PRODUCT VALUE

PREPOSITION
Value Preposition
➢ What is a value proposition?
➢ Value Proposition vs Mission/Vision Statement.
➢ What Makes A Good Value Proposition?
➢ Elements of a Value Proposition.
➢ How to Create a Value Proposition.
➢ Tactics to Develop an Effective Value
Proposition.
➢ Value Proposition Examples.
➢ Why do your customers buy from you?
➢ What motivates people to choose your products over the hundreds of alternatives?
➢ What makes your company, and your products, better than the rest?

The Answer: Your Value Proposition

If you can perfect your value proposition, you can increase your conversion rate and improve
your marketing strategies across many channels.
Learning to present the value your company and products deliver in a compelling way is one of
the most high-value, wide-reaching marketing activities.
What Is A Value Proposition
A value proposition stands as a promise by a
company to a customer or market segment.
The proposition is an easy-to-understand reason
why a customer should buy a product or service
from that particular business.

A value proposition should clearly explain how

a product fills a need, communicate the
specifics of its added benefit, and state the
reason why it's better than similar products on
the market.

The ideal value proposition is to-the-point and

appeals to a customer's strongest decision-making
drivers.
What Is the Purpose of a Value Proposition?
A value proposition is meant to convince stakeholders, investors, or customers that a
company or its products or services are worthwhile. If the value proposition is weak or
unconvincing it may be difficult to attract investment and consumer demand.

What Happens if a Value Proposition Fails?

If a company cannot convince others that it has value or that its products or services or
valuable, it will lose profitability and access to capital and may ultimately go out of business.
Value Proposition vs Mission/Vision Statement
➢ A mission statement defines the organization's business, its objectives, and how it will reach these
objectives.
➢ A vision statement details where the organization aspires to go. Why does your company exist? What do
you hope to accomplish in the next several years?

Examples
Mission statement: We strive to offer our customers the lowest possible prices, the best available
selection, and the utmost convenience.
Vision statement: To be Earth's most customer-centric company, where customers can find and discover
anything they might want to buy online.
Value Proposition vs Mission/Vision Statement
Apple
Vision – We believe that we are on the face of the earth to make great products, and that's not changing.
Mission – Bringing the best user experience to its customers through innovative hardware, software and
services. Apple's vision statement is clear, concise, and to the point.
Nike
Vision - To bring inspiration and innovation to every athlete in the world.
Mission – To do everything possible to expand human potential.
Tesla
Vision - To create the most compelling car company of the 21st century by driving the world's transition
to electric vehicles,
Mission- To accelerate the advent of sustainable transport by bringing compelling mass-market electric
cars to market as soon as possible.”
Value Proposition vs Mission Statement
Your value proposition details what you offer customers and why they should choose you,
while a mission statement details your objective as an organization. While the two can have
points in common, a value prop is more product- and service-oriented while a mission
statement is more goal-oriented.
Here are two examples for HubSpot CRM platform:
Value Proposition: “An easy-to-use CRM.”(customer relationship Management)
Mission Statement: “To help businesses grow better.”
Value Proposition vs Slogan
A slogan is a short, catchy statement that brands use in marketing campaigns to sell a specific
product. While your value proposition wouldn’t necessarily go in an ad (at least, not usually), a slogan
would. The most important thing to note is that a company can have different slogans for different
campaigns or products.

Here are two examples from De Beers Group:

Value Proposition: “Exquisite diamonds, world-class designs, breathtaking jewelry.”
Slogan: “A diamond is forever.”
A Compelling Value
Proposition Meets Three
Criteria:
It’s specific: What are the specific benefits your target
customer will receive?
It’s pain-focused: How will your product fix the
customer’s problem or improve their life?
It’s exclusive: How is it both desirable and exclusive? How
well does it highlight your competitive advantage and set
you apart from competitors?
Creating A Value Proposition
Imagine a world where everyone is in sales. Well, the fact is, everyone is in sales, in some fashion.
It's not just the salesman at the car lot or computer reseller who qualifies: Maybe you are trying to sell
your spouse your ideas for the next holiday; Maybe you're pitching a new project to your boss; Maybe you
are headhunting someone to join your firm. It's all selling, and, whatever your offer (product, idea,
project or job) it's important to have a really strong value proposition.

