VALUE PROPOSITION
THREE)
(CHAPTER
What is VALUE PROPOSITION?
The heart of any technopreneurial venture. It
answers the most important question every
potential customer has: "Why should I
choose your product or service?"
Key Points
• Focuses on benefits, not just product
features.
• Central to customer interest and
decision-making.
• A strong value proposition is specific,
clear, and user-centered.
UNDERSTANDING THE CUSTOMER:
JOBS, PAINS, AND GAINS
Before creating a value proposition, we need
to analyze three things:
• Jobs: What customers are trying to do
or accomplish
• Pains: The problems, frustrations, or
obstacles they face
• Gains: The improvements, benefits,
or outcomes they hope to achieve
Framework Used:
• Jobs-To-Be-Done - Customers “hire”
products to do a specific job in their
lives.
• Customers Job - Functional, Social,
and Emotional
THE VALUE PROPOSITION CANVAS
(VPC)
The Value Proposition Canvas is a visual tool
that helps match what you offer with what
your customers need.
Customer Profile
• Jobs: What they are trying to do
Pains: What frustrates or blocks them
• Gains: What they hope to achieve
Value Map
• Products & Services: What you offer
• Pain Relievers: How it removes
obstacles
• Gain Creators: How it creates
additional value
•
CRAFTING A STRONG VALUE
PROPOSITION STATEMENT
Formula:
We help [target user] who [has a specific
problem] by [solution], so they can [achieve
a specific benefit].
Tips:
• Focus on the benefit
• Use clear, non-technical language
• Avoid feature overload
TESTING AND VALIDATING
VALUE PROPOSITION
Methods:
• Surveys and Interviews
• A or B Testing
• Landing Pages or MVPs
THE
Key Takeaways
• Value Proposition: Why customers
should choose your product or service
• Customer Focus: Solve customer
needs or problems
• Clarity and Specificity: Simple and
clear message
• Unique Advantage: Show what
makes it different or better
• Product-Market Fit: Match real
demand
• MVP Approach: Test idea with a
simple version
•
•
•
•
User-Centered Design: Focus on
customer perspective
Continuous Refinement: Improve
with feedback
Civil Engineering Context: Ecofriendly,
disaster-ready,
smart
buildings
Strategic
Importance:
Guides
business direction
MARKET IDENTIFICATION
ANALYSIS (CHAPTER FOUR)
AND
MARKET, INDUSTRY, AND NICHE
• Market: A market is the group of
potential customers who have a need
or desire for a product.
• Industry: Broader category of
businesses that produce similar
products.
• Niche: A focused, targetable portion
of a market with specific needs.
MARKET SEGMENTATION
Types:
1. Demographic (Age, Income, Gender,
Education)
2. Geographic (City, Rural or Urban,
Region)
3. Psychographic (Lifestyle, Interests,
Values)
4. Behavioral
(Purchasing
Habits,
Brand Loyalty)
TARGET MARKET IDENTIFICATION
Choosing the most viable segment(s) to serve
based on capabilities, product features, and
market need.
Steps and Examples
• Primary Target: Public schools in
high-risk provinces
• Secondary Target: Local governments
for early warning systems
MARKET SIZING (TAM, SAM, SOM)
Market sizing estimates:
• TAM: Total Available Market maximum potential demand
• SAM: Serviceable Available Market portion of TAM you can target
• SOM:
Serviceable
Obtainable
Market - portion of SAM you can
realistically convert
MARKET
TRENDS
AND
COMPETITIVE ANALYSIS
• Market Trends: Identifying current
or future patterns affecting customer
choices.
• Competitive Analysis: Studying
competitors’ strengths, weaknesses,
offerings, and strategies.
Tools
• SWOT
Analysis
(Strengths,
Weaknesses, Opportunities, Threats)
• Porter’s Five Forces (Competitive
Rivalry, Supplier Power, Buyer
Power, Threat of Substitution, Threat
of New Entrants)
• Feature Comparison Tables
POSITIONING STRATEGY
Defines what makes your product stand out.
• Customer Pain Points: Problems
you solve better than others.
• Brand Message and Tone: Core
message and values.
•
Unique Selling Proposition (USP):
Advantage that sets you apart.
Tools
•
•
COMPETITIVE
(CHAPTER FIVE)
ADVANTAGE
Competitive advantage refers to factors that
allow you to outperform competitors (lower
cost, higher quality, unique features,
innovation).
Sources of Competitive Advantage
A. Cost Leadership - Becoming the lowestcost
producers.
B. Differentiation - Offering a unique product
that stands out.
C. Innovation - Creating novel solutions that
disrupt
traditional
approaches.
D. Customer Experience - Providing
exceptional support, user interface, or aftersales service.
E. Strategic Partnerships - Collaborating to
access exclusive markets.
F. Intellectual Property (IP)- Legal
protections (like patents or copyrights) that
prevent others from copying your idea.
PORTER’S GENERIC STRATEGIES
• Cost Leadership
• Differentiation
• Focus or Niche
SUSTAINING
COMPETITIVE
ADVANTAGE
• Continuous Innovation
• Customer Loyalty
• Legal Protection
• Strong Branding
• Efficient Operations
•
SWOT Analysis
Competitive Grid or Matrix
Unique Value Proposition Canvas