A Market Dominating Position – Introduction.
Most businesses become established, because of a market demand for their product or service. Many build their business by serving that demand and enjoy growing profit. And without putting much effort into long term planning or marketing.
But questions arise about how long this kind of success will last…
-
- What happens when that demand slows or stops?
- What happens when the competition sets up shop with a new and improved version of your product down the road?
- How do you keep your offering fresh?
The answer is simple. While growing and maintaining your client base, innovate your business. Also offer extraordinary value by creating a Market Dominating Position.
Consider this, every choice a customer makes when buying a product or service, represents a point of differentiation between one company and their competitors. These differences, weather subtitle or distinct, determine which customers will buy what you sell.
I will give you an example. Consider the well documented case of Domino Pizza. Why did Dominos become a billion-dollar behemoth in an overcrowded market in a just a few years?
-
- Did Dominos make the best pizza?
- Did they offer comfortable in-house dining?
- Did they offer the largest selection on their menu?
The answer to all these questions is “No”.
They did pretty much offer the same pizza as all their competitors. They dominated by adopting and implementing one major strategy. They created a market dominating position in an area with lots of colleges, which was fast hot pizza, targeted specifically for hungry college kids.
Is “Price” the answer to differentiate yourself from the competition?
Ask yourself what makes your business different from your competitors as perceived by your targeted prospects and customers? For most businesses that answer: “Price”.
Many years ago, Nike offered the top selling Air Jordan 3 for $150 a pair. At the exact same time Target sold an exact same and excellent imitation of the Air Jordan for around $40. But Nike outsold them 10 to one.
Starbucks is a popular place to buy coffee in many parts of the world. Their prices aren’t low. According to the latest data their typical customer spends four times more than they would at their competitors.
Obviously low price isn’t the driving force here. So, what is?
The answer? These companies stake out a specific and targeted Market Dominating Position.
Nike focused their position around being the best athlete, being hip and in style, along with the perception of quality.
Starbucks focused on delicious hand-crafted beverages, which they claimed is the secret to making life better.
When you create your own Market Dominating Position, you will consistently get business and individuals to choose your business over your competitors.
What exactly is a Market Dominating Position?
You can define it as “ Any valued-added customer perceived benefit, or a combination of benefits, that differentiates you from competitors and does so in a strong enough manner that it makes your business the logic choice in the minds of your prospects and customers”.
Some people also know it as USP (Unique Selling Proposition).
I will give you an example: A dry cleaner that offers pick-up and delivery would be the only logical choice for any prospect or customer that values convenience. This simple distinction represents a market dominating position.
Another example of added value would be a gift shop owner, that offers complementary gift wrapping with every purchase.
The key to create added value.
Prospects and customers don’t buy based on price. They buy based on the value they receive for the price they pay. Creating added value is a market or customer relation strategy that can take the form of a product or service that is added to your original offer for free or as a part of a discounted package.
Like all the elements in your marketing toolkit, this is designed to attract new customers and retain existing ones.
If you don’t revisit the value of your offer than overtime your customers will be drawn to a competitor who consistently innovates their business, so they offer exceptional value that you don’t. Ultimately your customers will demand additional value for them to remain loyal and they are the keystones for your business growth.
Everyone can add value to their business. And adding value doesn’t have to blow your marketing budget or take off hours of your time. There are many ways to enhance your business.
The key to adding value.
The key to adding value for a customer is providing a feeling of being appreciated and that their needs will be taken care off. Example are:
-
- Determining what your customers and target market perceive as valuable. You must understand their needs, wants, troubles and inconveniences in order to entice them with solutions through added value products or services.
- Adding values will also add to your profits, but you don’t focus on generally helping your clients, you will have a difficult time attracting them.
- Another example to add value works for both products and service-based businesses.
- If you offer a service like hair styling, try treating your customers by offering them a latte while they wait.
- Complementary shampoo samples or a free conditioning treatment with every sixth visit.
- If you sell a product, consider offering convenient services like free shipping or delivery to make the customers experience a seamless one.
