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The Importance of Needs-Based Products and Services 
 
by Catherine Brock May 23, 2005

An alternative is product/service differentiation. Your goal will be to make your customers believe that your service is different and better than the rest, in ways that are relevant to them. To say, for example, that you have the neatest handwriting of any freelancer is irrelevant in today's business world. As in the example used above, the medical billing entrepreneur who started an answering service developed service features (high-end technology and professionally trained staff) in order to meet specific, relevant customer needs: complete service and reliability. Analyzing relevancy objectively keeps you focused on the customer, thus protecting you from falling into a product-focused orientation.

Defining the differentiating features of your product or service is easier when you focus on a specific target customer. Writers, for example, can specialize in correspondence writing, technical writing, marketing communications, journalism, etc. Each of these would sell to a slightly different customer. To get even more specific, identify the geographical region you're going after. Although the Internet opens up a huge market, it also forces you to compete with many more professionals like you.

Think from your customer's perspective about what you would require from a freelance writer, outside of the quality of the work. Don't try to differentiate yourself on quality; presumably every writer will tout the quality of his work. Is there anything you can add to your service that would make you more valuable than your competitors? Is there anything that your competitors don't do that your customers would value?

Assume you have direct sales experience as well as experience writing sales training manuals. Use that to your advantage. Approach local sales organizations and find out if they produce their training manuals in-house. If the answer is yes, you can explain why it makes more sense to have them produced by an independent contractor (for example, the benefit of objectivity). If the answer is no, find out who your competitor is and what you have to do to compete.

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