Question

Describe the different types of Customer Value Propositions and how to identify your target customers.

Answer 1

Customer value proposition is defining the parameters or unique selling features about your product or service as to why the target customers should prefer your product or service over other similar products or services available in the market.

Typically Customer value proposition can be described as different kinds of values a particular product or service has to offer to the potential user

• Functional Value : e.g. Basic need the product should suffice . A wrist watch should show the correct time.
• Emotional Value : This aspect caters to behavioral aspect of buying. e.g. A car manufacturer providing special price on occasion of an anniversary or restaurant offering a special discount on bill for an anniversary dinner.
• Economic Value : This pertains to pricing of the product and benefit it provides to end user in terms of value for money .This value proposition defines the affordability aspect of the product or service.
• Symbolic Value : This defines the aspect of value which is beyond functional or material aspect. e.g. A television set having some lower eye sensitivity feature or car with eco friendly emission norms.
• End value : This is nothing but the combination of all values and summerizes take home utility for the end user.

The basic parameter to identify your target customers is based on Market Segmentation.

There are different criteria based on which market can be segmented.

• Geography
• Age
• Gender
• Profession
• Religion etc