Concept Marketing Group Inc.

-          Test the product or concept

o    What are people saying in response to your concept – existing customers, potential customers

o    Are you listening to their feedback and acting on it?

o    Do some research – formal and/or informal

-          Know your product

o    If you can’t explain it, no-one will buy it.  If you can’t explain the value proposition from the customer’s perspective, then no-one will buy it.

-          Know your target market and what they want

o    Who will approve the purchase of your product?

o    Who will buy it?

o    Who will use it?

-          Know your competitors and your positioning against them.  Analyse and assess this objectively and honestly.  If you don’t, you’re only fooling yourself, no-one else.

-          Set the right level of price

o    What is the perceived value? Pricing should align with the value and positioning.

o    Fit with target market?

-          Do the P&L.  Are the numbers right?  Are the numbers real or fantasy?  Check!

-          After all that, honestly assess the fit of the actual product and the price you have set with your target market.

-          Readjust accordingly if required.  Be careful how you do this – you don’t want to send a message to the market that you ‘made a mistake’ because you got it wrong.

-          Now that the offer is right, it’s time to take it to market.

  Explain Your Offer with a Value Proposition

 The value proposition of your product or service is critical.  You need it to cut through the noise of your competitors and ensure you are heard over all.  When you describe your business to a prospective customer, do you describe the products and services you offer, and talk about if from your perspective?

If you can say:
- what you do/what the product does
- why it’s different
- the value it provides
all in the one statement, then you have a clear value proposition. 

For example, Volvo’s value proposition has been automotive safety.  The detail of that may be their track record in safety.  If you owned Volvo, or marketed their products, and someone asked what your business does, you could convey what the business does, why it’s different and the value it provides in the following statement:

”W e engineer a range of cars to the highest safety standards, including sports cars, sedans, station wagons and 4WDs, with a formidable track record in on-road safety”

Practice that with your own business, or product or product portfolio, until you reach the right statement.  If you can’t do this, then marketing your product or service to others is going to be much harder than it needs to be.

A good value proposition will help drive your marketing activities, and the development of your marketing tools.