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Products and services meet customer needs and wants and deliver value to customers. The value proposition describes how products, services, channels, and pricing deliver value.
The fundamental questions are "How much value does product X create for people that buy it?" and "How does the product provide value?"
A value proposition describes what a company does in terms of tangible business results.
"A value proposition is a short statement that clearly communicates the benefits that your potential client gets by using your product, service or idea. It "boils down" all the complexity of your sales pitch into something that your client can easily grasp and remember. (from Mindtools.com)"
"Value proposition is a description of the customer problem, the solution that addresses the problem, and the value of this solution from the customer's perspective. (1000ventures.com)"
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