I spent part of the holiday season reading Michael Schrage’s “Who do you want your customers to become.” And I think he asks a good question. But I suspect it is easier to understand if it is rephrased: How do you define your target audience?
For Toyota’s Prius, this is drivers who care about the environment. Mileage — the prime environmental decision most drivers make — was not traditionally made for environmental considerations. Rather it was an economic consideration in that better mileage meant lower fuel costs. Prius changed that and made it a conscious environmental consideration. And in so doing, Toyota created a market segment that it could be the first to satisfy.
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Likewise Volvo created and then satisfied the safety-conscious market segment. Bose targets people who see themselves as caring about sound quality, Starbucks discriminating coffee drinkers, and Walmart price-oriented shoppers. But having defined the target market and even having gotten the target customers to adopt the same definition is not enough. If the company is to grow it has to expand the number of people who self-identify with the company’s definition. Hence Schrage’s question: How do you educate your target audience to want what you offer?