Successful Marketing starts with the creation of an Effective Value Proposition. Discuss this statement. Use examples to support your discussion.
Coles being one of the giant supermarkets had also formulated the value proposition in order to gain product differentiation from their close competitors Woolworths. The value proposition likes “Cutting the cost of your shopping”, “Quality food costs less at Coles” and “It all counts” for different products helped them to gain the product differentiation from their competitors.
Marketing is considered as the fundamental involvement of certain activities, which result for attainment in customer’s potentiality of the organisation. It helps in establishment of customer relationship and maintaining it for a longer span. Marketing is also considered in playing a vital role for a product to survive in a competitive market. It helps in creating product awareness for the customers especially the customers, which the organisation is targeting. It also incorporates methods of customer convincing for buying a specified product. Customers with the help of marketing purchase the specified product and then provide feedback on the effectiveness of the product (Armstrong et al. 2015). Value proposition can be defined as the statement for marketing which, briefly summarises the reason for a customer in buying a product of an organisation and using its services. Value proposition is been utilised for convincing the clients or customers in purchasing specified products so that they could add value towards their organisation and the customers could attain value towards their lives. Both the concepts of value proposition and marketing are very much linked with each other, as both of them are very much dependent on one another. Effective methods of value propositions helps the procedure of marketing for becoming simple as the customers are already aware of the specified product benefit which they are purchasing (Covin et al. 2015). Value propositions is considered to be the prior step of marketing as it clearly demonstrates the significance and target market of the specified product.
Marketing is the process that helps the organisations in creating a certain value for its customers as well as establishing a strong relationship with the customers for gaining benefits. The benefits are in capturing the customer’s value by establishing strong relationship with them. Marketing is also a management process that helps to identify and anticipate the requirements of customers and satisfy those requirements of customers (Kumar 2015).
Market segmentation is done by organisation in order to achieve high sale for a specified product. Market segmentation is done by considering the factors like demographic as well as social status (Cross, Belich and Rudelius 2015). Value proposition of a product differs by depending on market segmentation it is dealing. For instant if an organisation focused to sell smart phones and the target market considered by them is youth and adult, then the value proposition will differ for both youth and adult. Value proposition for youth are factors like the smart phone is new for the market as well as it will match with the ongoing trend. When the market segment is considered adult then value proposition of the smart phone should consider the factors like the phones ability to handle the workload, its high speed of internet connection and the capability of phone in storing bulk amount of files. It is very much required for understanding nature of targeted customers for marketing, which can be done by excellent value proposition (Osterwalder et al. 2014). The communication through value proposition is done in brief way. It is done in few phrases, which can be easily remembered. The features and the product value are not been explained by any sales agent to the clients in case of value proposition. It rather contains very strong messages regarding the products towards the customers. These strong messages are been displayed by the organisation where they think they have the high potential customers. For instant an organisation like Weebly, which deals with the website launching, blogs as well as online stores has the value proposition “The easiest way to make a website”. This type simple phase attracts the customers by drawing their attention towards the value proposition. An example of an organisation that used value proposition to a good effect is Netflix. Netflix has a value proposition containing three tenants based on their service. Tenants include original content, affordable price and accessibility. Accessibility is mailing the movies copy, which their clients did not, received at Blockbusters. This value proposition helped the organisation in making their significant position in the market and in the heart of customers. The organisation also added online streaming services of the original content at an affordable price structure globally. Therefore, the organisation has utilised value proposition to a good effect (Sheehan and Bruni-Bossio 2015).
Value proposition can be defined as the statement for marketing which, briefly summarises the reason for a customer in buying a product of an organisation and using its services. Value proposition is been utilised for convincing the clients or customers in purchasing specified products so that they could add value towards their organisation and the customers could attain value towards their lives (Star and Brodie 2016). It is also a significant part for branding the image of an organisation. Branding is considered as the process that helps in creating an image regarding the product as well as services within the customer’s mind. Value proposition helps in building a significant position of an organisation in market.
