It’s difficult to say when and where marketing has its definitive roots, as people have been trading for thousands of years, but it took the shape we’re most familiar with some time during the Industrial Revolution. It was then that firms were able to ramp up production on a significantly larger scale for national and international markets due to the innovation and adoption of machines. As a result, consumption became dispersed over greater geographical distances, and producers no longer had immediate contact with their consumers.
To overcome this problem, forward thinking entrepreneurs started to plan their business operations in a marketing orientated manner. Their very survival was at stake. This demanded they be innovative and creative to stand apart. In order for producers to manufacture goods and services that would appeal and sell in widely disparate markets, it became necessary for them to carefully analyze and interpret the wants and needs of customers.
Fast forward to 2012, and we can see that firms are still being challenged to address those very same issues in segments that may be nearly impossible to breakthrough due to the sheer amount of competition or lack thereof. As marketing, as a whole, continues to evolve and be refined, companies are recognizing the increased strategic value of leveraging emerging technology, maintaining an optimized online presence, deploying content marketing, engaging with consumers before and after sales via social media and so on and so forth. Sadly enough, that recognition doesn’t necessarily translate into measureable success. The truth is, one of the primary reasons, new products fail is because companies fall short when it comes to providing a high-quality product or service or when it comes to effectively promoting it in the marketplace.
Today, expressing and delivering on your value proposition is one of the most important activities you and your business can engage in. It’s your promise of performance and value aimed at creating and occupying space in your prospective consumers’ minds as the best solution available.
When it comes to evaluating initiatives to launch and pursue, the simple fact of the matter is that most businesses aren’t aware they’re pursuing a bad idea. Let’s say that, hypothetically, you’ve come up with what you believe is a great idea, or product, as well as a business strategy to roll out alongside it. Maybe you already have. Because you’ve worked so close to it, and may have a teeny tiny amount of bias, it’s easy to get hunkered down in your own perspective and not see the bigger picture. In order to evaluate new ideas, you need to be dispassionate and fact-based. Not all bad products are total losses. Some just need tinkering. If you can change direction, or pull the plug early enough in the process, the downside risk can be mitigated. Of course, some ideas are destined to fail, so you have to ask yourself if you honestly believe it can succeed. If the answer is yes, can you find the due diligence to support that?
As a sidebar, failure isn’t a “bad” thing. It’s a learning experience, and it’s something we all inevitably come across. When Thomas Edison, one of the most prolific inventors in history, failed time and time again at improving the incandescent light bulb, he pressed forward only saying, “We now know a thousand ways not to build a light bulb.” He later prevailed.
From there, having a strong product or service doesn’t remove the need for promotion. It just increases the likelihood that your consumers and affiliates will do some of that for you. If your business doesn’t include marketing in determining which products to develop and pursue then, at best, it’s missing a big opportunity and, at worst, it’s setting itself up for failure. As a public relations major in school, my classmates and I analyzed case studies by using SWOT. That stands for strengths, weaknesses, opportunities and threats. By doing so, you can figure out how to leverage and capitalize while not overextending yourself in areas where you might not have depth. In a nutshell, the risk in making a bet is defined by its potential downside. That can be anything from time and money to the opportunity cost(s) associated with not following initiatives A, B and C. You’ll just have to discern which gambles will be best for you.
The most compelling value propositions address high priority concerns and reduce the risk and opportunity cost, for the consumer, associated with the purchase. They’re clear and concise, distinguish the value and provide evidence that substantiates those claims. Even more important is the fact that you deliberately act on it. That’s the difference between providing versus promoting. Promoting is saying that you’re better and unique for X, Y and Z reasons. Providing is proving it. Warren Buffett, the Oracle from Omaha, says, “Price is what you pay. Value is what you get.” What are your end consumers getting?