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1.
A value proposition is a commercial strategy designed to maximize demand thru proper offering configuration. Its based in the simple principle of more valuable products sell by themselves and provoke positive word-of-mouth.
However, a solid value proposition goes beyond common sense and distinctive benefits. Also provides grounds for addressing requirements and for enhacing the offering to generate preference. In strategic marketing they may even be crafted with aid of market research, statistical modeling and regresion analysis.
Value propositions maximize their effectiveness when directed to specific groups of people, so they are naturally linked to segmentation and target group analysis.
Example for a restaurant
Common sense: The food in this restaurant is fantastic! the chef is a genius
Value proposition requisits: hygene, facilities, menu variety, food supply logistics, service procedures
Value prop differentiation points: author cuisine, organic ingredients, hostess profiles
Value prop preference generators: positive social experience and recognition.
by rickm May 08, 2011