Wednesday, February 13, 2013

Components of a Value Proposition - Reality Business Consulting

Ultimately, the value proposition of your business should answer this question for the prospect / consumer: ?Why Us??? Why should the customer choose your business over your competitor?s business?

In part 1 of the Web-Planning Series ? I described the importance of understanding what ?value? is?? In part 2 of our series, I defined what a value proposition is and its purpose.

As I continue this series, I would like to dissect the components of the value proposition so that eventually, you can build a value proposition for your own business.

The value proposition is made up of the following components:

  • Customer problem
  • Business solution
  • Unique Selling Proposition
  • Target Market

Value Proposition Statement Diagram - internet marketing company, online marketing company toronto, small business marketing company

The target market component essentially drives the value proposition and is bound by the consumer problem because the size of the target market will determine how lucrative (or even viable) your business is.

Think about this?have you ever been in a situation where you?ve confronted a ?problem in everyday life and then you think, ?wouldn?t it be a great idea if?[fill in the blank with a solution to your problem]??

Well, this is how most businesses start.? However, the successful businesses are able to provide a solution to a target market that is large enough to sustain the idea/business.

?Target Market

When defining the target market, resist the temptation to be too general in the hopes of getting a larger slice of the market.? You might get some quick sales because of it but there are long-term implications of doing this.? Most notably, you will see a poor return-on-investment in your marketing activity/spend because your message is not targeted and focused.? One message cannot apply to every segment because every segment has different problems, needs and values.

Take the time to define the target market because your message needs to be tailored to them ? to their specific problem.? There is no standard demographic profile any longer because the world is dramatically changing daily on many social, political and economic fronts.

When thinking of target market, try and satisfy some of the following basic categories below.? When you finally define it, research and understand everything about that market. ? Once you do this, you?ll be on your way to setting the foundation for a strong marketing strategy and a targeted message for you website to attract visitor, keep them and convert them into a sale.

Geographic

Demographic

  • Age
  • Gender
  • Race
  • Ethnicity

Psychographics

In the next part of the ?Web-planning for Success? series, I?ll breakdown the ?problem identification? component of the value proposition.

Source: http://www.realityconsulting.ca/be-real-blog/value-proposition-statement-components/

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