Payment Mechanisms in International Trade
Setting up International Trade Mechanisms involves inter disciplinary processes including Finance, Logistics, Taxation and Supply Chain disciplines. Every Business Manager would need to know the nuances of the trade even though he may or may not be involved in the micro management of the processes. Any Import or Export entails commercial transaction and payment. When […]
Evaluating Decision Support System Projects
Why do we determine whether a computerized decision support system application is worth considering or not? Why is there a need to predict the actual impact of a proposed DSS? In short, the question is – why is it necessary to evaluate a decision support system project? The answer is simple. It’s done to assess […]
The Chinese Pension System
There has no doubt about the fact that the Chinese economy is one of the largest economies in the world today. Theoretically, China is the second-largest economy in the world. It is widely believed that the Chinese economy will surpass the American economy to become the largest in the world. However, many economists believe that […]
Marketing Model based on Customer Value Creation through Market Sensing and Learning
Introduction We are living in revolutionary times where the outdated and outmoded thinking about economics, business and virtually every sphere of life is being challenged by newer ways of thought. Gone are the days when businesses and marketers had certainties about the marketplace and customer preferences and tastes. Instead, what we have now is a […]
How Corporates Must Handle the Wave of #MeToo Allegations and Their Fallout
The #MeToo Movement Reaches India and Spreads Worldwide In recent weeks, the #MeToo movement, which encourages women to “speak up” on their harassment at the workplace and end the culture of “silence”, has been all over the place, both in India and the United States. Indeed, this trend of “naming and shaming” the men who […]
The modern business world is dynamic and fast changing, and today’s consumer is smart, informed, and savvy.
With an abundance of information available at the click of a button, they can see straight through flimsy marketing campaigns and overpriced duplicate products.
A strong product value proposition that instantly communicates the unique and authentic value of a product to the customer is more vital than ever before.
Managers face the dual task of increasing revenue and meeting sales objectives, while also ensuring the brand is constantly offering great perceived value for customers. A strong product value proposition can help.
Even if a product is a truly unique innovation, it will not achieve its full potential without the right marketing.
Scientists, engineers, and entrepreneurs might have the passion and ability to create excellent products, but they must also have the marketing knowledge to sell them. Producing an effective product value proposition is a great step in the right direction.
Countless businesses attempt to revitalize dying products by re-releasing them as ‘new’, ‘improved’, or ‘ultra’. This strategy is often seen in the automobile and confectionary industries. But today’s knowledgeable consumers see these products for what they are - the same item repackaged in an attempt to justify a higher price point and sell more units.
Unfortunately, this often has the opposite effect; unimproved products that cost more money decrease perceived value. What’s more, put off by being sold the same thing for more money, customers are often driven to competitors they deem to be more honest and trustworthy.
Truly innovative, valuable products are the ones that attract and build loyal customer bases - not unfounded rebrands or other gimmicks. A product value proposition helps businesses communicate the unique benefits of their product.
When a customer weighs up the value the company is promising in the product value proposition against the price, they calculate the product’s perceived value.
A product with high perceived value will be deemed to offer benefits that justify the price and are worth investing in. When a product value proposition successfully increases the customer’s value perception, businesses can sell more products at a higher price point, ultimately boosting profits by achieving greater value exploitation.
The best product value propositions tell the customer what they will gain from using the product, or how it can solve a pertinent problem they have. It might also highlight the unique nature of the solution (e.g., how it differs from and outperforms competitors). A clear product value proposition will communicate the true, innovative value of a product.
Tech companies like Microsoft, Sony, and Intel are constantly innovating, developing new products that provide distinct upgrades and new benefits. Each fresh product clearly outperforms its predecessor, and is therefore well-received by consumers.
As these companies continually innovate and elevate, they are constantly improving their product value propositions. This innovation keeps them fresh, cutting-edge, and trusted in the eyes of their customers. Ultimately, their consumer sees their products as having a high value.
Product value propositions are a powerful way to communicate the unique benefits of a product. They help businesses quickly show the customer why they should choose their product over a competitor’s, and help marketers avoid falling into gimmicks and lazy rebrands.
The best product value propositions boost the customer’s perceived value of a product, resulting in increased brand loyalty and better value exploitation for companies.
Your email address will not be published. Required fields are marked *
