Developing a Value Proposition for Marketing Success

Do you have a clear idea about the value your company offers through your products or services? Do you have a good understanding on how you distinguish on behalf of your customers and the market? How do you think your company provides value to your customers?

As a marketing professional, it is important to develop a value proposition for your organization as it will help you determine the benefits of your products or services and see how unique is your company in terms of the experience you are offering the customers. According to HubSpot (Links to an external site.), 69% of businesses have developed a value proposition. You might be wondering what value proposition stands for and why it is important for your success as a marketer.

Value Proposition Defined

A value proposition is what a company promises in terms of value to its customers with regards to how the products or services are offered, delivered and obtained. A value proposition is essential to develop as it will allow you to make your company attractive. It gives you an idea about the reasons why customers should purchase your products and how you distinguish from the competitors. It is directed to the company’s target market. It is a clear, specific and short statement mentioning the benefits of what is offered to customers. As a marketer, you should try to make a value proposition as much unique as possible to be able to differentiate your offering.

Why Having a Value Proposition is Important?

Having a value proposition is essential for developing efficient marketing strategies. It allows to convince people to make purchase of your company’s products or services. Companies usually display it in the corporate environment to reinforce the company’s culture, motivate employees and guide them to make better business decisions. It can also be displayed on your website or social media pages to make people aware of the values you are offering with your product. Developing a value proposition allows to generate more sales and strengthen relationships with your customers.

How to Develop a Value Proposition?

There are several elements you have to understand about your company in order to develop a powerful value proposition according to the Corporate Finance Institute (Links to an external site.). Below are what you should know before creating your value proposition:

  1. Understanding the Target Audience

It is important to do a thorough analysis of your target market to understand who are your potential customers. Then, you have to identify what are the benefits either tangible or tangible your potential customers are looking for.

  1. Identify the Benefits and the Costs

It is important to identify the benefits of your products to assess your company’s offerings. You should also understand the costs associated with these benefits. Indeed, the value proposition can be determined through the difference between the benefits offered and the costs of your products or services.

  1. Know your Competitors and their Offerings

It is also important to make a competitive analysis and determine how you distinguish in the market. Here, you should be able to determine your competitive advantage through evaluating your competitor’s strengths and weaknesses.

Now that you understand the elements allowing you to make a powerful value proposition, it is easy to create one. According to the journalist Lindsay Kollowich (Links to an external site.), you should just create a concise statement that has a maximum of three sentences that can be read in 5 seconds that mentions the uniqueness of your products or services. To sum up, you should make sure that your value proposition is simple to understand, efficiently communicate the benefits of your products or services and explain how it is better than what is offered in the market. With a value proposition, you will be able to make better decision when implementing new marketing strategies as you will understand clearly how your products improve situation. You will find it easy to convince your customers in buying your products rather than the ones of the competitors. You will be surprised how your value proposition will help you boost your sales and conversion rate. If you have not created a value proposition yet for your organization, it is time for you to create one that will be appealing to your target audience!

The Key to Business Success : Developing a Marketing Environment Analysis

It is fundamental for marketers to do a thorough analysis of the business environment to understand the factors that might affect their organization.

According to Keller (2015), the analysis of the Marketing environment consists of analyzing both the broad environment and the task environment (Kotler & Keller, 2015).

The broad environment includes all the external elements that may influence the company’s operation. Indeed, it is crucial for companies to understand where they are doing business in order to make the right decision.

The analysis of the broad environment is also known as PESTEL analysis that stands for the evaluation of the political, economical, social, technological, environmental and legal environment (Kotler & Keller, 2015). Being aware of the trends helps companies identify the right marketing strategies that should be implemented. It is important to understand each element of the PESTEL Analysis to have a well-developed broad environment analysis.

According to the Corporate Finance Institute, the PESTEL Analysis can be defined as followed :

Political : It consists of the government policies and regulations. Here you can assess the political stability and the legislation of the country where the company operates. It includes anything that relates to bureaucracy, tax policy, trade restrictions and tariffs that can affect the running of a business.

Economic : It is important for companies to have a clear overview of the economic situation as a country’s wealth is an important determinant for a company’s success. Those factors should be analyzed in the economic analysis : unemployment rate, interest rate, inflation rate, exchange rate, economic growth rate, etc.

Social : The social environment analysis enables to understand what drives the potential customers as it assesses the society trends and culture. Here are some examples of social norms that can be analyzed : health awareness, cultural perceptions, age distribution, career intentions, population age, growth rate, etc.

Technological : Nowadays, understanding the technological environment is key as technology is becoming predominant and is crucial for company’s success. It is important for organization to be aware of the most recent technologies used to produce and deliver products or services and communicate. Here, you can evaluate the industry’s research and development activity, innovation, automation, etc.

Environmental : Nowadays, the environmental analysis is important as companies have been increasingly interested in protecting the environment. Indeed, climate change has been a growing concern for companies who try to implement sustainable strategies and develop green initiatives to save the planet. Indeed, reducing the carbon footprint has been one of the biggest priorities for companies over the past few years. Some ecological factors that might affect a business are : natural disasters, weather conditions, pollution, climate change, etc.

Legal : The legal environment is all about the laws that companies need to understand to know what is allowed and not allowed in regards to business operations. Examples of elements that can be analyzed in the legal environment analysis are labor laws, intellectual property, permits and licenses, industry regulations, etc (Corporate Finance Institute, 2020).

 The task environment which is the analysis of the internal environment of the company also needs to be done when developing a marketing plan. The task environment includes the analysis of the customers, suppliers and competitors (Kotler & Keller, 2015).

Customers : It is important to define well the target market of the company in order to identify customer’s needs and develop strategies aiming at attracting them. Companies should have a well-detailed description of the target market in their marketing plan.

Suppliers : Companies need to identify the vendors and distributors the company use to operate the business and analyze their efficacy. Some examples of suppliers are advertising and marketing research agencies, telecommunications, insurance, banking and transportation companies, etc (Kotler & Keller, 2015).

Competitors : The competition should be well-analyzed in order for the company to be able to distinguish itself in the market. Here, it is important to engage in a lot of research regarding the competitors products or services, strategies and market share.

After performing the broad and task environment analysis, one should be able to develop a SWOT analysis with the findings of the environmental scanning (Esther, 2021). A SWOT analysis allows to analyze the company’s internal strengths and weaknesses and external opportunities and threats.