Value Proposition–Top Marketing Strategy

Last Updated on January 17, 2023 by DesignerPeople

Today when we visit any store or mall we find many options available in case of products or services, and we usually end up buying products which we are used to purchasing or if it’s providing us with any extraordinary benefit compared to competitors.

So, you want a customer to buy your product instead of a competitor?

Lot of brands are wondering ,what magic their brand can do so, that customers will prefer to buy their product/services over a competitor’s brand?

When we talk about value, it is a promise to deliver to customer with something which brand stands and known for and such value is known as value proposition. We usually hear customers saying ‘wow it’s a good deal’,‘ oh that’s a bad deal’ but have you ever given a thought on how customers are deciding on these factors.

What are customers take away elements when they interact with brands through various touch-points which can be packaging, advertisement or website. They feel wow about any brand because either it is providing a specific benefit to them or it is solving their life problem. Hence this is the point where they decide to buy competitor product over yours.

Whenever customer observes any brand his/her brain automatically generates a formula which is

VALUE=BENEFITS/COST, which means what the benefits customer are gaining against what is the cost customer have to pay to get these benefits. Hence this is the stage where the customer decides whether product or services provides relevant value or not. The concept is called a value proposition, and if you want to increase product/services sales over competitors, then you have to increase your value proposition.

A value proposition can be increased either by increasing benefits in the eyes of potential customers or by decreasing the cost. In India majority of businessman reduce the cost to gain value addition, but I believe reducing cost is not always a wise option to increase the value proposition. If so, then brands such as Apple, Nike, and Starbucks would have never been successful as they are charging 4-5 times higher than its competitors.

A lot of businesses with the right products fail just because they cannot communicate their brand values to their customers successfully.

A right branding agency will always use the value proposition as an opportunity to stand out your business from the competitors. You can contact our agency on the below-given phone number, and we will help your brand to make global. If you liked watching this video, then please do like and subscribe to our video, as it gives us immense motivation to create more valuable videos for you.

Now there are DIFFERENT TYPES OF VALUE which a customer consider while making a purchase such as:

1.FUNCTIONAL VALUE

Those values which will solve consumers problems and make their life better or comfortable.

Example – The way iPhone introduced features such as face Id and touch Id to add security in their products made the life of customers easy.

Adobe photoshoot and Illustrator generated multiple creative images in minutes through their innovative software and solved the problem of the media industry.

2.EMOTIONAL VALUE

These values are connected emotionally with customers and provide customers with a positive feeling when they purchase. Advertising agencies use a lot of sentimental value in their ad campaigns such as ‘Mere Desh ka Namak’ -Tata Salt, ‘Daag ache hai’- Surf excel

One can consider countries, state, city, family, kids and other subjects which are associated with human emotion which is utilized to bound prospective customers. Anything which is having an emotional relationship with your customers will help your brand to gain competitive advantage. Such as Made in Bharat mentioned on Patanjali packaging is more emotionally valuable compared to Made in India on other brands, Coca-cola ad campaign with open happiness is a positive emotion which believes in spreading happiness with consumption of Coca-Cola.

3.ECONOMIC VALUE

Those values which save consumer time and money. When a customer is getting any financial or time advantage over other brands, then it is providing economic benefit.

Examples- Buy 1 get 1, Suzuki access Kam Peta hai says better millage.These taglines are focusing on gaining benefits in terms of cost. This way, you can increase your sales by displaying your brand’s economic values.

4.SYMBOLIC VALUE

Those values which give customer social status, pride and makes them feel rich.

Examples – Designer clothes, GUCCI, Prada, Louis Vuitton, Rolex watches or any other big brand whose name is associated with the feeling of pride and richness is symbolic value. If you project your brand at this level where it enhances your customer social status and pride, then customers will prefer your brand irrespective of any cost.

5.END VALUE

Those values which customer feel after using the product. Customer relation is not restricted up to only sales but post-sales also. The way end value of the product created in the mind of the customer is a very important aspect.

For example, I had brought home utility product, and it was functioning perfectly well. But still, I got a call from their company to take post-sales feedback about product usage and my reviews. Now, this created a positive image about that brand, and hence, this is the end value.

Hence above 5 values are possible only if you identify your customer expectations, analyzing market research or customer trends will help to identify expectations. Customer insight knowledge is essential for every business owners. So, now if you have valuable customers, don’t forget to extend value addition to them, and their likes and dislikes are very important to consider which will help to analyze its facts and brand strategy.

DesignerPeople have worked with various great brands in India for branding and marketing services and rendered exponential growth. You can contact us to make your business a global brand and evaluate your brand’s value proposition.