Not Understanding Your Product's Benefits
This small business mistake is part of a collection excerpted from Gary Schine's book 101 Small Business Mistakes
Not Understanding Your Product's Benefits
When I teach courses in small business marketing, I usually give the following assignment:
Interview a small business owner of your choice. Ask that person why customers choose to do business with him or her instead of with a competitor.
Next, interview a few customers of that business. Ask each customer why he or she does business with that company instead of with a competitor.
In theory, the owner and the customers should answer the question similarly. In actuality, the differences are often astounding.
Nearly all small business owners think they know exactly why their products or services appeal to the marketplace. However, their understanding is often based on guesswork and wishful thinking, and is often way off base. Typically, small business owners believe that customers choose them because their business is of a higher quality in some way. I have never had a small service business owner tell me that customers do business with him solely because of his low prices. However, it is not unusual for customers to report that price is their main consideration.
As a small business owner it is essential that you make it your business to understand the benefits of your product or service from the buyer's perspective. While there are several sophisticated methods for finding this information, most are beyond the scope of small businesses. The easy way-- ask customers why they choose your firm. Ask non-customers why they don't use your firm.
Do not assume that you understand why your product is (or is not) selling until you have asked buyers and prospective buyers about the pros and cons of your firm's offerings. It is their perceptions of benefits and shortcomings that can aid you in your marketing efforts.
Other Business Mistakes and Misconcetions
- Failure to Prepare a Business Plan
- Myth-- A New Business Must be Based upon Uniqueness
- Overspending
- Momentum
- Starting a Business for Reasons other than Market Demand
- Entering into Partnerships without Clearly Defined Roles
- Not Putting Partnership Agreements into Writing
- Organizing A Small Company as a Large Company
- Misconception-- A Product Can Be So Good, It will Sell Itself
- Not Understanding Your Product's Benefits
- Believing That Experts Have Magic Answers
- Not Pricing Based on Benefits to Buyer
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