Question

1. Define value proposition and list ways to find a winning value proposition.

Answer 1

Introduction:-

In micro economics for companies and firms, the concepts of analyzing demand for products is increasing over the years. The components of demand today, in the modern time are no longer limited to the core qualities of a product or the pricing but relate to other factors such as advertising, branding and the overall experience that the product has to offer.

The concepts of modern economics therefore are no longer limited in their approach to core concepts such as price elasticity, demand and others but also extend to relevant concepts such as branding and value propositions respectively which are explained in length in the following sections respectively.

For firms, it is increasingly difficult to maintain modern customer base by following old policies and procedures therefore these procedures must be realized and followed respectively.

Case Specifics:-

Define value proposition:-

Value proposition for a good or service, is a statement which the company uses to position its products in the minds of the consumers in a better manner than the competitors respectively.

The aim of setting the same is to ensure that quality of the product and branding is such that it clearly reflects in the minds of the consumers respectively.

This in some cases reflects differently in different kinds of segments or products to which the brand deals in. A clear example of a value proposition is Apple which has always been ahead of its competition the tagline "If you don't have an IPhone you simply don’t have an iPhone" coupled with the advertisement is a clear indicator of its policies and the quality of its products respectively.

List ways to find a winning value proposition.

• A value proposition should be short and concise in nature.
• It should be reflective of the core functions of the products being offered and must highlight the uniqueness it offers to the consumers.
• It should always keep in mind similar strategies followed by competitors and should always take its actions in a comparative manner respectively.
• It should be cost efficient and be displayed in advertisements respectively.
• Each segment in which the company deals with can be dealt with in a better manner respectively.

Please feel free to ask your doubts in the comments section.