Understanding your target audience and defining your value proposition

Now that you're ready to turn your idea into a reality and begin defining your business model, it's time to think about how you will market your products or services. Marketing is a much broader topic than many people imagine. Most people would probably define marketing as advertising, PR and sales; but the true concept of marketing is much broader and a key part of any organisation. created:

What is marketing and why is it important?

At the most simplistic level, marketing is the activity, which connects your organisations 'offering' with the target audience(s). Marketing is therefore the key 'enabler' to growing your business and achieving success. The principles of marketing are commonly understood around the following core 'components of marketing':

  • The offering: the products (e.g. ethically sourced clothing) or services (e.g. counselling) your organisation will offer.
  • The value proposition: articulating your offering to the target audience- 'the solution to their needs'.
  • The marketing strategy: your strategy for connecting with the target audience (e.g. deciding to target a specific geographical audience).
  • The marketing plan: the objectives, budgets and tools that will be used to deliver the marketing strategy.
  • The target audience: the stakeholders who will be 'sold' your value proposition.

Underpinning all of these marketing pillars must be comprehensive understanding of the target audience (e.g. who they are, where they are, what are their needs and their typical characteristics). The relationship between these different components is illustrated in the diagram below:

In this guide, we will discuss the value proposition and understanding your target audience. Marketing strategy and marketing plans are discussed in our other guides; note that it’s also worth reading the corresponding start up business planning guide – in particular, the importance of defining your offer and the introduction to stakeholders.