What is the term for how a company defines its differentiated value for targeted segments?

The term that refers to how a company defines its differentiated value for targeted segments is known as a value proposition. A value proposition clearly articulates what unique benefits the company offers to its customers compared to competitors, essentially answering the question of why a customer should choose that company's products or services. It serves as a crucial component in communicating the brand's promise to its target audience, highlighting specific advantages, such as quality, price, convenience, or service that make the offering attractive to consumers.

This concept allows businesses to strategically position themselves in the market and effectively connect with their desired audience, thereby enhancing customer loyalty and fostering brand distinction. The value proposition is fundamental in marketing communication, as it drives how a company presents its products and services in a way that resonates with potential buyers.

The other terms, while relevant to marketing strategy, do not specifically encapsulate the idea of defining differentiated value for targeted segments. Product positioning refers more to how a product is perceived relative to competitors in the market, differentiation focuses on the attributes that make a product distinct, and market coverage deals with the extent to which a company addresses different segments of the market. However, none of these concepts comprehensively denote the specific promise of value that appeals to targeted customer segments like the value proposition does.