Marketing experts often throw the term, value proposition around in conferences and workshops, and many of these marketers are unaware that they have an entire roomful of people wondering just what is a value proposition anyway.
The Answer to the Question What is a Value Proposition
The value proposition is a term that’s used, to sum up, a product/service that attracts members of a target market to a company. The elements of value proposition include;
- Identify the type of person who makes up the target market and what their shopping and buying habits are;
- The creation of a recognized brand that will attract members of the target market;
- How to properly showcase the product being sold or service being offered;
- How to use all of this information to create a highly effective marketing program.
Why a Value Proposition is Important
In addition to wondering what is a value proposition is, many business owners and managers wonder why they should create on. The reason is simple. Once a value proposition has been created, the business will reap several tangible and immediate benefits, which include;
A substantial increase in revenue without having to create elaborate and expensive marketing campaigns.
- Lowering the amount of money the business has to spend on marketing annually;
- More efficiency;
- Brand recognition;
- Higher retention of customers;
- Clear goals for the general operation, marketing, and sales.
Many businesses have also found that the value proposition improved communications so much that they had a much lower employee turnover and fewer customer complaints/returns.
The Creation of Value Proposition
Once business owners and managers can answer the question what is a value proposition, they need to get started creating a plan. While this takes time, the generated results will make the process worthwhile.
To create value proposition, business owners/managers need to;
- Take a long hard look at their business and determine it’s purpose: what it provides the members of the target market.
- Identify their target market, how to connect with members of the target market, and identify the needs of the typical customer.
- Decide what language should be used when communicating with the target market. The trick is learning what words, key phrases will inspire them to make an immediate purchase.
- Use attraction marketing to show customers how the business will serve them
- Identify key competitors and create ways to show customers how their business can better meet needs than the competition.
- The trick is doing this without attacking the competition.
- Be consistent.
Once all of these steps have been taken, a business will see an immediate increase in revenue.