A value proposition is a short statement that clearly communicates the benefits that your potential
client gets by using your product, service or idea. It "boils down" all the complexity of your sales
pitch into something that your client can easily grasp and remember.

It needs to be very specific: Simply describing the features or capabilities of your offer is not enough. Your
value proposition must focus closely on what your customer really wants and values. Your customer
wants to solve problems, to improve on existing solutions, to have a better life, build a better
business or do more, better, faster. and so on.
Creating a value proposition is a useful marketing technique that has wider application than product
marketing.
Creating A Value Proposition
Step 1: Know your customer
Thinking from the perspective of your customer, ask the following:
Who is he or she? What does s/he do and need?
What problems does s/he need to solve?
What improvements does s/he look for?
What does s/he value?
Step 2: Know your product, service or idea
From your customer view point:
How does the product, service or idea solve the problem or offer
improvement?
What value and hard results does it offer the customer?
Step 3: Know your competitors
Keep on thinking from the perspective of your customer, and ask:
How does your product or idea create more value than competing
ones?
Tip: This can be quite difficult. See our articles on USP Analysis ,
Core Competence Analysis and SWOT Analysis for useful tools
for doing this.
Creating a Value Proposition
Step 4: Distill the customer-oriented proposition
The final step is to pull it all together and answer, in 2 or 3
sentences: from the customer’s viewpoint
"I want to buy this product or idea because it will..."
"The things I value most about the offer are..."
"It is better than competing products or ideas because...“

Step 5: Pull it all together

Turn your customers 'answer' from step 4 into a value
proposition statement.
Value Proposition Canvas

A value proposition is a promise of

value to be delivered and
acknowledged and a belief from the
customer that value will be appealed
and experienced. A value
proposition can apply to products
or services.
Value Proposition Canvas
The value proposition canvas is made up of two major components:
the customer profile and the value map.
Step 1: Create a customer profile to represent your target buyer.
The customer profile makes up the first half of the value proposition canvas. When performing this exercise, you’ll want to
start with this section first so that their wants and needs can influence the overall value proposition canvas.
The customer profile consists of three areas:
Customer Jobs
What is the task your customer needs to complete or the problem they’re trying to solve with your product or service? The
answer to this question sums up the “customer job” or the purpose of your product or service in the eyes of the customer.
Customer Expectations
“Expectations” are also referred to as “gains” — in other words, what your customer is hoping to gain from doing business
with you. No matter what you sell, your ideal customer will have an expectation of what that product or service will do for
them. In this section, you’ll use research to explain what your customers expect from you in order to purchase your product.
Customer Pain Points
As your customer completes their “customer job,” what pains do they experience? Do they take any risks while they do the
customer’s job? Do they experience any negative emotions? These pain points should be considered so that you include the
most helpful products and services on the value map side of the value proposition canvas.
Value Proposition Canvas
The value proposition canvas is made up of two major components:
the customer profile and the value map.

Step 2: Create a value map for your products and services.

In this section of the value proposition canvas, three specific sectors help describe what the business offers
to the customer.
Gain Creators
These are features your products or services have that make the customer happy. Think creatively about
the elements of happiness your customers experience. Consider their financial and social goals.
Pain Relievers
In the section above, we discussed customer pains. This section will define exactly how your business will
help them overcome those pain points.
Products & Services
While this section won’t list every single product or service your company offers, it should include the ones
that will create the most gain and alleviate the most pains for your customers.
Value Proposition Canvas
Step 3: Determine value proposition-customer
fit.
Once you’ve completed the value proposition
canvas exercise, the next step will be to
determine how your value proposition fits
within the customer profile. To do this, you’ll
use a ranking process that prioritizes products
and services based on how well they address
the customer profile.
Elements of a Value Proposition
Your value proposition will most often appear
on your website. While you can include it on
marketing campaigns and brochures, the
most visible place is your home page and, if
you’d like, your product pages.
There are three main elements of a value
proposition: the headline, the subheadline,
and a visual element.
Elements of a Value Proposition
Headline
The headline of your value proposition describes the benefit the customer will receive as a result
of making a purchase from your business. The headline can be creative and catchy, but it should
be clear and concise, first and foremost.
Subheadline
The subheadline or paragraph should explain in detail what your company offers, who it serves,
and why. In this section, you can elaborate on the information in the headline.
Visual Element
In some cases, a video, infographic, or image may convey your value proposition better than
words alone can. Enhance your message with these visual elements to capture your audience’s
attention. To better visualize these tools.
 Elements of a Value Proposition
LG Value Proposition Canvas

