Determining the Value Proposition - Overview
The proposition offered by a new business offering must solve a problem!
Does the audience understand?
If the target market doesn’t understand what it is or what it does or why they might want it, the enterprise will not make it to its happy place. Something can be a stunning new performance product or ‘better mousetrap’, but what it can do or how it can be used is found only in the seller’s perspective. It will never sell on the basis of being “intrinsically good” for ‘technical’ reasons, it will only sell for what it will actually do and how it will add value for the customer.
In the buyer’s perspective, the product/service is not all it can possibly do or even the one or two things it will do essentially for them, but what it will do for them better than anything else. In Xerox World, this is called ‘selling the benefits’ or helping the prospect to buy and the proposition is epitomized in the maxim: ON TIME, ERROR FREE.
In life science investing, for example, the target market question is in two parts. First, how many people have the condition or disease that this treatment addresses. Second, how many with the condition will seek treatment. The market is the “subset” which demands a solution.