Value Proposition Flashcards
He developed the Value Proposition Canvas
Dr. alexander osterwalder
It is used to improve an existing service or product, or a new market idea is made or being developed
Value proposition canvas
This profile describes a specific customer segment in a business model in a organized and detailed way
Customer
Describes a thing your customers are trying to get done in their or work or life.
Jobs
The customer profile can be broken down into three categories. Enumerate them alphabetically
Gains
Jobs
Pains
Job when customers perform a specific task or solve a specific problem. Examples of this is writing a report, washing
the dishes, doing the laundry.
Functional
Job when customers want to look good, gain status, or gain power. It focuses on how a customer wants to be viewed by
others. An example of this is looking trendy with a new output or being a confident person.
Social
. Job when customer looks for a specific emotional state, such as finding peace with past trauma or feeling secure in a
relationship
Personal/Emotional
There also exists another type of customer job that customer performs in the context of purchasing and consuming value
as a professional or as a consumer known as.
Supporting
Pertains to job that is related purchasing a value, such as deciding what skincare products to use, what package is suited
best for needs.
Buyer of value
Pertains to the job that is related to cocreate value with an individual’s organization. It could be by posting product
reviews or giving or co-designing a product or service.
Cocreator of value
Pertains to job that is related to the end value of a proposition’s life cycle such as selling used clothes, cancelling a
subscription, or giving a product to others
Transferrer of value
Describes what annoys, angers, or upsets your customer before, during, or after getting a job done
Customer pain
Enumerate alphabetically, types of pain under undesired outcomes, problems, and characteristics.
Functional
Social
Emotional
Ancillary
These are the things that hinder a customer from doing a job.
Obstacles
Shows what is at stake when things go wrong and what are its negative consequences
Risks
Describe the benefits that the customer wants. It can be required, expected, or desired by customers, and maybe some
would surprise them.
Customer gains
This includes functional utility, social gains, positive emotions, and cost saving.
Gains
Name the four main types of customer gains, alphabetically.
Desired
Expected
Required
Unexpected
These are manufactured products
Physical
This includes products such as copyrights or services such as aftersales assistance.
Tangible
This includes products or services that can be used through a digital platform.
Digital
. This includes products or services such as investment funds, insurances or services such as purchase financing.
Financial
This describes how precisely goods and services alleviate customer pains.
Pain relievers
This explains how products and services lead to customer gains.
Gain creators
takes place when there is evidence that customers care about certain jobs, gains, and pains, and a value proposition is
designed to address those jobs, gains, and pains. In this stage there is no evidence that customer that customers care
about a value proposition.
Problem solution fit
take place when there is evidence that products and services, pain relievers, and gain creators is starting to create
customer value and attraction in the market. In this stage assumptions in the value proposition is being validated or
invalidated.
Product market fit
Takes place when there is evidence that the value proposition can be embedded in a profitable and scalable business
model
Business model fit
Value proposition allows target market and potential customers can quickly understand what your business has to offer. T/F
T
Business models attract the right prospects and stagnate the quantity and quality of prospective leads. T/F
F
Value proposition provides clarity of messaging T/F
T
A company’s value proposition should satisfy the question of customers and communicate clearly why they have the
right product or services for the needs of its customers. T/F
T
A clear, simple statement of the benefits, both tangible and intangible, that the company will provide, along with the
approximate price it will charge each customer segment for those benefits
Value proposition
The term “value proposition” first appeared in a staff paper for
McKinsey and company’s consulting firms,
McKinsey and company
When was the term “value proposition” first appeared?
1988
They firstly defined value proposition. Answer alphabetically
Edward michaels
Michael lanning
An assurance of value made by a company that summarizes how the benefit of the company’s product or service will be
delivered, experienced, and acquired.
Value proposition
The value proposition is typically directed at the company’s _________ or _________. Answer alphabetically.
Market segment
Target customers
We need to focus on where our cashflow comes from, and double down on segments who are happy to pay for our
services
Confusing supporters with customers
We’re not just looking for problems our customers encounter, but problems that are worth solving ahead of all others
Solving low value problems
But that appetite is quickly satisfied, whereas our appetite for self-interest is harder to suppress
Appealing to charity, not self-interest
This limits our innovation, it’s sometimes much easier to find new customers than it is to invent new services.
