Sometimes we marketers forget that there is a whole language that we use just and this jargon is confusing for the novist. Value proposition is one such term. What does it mean?
Well to me a value proposition is the unique offering that a product or service has that is hard to replicate by competitors and what sets it apart from other offerings in the marketplace.
A value proposition is the positioning of this unique characteristic and communicating it is such a way so that the target market (key audience for the product or service) can understand the value that it offers them.
The 3 key elements to creating a great value proposition are as follows:
1. Understand your customer: in detail describe them and if you can define them in detail you are on your way to be able to communicate to them effectively.
2. The second element is to understand why your customer would buy your product/service. What is in it for them? What makes it so special?
3. The third element is being able to position your offer against the competition and be able to defend your claims. What are the key proof points that helps the customer understand your offer well.
Lets look at my favorite brand. Nudie. www.nudie.com.au . They have a target market of young healthy hip people probably between 18 and 40 years that have a good sense of humour, like the healthy option and are conscious of the environment.
Why do I buy off Nudie, well I know what is in their juice. They make it perfectly clear that some of the fruit is of a multicultural nature (appealing to my sense of humour, plus they let me know in my language ( 2 apples, 1 carrot, etc). It is fresh, but not as expensive as a juice from a juice bar and it has no preservatives or additives and it fits my budget as well.
They have differentiated themselves . They are fun. Their packaging is honest and simple, their language and marketing is all focused on the audience they are appealing too.
So when you are thinking about developing a value proposition, maybe you need to think of a company who has done it well and follow their example.