same as a slogan.A slogan is simply a short, memorable phrase that companies use in their advertising campaigns.An example of a slogan is “Nike. Just do it.”

Value propositions are often internal, while a slogan is used in marketing campaigns.