Value proposition
Formal Definition:
A value proposition (VP) is a statement that clearly identifies what benefits a customer will receive by purchasing a particular product or service from a particular vendor.
Alternative Definitions:
A value proposition is a promise of value to be delivered, communicated, and acknowledged.
It is a belief from the customer about how value (benefit) will be delivered, experienced and acquired.
A value proposition is a statement which identifies clear, measurable and demonstrable benefits consumers get when buying a particular product or service.
It is a principle of customer value, with customer insights driving the company’s marketing activities.
Conceptualization:
Value proposition is the basic component
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Impact: What value a product would augment better than the competitors and how a product is facilitating the target market better than the alternatives. Proof: It is the endorsement that a specific product has delivered specific values in the most cost effective manner to gain customer satisfaction. Cost: It is the value a customer is expecting to get from a product paying a certain amount of money. Customer compares the value of the product with the cost that they have to pay and evaluate whether it delivers what is expected or not?
Dimensions of Value proposition from company’s perspective are
Value Creation: The basic step where the idea of value specification is presented and processed. Value appropriation: Is the second stage where product development, product improvement and smoothing customers buying experience comes in place. Value Consumption: Is the final step where customer uses the product and finally customer satisfaction and dissatisfaction is measured at this stage.
Some important attributes of value proposition
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In addition companies need to deliver their products while keeping cost effectiveness in consideration. If they understand the perceived benefits of their target audience and are able to engage with them on a personal level, they can attain customer satisfaction and ultimately can have increased sales. In conclusion, conveying Unique Value proposition clearly to the customers could be a complete win/win for any business.
Brand equity
Formal Definition:
The commercial value that derives from consumer perception of the brand name of a particular product or service, rather than from the product or service itself.
Alternative Definition:
Brand equity refers to a value premium that a company generates from a product with a recognizable name, when compared to a generic equivalent.
Brand equity ' is a phrase used in the marketing industry which describes the value of having a well-known brand name, based on the idea that the owner of a well-known brand name can generate more revenue simply from brand