4. Value proposition

What is the value in a product, service or idea? And why is it important?

Being innovative and an entrepreneur means thinking about the value proposition you are offering your customer.

People buy a product with the expectation that they will gain from it. For example, if you buy a pen, it enables you to write, which might help you to write a successful film script and become a film writer. A successful product or service sells the potential of what can be achieved when it is purchased and used by the customer.

Top tip

When being innovative or an entrepreneur, think about your value proposition to your customer and the importance of understanding the product/customer combination and the value this represents.

It is also important to understand the difference between the customer and the user - the customer pays and the user uses the product. The customer and the user may be the same person, but in many cases they may not.

For example, if a parent buys a toy for a child, who is the value proposition for? Write down what you think are the different value propositions for buying toys for children by parents. It is important to work out which bundles of value propositions are needed by each targeted customer group.

  • Learning activity

    Everyday items have value in ways that you might never have considered. Think about a chocolate bar – what value does it have?

    Share your thoughts on the Creating Value Weibo group and see what other people think!

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