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Relations Straight: Value, Sale, Price, Traction, Market, Marketing, and Value Proposition

Updated: Jul 22, 2020

What is the relation of these words: Value, Marketing, Sales, Value Proposition, Traction.


Value is the worth of an item to the TARGET PERSON. Something of value to one may not be of value to another. When people buy things, they pay a PRICE of owning the value. Value is produced through labor, crafts, design, and dedication.

Value proposition

When someone (party A) brings an offering to a market, and thereby meeting a person/potential customer (party B), the person makes a value proposition - would you buy this for this price? If the party B buys and pays, the value proposition is validated.

If NO ONE in the market EVER pays a price for the offering, the value proposition failed.

For example, Silly Bandz and Finger Spinner are both cases where no one knew if customers would embrace it. They did, miraculously, hence the Vp is validated. Electric cars in the 1990s, such as Ford Volt, never caught on.

Value proposition is an art and experiment.

It is in fact a social science experiment backed by technology and money and daring founder's vision.

Crazy Bandz Vp to young children was successful.
Finger spinner make a successful value proposition.

In social network terms, your post gets you impressions, views/clicks, likes, subscriptions, and shares. A "winning value proposition" by the target audience is like getting a subscription and a share.

1996 GM EV1 was popular with environmentalists, but not general public.

Even the great Steve Jobs has to fail many times. The Apple Newton failed, the Apple Lisa failed, but NeXT computer succeed. A failed value proposition is not a failure, it just means the product did not catch on, for whatever reason. Try another one. Don't give up. Steve Jobs is not an engineering, he is a Zen master and artist. It helped. [A video to explain why people buy]

Apple Newton Vp failed at the pricing point.

Apple Lisa did not become popular.
Jobs' next move, NeXT, was a hit with scientists.

Value proposition was like a marriage proposal. And the "I Do" is the validation.

Jobs is like the Kobe and Jordan of the sports teams. People keeps on giving him the ball even if he misses many in a row. Their vision and judgment is proven.

A missed ball is just a missed ball.


When Party A perceives an interests of Party B for the offering and offer to explain the benefits or reduce the price, causing Party B to pay a price for the offering, this is the job of the salesman.


Where Party A and Party B meets. There are also similar sellers around in the market. A vendor or factory must bring their products to a market through the channel, and the customer must be attracted to their stand through the funnel.


The process for party A to make a new offering, bring it to the market, and find out what price the customers would like to pay, it is called marketing.

Marketing is not same as sales. Marketing brings the door down. Sales people rush in.

How the Party A make profit at the end of the day?

Party A has a manufacturing cost for the offering. If the price customer is willing to pay is above that cost, the Party A would make a profit that equals the difference of price and cost, multiplied by the number of units sold.

How does Party A prevent others from making the same profit?

Party A spend a lot of money to develop the offering in secret. When other vendors in the market sees that customers are buying the offering, they will also make the same. This time they know that the value proposition is already validated.

Party A can prevent others or slow down others through trade secrets, know-how of manufacturing, services, advertisement and promotion, and legal means such as patents and trademarks. But legal means alone will not prevent others from copying or competition.

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