Growth Tips: Putting value in your proposition
Define your market and boost margins.
Value proposition is one of those terms that gets tossed around and is often misunderstood. It’s actually the way you present your “superiority” to the marketplace.
The simplest way to define it is the choices you make regarding your target market, the needs you serve and at what price.
Competing while maintaining your profit margin requires a very clear understanding of whom you seek to serve based on size, industry and other specific factors.
The next step is to be clear about the needs you seek to fill with your offerings. You can serve narrow needs in all markets, all needs in narrow markets, or slide in somewhere through the middle.
Next, determine what price you will be offering. For example, some companies choose to target prospects that would be happy with fewer features at a lower price. Others target prospects that want everything and price is not a major consideration.
If you are conducting your business activities in the same way as your competitors you will be competing with them directly and your target market customers will choose a supplier based on price. Arrange all of your activities in a unique fashion. This will put the value in your value proposition.
Andrew Shedden is an industrial marketing consultant who helps manufacturing CEOs easily obtain rapid, sustainable, profitable, and guaranteed growth. For free business growth resources visit his website at http://broadfieldconsulting.com.