Defining Your Product or Service
It is important to be able to articulate what it is that your business offers, in a clear and direct way. Being able to clearly define what you do will have a positive effect on your marketing activities. Clearly defining the products or services that you sell will help you differentiate your offering in the marketplace, which is key to growing sales.
Being able to define what you do will help you to define what you do not do.
This is important because many businesses lose money by spending too much time and resources serving customers who do not have a good fit with their primary product offering. Extra time and resources are used in facilitating the sale and supporting those customers when the business could be serving more ideal and profitable customers.
Being able to clearly define your product or service is an important first step as we later progress onto defining the features and benefits.
In essence, your customers do not pay for what you do, they pay for what you can do for them.
Many companies simply sell the features of their product or service and forget to focus on the benefits of them to the customer. This strategy is ineffective because your target audience fails to understand how your product or service meets their needs. When you sell the benefits of what you do, your target audience will instantly recognise how your product or service is right for them and respond emotionally in a positive way
The Difference Between Features & Benefits
The features of your product can include design, functionality, performance characteristics, or other technical features. But the benefits are those experienced by the customer as a result of using your product or service. For example:
An individual buying a Jaguar is really buying luxury/comfort
An individual buying payroll services is really buying peace of mind
An individual buying a fuel efficient car is really buying economy
An individual buying a bed is buying rest or sleep
An individual buying design services is really buying expertise
An individual buying a holiday is really buying relaxation
An individual buying a book is generally buying knowledge
An individual buying products from a 24 hr store is buying convenience
An individual buying a stereo is really buying sound
An individual buying a fitness product is really buying health.