Business Beat
By Keith Dawn
Many consumers don’t understand the amount of work that goes into running a business. And I’m not just talking about the daily operations. The real work is behind the scenes with planning, financing, raising capital, marketing and advertising to name a few. Without developing a strong foundation from the beginning, a well-intentioned business can struggle.
While dealing with hundreds of small businesses, I’ve learned that if you miss key ingredients, it can be detrimental to success. One area that many businesses never develop or improve as competitors enter the landscape is a Market Dominating Position.
You might be unique, but it won’t matter to your customers unless it’s a hot-button issue for them. A Market Dominating Position is basically a USP (Unique Selling Proposition) or distinctive advantage targeting the hot buttons of your market. This is the foundational element of marketing. A powerful Market Dominating Position can increase a business’s revenue by as much as 50% to 75%. Let me give you an example: Have you ever met a real estate agent? When you ask them what they do, they say, “I’m a real estate agent.” When you hear that, it’s not impressive or compelling at all. It makes you think, “So what?” What if they said, “I help families buy homes larger than they thought they could afford.” Or “I sell homes within 60 days or I sell them for free.” If you were looking to buy or sell a home, would that be more compelling than someone who states what everyone else says? That’s what a Market Dominating Position is supposed to do.
Businesses are established in response to market demand for a product or service. However, what happens when that demand slows and the competition sets up shop with a “new and improved” version of your product down the road? How do you keep your offering fresh while growing and maintaining your customer base? The answer, innovate your business and offer extraordinary value by creating a Market Dominating Position.
So now ask yourself what, if anything, makes your business different from your competitors as perceived by your targeted prospects and customers? For the vast majority of businesses that answer is price. So then consider today’s top selling companies.
Have you bought a cup of coffee lately at Starbucks? According to their latest data, their typical customer spends between $6.00 to $11.00 on every visit. That’s around four times higher than most of their competition.
Obviously, low prices aren’t the driving force here. These top selling companies have developed a specific and targeted Market Dominating Position. For Starbucks, it’s delicious hand-crafted beverages which they claim is the secret to making life better.
When you create your own Market Dominating Position, you will consistently get businesses and individuals to choose your business over your competitors.
But what exactly is a Market Dominating Position? “It’s simply any value-added customer perceived benefit, or a combination of benefits, that differentiates you from your competitors; and does so in a strong enough manner that it makes your business the logical choice in the minds of your prospects and customers.”
Another 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.
The key is to create added value in everything you do. Prospects and customers DON’T buy based on price. They buy based on the value they receive for the price they pay. (Read that again). Like all other elements in your marketing toolkit, added value is designed to attract new customers and retain existing ones.
If you don’t revisit the value you offer, then over time your customers will be drawn to your competitor who consistently innovates their business so they offer exceptional value that you don’t.
Everyone can add value to their business. The key is determining what your customers and target market perceive as valuable. You must understand their needs, wants, troubles and in- conveniences in order to entice them with solutions through added value products or services. Adding value will also add to your profits, but if you don’t focus on genuinely helping your clients you’ll have a difficult time attracting them.
Added value works for both product and service-based businesses. If you offer a service like hairstyling, try treating your customers by offering them a latte while they wait, or complimentary shampoo samples or a free conditioning treatment with every sixth visit. If you sell a product, consider offering convenience services like free shipping or delivery to make the customer’s experience a seamless one. The customer will feel appreciated and their needs will have been taken care of.
Until next time, here’s to your success!
Keith is a seasoned media executive and former publisher for The Press of Atlantic City.
Keith is now a business coach/advisor and CEO of his own consulting firm called Strategic Growth Partners. He’s passionate about helping businesses grow. He can be reached at keith.dawn@sgpCoach.com or you can visit his website for more detailed information at https://www.sgpcoach.com.
