A value
proposition refers to the value a company promises to deliver to customers should
they choose to buy their product. A value proposition is part of a company's
overall marketing strategy.
Value proposition provides a declaration
of intent or a statement that introduces a company's brand to consumers by
telling them what the company stands for, how it operates, and why it deserves
their business.
There are some simple but highly
important elements of a successful value proposition. These are relevance;
quantified value, and differentiation.
Relevancy
People buy a product or seek a service
because they want to either solve a problem or improve a situation. It is,
therefore, the duty of the business owner to explain how your product solves
customers' problems or improves their situation.
For instance, in the Graphic Business
newspaper, we have created a new simple column that defines and explains simple
business and economic concepts to our readers.
It is true that one can easily google to
find the meaning but while reading that paper, readers get the opportunity at
once. Particularly, for tertiary business students and small businesses, some
of the topical words or concepts used during the week that they heard but could
not understand, is defined and explained.
Again, the paper has been able to add new
elements such as Side Bars, infographics, among other things, to give some
extra information or illustrate a situation in a graphical manner.
This example can be replicated in any
business because competition does not wait and it is the little things that
matter. According to Charles Comiskey “Never underestimate small things. It is
the small things in life which count; it is the inconsequential leak which
empties the biggest reservoir.” - Charles Comiskey.
Quantified value
Every customer buys a service or product
because they want some very specific value. For instance, the business owner
must be in the position to explain what is in the service or product the
customer cannot see but will want to buy.
This means that the business must at all
cost be able to deliver specific benefits. JJCOBS is a poultry farm in Gomoa.
The company is focused on selling eggs.
This is not a new business because there
are many more in this competition. But JJCOBS, with a tagline — “Our chickens
lay eggs” has more customers because it is focused on ensuring that the eggs
are bigger than competition but sells at the same price.
It is highly nutritious because of what
the birds are fed with. Displayed in the malls, supermarkets and even with the
hawkers on the streets, they have more market simply because their eggs are
bigger at the same price compared to competition.
Again, the shells are strong compared to
competition and cooks faster. This means, one is able to save a little more on
time and fuel used in cooking. All these values are quantifiable and once
communicated and experienced, the market accepts it and even with word of
mouth, you can sell. Create value for the customer but let him be able to
quantify the value.
Differentiation
If there is nothing new under the sun,
then as a business owner, it must be made clear that the service or product you
offer is either already on the market or will soon be out because yours is out
there.
This is why the business owner must be
able to tell the ideal customers why they should buy from them and not from the
competition. Something must make your product distinct and it could be based on
the following strategies:
Emotional Response — This relies on providing an emotional salience that is tied
to a product or service. Usually, brands that develop an emotional connection
with their customers are often better positioned than those that provide a
superior value.
Innovation — This
can be expressed through physical characteristics of the products or the way in
which a product or services is delivered. In short, this differentiation solves
an unmet need in a unique and novel fashion.
Brand presentation — How
a brand presents itself to the market can be a differentiator. In this case,
brands that employ a consistent character or mascot can be easily remembered
and stand out in the crowd.
Unique experience — This
can be manifest in several ways such as a brand’s physical retail presence,
exceptional customer service, ease of use of their website, the novel
environment that they create, or, simply, the experience of unboxing a product.
Pricing — When handled
properly, this can also be an effective approach to differentiation. On one end
of the spectrum, a company can strive to be positioned as the ‘low price
leader’ offering customers outstanding value.
Conclusion
In today’s hyper-competitive business
environment, consumers are inundated by advertising and faced with a plethora
of product and service choices. This is making it tough for brands to stand
out. But to grow and be successful, it is imperative that business owners try
to distinguish their products or service in this crowded marketplace.
Source: Graphic.com.gh