What is Value proposition?
Value proposition: Why a customer should choose your product.
Where Value proposition fits
Value proposition is part of Positioning & Pricing in Marketing. Positioning is the place your offer holds in the customer's mind. Segment the market, craft a value proposition, then price to match: skimming, penetration or competitive.
Practical tip
Pick a segment, state your unique value, then set the price.
Related terms
- Market segmentation
- Splitting customers into groups with similar needs.
- Penetration pricing
- Launching at a low price to win market share quickly.
- Price skimming
- Launching at a high price, then lowering it.
- Competitive pricing
- Setting prices based on rivals' prices.
- Unique selling proposition
- The thing that makes an offer different.
Formulas you will use with it
Test yourself
Which term means: “Why a customer should choose your product.”?
Value proposition · Competitive pricing · Price skimming
Answer: Value proposition
Learn Value proposition by playing
Quizzes, a CEO simulator, a real estate tycoon game and startup tools. Free to start, in 7 languages.
Play BizJourney free →