Selling Proposition and

Value Proposition
Selling proposition and Value proposition
 A unique selling propositIon is a marketing strategy that focuses on a
product’s special feature,one that is not carried by any other product or on a
special offerings, bonuses and promos, to entice consumer interest and
attention.
 The learner in order to become entrepreneur must learn how to manifest thw
idea onselling proposition which is the consideration presented by a seller as
the purpose that one product or service is unique from which is better than of
the competitors
The main key to effective selling in this situation is a UNIQUE SELLING
PROPOSITION.

USP strategy can Increase sales

 Sympathize with your customer’s needs.

Entrepreneur focuses solely with their product or service and not giving priority to the customer’s needs considering that
they must be satisfied.

 Determine price as a factor to obtain sales.

Entrepreneurs must be aware of the competitors price so as to adjust to the cost of production just to maintain quality.

 Consider what motivates your customer.

Study the customer demographics, such as age, gender, ethnic group, income and geographic location which most
bussiness collect to analyze their sales trends. The data collected can be used as motivational factors.

 Expose the primary reasons why customers are buying the product.

As your bussiness grows you will be able to ask your best source of information: your cutomers. You will be surprised how
honest people are when you ask how you can improve your service.
 Unique personalities in your industry leverage.

It may seem strange to assess an industry on the basis of personality. But hear me out. Certain industries carry an
undeserved reputation that distorts how outsiders view them, for the worse.

 Develop personal Involvement.

Sellers must consider every transaction a chance to reach out to attain customer delight not just satisfaction.
 How to write a Unique Selling Proposition
The four step exercise will helpyou write a unique selling proposition new product
or service.
 Review a strategic planning process which includesthe following mission statement, bussiness plan,
market analysis, and overall bussiness goals.
 Clearly identify the target audience’s problem and explain how the product or service solves that
problem.
The company sells moving boxes may identify potential customer’s problem as not being able to
easily locate the
proper containers when they are packing their belongins and preparing to move.
 Focus on identifying what it is the solution to the customer’s problem that is different, or better
than, the solution that competition offers. The value that can identify here will be one primary
reasons why the customer’s will choose the company instead of a competitor.
The potential differentiators of the moving supply that a company may offer are sturdier boxes, less
expensive boxes, complete packing solutions, same day delivery, with exceptional
customer services.
 Combines the most important elements of the previous steps into a concise statement that embodies
the value the company has to offer.
• Here are a fewer ways to get started.

1. Identify a target market.

This step of qualifying a bussiness idea is determining who will be buying your
product or service. The company needs to create a picture of the ideal customer.
Consider factor such as age, gender, education level, Income and location. Then it can
narrow down the picture of the ideal customer the better.
Then, conduct a market analysis – Research to determine how big the market is, how
saturated it is and if there is room to add product or service to the mix. It can also be
helpful to create a test segment of the target market and conduct a focus group or a
survey to find out who they really are. Then, the company can decide if it makes sense
to launch the bussiness to a market segment to gauge response before committing fully
to the bussiness idea.
2. Know what makes the product/service different.
During the research, the company will probably discover that there are other businesses
already offering the same or similar products and services to the target market. It
identifies what makes the bussiness different, and why the target clients should choose
over the compititors.
3. Research the competition.
The company needs to know who the ideal customer is and also needs to know the head
of that particular department is. This is why it is really important to get an idea of who
your competitors are before you move ahead with your bussiness idea. ( Two excellent
tools for researching your competitors are COMPETITIVE analysis and a SWOT analysis.
4. Conduct a financial feasibility analysis.
This is the guide of conducting a finiancial analysis that will help the company get
Value Proposition is a bussiness or marketing statement that a company uses to summarize
why a consumer should buy a product or use a service.
The Value Proposition Builder Model states six stages to the analysis.

