The key difference between value proposition and marketing offer is that value proposition considers the facts why customers must buy the product or service, whereas marketing offer considers a free product or service for the value exchange with the customer to promote their product or service.
Both value propositions and marketing offers are important concepts in marketing. These are methods of advertising that help to enhance businesses.
CONTENTS
1. Overview and Key Difference
2. What is Value Proposition
3. What is Marketing Offer
4. Similarities Between Value Proposition and Marketing Offer
5. Side by Side Comparison – Value Proposition vs Marketing Offer in Tabular Form
6. Summary
What is a Value Proposition?
Value proposition refers to features a company agrees to deliver for customer and illustrates why customers should buy that product or service. In some cases, a value proposition is a declaration what the company or the brand stands for, for which purpose it operates and finally why it deserves their business.
In brief, a value proposition justifies why customers should buy a particular product or service. Furthermore, this can be considered as a promise given by an organization to a customer or a market segment. A value proposition should clearly explain how a product fills a need, communicate the specifics of its added benefits, and state the reason why it’s better than similar products on the market. The ideal value proposition is to-the-point and appeals to a customer’s strongest decision-making drivers.
Companies advertise their value proposition in numerous ways. For instance, companies publish particular features of the product or service, highlighting customer segment. The best way to present a value proposition is in a single, memorable sentence or, even a tagline to attract customer.
Features of a Value Proposition
- Value Proposition emphasizes the best reason for selecting a particular product or service.
- The best communication method of a value proposition to the customer is directly through the company’s website or another marketing, advertising channel.
- Value propositions can follow different formats, as long as they are “on brand” and unique and specific to the company in question.
What is a Marketing Offer?
A marketing offer is a free product or service to promote a business. The offer may depend on the particular product you sell. For instance, some clothing outlets provide free membership cards from which customer gets discounts each time he or she buys products from the shop. Further, the customer is recognized as a “loyalty customer”. However, there are various kinds of marketing offers. Coupon, gift vouchers, ebooks, discounts, checklists, guides, and apps are some of these marketing offers.
In certain instances, marketing offers are used to collect information about people. Hence, people are more careful and resistant to provide their personal information. However, companies tend to provide additional value to what they sell, and this will lure the customer into filling a form or providing information. The information is required for marketing surveys. Before crafting a suitable marketing offer, companies need to identify the target audience.
What are the Similarities Between Value proposition and Marketing Offer?
- Both value proposition and marketing offer help to enhance the business and are ways of advertising.
- These strategies relate to the customer-brand relationship.
What is the Difference Between Value proposition and Marketing Offer?
The key difference between value proposition and marketing offer is that value proposition highlights the reasons why a customer should buy the product, whereas marketing offer promotes the brand or product to customers. Generally, value proposition justifies the reasons why this product or service is to be bought. However, marketing offer does not reflect reasons to buy the product, but it promotes the brand to enhance the business.
Moreover, the company does not spend money to declare value proposition whereas, in marketing offers, companies need to spend a considerable amount of money on the promotion. Besides, another difference between value proposition and marketing offer is that marketing offers are conducted after identifying the target audience, whereas value proposition is conducted to identify the target audience. Furthermore, value proposition helps to introduce the brand to people while marketing offer helps to promote the brand.
Summary – Value proposition vs Marketing Offer
The key difference between value proposition and marketing offer is that value proposition considers the reasons why a customer should buy the product or service, whereas marketing offer considers a free product or service for the value exchange with the customer to promote their product or service.
Reference:
1. Twin, Alexandra. “Value Proposition: Why Consumers Should Buy a Product or Use a Service.” Investopedia, Investopedia, 8 July 2019, Available here.
2. Dyess, Sonja. “What Is a Marketing Offer?” We Are A Growth Agency – Aligning Sales & Marketing For Revenue Growth, Available here.
Image Courtesy:
1. “2457169” (CC0) via Pixabay
2. “3068246” (CC0) via Pixabay