As I go about my daily routine of helping Black owned businesses in Oregon and Southwest Washington establish, grow, and prosper, I make sure that the businesses are practicing the four principles of marketing which are, product, price, place and promotion. These four principles when working in tandem will attract the attention of potential customers. However, I also let business owners know that most businesses practice the four principles of marketing and lot of them are their competitors. With that in mind I work with Black owned businesses to develop their value proposition to give them a competitive advantage in the marketplace.
A value proposition is a statement that clearly identifies the benefits a company’s products and services generates customers. A strong value proposition will differentiate the business, the products and service from competitors in the marketplace and draw in customers.
There are three elements of a strong value proposition:
1. Value. The product or service must be something that the customer needs or really wants.
2. Differentiation. There must be something about the product or services that makes it more attractive than competitors.
3. Substantiation. The product or service must satisfy the customer
When it comes to products or services being offered by a business it is important for the customer to see their value. The best way to do that is to clearly explain how a product or service fills a need, communicate the specifics of its added benefit, and state the reason why it’s better than similar products or services on the market.
Here are the four types of customer value:
1. Functional Value. Is determined by the product or services as to whether it they meet the customer’s needs and wants and the usefulness of the products.
2. Monetary Value. Refers to the value of a product or service measured in terms of the costs.
3. Social Value. The positive impact and value that a product or service brings to society as a whole, beyond mere functionality.
4. Psychological Value. The extent to which a product or service allows customers to express themselves or feel better.
If a business’s products or services is able to meet these criteria, a business will have a diverse customer base that will clearly see the value of its products and services.rs will
To be competitive, it is important for businesses to show differentiation from the competition. Essentially, differentiation in business refers to the principle of setting your company apart from the competition through a specific element, such as your distribution network or price-point. It provides a superior level of value to your customers and helps your company to distinguish itself in the marketplace.
Here are some ideas from the Will Williams of JDR Group on how to differentiate your business from others:
1. Create A Genuinely Unique Selling Point. Research your competitors and identify some that only your business is doing compared to the others.
2. Do Business Differently. Research the way your competitors are doing business and whatever they are doing, do it better.
3. Solve Your Customer’s Problems. Understand the issues of your customers and tailor your products and services to solve their problems.
4. Don’t Be Too General. Don’t try to sell everything. Instead specialize in one or two niche areas that are in high demand, and provide your customers the best quality and price of those products or services.
5. Establish Your Individual Business Culture. Establish a customer experience through your business culture that ties into what the customers actually want.
6. Be Better and More Creative at Marketing. Your marketing strategy shouldn’t emphasize the ways in which you’re similar to your competitors, but the ways in which you are different. Don’t be afraid to break the mold with your marketing communications.
Businesses that can clearly show that they are different and better than their competitors will stand out in the marketplace and will attract customers to their products and services.
The best customers are those who frequent business on a regular basis to purchase their products and services. If they have a great customer experience, substantiation of the business’s products or services is imminent.
Here is how to make sure your customers are satisfied with your products and services:
1. Focus on Quality, Not Quantity. Understand how your customers define quality and make sure that the products or services meet their standards.
2. Over Deliver on Performance. Make sure that the price does not overshadow the performance of your products or services.
3. Keep Offerings Current. Make sure your products and services are keeping up with the trends of the market and needs of the customers.
4. Customer Engagement. Organizes interactions and activities into a streamlined plan to create the ultimate customer experience, including before and after the purchase.
A competitive advantage is anything that will give a business an edge over its competitors, helping it attract more customers and grow its market share. With the right value proposition, Black owned businesses can be competitive and do well in the broader marketplace.