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Proposition
Also called: value proposition
A proposition is the promise about the value that can be expected from a product or service. The proposition tells how customer problems will be solved, what the benefits of the product are, and why the customer should buy this very product and not that of the competition.
The term proposition is closely related to positioning. The difference is that positioning is mainly focused on the position relative to competitors within the same market, while proposition is more focused on why a customer should prefer your product. Propositions are based on creating value for the customer.
The proposition can be part of the marketing strategy around a company's products and/or services, defined in a marketing plan or business plan. Such a proposition is based on the general characteristic values of the product, which are propagated through all marketing communications of the company. The term proposition can also refer to an offer to an individual customer through a customized quotation. In that case, the proposition offers a solution to the unique needs of that customer.
If certain features of the proposition are unique then they are also called unique selling points. Besides the revenues of a product, the costs can also be part of the proposition.
