Value proposition quantifies the benefits of a product or service and correlates these benefits wit the unmet needs of customer across the value chain.
So the benefits could be for your direct customer or his customer or the end user, depending the level of your product in the value chain.
Putting up a proper value proposition justifies selling a product at a particular premium price. I think its also important to incorporate such features in your product which meet or support in meeting all or some of the following:
1. Mandatory Regulations of health and safety
2. Environmental Standards
3. Shows significant Enhancement in Performance of a product
4. Resolves a long persistent problem
5. Reduces overall cost of a product etc.
Bigger challenge lies in demonstrating benefits of your product to your customer. For B toB market this is not easy as the products cannot be advertised. They are sold in one to one meetings with customers.
Every customer has a different end product and different technical demands to have a one common product or solution.
VP must be developed keeping in mind the end user's requirement. A product must be developed keeping in mind the at least three needs of customer, else the product might end up being a generic product.
Happy value selling!
So the benefits could be for your direct customer or his customer or the end user, depending the level of your product in the value chain.
Putting up a proper value proposition justifies selling a product at a particular premium price. I think its also important to incorporate such features in your product which meet or support in meeting all or some of the following:
1. Mandatory Regulations of health and safety
2. Environmental Standards
3. Shows significant Enhancement in Performance of a product
4. Resolves a long persistent problem
5. Reduces overall cost of a product etc.
Bigger challenge lies in demonstrating benefits of your product to your customer. For B toB market this is not easy as the products cannot be advertised. They are sold in one to one meetings with customers.
Every customer has a different end product and different technical demands to have a one common product or solution.
VP must be developed keeping in mind the end user's requirement. A product must be developed keeping in mind the at least three needs of customer, else the product might end up being a generic product.
Happy value selling!
No comments:
Post a Comment