A proposition is the promise about the value that can be expected from a product or service. The proposition tells how customer problems will be solved, what the benefits of the product are, and why the customer should buy this very product and not the competition's.
The concept of proposition is closely related to positioning. The difference is that positioning is primarily focused on the position relative to competitors within the same market, while proposition is more focused on why a customer should prefer your product. Propositions are based on creating value for the customer.
The proposition can be part of the marketing strategy around a company's products and/or services, set out in a marketing plan or business plan. Such a proposition is based on the general characteristic values of the product, which are propagated through all marketing statements of the company. The term proposition can also refer to an offer to an individual customer through a customized quotation. In that case, the proposition offers a solution to the unique needs of that customer.
If certain features of the proposition are unique then these are also called unique selling points. In addition to the revenues of a product, costs can also be part of the proposition.