Marketing is considered as a procedure and not an event. It begins with the distinguishing proof of potential customers. Identifying the potential clients is been effectively done by value propositions as the customer group who are interested for gaining the information on the specified product will turned out to be the potential customers. Potential clients for innovative smart phone produced by a reputed brand like Samsung targets both adults and youth. Information provided for client touch point will help in diminishing clarification amid the procedure of marketing. In this process marketer may requires to clarify as the clients already have an indication about the item. Value proposition statement will lessen the time for the marketer to convince the customer for purchasing the specified product. Brief statements on value proposition may have portrayed its elements as speed as far as network and the way that the smart phone is trendy. There are various contending items in market. Therefore, the company needs to have tactful skills for marketing their product especially for the customers who are having brand loyalty (Aaker and Biel 2013). Value proposition helps in differentiating the product from the competitor. During marketing, the customers get the information about the type of marketed products. Various smart phones are been released in the market, but with the utilisation of different phrases for different smart phones with the help of value propositions it becomes easy for customers in linking the statement with the products and differentiate them.
Value proposition also helps in having a successful marketing as the information a value proposition contains helps the sales agent to make a successful sale as the statement of value proposition already boosted the product’s enrichment. Value proposition statements can also be modified for building an advertisement messages. This helps the business to be recognised for future. It does not contain detail of the product, as it is extremely concise, it state about an item in short and may not clarify the promoting issues like the valuing, the place item can be found or the techniques that are being utilized to achieve the customers (Skalen et al. 2015). It will enable the team of marketing to meet the expectations of clients since the recommendation will bring about interest of potential clients who may enquire and this will help in marketing the item to the correct individuals.
Technological progression made organizations to favour utilization of web-based offering as opposed to centring just in physical offering. In web based offering the business bargain is shut without meeting the client therefore excellent quality of persuading a client is required since they have to trust the item prior of observing. Value proposition helps in drawing out the part of the way the item is utilized and making the marketing simpler, which should give extra data. A viable value proposition helps in assuming the whole part which marketing would perform like clarifying how an item works, how it is preferred and diverse over other comparable items in market, the advantages that would collect from making a buy with our association as far as saving money on cost as well as time. These announcements disclose everything for the client and all alone can persuade a client to buy which enables the association to diminish the cost that is identified concerning marketing. Organizations, which have been found in having good formulated value proposition, are able of attracting more number of clients. An investigation was perform where an organization had an item yet missing the value proposition and has done product marketing. It was seen that the marketed products was having a low sales. The organisation then formulated the value proposition and the outcome of it was quite amazing. The sale of the product was raised to three times than that of the first attempt (Payne and Frow 2014).
Conclusively it can be stated that value proposition does have some significant factors, which makes the marketing easier. Value proposition assists the customer in gaining the knowledge about the product before receiving any information from the sales agent. It is unique and differs from organisation to organisation. Therefore, it helps the customers in differentiating the product as well as helps the organisation to differentiate the product from its competitor. Therefore, it can be said that for having a successful marketing on a specified product there should be a well-formulated value propositions
Reference List
Aaker, D.A. and Biel, A., 2013. Brand equity & advertising: advertising’s role in building strong brands. London: Psychology Press.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction. NY: Pearson Education.
Covin, J.G., Garrett, R.P., Kuratko, D.F. and Shepherd, D.A., 2015. Value proposition evolution and the performance of internal corporate ventures. Journal of Business Venturing, 30(5), pp.749-774.
Cross, J.C., Belich, T.J. and Rudelius, W., 2015. How marketing managers use market segmentation: An exploratory study. In Proceedings of the 1990 Academy of Marketing Science (AMS) Annual Conference (pp. 531-536). Springer, Cham.
Kumar, V., 2015. Evolution of marketing as a discipline: What has happened and what to look out for. Journal of Marketing, 79(1), pp.1-9.
Osterwalder, A., Pigneur, Y., Bernarda, G. and Smith, A., 2014. Value proposition design: How to create products and services customers want. NJ: John Wiley & Sons.
Payne, A. and Frow, P., 2014. Developing superior value propositions: a strategic marketing imperative. Journal of Service Management, 25(2), pp.213-227.
Sheehan, N.T. and Bruni-Bossio, V., 2015. Strategic value curve analysis: Diagnosing and improving customer value propositions. Business Horizons, 58(3), pp.317-324.
Skålén, P., Gummerus, J., von Koskull, C. and Magnusson, P.R., 2015. Exploring value propositions and service innovation: a service-dominant logic study. Journal of the Academy of Marketing Science, 43(2), pp.137-158.
Starr, R.G. and Brodie, R.J., 2016. Certification and authentication of brand value propositions. Journal of Brand Management, 23(6), pp.716-731.
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