Posts Tagged ‘competition’
How much is that little doggie in the (virtual) window?
I love electronics. Like oh-so-many other guys, I like going into my local electronics retailer and picking up and playing with the gadgets. I may not buy them, but they’re fun to play with. I remember one year telling my wife that I was going to take my birthday as a vacation day from work and spend the morning at Best Buy.
You’ve done it yourself I’m sure. You’ve gone into a Best Buy, Circuit City, Fry’s, CompUSA, or any of the other brick-and-mortar electronics retailers and just played. You might have gone in for something specific and just got sidetracked or maybe you were just going in to have fun and kill some time. But you’ve tinkered.
Then came the Internet. And with it, ease of comparison shopping. Then the brick-and-mortar that you visited just became the playground to test out new gear. You figured out which model you wanted and then went home where you could find it online for the cheapest price from a company that you hope wouldn’t drop it too many times before it shipped.
What happened to the brick-and-mortar stores? Circuit City is gone with its brand sold to a company that maintains an online-only presence. CompUSA is gone as well. Even market leader Best Buy is reporting in 1st Q 09 a domestic segment increase of almost 1%, but comparable store sales decline of 4.9%.
What does all this mean to you, the small business owner?
You know all that overhead you endure month after month? The salarys, the building and maintenance cost? The inventory? Know how you work so hard to generate positive foot traffic so people come in?
Ask yourself, if you were in your customer’s shoes, would you buy from you? Is there a compelling reason for someone to buy from you rather than just play with your floor models and then go home and order it?
Of course there is. You know all the reasons as well as I do. First and foremost, the item’s already in the customer’s hands. Why let them put it down and then go home? They have have it TODAY. Despite the rigors of the current economy, we’re still a nation of “gotta have it now” people. Secondly, your staff is there to support you if you need to learn how to use it, need to select a better one, or return it. No need to ship it off to some post office box. Just bring it back and you’re happy to help. Thirdly… Fourthly… Fifthly…
You know all the reasons. I don’t need to tell you. But you do need to tell your customers. Before you become a Circuit City, CompUSA, or Ritz Camera, you had better make sure that your marketing and branding all position you against your competition correctly. And don’t forget, your competition includes all those faceless retailers that don’t even have a storefront.
What do you want?
There is an unfortunate saying in our business: “Just because we work in communications doesn’t mean there is communications.”
Imagine that. In the very field that we work in, we are less than expert in executing the practice ourselves. Given that, how can we expect our clients to provide us with clarity in their communications. We often get frustrated by the perceived lack of clarity in message from the client.
We are the experts here. It is up to us to spend time with the client to derive from them what exactly is the message and position they want to convey to their (potential) client base. That is something our company pledges to do for our customers first and foremost for every client on every project.
However, that doesn’t preclude you, the small business owner, from having to do some homework yourself. Good marketing firms will do anything they can to help you to fine tune your message. But you need to know what it is you hope to accomplish first. Are you looking to establish points of differentiation from your competition? Are you looking to build market share? Are you launching either your company or a new product/service offering? Most marketing firms will work diligently with you to help you to figure out what your goals can be as well as what the right message and medium would be. However, if you’re reading this blog, then I’m thinking that you are possible not in a financial position to simply turn over your entire marketing efforts over to another firm. Therefore, much of this homework falls on your, the owner, to figure out.
It is difficult to have a good objective view of your company when you are internal. This is why large companies often rely on focus groups to help them gain perspective. Given that you don’t have the budget to perform any kind of formal focus group, reach out to people that know your company the best: your customers. Ask them what they think of when they think of your company. What images come to mind. The important thing here is to allow them to respond in a way that supports openness and honesty. Give them an avenue to remain anonymous.
There is a danger here. By asking only your current (and/or past) customer base, you are restricting yourself to views from people that already know your company. Seek opportunities to ask beyond that universe. The effort to gain this additional information is greater, but so are the rewards.
Marketing in a difficult economy
As a business owner, current economic times provide you with endless challenges and possibly sleepless nights. When you’re worried about dwindling sales and if your bank is going to pull your credit line, it’s hard to think about growth. Ever wonder what the smart business owners are thinking about during these turbulant times?
How do I grow market share?
There it is. The smart businesses around us are thinking about turning these challenges into an opportunity. They are getting the message out there about their goods and services. They are developing top-of-mind awareness in the public at a time when their competitors are pulling marketing dollars off the table. Why? Exactly for that reason. The best time to build market share is when there’s no opposition.
In the past, I’ve written about cutting through the clutter and getting your message heard. Times like these make that task much easier. Fewer messages mean it’s easier to remember yours. Put your message out there. Repeat it over and over. If you do that, what do you think will happen?
In a recovery situation, you will be miles ahead of your competition. You will have built tremendous value in your brand and increased your opportunity to gain market share.
I know it’s hard to think along these lines when it seems like the sky is falling and money is tightest. But this truly is an opportunistic time. If you’re thinking about cutting back on your marketing budget, I would caution you to perhaps examine your strategies and concentrate your efforts to maximize success. If you’re thinking about cutting your marketing budget altogether, I have a message for you from your competitors:
Thank you.
Imitation is the sincerest form of flattery
If you’re in business, it’s highly likely you either have some form of competition or you are reading this while sitting on your private beach located on your own private island. If you’re like the rest of us, you have to keep an eye on the competition in much the same way as they are keeping an eye on you.
So, what are they doing?
From a marketing standpoint, are they doing anything different from you? Are they doing it better?
There is true value in being the first to market with a new idea or concept. However, not being first doesn’t preclude you from making an effort. You might need to just to keep your current pace. But this is also an opportunity. Is there a way that you can capitalize on your competition’s efforts that would make your situation better?
For example, they may be starting a new campaign. Maybe it’s a smart campaign, but they are missing one big component. You know you can do it better. Then do it…BETTER!
Is there another twist you can add to the campaign or concept that makes it appear original? Sometimes the best ideas are variations on someone else’s original thoughts.
But then again, are there really original thoughts any more?
I’ve got a website. Now what?
Ask any marketing person today and they will say if you’re in business, you need a website. Why? First, all of your competitors have one. If for no other reason than to be on the same level as them, you need one.
So, all you need to is plant your virtual flag into the cyberground, toss up a page with your name on it, and you’re done…right?
Sure! Do the bare minimum. Expect the bare minimum. Want more? Do more!
Today, busy professionals use every tool at their disposal to find out which companies are worth doing business with. Who are the cream of the crop? Who is worth their time? One of the most accessible tools today is the Internet. Look up their website. How’s it look. In a brief period of time, can you get an excellent sense of who they are, what they do, and exactly what they can do for you? If not, try Googling someone else.
Let’s say you’ve put together a nice website. The content is clear to understand. You’ve got pretty pictures. Now what?
Have you asked your website what else it can do for you?
Let’s say your website has a well written paragraph on your front page. Do your visitors want to read it? Or would it be better to have a video where your CEO can invite people into the site to explore and interact? Is your navigation consistent and intuitive? What else can your website do for you?
Time to visit your website and look at it critically. Maybe it’s time to visit your competitor’s websites as well. What are they doing that’s different and memorable? Are they gaining a leg up on your company through superior web branding? Do the websites have returnability because there’s frequently updated worthwhile information?
What do you perceive as goals for your website? What have you accomplished through a web presence that perhaps your office/store location haven’t been able to do on its own?