What Makes a Successful Business?

How a Defined Value Proposition Can Set Your Business Apart.

Previously on Giuseppe’s Glimpse: In the last episode, we talked about the art of effective delegation and the principles of leadership that can make or break a manager’s success. If you missed it, catch up here! 🌟

Buongiorno everyone! 👋

A few years ago, I was in a meeting with a consumer electronics manufacturer to discuss our contribution to the launch of their upcoming device. 

After covering the usual topics—brand, product features, competitors, and target market—I posed a question that every marketer should periodically ask:

"What problem are you trying to solve, and what makes you better?" 🤔

This question forces you to challenge your assumptions and keeps your value proposition sharp, avoiding what Theodore Levitt called marketing myopia. 

To my surprise, the CMO sitting across from me candidly replied, "This is what I expect you guys to tell me!". 🤷‍♂️

This answer perfectly encapsulates a common misconception about marketing, namely that it’s merely a tool to offload products, a way to empty the warehouse and accelerate sellouts. 

In reality, marketing should be seen as a way to identify and address unmet needs, ensuring that what a company produces genuinely adds value to people’s lives. 🌟

This, ultimately, is what makes a business successful—value creation.

The pillars of value creation 

Careful, though. 

It’s easy to misunderstand what creating value means and think that it’s just about generating revenue. 

In reality, it’s a lot more complex. 🧩

Value creation is about delivering something that deeply resonates with customers, meets their needs, and exceeds their expectations.

It’s the art of offering products, services, or experiences that enhance lives, solve problems, and inspire loyalty. 

This can be broken down into 4 key consumer benefits:

#1 QUALITY

Top-quality products that set the standard in the market. ⭐

Apple, for instance, is synonymous with innovation and high performance, which drives its loyal customer base to pay premium prices. 

Another giant in a different market is Stradivari, with violins known for their unmatched craftsmanship and sound quality. 🎻

Finally, Disney excels in entertainment, where its reputation for quality ensures high expectations for every new release.

#2 VALUE 

The best value-for-money, but not necessarily the cheapest option.

Costco, through its bulk sales and membership model, provides high-quality goods that emphasise value. 🛒

Similarly, IKEA offers functional and stylish furniture at affordable prices, making it a go-to for many consumers.

Value can also be intended in terms of convenience and comfort.

In today's time-scarce world, the ease and speed of getting a product or service can be priceless. 🕒

This explains the success of businesses such as Amazon Prime, with its quick deliveries, and Netflix, whose personalised recommendations enhance user experience with minimal effort. 

#3 ASPIRATION

Products, services, and experiences that allow buyers to express their identity and status. 📣

Stella McCartney is a prime example. 

Known for its high-fashion designs, the brand also leads the industry in sustainable practices, using eco-friendly materials and ethical production methods. 🌿

For consumers, wearing Stella McCartney not only signifies style and luxury but also reflects a commitment to environmental responsibility, making it a symbol of conscious consumerism and modern sophistication.

#4 SCARCITY

Products, services, and experiences perceived as rare or exclusive.

According to psychologist Robert Cialdini, people attribute more value to experiences and products that are less available. 📉

Scarcity can be objective, like the limited number of bottles of fine wine in a great harvest, or manufactured, like limited-edition sneaker releases. 

Scarcity fosters demand by creating a sense of exclusivity and urgency. 

The fear of missing out (FOMO) prompts quick actions from consumers, whether it’s subscribing to a service or purchasing a unique product. 💸

Get sharp or get lost 

Reflecting on these four consumer benefits is essential for defining a clear and compelling value proposition. 

In an increasingly crowded marketplace, a brand’s ability to stand out hinges on a precise understanding of what makes it unique, what it represents, and how it meets consumer needs. 

Misalignment or confusion in these areas can be detrimental, leading to a diluted brand identity and a weakened market position. 🚫

Instead, a sharp value proposition anchors your brand, ensuring that every strategic decision supports the image and promise you want to convey.

Without this clarity, even the most innovative products can struggle to connect with consumers, undermining both brand loyalty and profitability. 

Make time to thoughtfully identify and articulate your brand’s distinct advantages and you’ll be taking the first step toward long-term success. 🤸

What do you think? Does your business have a solid value proposition? And what strategies can you implement to strengthen it?

Stay curious! 🙌

-gs

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