Why is Value Proposition Important for Us

The value proposition is invisible but real. It is like a compass that invisible to another people but it is real as guide action for a ship.

Why Is Value Proposition Important for us? To answer the question I quote this famous sentence “any product or service that  capable of providing solutions for consumers, then the product or service is definitely required by consumers.”

Our business task is to create a fit between our offering and customer profile.

We revise our offering, explore the benefit of our offering for our customer for one goal: fit.

It answers a question, why should I buy your product? Have you had an answer for me? And that answer gives me some gain and is able to explain to me if I do not buy, use your product or service, what happened to me?

If you are able to explain the value proposition of your product or service, it is easy to create a tagline or copywriting that relevant to their problem.

It is a formula of the value proposition.

Our [products and service] help [customer segment] who want to [job to be done] by [reducing, avoiding] [customer pain] and [increasing, enabling]  [a customer gain], unlike [competing value proposition].

If you do not know the value proposition of your product or service? How do you sell?

Follow the formula first. If you want to be creative please after understanding the goal of today’s lesson. The formula is to facilitate us to understand the value of proposition After the understand please create.

When we remember the formula for our products, we know how to improve our products, how to persuade our customer in ads. If not fit, maybe wrong with our perception about our customer profile, maybe something wrong about our brand: credibility. We have to check one by one to our brand, our products, our message, our perception about customer profile, our price, our channel, our distribution.

Or maybe, we didn’t know about customer objection to our products. We have to check and recheck to create fit about our offering with their demand.

 

Invisible

Value Proposition is Most Competitive Strategy Today

What is the value proposition? What is in it for our business? The value proposition is not ads for the audience, but the message of business owners. The value proposition is not a slogan, not an ad. Strategizer highlight this concept that relevant in the many to many communication, web 2.0, interactive communication.

Definition of Value Proposition

The value proposition is what benefits are able to meet customer’s expectations of your product or service. How your product helps customers work, meet customer expectations and reduce their suffering or pain.

If in the customer segment has is gain that they expect, or customer expectations, in the value proposition there is the term creator gain: How your product or service creates benefits for the consumer. Your products and services are trying to satisfy the gain.

In a customer segment there is the pain, or something that hurts them, or something they fear, in the value proposition, there is pain reliever: how your product or service reduces the pain of the customer.

The value proposition is created at the beginning after the target market is determined. Target markets are illustrated first, hopes, things they want to do, and their fears. Only then formulate our products and services. Our products and services are the answers to the work they need to do and they need their help, their hopes, and the pain or annoyance they experience.

Define Value Proposition for Your  Customer

So actually in running and raising business, the easiest is to determine who your customer first, who will buy your product.

In the canvas business model, the value proposition in the canvas business is the two most important blocks, along with the customer segment. Other supporters. Promotion is support. Production support. The resources are supporters. Fortunately supporting losers.

Obviously, what are the benefits my customers can use if they use my product or service and what harm has been made to my customers if I do not use my product or service?

Who will get the gain or avoid the pain? The customer segment we specify. Let’s say. I made a squid fishing bag special for squid. So I focus on my target customers. Then I set the gain and the pain. Which ultimately determines the design of the bag I made. Size, color, strength, water resistance, need place handphone, a place for fish bait. Bag design follows customer requirement.

Humans are motivated to buy for two things usually. Want to get the gain and stay away from the pain. Let’s say. Example. Women buy cosmetics. The gain is to hope she will be beautiful and interesting. And away from pain which means appear unattractive if not using cosmetics.

Well, how design your product? From the customer side, the gain is they want to get the benefits of your product. And they avoid the things they do not expect Then your job as the owner of a product or service is to match the value you have dg your target market profile.

That is if your product has benefited with the expected gain of the consumer and your product is able to keep away the pain that you want to avoid by your target market. Then there is conformity. Transactions are easier to happen.

 

Target Market Characteristic that give insights

After exploring market by segmentation, marketing needs to decide to choose target segment. Target Market Characteristic give us insights about how to writer acceptable copywriting ads and picture. The advertiser as a marketer is not just a writer and make an image of ads that offer a product only. As a marketer, ad builders try to match messages to a target market situation. 

If the advertiser is an outsourcing, who refuse to research the target market because it spends cost, so it is the company’s job to understand and study the target market, in order for the products and messages on the advertisement to be accepted by the target market. If not, they can not sell, because products and message of ads do not match with the need of the customer.

Target Market Characteristics Need and Products Fit

The main task of the business is to make market accept the products. If the product has not been received he should strive to make acceptable products by continuing to study the needs of the target market. Because if an offer continues to be unacceptable and there is no transaction, there is no income to cover the costs incurred in providing the service. Business cannot continue. People can continue to provide their bids and bear the costs that arise, but not forever. He remains with the hope that one-day market accepts their products.

Market accept the offer if it fits the needs and wants of the target market. If the offer is right, but the market still does not accept the offer, maybe our assumption about the target market is not right, or the message is not fitting.

We know market characteristic by identify geography, demography, psychography, and behavior. The benefit of this grouping is the efficiency of marketing work. Marketing work that includes promotions and distributions will be extravagant if directed to everyone. The budget and the time it takes to become infinite. But if there are marketing targets, there are savings, time and money. If the target market receives its offer, that’s what most businesses expect. The transaction happened smoothly. That is one of the reasons why businesses and marketing learn about market groupings and target markets.
Businesses typically choose target markets that they can serve and can afford to pay for their services. Without these two things, a business can not survive.

Knowledge of target markets is also important in formulating product or value offerings. From geographic, demographic, psychographic and behavioral characteristics, marketers identify the needs, wants and expectations of the target market. Then with that knowledge, they try to formulate the appropriate service.