WHAT business are we in? AND WHY do
we sell our product/service ?
BY TONY PALLADINO
Answer these two questions well and watch as success unfolds.
Sounds easy, but it is the one basic that is not covered effectively by a large part of the busines community. It is the holy grail for providing value and igniting innovation.
Many companies have evolved over the years. We are not talking about that. We are talking about your current understanding of your business, the competition, the overall market, your own target market, its dynamics, its customer base and its requirements.
So let’s look at possible answers to the following:
Maybe, just maybe, we are in the business of making our customers happy? Or simply in the business of making money? Irrespective of our products or services.
But if we had to pin it down, exactly what is it that we do?
Far too many companies define “what they do” in terms of their products or services and not by the benefit that the client may derive from them. History is littered with examples of companies that were thinking they were one thing whereas they were actually something else. Here are some examples:
Business: Ice supply business
Actually: Food & drink storage business
Eliminated by: The refrigerator.
Business: Typewriter business
Actually: Communication business
Eliminated by: Word processor
Clarity in this respect would provide rich rewards for those who seek value/innovation.
Our next point would be to ascertain “why you”.
Why do people buy our products? (
People don't buy fluoride toothpaste. They buy shiny, healthy, clean teeth.
People don't buy oven mitts. They buy safety.
People don't buy clothes. They buy style.
People don't pay for evening classes. They buy a future.
People don’t buy insurance. They buy safety.
Ace Hardware: People don’t buy drills They buy holes for their walls etc.
Wonderbra: People don’t buy underwear/lingerie. They buy self-confidence.
Harley Davidson: People don’t buy motorbikes.
They buy the concept of freedom
for middle-aged men.
There are many ways to find out:
1. Ask your customers what pain point/problem does your product/service solve
2. Ask people who may consider your product/service, but end up not buying it
3. Find out how your customers are using your products/services
4, Consider the substitutes/alternatives that your product may have
5. Consider what your product is or can be used for
MARKETING
14 | BIZPRENEUR MIDDLE EAST April 2021
BY UZAIR HASSAN