The approach I am using so far is based on my experiences. The academic books shall give you a different approach however, I feel that they lack depth. Unless you read supplementary books you may not get your money’s worth although it is a very good starting point. With that said I read a VERY good book on value proposition. It changed my whole perception on approaching customers. (Sadly, I cant remember the name of the book).
When starting a business or when you are in the idea stage a lot of what you put down is what you think your customers want. Even if you have some numerical data the conclusion is usually personal opinion. Therefore, it is important before starting to do market research. For those that are new to the term it basically means you are going out into the market to ask key questions. Today however, I shall not delve into how to do a market research. At every step in your business especially in areas where you shall be required to interact with customers such as marketing it is important to ask this question: So what? Yet again I shall use Inteco as an illustration.
We are a new sanitary pad distribution company. So what? It means that women can access pads in the toilets in both public and private institutions. So what? It enables them to easily access sanitary pads. So what? It means they will not have to leave the venue in search for sanitary pads. So what? They will spend less time searching for sanitary pads. So what?
Can you see where I’m going with this? So what? makes you think further and deeper. What is the need for all of this? To get you to horn your value proposition. Value proposition is a cluster of values your are offering your target market. Customers do not really care about the product. The product or service is simply a reflection of the values they are looking for. An example KFC in Kenya is not cheap but why do people go to them? Because be it Monday at six am or Saturday at midnight you will get the same chicken. They have not sold you chicken. They have sold you consistency and reliability. Value proposition helps you define what it is you are selling and what makes you special.
It is important when going out and doing your market research to find out what values do your customers hold dearly. You could have a set of values already in place but do your customers care?
Until next time