 Market – Analyzing and identifying the market segments, or specific clients, or target
individuals within those clients for whom the solution has the potential to deliver value
and probability.
 Analyze and define the value experience that clients get from the organization and its
current activities. It should need to define good, bad and neutral undertakings. The
effectiveness of the value proposition depends on gathering real customer prospect or
employee feedback.
 Define the offerings mix capable or leveranging the proven value experience with the
defined target market group.
 Asses the benefits of the offerings in the context of the value experience the company
are able to deliver to the market group. There is a cost component of benefits here
which includes price and customer risks, enabling the calculation of value where VALUE
= BENEFITS minus COST.
 Analyze the alternatives and differentiation. What alternative options does the market
have to the product or service?
 Ensure with relevant proof and check if there is substantiate value proposition in place.
 The Value Cycle
Osterwalder and Pigneur stated that the value proposition must be studied through its
entire value life cycle. Value elements can be created in each of the five stages of the
value life cycle. These stages are: Value creation, Value appropriation, Value consumption,
Value renewal and Value transfer.
 Value Creation – Marketing and research and development are mainly responsible for
adding value at this stage based on historic data and observation. At present, the
customers of several companies are included in this stages
 Value Appropriation – Value can be created in this stage by developing, improvingand
facilitating customers buying experience. This can be done in two steps, firstly
improving how transactions are made, and secondly, considering the fulfilment of
customers.
 Value Consumption – This is core to the value proposition. At this stage, customers
see and feel the value through the actual use of the product or the service. At this
stage value can be created through a bundle of benefits that are linked to the
product or service. It can be improved through observation and resulting feedback.
 Value Renewal – This stage is when value expires. The value can be created from this
through adding more benefits and features to the product lr service when it is
renewed.
 Value Transfer – The final stage of the value life cycle is the stage when customers
can no longer gain value. Value abundance can occur at this stage, when customers
need to pay for disposting certain used goods, e.g. TVs/computers.
 Value Proposition Advantages
These are the benefits and advantages to be considered through the process of
discovering, articulating and realizing your value proposition.
 Gives direction – it provides direction by defining the ideal target audience right up-
front and understands the core needs that can be satisfied by the planned solution.
Value proposition helps prevent waste of time, money, and effort by offering
products or services that are not relevant or attractive to the target customers.
 Create focus – it gives team focus by identifying the fundamental initiatives,
activities and aspects of the business; this will have the greatest impact on meeting
the defined target audience’s needs. Value proposition assists in focusing on why and
how the business will be delivering value. It outlines what the company mjst deliver
to meet the defined audience’s needs and create an overall remarkable experience.
 Breeds confidence – it can progress without questioning and second-guessing the
every move, thus breeding confidence. The company can be assured of the decisions
that made by seeing where and how the company is adding value to the audience.
Confidence comes from knowing that you are making a difference to the people that
the company serves so in a way that is meaningful to them, and that the actions are
aligned to deliverin an overall remarkable experience.
 Improves customer understanding and engagement – it givesthe basis to
engage with customers in a compelling and resonant manner by understanding
how they view the company, and its products or services. The value
proposition determines the factors that do not only make a difference to the
audience, but in aspects or way that is meaningful to them.
 Focuses on the clarity of business value – it is any brand recognitions. The
company is going to paint a very clear picture of the company’s brand. Often
though, many campanies’ marketing messages end up being vague and
unfocused, thereby losing their impact and persuasiveness. The value
proposition frames not only how the creating value for the audience but
explaines critically why the solution is better than what they are currently
doing or using against whatever is potentially out there.
Benefits of Value of a Strong Value
Proposition

 It makes you focus on aspects of your business and initiatives that make the
biggest difference.
 It helps you avoid wasting time, money, and energy.
 It helps you develop the most persuasive marketing concepts.
 It gives you the right basic wording for marketing messaging.
 It shows you how your customers view you and your products.
 It reveals the connections between your product and your prospects’ goals.
 It gives you confidence.
Guidelines in developing selling proposition the value proposition that differentiates one’s
product/ service from existing products/ services.

 Be specific in the product features.

 Guarantee its benefits.
 Provide an easy way to test the product
 Let customer testify for the product.