Are You Different?
An important part of any business is your marketing strategy. This requires setting the vision for where you want to be in the marketplace and developing your products and services accordingly.
Elements of market strategy include establishing your niche, segmenting the market, having a development plan (see column 4/15/05), understanding market trends, and being different. By the way, you can look for any back columns (or other back articles) on the web at kitsapsun.com.
For a small business being different is a critical part of this strategy. If you are not different, you have to compete on price. As I have mentioned many times, this doesn’t work unless you are big (very big). Most smaller businesses are not this big. Price shoppers aren’t loyal and profit is elusive when you compete on price.
Whether your business sells B2B (business to business) or directly to the consumer, the competition is fierce out there. Customers have a lot of choices and in this information society it is easy for them to find out what those choices are. Economists talk about efficient and inefficient markets. In the old days, you bought at your local store or maybe with a catalogue. Markets were inefficient. You didn’t know what everyone was offering. Now you do (the darn efficient market!).
So businesses now, more than ever, have to find that niche in the market where they can compete. They have to be different.
However, this difference has to meaningful. It has to be what the customer wants (there is that market research again).
This niche that you plan to operate in the marketplace by being different has to be big enough to be profitable. If you own Kitsap Krazy Kookware and offered only left-handed spatulas, you’d be different. However your market would be too small to be worthwhile.
In order to be different from your competition you need to know who they are and what they offer. Most businesses know their direct competition, that is, the store down the street, or a well-known national competitor. However, with the online capabilities of today, the customer might be buying from sources all over the world. Businesses need to have a continuing competitive analysis program. This program must involve your customers, since they are the ones that count.
How can you be different?
Maybe you offer some unique customer service. You have extraordinary delivery service. Perhaps you are extra prompt when customers come to you. Do you know your local tire store where the employees run (that’s run!) out to your car to greet you? Do you follow up with your customers after their purchase? I recently purchased a new garage door opener including installation. The store called about one month later and asked if I was satisfied. I was, and I was very satisfied that they called to ask if I was satisfied.
Do your products have different features? More durable, more reliable, easier to repair, higher performance, a unique style.
If you offer a service rather than a product are you different? Perhaps you provide installation, training, or consulting. Can you be more flexible and offer customization?
Are your employees more competent, more courteous, more responsive, better communicators, or perhaps more sincere?
There are lots of ways to be different. The trick is making sure that your customers want or need this difference and that you can make it work financially. Vive la difference!
This article was written by Seattle SCORE Chapter member Fred Parkinson for the Kitsap Sun in Bremerton.