Question

Topic: Strategy

What Does "unique Value Proposition" Mean?

Posted by Anonymous on 25 Points
What is the meaning of "Unique Value Proposition" or "Unique Service Proposition"?

My understand is that the thing that make the product or the service differe from other service or product. Is that right understanding?
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RESPONSES

  • Posted by Chris Blackman on Accepted
    You're confusing two terms.

    USP or Unique Selling Proposition is the unique differentiator or set of differentiators) which makes one buy something in preference to something else.

    The VP or Value Proposition is what that differentiator(or set of differentiators) really means to the target segment.

    In other words, they buy that because it changes their life ________ how...

    So the USP of a Volvo Car, for example, may that it has a steel safety cage and eight airbags.

    The VP to the customer may be that they feel far safer in a Volvo because they know their family is more likely to survive or escape injury because of the safety features.

    Hope this helps.

    ChrisB
  • Posted on Accepted
    Here's an article about Value Propositions that will help you out:
    https://www.marketingprofs.com/3/perla8.asp

  • Posted by ReadCopy on Accepted
    thinkmorâ„¢ is right, its the "Why you?" question ... what can you, your business or your solutions offer that no-one else in the market either can, or would find expensive to do so.

    Another thing about Value Propositions that most people forget or ignore ... it MUST BE believable.
    If, in the FedEx example tha thinkmorâ„¢ gave, no-one possible believed that FedEx could deliver overnight, then their VP is worthless.

    I have a document that helps the creation of VPs here:
    https://blackwhite.uk.com/guides/value%20propositions.pdf

    Good Luck

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