1. Value Proposition
It is the promise of benefits to be delivered by a
company to a customer enabling her to
experience and enjoy the product
complementing the price paid for that product.
2. 4 Elements of Marketing
Product
Place
Price
Promotion
3. Product
The actual entity which is sold by the
company
Product can be
1. Physical – Shoes, Furniture, Devices
2. Digital – ebooks, Music, Videos
Quality of the product should be very high
Includes the design, branding and
packaging
Product should deliver what it promises
4. Place
Location where clients discover the product
It’s the distribution point where clients can
interact with product and purchase it.
Place can be
1. Physical – Retail stores
2. Digital – Websites , Mobile Apps
Considers the logistics of the product
including storage, handling and delivery of
the product.
5. Price
Price should complement the product, its
quality, location of sale and medium of sale.
Includes margins, discounts, installments.
Too high and does not sell.
Too low and considered cheap.
6. Promotion
Promotion talks about the nature of the
product.
It defines and conveys the details of the
product to the customer.
Promotion mediums can be
1. Advertising
2. Personal Selling
3. Sales Channels
4. Public Relations
5. Sponsorships
7. Value Proposition in
Marketing
It is basically a message convey to
customer that this is a minimum
promise I make to you, so that the
product is bought by you and to be
used by you.
Improved customer relations
8. Example : Apple
Product Place Price Promotion
Apple
iphone
•Apple Stores
•Resellers
•Online Stores
High •Advertisements
•Launch Events
•Word Of Mouth
9. Why It Works ?
High Quality Product
Aspiration to own justifies the high
price
Available easily but in authenticated
places
Driven by “Word of Mouth”