Business Model-Value Proposition and Beneficiary

Business Model-Value Proposition and Beneficiary

Value proposition

• Product offering-

  1.      Description of the good/service and how it meets the needs of its customers. This should include innovative/ distinct features of the offering that make it different from others in the market.

  
  

  2.      How does the product benefit the user? Is the product standardized/,mass produced OR is it customized to meet the need to the specific customer?

  
  

  3.      Will the product be made internally or parts of its manufacture outsourced to specialized companies?

Multiple Select

A venture's product/service offering includes details of

• The distinctive features of the product

• The manufacturing decisions on outsourcing/manufacturing internally

• Mass production vs a customized product

• Financial position of the business

Sales Distribution

1.      How is the product/service delivered to the customer? These distribution channels can be created direct through the company’s sales representatives who are usually paid on commission. Some companies choose to use third parties companies who would then use their sales representatives to sell directly to your customer, for example Amway. More recently, direct selling channels have become widespread due to social media allowing suppliers to sell directly to their customers online. 

Indirect Selling

Indirect selling occurs when the product is not sold directly to the customer. Examples of these third parties include wholesalers and retailers.

Sales Distribution Channels

The type of distribution used depends on the nature of the product, the cost involved and the area to be covered.

Multiple Choice

An example of what is not direct selling is

• a sales representative from Sagicor visiting your company to sell insurance services

• an online clothing store delivering your clothes to you

• Massy stores delivering some groceries to your home

• a sales representative from Amway selling you Axe products

Beneficiaries

• 1.      The business could have different types of customers;

• When a business sells their products/services to another business this is referred to as Business to Business (B2B)

• When a business sells their products/services to consumers/individuals, this is called Business to Consumer (B2C). 

• The business may also sell its products/services to governments. 

Target Market

• The target market for their products/services could be local, regional or international. Within the chosen geographical location, the target consumer may be everyone (mass market) or a specific demographic (niche market).

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