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Value Proposition

Definition - What does Value Proposition mean?

A value proposition is a statement that convinces customers to buy a product or service. It highlights the most important aspects of the product or service that will make a positive difference in the lives of the potential customers and to the success of the business.

Divestopedia explains Value Proposition

A value proposition is more than just a one-line marketing slogan. Rather, it is a block of text that helps customers understand how they can benefit from buying a product or service. In general, a value proposition starts with an attention-grabbing headline that highlights the main benefit of the product or service. This heading is followed by a short paragraph about the product or service and why users should buy it. This paragraph is then followed by a short bullet point list with the key features or benefits. Many companies like to also include images to get a visual feel.

Regardless of the format used, a value proposition is about articulating thoughts and finding the right words to convey those thoughts clearly to the audience. Though a value proposition sounds like a sales pitch, there is a difference. In a sales pitch, marketers extol about the product or service and its "wonders." However, in a value proposition, qualitative and quantitative benefits are explained without any marketing jargon or flowery language. It is an honest way of telling buyers about a product or service so that they can make informed buying decisions.

Value proposition has become an important tool in today's competitive market as data savvy customers are always looking to buy the product or service that offers maximum value.

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