Posted in Marketing and Strategy Terms, Total Reads: 1925
Definition: Value Proposition
It is a promise given to customers for delivering its promised value and a belief from the customer that the right value is experienced. This value proposition is can be related to all the parts of an organization to give customer what is promised. To create sustainable value proposition simply means satisfying customers.
It answers one of the most important questions of why a consumer should buy a product or use a service from a given organization. This helps customers to make its decision for selecting the right product or service depending upon its value promised.
Eg: Company like Tata Motors focuses on its value proposition of providing value for money product to its customer. Thus most of their statements come in the form of providing the best services in its class at lowest possible cost. It targets all the customers who are very price conscious but wants as many as features possible.