Thanks this is very nice information,

Thanks for sharing Knowledgeble information here.

Value proposition is about what you are trying to offer to the customers. The main idea is to convince them that you are “Value for money”. The most basic formula in value proposition is : Benefits – Costs=Value. Where benefits refers to all the tangibles and intangibles they can derive from you offerings against the costs of the product/services. The main idea is to increase the final value. Either u increase by adding benefits or you cut the costs, that depends on the direction of your value proposition.

Positioning statement is about where you want to be among your direct competitors in the product market. It’s kind of like a battle of the mind of the consumers. When you think of reliable cars, you think of toyota. Luxury, maybe Mercedes.

On the whole positioning actually helps to define the target market you want to go after and want them to relate to you almost immediately, value proposition is more about how do u want to go about communicating the value you are offering to your target market. They work hand in hand.

If I want to position myself as the top class airline, I would be offering top services and use the best airplanes etc. OF course I would expect my target arketing to be willing to pay for it and be price inelastic.

If I want to position myself as the cheapest airline, I would be offering no frills and use cheaper planes. I would expect my target market to appreciate my costs cutting and no frills in exchange for cheaper fares. They are price elastic.

The examples just ran off my mind, subjected to flaws but i hope u get the idea.

Hope that helps

signed The Auto money affiliate
2 years ago

thanks for keeping it topical jasa. i imagine you’re really not all that confused, but i’ll explain my understanding anyways for those who really are!

your unique selling proposal, or value proposition is related to your positioning but not identical.

i tend to think of ‘positioning’ as how you intend to carve out a niche in a marketplace — or — in the mind of the potential consumer of your product or service.

‘we are a full service brokerage’, ‘we cater to the value conscious customer’, or ‘our product is purchased by the prestige marketplace’, are generic examples of positioning, in my mind.

positioning of course can have lots of elements to it besides just price. one could be service (or lack thereof), like in the case of a discount brokerage.

a (good) value proposition expresses how you intend to pull all the elements together (price, service, product, rep, delivery) and then an expression of how those elements will serve to fulfill a need, or more often eliminate a pain your target customer is feeling in a way that is credible, connects with him/her on a very deep emotional level, and gives a reason to do business with you versus your competitor.

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