Value Proposition

AAA

DEFINITION of 'Value Proposition'

A business or marketing statement that summarizes why a consumer should buy a product or use a service. This statement should convince a potential consumer that one particular product or service will add more value or better solve a problem than other similar offerings.

INVESTOPEDIA EXPLAINS 'Value Proposition'

Companies use this statement to target customers who will benefit most from using the company's products, and this helps maintain an economic moat. The ideal value proposition is concise and appeals to the customer's strongest decision-making drivers. Companies pay a high price when customers lose sight of the company's value proposition.

RELATED TERMS
  1. Activities, Interests And Opinions ...

    A person's characteristics used by market researchers to construct ...
  2. American Customer Satisfaction ...

    An index that provides information on how satisfied U.S. consumers ...
  3. Prophet's Reputation Management ...

    An index created by strategic brand and marketing consultancy ...
  4. Brand Awareness

    The likelihood that consumers recognize the existence and availability ...
  5. Core Competencies

    The main strengths or strategic advantages of a business. Core ...
  6. Economic Moat

    The competitive advantage that one company has over other companies ...
Related Articles
  1. Advertising, Crocodiles And Moats
    Professionals

    Advertising, Crocodiles And Moats

  2. The Pros And Cons Of Sports Investing
    Personal Finance

    The Pros And Cons Of Sports Investing

  3. What is an economic moat?
    Investing

    What is an economic moat?

  4. What are some examples of barter transactions?
    Personal Finance

    What are some examples of barter transactions?

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center