Value Proposition Toolkit: what it is and how to test it

Quoted on this wiki

Every place a page here uses this source, in the order the words come in it.

1. “While both strategy and value proposition need to answer for “which customers, which needs and what relative price”, strategy is far more integrative, bringing the demand and supply sides together, and will contain several value propositions.” The best definition I’ve found and use for value proposition is, “the combination of experiences (benefits, trade-offs, price) any business delivers to its target customers versus competing alternatives.”  And finding a unique, differentiating value proposition typically involves a new way of segmenting the market, and as Michael Porter often points out, a novel value proposition expands the market.  Before Starbucks came along, customers didn’t realize that they need one nearby to get coffee.  Before iPad came along, customers didn’t realize they wanted tablets.  Did customers know they can pay cheaper prices for all their furniture by assembling them at home before Ikea?  These are examples of companies that didn’t just meet customers’ needs, but they also transcended their unmet needs and expanded the market.

   In Strategy