What is a value proposition?
The value proposition is understood as the way in which a company manages to represent the benefits used in its products or services, for the customers who acquire them.
A value proposition is a marketing strategy that guides the relationship of the company with the purchase decision of its customers.
Through this method, the company seeks to convey to the market the profits offered by its products, including how problems and additional benefits can be solved compared to its competitors.
Examples of value proposition.
One of the best-known examples in this area, in marketing, is the American company Apple, which managed to indicate to consumers the usefulness of its products in the technological area.
The same is true, for example, with Uber , which proposes to facilitate the means of transport in private vehicles.
Value proposition in the Canvas business model
Canvas is a business model that seeks to describe the way in which a project can create, deliver and develop values in your company.
The “Value Proposition” is one of the 9 components that, together with the “Customer Segments”, define which audience should be reached and what innovation the product or service can offer, with its offered value.
From then on, the Canvas model analyzes which “Access channels” the product should follow for the public and which means of communication will be used, such as direct sales or the Internet, for example.
The following proposal aims to understand the means of “Relationship with customers” and how this relationship should be with each segment of customers that one wants to reach.
The “Sources of income” analyze the financial possibilities with the business and the possible income in each market that is intended to be inserted.
The “Main Resources” component is where the main resources used are defined, followed by the “Key Activities” that seem to be the most important and necessary actions for the business to be in practice.
In “Main Associations” we analyze the partners and suppliers that appear around the project, and the costs and expenses are defined in “Cost structure”.
In the development of a business model, the Value Proposition is one of the main components, since it creates the client’s relationship with the company due to the way it intends to satisfy the needs of each consumer.
The value proposition has a similar approach to Desing Thinking , in which products and services are developed with characteristics that are adapted to the consumer.