Knowing What Your Market Values
PRICE vs VALUE:
YOUR PROSPECTIVE BUYER:
The Central Model
The Central Model presents a market that:
Is sufficiently large to provide the revenue stream your company needs;
Is sufficiently small that it can be identified and addressed efficiently;
Has many of the same beliefs and values;
Has many demographic characteristics in common;
Has many psychographic characteristics in common;
Represents a group that your company and you can and do understand.
The Flanker Markets
Inevitably, you will draw interest from prospects not in the Central Model. These prospects will respond to certain of your marketing messages, but will differ in important ways from your Central Model. They will respond to your value message, but perhaps not to your design message. Or they may respond to your design message, but do not fit the demographic model. These prospects comprise your "Flanker Markets". Flanker markets do not precisely fit your Central Model. However, such markets represent sales opportunities that you cannot ignore. Additionally, the flanker markets provide important information to you regarding where your market is heading, and clues as to how to tweak your offerings to align more closely with potential clients.
MASLOW'S NEEDS HIERARCHY:
According to the "Hierarchy of Needs" theory
of Abraham Maslow, the most useful way to try to understand human values is to place those values in a pyramid of needs, beginning with the most basic need of survival and ascending to a state of realizing one's full potential, or self-actualization.
As each level of needs is fulfilled, the next level can be addressed.
This concept is valuable for attempting to understand and address the aspirational values of potential home-buyer clients.
The pyramid illustrates that the first level of need is physiological, i.e. for some form of shelter.
Once that need is met, the desire is for safety and security.
When the individual feels safe and secure, she aspires to belong to a group (or tribe).
When the individual is ensconced with a group (such as a neighborhood), he aspires to be valued or esteemed within the group.
As the individual grows in terms of standing in the community, he or she can begin to realize their full potential as a member of society.
The illustration would also suggest that an individual does not progress to the next level of the hierarchy until they have substantially realized the characteristics of the level below.
In essence, as humans, we progress from survival --> comfort --> sharing --> respect --> fulfillment.
Our housing aspirations follow the same path.
IS YOUR MARKET SEGMENT WILLING TO PAY FOR VALUE?
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