MarketingProfs Know-How Exchange : Define Value Proposition

I've always used "value proposition" as the expression of the key benefit offered by the company/brand to its target audience.

It's obviously a close cousin to the positioning statement, which is how you want people to think about your brand/company.

Ideally, you want them to think about the brand for the benefit it can deliver to them.

Not sure if this is universal or not, but it's worked for me. For some reason, technology businesses love "value proposition," while consumer goods prefer "positioning." Not sure why or if I'm missing something.

Maybe technology managers are focused more on what they provide (i.e., a value proposition/benefit), while consumer goods managers are more into how they want their target audience to think about the brand. (A real nuance, in my view.)

Also not sure if it's really an important distinction, or what you're going to do with our responses.

I have used the following definition throughout my entire marketing career. Although, there are many acceptable definitions for value proposition, I believe that they all strive to describe the tangible benefits of doing business with you and your company:

"A value proposition is a powerful emotion invoking statement that validates a customer's unmet need and instills a confidence that this unmet need will be totally satisfied (by you and your company)."

Hi Srgruenberg

The Value Proposition answers the customer's question:

"Why Should I Buy Your Product/Service?"

It is the some of benefit(s), brand differentiation with perceived value of a product/service in the customers' mind.

The Value Proposition directly reflects the full positioning of a brand.

E.g. Volvo's value positioning includes space, durability, styling with a price that is perceived fair for these mix of benefits.

The Value Proposition is made up of a broad, specific and value positions to give the brand its overall Value Proposition. The key to remember is that Value lies in your customers' mind.

Hope this helps to clarify things for you.

Zahid Adil

The VP should also be quite specific as a differentiator from the competition. I see many attempts to define a VP that could be used by any of the company's competitors. It's not just about buying the product, it's about buying the product from YOU.

It is my understanding that the difference between a "Value Proposition" and "Positioning" is: THE PROPOSITION

While Positioning defines and differentiates, a Value Proposition creates urgency and desire. Positioning is comparative, and a Value Proposition is a call to action. A Value Proposition is how you manifest your positioning into a specific offer with perceived value by your customer.

Here are elements of a value proposition:
Define an offer:
For whom is it designed (universal or narrow appeal)?
How much will it cost?
How many (is it limited?) will there be?
When (and how long?) is it available?
Where can I get it (easy or difficult to obtain)?

These elements create the sense of value in the customers' minds.