Headline: "State-of-the-art Living Experience"

Subheadline/Paragraph: LG SIGNATURE delivers an innovative
product design that creates an exceptional living experience for
people who want to achieve a state-of-the-art living experience.
Visual Element:
The right home appliances can make your at-home experience
easy and hassle-free — or it can quickly create headaches with low
power efficiency and outdated features.
In its value proposition, LG targets customers who are willing to
spend just a little more on the right appliance in exchange for
a comfortable, hassle-free, and luxurious experience.
Even the imagery helps you imagine what your life would be like
after purchasing an LG appliance.
Elements of a Value Proposition
Customer Profile
•Customer Jobs: LG customers want simple, yet
innovative technology that helps them achieve a state-
of-the-art living experience.
•Gains: Customers have an intuitive and responsive
experience with each appliance they interact with inside
their homes.
•Pains: There are too many unnecessary buttons and
features on appliances that get in the way of a simple
living experience
Value Map
•Gain Creators: Customers can use technology to
enhance their home experience without needing to
read a manual.
•Pain Relievers: LG offers a simple design that focuses
on the user and their lifestyle.
•Products & Services: LG SIGNATURE delivers an
innovative product design that creates an exceptional
living experience.
Value proposition example
Uber

1. Uber – The Smartest Way to Get Around

Few tech companies are as polarizing or widely
criticized as Uber. One thing Uber most
definitely does right, however, is its unique value
proposition.
 Uber’s value proposition, offering uber
convenience
Without explicitly saying so, Uber expertly highlights everything that sucks about taking a
traditional taxi and points out how its service is superior.
The simple (yet highly effective) copy above, taken from the Uber homepage, excellently conveys the
simplicity and ease that lies at the heart of what makes it such a tempting service:
• One tap and a car comes directly to you
• Your driver knows exactly where to go
• Payment is completely cashless
Everything about this directly contrasts the typical experience of getting a taxi –
no phone calls to disinterested dispatchers,
no painful conversations trying to explain to a stressed-out cabbie about where you need to be, and
no fumbling for change or worrying you’ve got enough bills in your wallet.
Just a fast, efficient way to get where you’re going.
This is reinforced by the aspirational messaging toward the top of the Uber homepage, which
states that “Your day belongs to you.”
Comparing Uber’s Value Proposition
With Lyft
It’s worth comparing Uber’s value proposition
with that of rival company Lyft. The two
companies’ offerings are virtually identical,
which is what makes a direct comparison of
the two so interesting. Take a look at this
information from the Lyft homepage:
 Comparing Uber’s Value Proposition
With Lyft
Structurally and thematically, Lyft’s homepage is very similar to Uber’s. However, there’s some key differences here
that highlight how Uber’s value proposition is more clearly positioned.
Firstly, Lyft does score some points for including several step-by-step images of the Lyft experience, helping
visitors visualize what taking a ride with Lyft is like. However, look at the copy for the first step of the process. It
lists the three tiers of Lyft service – Lyft, Lyft Line, and Lyft Plus – but doesn’t explain the difference between these
service tiers, or tell the prospect why they should choose between them.
Also, while clearly explaining the final stage of the process – paying and rating the driver – this information implies
that there is a final definitive action required by the user, something Uber does not.
Now, one could argue that Lyft does a better job of being transparent about what users can expect, an argument
that definitely has merit, especially if you’ve ever been stung by Uber’s unexpected “surge” pricing. However, for two
such similar services, I’d argue that Uber’s value proposition is more clearly positioned, and certainly more
persuasive than that of Lyft – an important distinction if you’re operating in a crowded market with several similar
competitors.
 Assignment Week1

Choose a Product or a Service and Create

a Value proposition, Slogan, and visual
Identity
Thank You