VALUE CONCEPTS IN ENTREPRENEURSHIP

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When we start a business we use the concept of value at many different times, in many different situations that will be very useful for you to be clear about. The following concepts.

CONCEPTS

Value proposition (see+):

The value proposition is a a concise and coherent statement describing how a product or service offers unique and superior value to potential customers compared to alternatives available in the marketplace. This proposal explains what problems it solves or needs it satisfies, and how it differs from the competitor's offer. The value proposition is essential for the marketing strategy and allows a company to differentiate itself and stand out in the market.

Value and price

Value and price are two terms that are often used together in the business world, but which have important differences. The value is perception that a customer or user has about the product or a good or service in relation to their expectations and needs. The value is subjective and may vary from person to person. On the other hand, the price is the amount of money required to purchase a product or service. It is a objective measure and can be calculated concretely.

In short, value refers to the customer's perception of what they will receive compared to what they will pay, while price refers to the actual cost of the product or service.

• A SIMPLE EXAMPLE TO CLARIFY:

For a bottle of water in the city we pay 1 euro, but if we are in the desert about to get dehydrated, the same bottle is a great value and we would be willing to pay much more. Therefore, the price of the same product depends on the value it brings at that moment to the customer.

An umbrella sold in the desert is worthless and therefore nobody pays you, but the same umbrella sold just when it starts raining becomes much more valuable and therefore more expensive.

Perceived and expected value

The perceived value is a customer's perception of the value they receive from a product or service compared to its price. On the other hand, expected value refers to a customer's expectations of the value they will receive before purchasing a product or service. It is important that the perceived value is equal to or greater than the expected value, for ensuring customer satisfaction and loyalty.

The difference between the perceived value (when your customer consumes your product) and the expected value (before buying, the one that drives him to hire you...) is the difference between the perceived value (when your customer consumes your product) and the expected value (before buying, the one that drives him to hire you...). customer satisfaction (+). Perceived value is the value the customer feels they have received after consuming your service or product and expected value is the value they expect to receive before receiving, before buying.

Creating value with your business model (see+)

Your company's business model is the way in which you create value and deliver it to the customer. A business model creates value when it is able to satisfy customers' needs and desires efficiently, improving their experiences, solving their problems and making a positive difference in their lives. This is achieved through a combination of factors, such as innovation, efficiency, scalability, profitability, customer satisfaction, among others. The The goal of the entrepreneur is to identify opportunities in the market, to develop a value proposition (+) attractive to customers and create a sound strategy to deliver that value effectively and profitably.

Enhancing the value of

Often we bring a benefit to the client that is not sufficiently explicit in our proposal. Enhancing value means highlight the features and the best ways to promote a product or service. This can involve both show the unique features and descriptions that make it different from other products on the market, as well as find new uses and functionalities that make it more valuable to potential customers. In short, valorisation is about creating a positive perception of a product or service in the public's mind, with the aim of attracting more customers and improving sales.