Difference Between Similar Terms and Objects

Difference Between Value Proposition and Elevator Pitch

If you want to see the growth and success of your company, a good value proposition is inevitable. If you want to better sell your ideas and services, a good elevator pitch is also a must-have. But what is the difference between the two? Join me as we explore the two.

What is Value Proposition?

A value proposition is a value that brands promise its consumers once they buy their product. It is part of a company’s marketing strategy and contains a statement that introduces the company to the consumers. Hence, they are unique and specific to the company in question.

The statement, if compelling enough, will convince a customer that a particular product the company is selling will add more value than other similar offers will. A successful value proposition will thus help to turn a prospect into a paying customer by influencing their decision-making. It is a vital part of the business strategy. It is also an important tool in driving sales and building a customer base. It can also advance the effectiveness of a company’s marketing strategies.

The value proposition should be concise and easy to understand clearly explaining why a product meets a need, giving the specifics, and outlining the specifics of its added benefits in comparison to other relatively similar products in the market.  

Companies use this statement to maintain their competitive advantage (moat) by targeting customers who will benefit most from their product.

Value propositions are communicated to customers directly through the company’s website, or other marketing or advertising materials.

What is Elevator Pitch?

An elevator pitch refers to a brief speech that lays out an idea for a product, service, or project. It owes its name to the notion that it should be delivered within a short time equivalent to an elevator ride (30-60seconds).

For an entrepreneur, an elevator pitch refers to an attempt to convince an investor that the business idea is worth investing in. A successful elevator pitch picks the investor’s curiosity. This leads to action such as seeking a follow-up meeting with the entrepreneur. It is during this follow-up meeting that he makes a formal presentation with the prospects of raising capital for his idea/venture.

An elevator pitch is used by project managers, salespeople, and job seekers as well to market themselves, their products, or their ideas.

The pitch should capture why your product, idea, or project is worth investing in and includes things like features, benefits, and savings on cost.

Most of the time, the speech is written, memorized, and practiced by those who are actively seeking backers for their ideas.

The elevator pitch is intended to explain clearly why the idea can succeed where other concepts have not. In some circumstances, it can be longer than the ‘elevator ride’ going deeper into the team that developed the idea or even how the concept will be brought into the market.

Similarities between Value Proposition and Elevator Pitch

  • Both are used by companies or individuals as a marketing strategy to market ideas, services, and products
  • Both must be clear and easy to understand

Differences between Value Proposition and Elevator Pitch

Definition

A Value proposition is a value that a company promises to give its customers once they buy their product. It is a statement that introduces the company to the consumers.

An Elevator Pitch refers to a brief speech that lays out an idea for a product, service, or project. It owes its name to the notion that it should be delivered within a short time equivalent to an elevator ride (30-60seconds). An entrepreneur uses it to market his idea to potential investors.

Mode of Presentation

The value proposition is mainly non-verbal and is laid out on companies’ websites or other marketing materials laying out the products and benefits that it has to offer.

The elevator pitch is a verbal and very brief speech that describes an idea, product, service, or project. It may include a value proposition but very briefly.

Value Proposition vs. Elevator Pitch: Comparison Table

Value Proposition vs. Elevator Pitch: Conclusion

A good value proposition is an integral part of any company or business. A good elevator pitch is also key in marketing your idea, product, or service. Now that you know the difference, you can use the knowledge next time you are pitching your ideas or marketing your company for better returns.

 FAQS

What is USP in an elevator pitch?

USP which is short for Unique Selling Proposition is a statement that makes you, your organization, or your idea unique from others. It’s ideally what sets you apart from other products or services.

What are the examples of the value proposition?

  • Uber- The Smartest Way to Move Around
  • Digit- Save Money without Thinking about It
  • Apple iPhone- The Experience is The Product

What is the value of an elevator pitch?

An elevator pitch is used by project managers, salespeople, and job seekers to market themselves, their products, or their ideas.


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References :


[0]Rennie Gould. Creating the Strategy: Winning and Keeping Customers in B2B Markets. Kogan Page Publishers, 2012. https://books.google.co.ke/books?id=m667Hs762KgC&pg=PA12&dq=Differences+between+Value+Proposition+and+Elevator+Pitch&hl=en&sa=X&ved=2ahUKEwjAj4TnsoH3AhWQ7KQKHUjTAz4Q6AF6BAgGEAI#v=onepage&q=Differences%20between%20Value%20Proposition%20and%20Elevator%20Pitch&f=false

[1]Pennanen R & Storbacka K. Solution Business: Building a Platform for Organic Growth. Springer Science & Business Media, 2014. https://books.google.co.ke/books?id=EgPABAAAQBAJ&pg=PA38&dq=Differences+between+Value+Proposition+and+Elevator+Pitch&hl=en&sa=X&ved=2ahUKEwjAj4TnsoH3AhWQ7KQKHUjTAz4Q6AF6BAgHEAI#v=onepage&q=Differences%20between%20Value%20Proposition%20and%20Elevator%20Pitch&f=false

[2]Liozu S & Hinterhuber A. Innovation in Pricing: Contemporary Theories and Best Practices. Routledge, 2013. https://books.google.co.ke/books?id=dYQE2S30BZcC&pg=PA331&dq=Differences+between+Value+Proposition+and+Elevator+Pitch&hl=en&sa=X&ved=2ahUKEwjAj4TnsoH3AhWQ7KQKHUjTAz4Q6AF6BAgCEAI#v=onepage&q=Differences%20between%20Value%20Proposition%20and%20Elevator%20Pitch&f=false

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