Connecting to Market, Behind the Mask

A fundamental aspect in developing the Business Model for an enterprise is Connecting to Market. This component involves structuring effective means to penetrate the market and interact with customers, facilitating sales and support strategies, as to promote valuable and sustainable relationships. A fantastic Value Proposition will not contribute to the business success as expected, if it is not perceived as such by the target audience. This may require segmenting and establishing appropriate channels to enable optimized sales and post-sales interfaces, which are friendly to customers and efficient for the company. When the offering and the audience are much diversified, the standardized treatment can hinder the perception of value by some being poorly served, and the financial equation for exceeding it with others. It is important to know customers’ profiles and their related expectations, so to enable serving them suitably, either directly or via third parties. In this way, the business can build appropriate bridges to maximize the expected value flow.

 

Throughout the Coronavirus pandemic we are facing, this aspect has been deeply impacted, precipitating changes to make this connection possible without physical contact. The widespread use of Internet and social media, of online platforms to hold meetings, virtual classes and transactions, the implementation of delivery mode for products and experiences, all demanded a lot of unexpected effort. On the other hand, resistant behaviors were overcome and unavoidable changes were accelerated, reducing operating costs and expanding the business reach through virtualization. We already knew that digital marketing and technology in business were important, but now they no longer seem optional. For some, this transition can be very complicated or even impossible, but it should be noted that this business challenge continues to be Connecting to the Market, and needs to be tackled so we can remain in the game and win.

Projects & Changes

Project is an enterprise with a pre-established beginning and end, which aims to develop a solution to a problem or meet a specific demand. Its implicit characteristics are uniqueness and some uncertainty as to the results and conditions for its realization, which normally presupposes creation or change.

Considering that the Market is dynamic, subject to changes in the regulatory, technological and economic scenario, and customers are increasingly connected and demanding, it is inevitable that in order to remain competitive, the business must be able to respond by adjusting or creating something new. In the same line, whether due to the natural tendency to accommodation or the availability of new knowledge and resources, it is necessary to periodically review the processes in search of greater efficiency, since unproductive costs hurt profit margins and threaten sustainability.

It is normal to find in the company several ongoing initiatives, not always called projects. They can come up with different people and departments, besides those formally recognized as projects, with budget and linked plans. In any case, they will consume resources and dispute people’s attention, which if not managed considering priority, feasibility and final benefits, can impact the desired results and introduce more costs. Therefore, it is recommendable to make an inventory of the existing initiatives, define criteria for their structuring and evaluation, allowing for alignment with the strategic objectives of the company. And when a decision has been made to move forward with a specific project, conditions must be ensured to minimize uncertainties and maximize the achievement of the expected benefit.

Finally, it is part of a healthy governance to define projects and consistently ensure the achievement of those prioritized, in order to maximize the generation of business value. Project and change management don’t need to happen only through a Project Management Office, but should be an intentional and effective practice in any sustainable business.

How strong is your Value Proposition?

One of the most basic concepts of marketing, and certainly of any business that depends on conquering and retaining customers, is called the Value Proposition. It comprises the range of products and services that configure your company’s offering the client pays for, including the intangible aspects that make up the attributes of image. A business opportunity is based upon meeting the needs and aspirations of a defined market segment, whether explicit or implicit.
The attractiveness of your offering to the target audience, wrapped with the aspects of the brand’s personality, ethical commitment, among others, and the benefits experienced by your customers, translate into the general value perception that the market will assign to your company. Take the example of Nespresso, that with its offering of making “gourmet espresso coffee available at your home/ office”, with a vibe of innovation, sophistication, and convenience, built up a multi-billionaire industry.
To formulate and sustain a meaningful and well positioned Value Proposition, whatever the business, is the starting point to justify its success.

#valueproposition

Strategy as a way to go

Strategy is a term that still evokes a certain reverence, prepared by privileged minds and able to do wonders. In companies it is normally formulated or revised annually by the senior management, off-site and with support from an expensive consultant. Later it is communicated to the others, with a climate of great expectation by the impact it will bring to the business and possibly in the organization, reversing poor performance and building growth. Unfortunately, up to 80% of companies fail to implement their strategic plan! More important than trying to elaborate over the unpredictable future, would be to equip the organization with a collective intelligence and means to systematically learn how to generate more value in the business. Strategy does not need to be an existential rethinking, but more of a reflection on the way as you go

#strategy

Have you thought of your Business Model?

When you want to start a business, or to understand an existing one, it is key to think about Business Model. It describes the logic of how the company creates, delivers and captures value from the market, under a strategic vision. After all, every business is an exchange of value between parties, which can happen in various ways. The Business Model makes it easier to communicate business concepts, develop strategies, and align stakeholders, so to structure and test the idea for generating desired results. It begins with the perception of a need or an aspiration, either expressed or implied, that one believes can be met in a profitable and sustainable way.

If you have not thought yet of the Business Model for your company or institution, you are missing an opportunity to make great difference.

#businessmodel