Are you an EPFL student looking for a semester project?
Work with us on data science and visualisation projects, and deploy your project as an app on top of GraphSearch.
Concept
Value proposition
Summary
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers (i.e., a market segment) who will buy their products and/or services. It is part of a company's overall marketing strategy which differentiates its brand and fully positions it in the market. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services.
Creating a value proposition is a part of the overall business strategy of a company. Kaplan and Norton note thatStrategy is based on a differentiated customer value proposition. Satisfying customers is the source of sustainable value creation. Developing a value proposition is based on a review and analysis of the benefits, costs, and value that an organization can deliver to its customers, prospective customers, and other constituent groups within and outside the organization. It is also a positioning of value, where Value = Benefits − Cost (cost includes economic risk).
A value proposition can be set out as a business or marketing statement (called a "positioning statement") which summarizes why a consumer should buy a product or use a service. A compellingly worded positioning statement has the potential to convince a prospective consumer that a particular product or service which the company offers will add more value or better solve a problem (i.e. the "pain-point") for them than other similar offerings will, thus turning them into a paying client. The positioning statement usually contains references to which sector the company is operating in, what products or services they are selling, who are its target clients and which points differentiate it from other brands and make its product or service a superior choice for those clients. It is usually communicated to the customers via the company's website and other advertising and marketing materials.
Official source
About this result
This page is automatically generated and may contain information that is not correct, complete, up-to-date, or relevant to your search query. The same applies to every other page on this website. Please make sure to verify the information with EPFL's official sources.
Related concepts (7)
Value proposition
In marketing, a company’s value proposition is the full mix of benefits or economic value which it promises to deliver to the current and future customers (i.e., a market segment) who will buy their products and/or services. It is part of a company's overall marketing strategy which differentiates its brand and fully positions it in the market. A value proposition can apply to an entire organization, or parts thereof, or customer accounts, or products or services. Creating a value proposition is a part of the overall business strategy of a company.
Marketing management
Marketing management is the organizational discipline which focuses on the practical application of marketing orientation, techniques and methods inside enterprises and organizations and on the management of a firm's marketing resources and activities. Marketing management employs tools from economics and competitive strategy to analyze the industry context in which the firm operates. These include Porter's five forces, analysis of strategic groups of competitors, value chain analysis and others.
Marketing strategy
Marketing strategy is an organization's promotional efforts to allocate its resources across a wide range of platforms, channels to increase its sales and achieve sustainable competitive advantage within its corresponding market. Strategic marketing emerged in the 1970s and 80s as a distinct field of study, branching out of strategic management. Marketing strategy highlights the role of marketing as a link between the organization and its customers, leveraging the combination of resources and capabilities within an organization to achieve a competitive advantage (Cacciolatti & Lee, 2016).
Related courses (3)
MGT-201: Introduction to entrepreneurship
This course provides an introduction to the topic of entrepreneurship, the process of new firm creation and the commercialization of technologies. The course integrates theories of entrepreneurship wi
MICRO-406: Products design & systems engineering
This course will cover all the aspects of product design and system engineering from learning relevant methods to the actual implementation in a hands-on practice of product development.
MGT-411: Innovation management
This is a collection of lectures on "structured innovation systems," codified approaches to stimulating and managing the process of innovation. Some of the systems to be covered may be Design Thinking
Related lectures (66)
Business Models: Understanding Value CreationMOOC: IoT Systems and Industrial Applications with Design Thinking
Explores the essence of business models and the value creation process.
Launching New Ventures: In a Nutshell
Covers the fundamentals of launching new ventures, focusing on strategic decisions and implementation.
Entrepreneurship Essentials
Covers the essentials of entrepreneurship, historical background, and critical topics for modern business success.