Value Proposition - Module 4 Flashcards
It refers to the value a company promises to deliver to customers should they choose to buy their product
Value proposition
T or F:
Value proposition is not part of a company’s overall marketing strategy.
False
It provides a declaration of intent or a statement that introduces a company’s brand to consumers by telling them what the company stands for, how it operates, and why it deserves their business.
Value proposition
It specifies what makes the company’s product or service attractive, why a customer should purchase it, and how the value of the product or service is differentiated from similar offerings.
Value proposition
It can be presented as a business or marketing statement that a company uses to summarize why a consumer should buy a product or use a service.
Value proposition
It is addressed to the company’s target customers or target market segment.
Value proposition
T or F:
Value proposition must not be confused with slogans and catchphrases, as the latter two may not clearly convey the benefits of a company and its products.
True
It takes the form of a short, clear, and concise statement of the tangible and intangible benefits that will be delivered to customers.
Proposition
It quickly transmit the values to potential customers without the need for further explanation
Perfect proposition
T or F:
Proposition must be unique, as it is a method to communicate the differentiation points of a company to the target customers.
True
T or F:
Value proposition must not be confused with slogans and catchphrases, as the latter two may not clearly convey the benefits of a company and its products.
True
It is a brand has to offer a customer that no other competitor has and how a service or product fulfills a need that no other company is able to fill.
Great value proposition
It stands as a promise by a company to a customer or market segment
Value proposition
T or F:
Value proposition should not clearly explain how a product fills a need, communicate the specifics of its added benefit, and state the reason why it’s better than similar products on the market
False
It is to-the-point and appeals to a customer’s strongest decision-making drivers.
ideal value proposition
The term “economic moat” was coined by who?
Warren Buffet of Berkshire Hathaway
The wider the moat, the bigger and more resilient the firm is to competition.
Economic moat
It is a powerful tool to drive sales and build a customer base.
Value proposition
It communicates the number one reason why a product or service is best suited for a customer segment.
Company’s value proposition
T or F: Company’s value proposition has a strong, clear headline that communicates the delivered benefit to the consumer. The headline should be a single memorable sentence, phrase, or even a tagline. It frequently incorporates catchy slogans that become part of successful advertising campaigns.
False - Successful value proposition
It is a short paragraph and is typically between two and three sentences long, and a way to highlight the key features or benefits of the products and often benefits from the inclusion of bullet points or another means of highlighting standout details.
Subheading
Enumeration:
How to create Value Proposition
- Know your customers
- Understand your costs and benefits
- Don’t forget about your competitors
- Be clear and concise
- Design is king!
You must analyze the market and potential customers and identify your target customers and target market segment to understand their desired benefits.
Know your customers
Identify and assess the benefits delivered by your company and its products or services, along with the costs incurred to provide them.
Understand your costs and benefits
Evaluate the competitive landscape in the market. Determine the strengths and weaknesses of your major competitors and identify ways you can differentiate your business from them
Don’t forget about your competitors
Your target customers must quickly grasp the message you want to convey. It should not exceed two or three sentences.
Be clear and concise
Make your proposition visible and appealing on all marketing materials (e.g., website). Remember that if you have created a powerful value proposition, but no one can see it, the effect of the proposition will be zero!
Design is king!
T or F:
All effective value propositions are easy to understand and demonstrate specific results for a customer using a product or service.
True
T or F:
It should clearly identify who the customers are, what their main problems are, and how the company’s product or service is the ideal solution to help them solve their problem.
True
It is a scenario in which a company’s target customers are buying, using, and telling others about the company’s product in numbers large enough to sustain that product’s growth and profitability
Product-market fit
It means finding a good market with a product capable of satisfying that market and who stated?
Product-market fit – Marc Andreesen
Who published “The Lean Product Playbook”?
Dan Olsen
Enumeration:
Dan Olsen offers one high-level method that can help get your team started:
- Determine your target customer
- Identify underserved needs of that customer
- Define your value proposition
- Specify your minimum viable product (MVP) feature set
- Develop your MVP
- Test your MVP with customers
It is the priority and without it, it is not possible to achieve the product market fit in a single attempt.
Customer needs
T or F:
Product-market fit is dynamic, it will keep changing as customer needs evolve over time.
True
Who is Responsible for Product-Market Fit?
Sales, business development, support, finance, and all other departments help the company reach this important milestone.
T or F:
Constantly re-evaluating market conditions, market requirements, customer need, and feedback will help fit in the market
True
Enumeration:
Division of every startup’s life into two key stages:
- before product-market fit (BPMF)
- after product-market fit (APMF)
He offers some signals that a company is heading in the right direction.
Andrew Chen (venture capitalist)
Enumeration:
Quantitative metrics
- NPS score
- Churn rate
- Growth rate
- Market share
Enumeration:
Qualitative metrics
- Word of mouth.
- Calls from the media or industry analysts come in much more frequently, and coverage of your product and company increases.
Enumeration:
Signals that a company is heading in the right direction with its offering
- When surveying potential customers or allowing them to test your product, does some segment indicate they will switch to your product?
- Are some users who have rejected similar products on the market willing to try yours?
- When user testing, do people group your product accurately with the right competitive offerings?
- Do users demonstrate an understanding of your product’s differentiators or unique value proposition?
- How do your underlying metrics (such as retention rates of users) measure up against those of your competitors?
T or F:
As Andreesen says, if your customers talk about your products with others, they effectively become your product’s sales reps.
True
Who created the Product-Market Fit Pyramid Framework?
Dan Olsen
Enumeration:
Product-Market Fit Pyramid Framework
Product:
- UX
- Feature Set
- Value Proposition
Product Market Fit
Market:
- Underserved Needs
- Target Customer