Locking in your customer profile too early
. You’d need to be convinced that this new option is significantly better that what you’ve already got
Designing something “as good” as the
competition
If we focus too much on why this business helps people, we lose sight of the real goal which is making sales and thereby
perpetually funding our mission.
. Solving problems for beneficiaries, not
customers
We need to think creatively to list all the customers who are worth investigating, not to be creative in making them up.
Inventing customers to suit products
There are more unsophisticated buyers who have little to no knowledge in the industry
Assuming customers are sophisticated buyers
A few stunning reasons are more valuable than twenty side benefits, and it makes the concept much clearer
Clogging the canvas with “nice to haves”
Objective-based value that exists within the product and is unaffected by market conditions.
Intrinsic
Value is viewed as the result of a personal comparison of sacrifices and benefits, with the outcome being essentially
utilitarian in nature
Utilitarian
Subjective and is perceived by individuals as they evaluate the product during or immediately after use.
Use value
It is linked to the benefits that individuals derive from using the product
Use value
Refers to the point at which intrinsic and/or use value are weighed against the sacrifice made in order to experience those
forms of value.
Utilitarian value
An object-based but it is influenced by market conditions.
Exchange value
He proposes that “Value is neither use nor exchange; it is neither object-based, nor subject-based; it is neither my view,
nor your view, it is all of these things”
Woodall
Essentially specifies what makes a company’s product or service appealing, why a customer should buy it, and how the
value of the product or service differs from similar offerings.
Value proposition
The ideal proposition must convey the values to potential customers quickly and without the need for further explanation. T/F
T
Each proposition must be unique, as it is a method to communicate the differentiation points of a company to the target
customers. T/F
T
The major challenge in starting a new business is creating the desirable value propositions that offers compelling
statements of promises to the customers. T/F
T
. A supporter is someone who pays you. A customer is someone who likes your brand and your story.
T/F
F
Unsophisticated buyers know what can/can’t be promised and speak your industry’s language. T/F
F
We need to discover customers, not fabricate them. T/F
T
Justify keeping the “nice to haves” and removing the “must have”. T/F
F
When people analyze the intrinsic product characteristics prior to or during use, they arrive at this objective value
assessment. T/F
T
All objects have “qualities,” but if a quality is not valued, it will not remain as a quality T/F
F
The utilitarian approach seeks to balance “all the good and the bad. “The utilitarian approach seeks to balance “all the
good and the bad”. T/F
T
. Its aim is to resonate with the emotional side of customers and create a connection that cultivates a lasting brand loyalty.
Customer connecttion
It is crucial for a company to provide a definite response to the inquiry of why their potential customers should opt for
their products instead of other options in the market.
Specific value
According to this element of value proposition, it is essential for a business to have a precise understanding of its
preferred customer and modify its value proposition accordingly to attract that customer.
Target market
List the characteristics of value proposition alphabetically
Alignment
Applicability
Convergence
Distinctiveness
Embedded in business models, Embedded in
business model
Focus
Performance
Prioritizing
Targeting
Uniqueness
It describes a specific customer segment in a business model in an organized and detailed way.
Customer profile
It is simply describing what the customers need to accomplish in their work or lives, which are expressed on their own
words
Customer jobs
Customer pain can be measured from moderate to extreme as it also varies from customer to customer on how they feel
the magnitude of their pain.
Pain severity
Just like pain severity, customer gain can be gauged from nice to have too essential.
Gain relevance
It describes features of a specific value proposition in a business model in an organized and detailed way.
Value proposition map
A value proposition that is specific and targeted enables businesses to clearly communicate how their product or service
can solve the customer’s problem and fulfill their need T/F
T
By understanding the customer’s needs and tailoring the value proposition accordingly, businesses can build trust and
establish long-term relationships with their customers, leading to increased customer retention and brand loyalty.T/F
T
The effectiveness of the product or service and its capacity to produce outcomes that satisfy the needs of the consumer
must be demonstrated in a value proposition. T/F
T
A value proposition must align with the overall brand image and messaging of the business.
98. By ensuring that the value proposition converges with the brand’s core values and messaging, T/F
T
An effective value proposition shouldn’t showcase the distinctive features and benefits of the product or service, setting
it apart from the competition and communicating its unique value proposition. T/F
F
A value proposition should highlight the unique disadvantages and selling points of a product or service to differentiate
it from competitors. T/F
F
