The term “target Market” is used by most businesses to identify who their customer is. Identifying a target market is just the beginning, unfortunately, most businesses stop with a general definition and then they start offering their product or service.
Why those products or services are needed is found mostly in the minds of those making the offer. Too many times we think we know what is best for our market place without any research.
What is required for a successful marketing program is an understanding of the gains and pains of your customers. Let’s start off with some definitions:
Gains: “Gains describe the outcomes and benefits your customers want.” What are your customers looking for? There are a wide variety of possible answers and they may include more than one item. For example, more customers, or a cost savings may be what they ae looking for.
Pains: “Pains describe anything that annoys your customers before, during, and after trying to get a job done or simply prevents them from getting a job done.” This can be something as simple as a lack of time to risk elimination.
Knowing the Pains and Gains of your target market is the basis for designing your Value Proposition.
Gain Creators describe how your products and services create customer gains.
Pain Relievers describe how your products and services alleviate customer pains.
The key to creating a good Value Proposition requires “Customer Understanding”, and that is achieved by:
- Getting as much data as possible on your customers
- Talking to your customers and finding out their pains and gains.
- Observe your customers in action
The next step is to test your Value Proposition and its acceptability to your target market. Having the right Value Proposition is the key to growing a successful business. A commitment of time on your part to understand your customer is essential.
Be patient. Patience is also preparation. It is the action before the act. Noah Ben Shea
Nick J. Petra CFP