In the last marketing class, Rashi said to us " Marketing is the most important class you will ever learn in business school because it is really about getting what you want in your life" He then showed us a chart with three circles on it: Company (that’s you), Customer (What you want) and Competitors (obstacles). Just like any company who is trying to maximize its market share by attracting more customers. You, as an individual’s, should always market yourself in a way so you can get what you want in from life. To do so, you need to answer the 4W's :- Who ( You and the customer): you and your goal
- What (Product and price): your characteristics, capabilities , background, looks etc
- When, Where and how (distribution): know the right time and go to the right person
- Why (Communication): your pitch, story
Earlier I have posted a survey to get feedback from my readers on what they think is the core of marketing. The answer is value proposition (30% got it right!). What is value proposition? It sounds like this fluffy, big word that only marketers can understand. Rashi defined value proposition as benefit minus price. In order to increase your value proposition, you either lower your price by cutting cost or you increase your product benefit. What’s more sustainable and less likely to be replicated by your competitor? Increase your product benefit!! Why? Imagine you are after a girl and you have a competitor, say Mr. Nice. Mr. Nice’s value proposition to the girl is “I am neither smarter nor more charming (limited benefit) but I have very low expectations: As long as you are willing to be my girlfriend, I don’t care if I am the last on your priority list (low acquisition cost).” Unless the girl doesn’t care about the quality of her love life (go for price over quality), Mr. Nice will never get the girl. Get the picture?
So How can one increase your the "benefit"? Differntiate your self: Seek opportunities that will help you develop what makes you special and different.
1 comment:
You make a point here. But in practice, most people (in my case, all wireless phone providers) would rather cut their prices to attarct consumers, and they succeed to some extent. Low prices still catch on easily among target consumers. Also, increasing the product benefit would incur higher costs, right? Not a favorable option among cash-starpped companies.
That's my humble opinion; you see, I am not an expert at all on marketing, but couldn't help raising a question.
What do you think?
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