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Analyzing Information to Build Value Propositions

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  • 0:00 What Is a Value Proposition?
  • 1:06 4 Steps for Value Propositions
  • 2:33 Lesson Summary
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Lesson Transcript
Instructor: Saranya Ramachandran

Saranya has a Bachelors in Science focused on Electronics and Telecommunication and a Masters in Business Administration. She has 8 years of Project Management Experience and is PMP Certified.

A value proposition describes why a business exists , how it serves its customers and how they are a better choice when compared to their competitors. The lesson describes how to create a value proposition by analyzing information.

What is a Value Proposition?

Beth created a new business venture and named it Globex. She wanted to provide marketing services to internet-based startups. Based on her research, she realized there will be a surge in internet-based startups who would need marketing services. She contacted a business mentor to get her idea off the ground. The business mentor suggested she get her value proposition narrowed down.

A value proposition describes in simple terms why the business was created. Some critical questions would need to be answered prior to creating a value proposition. Some of these questions include:

  • Who are the target customers?
  • What unique value are we providing to these target customers?
  • Who is the competition in the market, and how are we better placed to serve these target customers?

Beth knows who her target customers are. However, she might need to narrow down the other two questions as to what unique value she is providing to these target customers and how she is better placed than her competitors.

A clear value proposition sometimes becomes an indicator of the success of the business.

4 Steps for Value Proposition

Beth started reading about value proposition and realized that it would help her market the business and her client's business much better. She sat down to work through the 4 steps of creating a value proposition.

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