Value Propositioning: Receiving the Full Mix of Benefits in Your Product or Service

When selling a product it is important to remember the consumers typically choose the products and/or services in a business that provide the greatest value in their life at the moment. When a company is positioning their brand in the market they'll be using the brand's value proposition to receive the full mix of benefits in their product.

In understanding which value proposition is best for your products and/or services consider more for more value propositions, more for the same value propositions, the same for less value propositions, less for much less value propositions, and more for less value propositions.

More For More Value Proposition

When a company wants to provide the most upscale product or service and charge a higher price to cover the higher costs then a more for more value proposition is the goal that should be sought by that company. For example, Mercedes-Benz automobiles claim a superior quality, craftsmanship, durability, performance, and style and in turn charge a price to match. Not only does Mercedes-Benz have a marketing offer high in quality, they also give prestige to the buyer. This proposition symbolizes status and a loftier lifestyle for the consumer. Often, the price difference exceeds the actual increment in quality.

More For The Same Value Proposition

When a company wants to attack a competitor's more-for-more positioning they can introduce a brand that offers a comparable quality, but with lower prices. For example, Toyota introduced its Lexus line with a more-for-the-same value proposition. With this proposition Toyota communicated the high quality of its new Lexis through rave reviews in car magazines and through a widely distributed videotape showing side-by-side comparisons of Lexus and Mercedes automobiles. Toyota's more-for-the-same proposition brought a similar status and loftier lifestyle with prices that did not over exceed the quality.

The Same For Less Value Proposition

Think of this proposition as a good deal. This proposition is great for companies that don't claim to offer different or better products than their competitor's, but offer many of the same brands as department stores and specialty stores but at deep discounts based on superior purchasing power and lower-cost operations. For example, Dell and Wal-Mart stores offer equivalent quality products and/or services at a lower "price for performance."

Less For Much Less Value Proposition

Few consumers want, need, or can afford the very best product or service in everything they buy and in turn are more likely than not will settle for less than optimal performance or give up some of the bells and whistles in exchange for a lower price. Companies in this targeting this type of consumer will want to use the less-for-much-less value proposition. For example, many travelers seeking lodgings prefer not to pay for what they consider unnecessary extras, such as a pool, attached restaurants, or mints on the pillow and certain motel chains, like Motel 6, provide a low cost lodging that suspend some of these amenities.

More For Less Value Proposition

There are many companies that claim to offer a more-for-less value proposition, in which, the company provides more product and/or service for a much lower price than the luxurious companies that charge more. For example, Home Depot had arguably the best product selection, the best service, and the lowest prices compared with local hardware stores and other home improvement chains. Home Depot was offering a more-for-less proposition.

Taking into consideration these five different value propositions with your product or service can make you more of a competitor against the competition. Choose wisely and your business too will be a great success.