In last week’s column on Super Bowl ads, I stressed the importance of providing a value proposition when you are advertising or marketing your goods and services.
As a reminder, a value proposition is a promise that you make to potential customers that provides them a compelling reason why they should buy your product rather than a product from one of your competitors.
Prior to developing a value proposition, you first need to understand who you are trying to sell to and what product characteristics they value. This will ensure that your value proposition will be more likely convince these buyers (your target market) to buy from you. The most effective Super Bowl ads from last week did this important work well. Once the company has a good, valuable proposition, it then needs to communicate that valuable proposition to its target market. Fortunately for companies with Super Bowl ads, just about all target markets are watching the game. However, for pretty much all other advertising and marketing, it must communicate where the target market will see or hear it. In today’s column, I will walk you through how to determine who your target market is, what they value, and finally, where to distribute your marketing messages.
You are probably asking yourself, why is a guy who teaches Operations and Supply Chain Management (O&SCM) writing about Marketing? The answer is simple, really. It is the job of the O&SCM function of the company to deliver on the value proposition. So, as marketing develops its value proposition, it must confer with O&SCM to determine if the firm can deliver on that value proposition. If marketing communicates a value proposition it cannot meet, the company will likely be unsuccessful. With that in mind, let us examine the target market/value proposition development process.
As a firm begins to identify its target market for a particular product, it must first determine the various potential customers who might buy that product and attempt to partition those customers into groups who value similar things.
For instance, looking at the automobile market, there are some customers who value low price most, some who value performance and aesthetics most, and others who value reliability, durability, and consistency. If we are either in the automobile market or thinking about entering the automobile market, we need to find a group that values some characteristics that we think we can provide better than other market entrants. As you can see, the identification of a target market and the development of a value proposition that will appeal to that target market are done concurrently and iteratively. As noted above, the O&SCM function of the company is also brought in during these iterations to determine if the physical good can be manufactured or a service can be delivered in such a way that it can meet the value proposition.
One important thing to remember is that in most cases, you are not your target market. What I mean by that is that you are often biased by your own knowledge and taste/preferences, and this may differ significantly from what your target market values. Remember that you are a unique individual whose preferences for a price point and evaluation of other characteristics might differ from your target market. Be sure to develop a value proposition that reflects the buying habits of your target market customers.
Once you have developed a strong value proposition that you know your O&SCM can deliver upon, it is time to message that value proposition in places where your target market is present. As noted above, this aspect of our process is like “shooting fish in a barrel” for Super Bowl advertisers because all target markets are typically watching the Super Bowl. It is not so trivial for the rest of us. We need to understand what forms of media our target markets consume (e.g., television, radio, social media), but also, with each of these media, which applications or types of shows do they frequent. While most think social media skews young, and that is true for the most part, Facebook skews older, while Instagram, Snapchat, and TikTok skew much younger. On television, much of network television skew older, but there are shows like “Dancing with the Stars” and The “Bachelor” that do particularly well with younger women. Many mornings when I am getting ready for the day, I listen to “Augusta’s Morning News” on WGAC radio, and it is clear that my fellow listeners are primarily in my age demographic. My advice is to do your homework and find out where your target market is consuming media.
All the work above is not very easy, but doing it right will lead to big returns. If you can identify who you want to target, based on what they value, and then be sure they get the marketing message that you have what they value, your business will succeed!
