Creating value propositions for the specific market segment that your product or service addresses.
In target marketing blog post we talked about the importance of understanding the market segments that use/purchase your products and or services. Knowing their characteristics allows you to create targeted messages or value propositions and or gives you the knowledge to expand your product or services and create new ones that would appeal to their unmet needs (or pain). Vital to this targeting each specific market is defining what you offer in a way that appeals to this market’s needs.
What is a Vale Proposition?
Value Proposition = Unique benefit a product or service provides a customer
Creating unique value propositions for each market allows you to ensure that you are focused on the need that this market wants to satisfy; you want to be able to express how you can create value, extend value or improve upon fulfilling this specific need. Many marketers miss the mark by creating general marketing messages or choosing to focus on features; the wrong or poorly defined feature for their best target markets; the ones where these particular customers do not care about.
As you start to get into understanding the individual wants and needs of each segment (or target market), you will start to see opportunities for product refinement or new ways to communicate the most relevant approach. That great feature or benefit you thought would be a killer might be a nice to have for your chosen segment. This happens all the time. Target market segmenting is tightly linked with product definition and the two iterate until things settle out.
Understanding a buyer’s needs, if you focus on understanding your buyers states of need, you unlock the power to motivate and connect with potential customers and help them understand why the need your products and services….now.
What are the Benefits of spending the time to do this?
Use your value proposition statements in all our communications by communicating the appropriate value to each segment, they start to believe you understand their needs; you build trust and connection. This becomes the core positioning for sales tools, marketing and advertising.
A strong Value Propositions deliver tangible results from using your products and services
And answers ‘so what’ – differentiates you from the competition
At this point, you have a well-defined product and market segment. Next is how you position that offering in the market. Position or approach is important aspect of how the market will become exposed to what you have to offer. Think about it as a susince kind of ‘pickup line’. Something that will get the attention of this audience. Will you be aggressive or subtle? Tell a joke or get introduced. Directly ask for her number or play hard to get. All of these apply to how you approach your target market.
3 Ingredients for creating a strong value proposition
Remember Value is something your customer is prepared to pay for Value = Benefit - Cost
So you say this ‘theoretical’ approach is great but where do I start?
Write a brief response to the following questions.
Launch, Measure and Refine
The only way to really know if you got the target market and value proposition is right - launch it into the marketplace. This is the ultimate confirmation of your assumptions and research.
And with anything marketing, determining success depends on how well you defined your success metrics. Knowing what you expect and how well you are doing towards those goals will allow you to adjust your approach. This measure and refinement step will be a constant source of new ideas and features for better products.
Target marketing is all about focus. This focus will allow you to craft better products and understand your end customers. It’s a constant balancing act between narrow enough to get stuff done and broad enough to sustain a business.
At Legacy Ridge we are here to help small to medium business excel at growing their business, contact us and find out what we can do for you!