Targeting in four steps
How to target your market and position yourself in it with a strong value proposition?
The following exercise helps you to think about how to target a market and how to position your value proposition in this market. Where would you start? Which information do you need?
Think about the questions below to position your value proposition in your own target market.
- After you have identified some various market segments, now it is time to make a decision about which market to target and how to position your value proposition in that market. Do you already have a certain target market in mind and why should it be that market?
- An important criterium for selecting a target market is that your value offer, or value proposition, resonates with the needs of customers. How certain are you if that is the case?
The next step is to make sure that the target market of your choice fulfills the following criteria:
- Is it distinct enough from other identified market segments?
- Is it measurable in terms of number of potential customers?
- How accessible is the target market? Are there any lock-ins or substantial switching costs that prevent potential customers from making use of your value proposition?
- Is your target market profitable enough, at least over time, to cover your investments?
- Once you fulfill these criteria, it is time to look closer at the competition and their value proposition. After all, you are all competing for similar customer needs. This means that you must think about how to distinguish from competitors. What can you do what competitors can’t do in addressing the customer needs?
In order to become a successful entrepreneur, you need to really think how to target a market and to position your value proposition in that market. With this exercise, we provided a basis to take the first steps which are of strategic importance for your venture.
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