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Monday, April 28, 2008

What Is a Value Prop?

Many of us have heard of a Value Proposition (or value prop), but may not know exactly what it is. And even if you know what it is, do you have one for your business?

A value proposition is simply the thing that makes you better than your competition. Its the basic reason customers choose your product, or why they may be willing to pay more for your product than a competitors. However, a value proposition is NOT a list of product benefits, and thats where many small businesses often get stuck.

Highlighting your product benefits is important, of course, but chances are that your competitors already assert many of the same benefits about their products. A value proposition identifies the differentiator, the unique core value that your company offers.

To develop a value proposition for your business:

1. Think about the core competencies of your company. Take note of what makes your product unlike any others, and what your product offers that only your company provides.

2. Research your competitors. How do they market themselves? What do they say about their products and services? How do they present their value proposition? After you identify these, list the competitions core competencies along side of yours. Look for the differences, and take note of the areas where consumers might think your competition excels. You can then level the playing field by highlighting your excellence in these areas as well.

3. Narrow in on one core value. Prioritize your core competencies, then select the one that best represents your companys core value. Use that in your marketing materials and build your identity around that value. No company can be all things to all people, so stick to only one core value if possible.

4. Put your value proposition into words. Use it as a starting point for building marketing materials, communicating with the press, training your sales staff, and creating a marketing message. Back it up with examples of how you help customers save money, save time, solve problems, etc.

If you dont have an official value proposition for your business, you may want to create one. A concise, distinctive value proposition helps define your company and set you apart from the competition. Once you have it on paper, make sure that everyone in your company knows what it is and can uphold your company's core value each day.

Lauren Hobson is the Editor of Biz Talk Newsletter, a free monthly publication designed to provide small businesses and non-profits with tips and techniques to help them make the most of their web sites and marketing efforts without spending a lot of money. Biz Talk is published by Five Sparrows, LLC. Visit us at http://www.fivesparrows.com or subscribe to Biz Talk at http://www.fivesparrows.com/biztalk.htm. Copyright 2006 Five Sparrows, LLC. All Rights Reserved.Jai Patel profile and articles - Entire Article - Online Articles
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