ISSUE 4: JULY 2006

In This Issue:

• Why Hire an Editor?
• Creating Demand for Your Product
• A Message from Mary

CURRENT ISSUE

• July 2008

FROM THE ARCHIVES

• January 2008
• August 2007
• April 2007
• October 2006
• July 2006
• April 2006
• December 2005
• September 2005

JOIN US

Subscribe
Tell a Friend

GUEST OPINION
By Jennifer Vessels, President, Next Step, LLC

Next Step, an Oak Hill Corporation affiliate, prepares companies for marketing success through a clear definition of their target audience, unique value proposition, message and strategy to successfully go to market.

CREATING DEMAND FOR YOUR PRODUCT

Next Step believes you can craft clear messages to deliver to each audience or market sector, based on learning your potential customer's perspective. Along with the preferred method of delivery for each audience, these messages are the key elements of a successful marketing plan that delivers results.

Communicate your value to prospective customers

You know your product or service will make a real difference to the many people and companies that need it. The challenge is to let your potential customers know about it and create demand for it. An in-depth review of the ideal target customer's needs and buying patterns can give you a jump on your competition and increase your revenue.

Start by establishing what we call the value proposition for your solution.

First, identify your customer's needs -- the more basic the need, the stronger the buying impulse. To learn what your customers need, try the following sources of inside information:

• Let the customer tell you -- check out annual reports, letters to shareholders, strategic plans, statements of goals and news releases from companies you're interested in marketing to.
• Interview customer stakeholders.
• Observe the customer's operations and processes.
• Examine your customer's competitors.
• Ask a potential customer, "If you could solve one problem or make one change in the company that would have a real bottom-line impact, what would that be?"

Next, quantify how your product, solution or service can impact the potential customer's needs financially. For example, a company that runs a call center might look into how their hold time affects their sales: "The long hold time on our sales lines results in an abandon rate of 10 percent, or 200 potential customers. With our average conversion rate of 35 percent, that means that we're losing $35,000 per day ($7,700,000 per year) in sales revenue from abandoned calls. That’s $770,000 in bottom-line profit we're losing because of our long hold time." Quantification is an extremely powerful tool in the demand-creation process.

If you can't easily obtain this kind of information, ask probing questions such as "What do you believe this issue is costing the company?"

Find out what other solutions the customer is considering to meet their needs. Competitive solutions may look and seem quite different from your offering, but still solve the customers' issue. Your task will be to present your solution so it looks like the best choice for the customer.

Define your value proposition – where and how your product, solution or service solves the customer's problem(s) and addresses the financial impact of their needs better than any other solution available on the market.

Test your unique value proposition

Your value to a customer in your market is the point at which your solution best meets the customer's critical business needs and increases their bottom line better than any alternative solutions.

You can test your value proposition by asking:

• Is it targeted? Does it address a specific audience or market segment?
  
  
• Is it relevant? Does it focus on something the customer cares about? Will it address a customer problem or create a new opportunity? Does it offer a meaningful benefit?
  
  
• Is it credible? Will the customer believe it's the best solution? Does it fit with overall market perceptions? Does it reflect a thorough understanding of the product, technology and market?
  
  
• Is it compelling? Will it motivate the customer to take action?
  
  
• Is it persuasive? Will it convince the customer to adopt your point of view?
  
  
• Is it concise? Is it short, simple, clear and easy to remember?
  
  
• Is it differentiated? Does your solution stand apart from the competition? Is it perceived as unique by customers?
  
  
• Is it sustainable? Does it have lasting market-based value and is it durable over time?
  
  
• Is it consistent? Does it fit with other company messages?
  
  
• Is it strategic? Is your proposition important to an overall business strategy or plan of action?

The final question to ask is "Can my competitor's name be inserted in my proposition?"

Your unique value proposition can and will position you as a value-added partner to your customers and prospects.