Value Proposition

Topics: Net present value, Investment, Cash flow Pages: 3 (767 words) Published: February 24, 2011
Value Proposition
Your value proposition can equip you with the following benefits to your business: * Create a strong differential between you and your competitors * Increase not only the quantity but the quality of prospective leads * Gain market share in your targeted segments

* Assist you in enhancing tools that will help you close more business * Improve your operation efficiency
iPod vs. Other MP3 Players - As early as 1996 MP3 players were available to the public for purchase. For the first few years the only real value aside from price comparisons were the amount of music they could store. This started to change when Apple Inc. launched into the market with the new iPod player, which was coupled to iTunes software to manage the music through a computer program which allowed users to organize and rename the music on consumer computers. This software did not add cost to the iPod itself, and was listed as a free add-on: a classic example of a customer value added proposition. The customer is given added value through the software iTunes because it is free of additional cost to the customer. The value added proposition of iTunes, combined with a user interface generally acknowledged as intuitive and easy to use, led to market dominance by iPod in its various forms. This dominance then allowed a secondary value proposition to emerge, in that the accessory market (external speakers etc.) became skewed towards servicing the iPod physical interface, which further increased market dominance. A value proposition in business and marketing is a statement summarizing the customer segment, competitor targets and the core differentiation of one's product from the offerings of competitors.   A company's market contribution normally extends further than its core product to include services, programs and systems rudiments. Value Propositions essentially translates this market offering into a proclamation of the benefits a customer will derive.

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