Standing Out In A Crowd
By David Reed, MPA Media Operations Coordinator
In today's fast pace marketplace consumers are inundated with products and services. Fair and competitive markets will have similar or substitute goods and services. The fundamental question is: Which competitor will your target customers choose? How well you differentiate your products and services compared to your competitors has a direct correlation with your overall sales. Through good market research you should understand your competition and your place in the market. In order to improve your marketing efforts it's a good idea to review some basic marketing philosophies.
Understand your competitors.
Under the best circumstances there always will be a substitute good or service taking sales from your business. Good competitors have done their homework and understand their position in the market. The key is to understand their strengths and position your company as the better alternative. This is the cat and mouse game every business must play.
Every target market will be conscious of product attributes that are purchasing factors that can be developed to make the sale. For example, if you're faced with a price sensitive market and the competition is full of low cost leaders, the better position is likely the superior quality product. You may develop a marketing strategy that discusses the product's unique features. The object is to highlight the characteristics of your products so that your target customer views your product or service as unrivaled. Defining your place in the market and attempting to alter the buyers perception should be a continuous priority. If you don't continuously try and shape your identity, your competitors will do it for you.
Talk to your customers.
Conversation consists of two parts: 1. Conveying information and 2. Collecting information. Successful companies understand that communication is the key. You may feel very confident you understand why your customer selected your service. However, asking your customers why they selected your product is often they best way of finding your best qualities. Annually reviewing your services with your customers can lead to some really great marketing ideas. Surveys can do the job of collecting quantitative information. Although nothing can take the place of direct one on one conversation. it's essential you have as many avenues to receive feedback as possible. Almost as important is how you tabulate the results of this information. Good analysis of the results should give you an idea of your strengths and weaknesses. When reviewing this information keep an open mind and try not to discredit the feedback.
The continuous flow of information to the customer also is important. This flow of information is advertising. Research shows that increased exposure increases sales. However, the message conveyed has importance in differentiating your product. The author of your marketing material should be utilizing the information you receive from your customers to enhance your marketing efforts. A good advertisement is going to convey the brand, the message and why you deserve the business.
Place emphasis on what you do well.
Emphasizing your strengths sounds like a no-brainer. However, you would be surprised how often companies trying to market their products and services provide a convoluted message. Marketing materials should provide clear messaging and avoid too much information. The less is more approach works when combined with good information that speaks to your customer. Take the information you have collected from your customers, distributors and employees to create a well rounded campaign that illustrates your unique product features. It does not need to be flashy or have a great hook. Remember that you are fulfilling a need, and your product or service is the best choice for a customer base. They need to find you.
Determine your optimal price point.
The laws of supply and demand will determine your product optimal price point. How you adjust the price afterwards is up to you. Premium products have the availability to charge higher markups. High competition for similar items will erode your profit margins. Every company faces a different set of circumstances.
Price is a tool that can be manipulated to increase market share and revenue. It's a message estimating the value. Companies often believe profit maximization is the process of charging higher prices. However, profit maximization is finding and altering the optimal price to achieve the maximum profit during the product life cycle. Based on your research you should understand the price range and price elasticity. Take into account the unique features of your product or service when calculating price. Price should be more than the cost of goods sold plus a percent markup. Reviewing your competition's pricing and availability, then evaluating what will counter your competition will help determine whether you should increase or decrease price. Other tools such as price reductions, discounts and other price promotions can help manipulate the market and increase your sales.
Take a look in the mirror.
An effective marketing plan can consist of several different methods and philosophies. The key is to evaluate which methods work best in your environment. Return to the basics and evaluate what has worked in the past. Review methods you have yet to experiment with and try some focused testing. Understanding your position in the market can be found by evaluating your strengths, market, competition, customer and pricing strategy. Increasing sales can be as simple as changing your approach and better differentiating your products and services.
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