Value Proposition

Reviewed by Sweta | Updated on Nov 11, 2021



Value proposition refers to a statement made by a company communicating what the brand stands for and what value the product or service offers to a customer. It declares what the company stands for and what it promises to deliver. A value proposition is part of the overall marketing strategy and message to potential customers.

Understanding Value Proposition

A value proposition is a marketing statement or a business statement, which summarises the value a company provides through its products. A company, through its value proposition, seeks to convince potential customers on how the product adds more value in comparison to similar offerings by competitors.

The value proposition statement should be easy to understand, should explain how the product or service is different from the competitor. It should also communicate the add-on benefits and demonstrate the delineating features of the product. A value proposition should clearly state to the point to influence the decision making of a customer.

The statement is made to target customers who seek value for money from a product or service. It helps a company build a competitive advantage. The value proposition is the top reason why a product or service should suit the customer. A company should display its value proposition in its websites and other prominent channels.

The value proposition should be distinct, precise, and use a particular flow of thought. It must be strong and clear, communicating without any further need for explanation. It should be a phrase or tagline that is easy-to-remember. A subheadline can supplement the main headline and explain the benefits of the product or service. The subheadline can have bullets clearly specifying the features.


Value propositions can have different formats. They can be descriptive, a short-phrase, or a tagline. They should be unique and easy to remember and recall. One should avoid the use of the most common marketing buzzwords. In the end, the value proposition should be effective, clearly communicating the features and benefits to the potential customers.

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