Do you know what is a Market Dominating Position?
Does your business have a Market Dominating Position?
The majority of small businesses are established in response to market demand for a product or service. Many build their businesses by serving that demand and enjoy growing profits without putting much effort into long-term planning or marketing.
However, 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 while growing and maintaining your client base?
The answer, Innovate your business and offer extraordinary value by creating a “market dominating position.”
Consider this. Every choice you make when buying a product or a service represents a point of differentiation between one company and their competitors. These differences, whether subtle or distinct, determine which customers will buy what they sell.
Consider the well documented case of Domino’s Pizza.
Why did Domino’s become a billion dollar behemoth in an overcrowded market in just a few years?
Did Domino’s make the best pizza? Not even close!
Did they offer comfortable in-house dining? No way!
Did they offer the largest selection on their menu? They offered the exact same pizza as ALL of their competitors!
They dominated by adopting and implementing one major strategy.
They created a market dominating position, which was fast hot pizza, targeted specifically for hungry college kids.
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.
Nike offers a wide range of shoes, apparel and equipment products, all of which are currently among the best sellers globally.
As an example, the top selling Air Jordan 3 is currently selling for $150 and up.
And yet, Target sells an excellent imitation for around $40, but Nike outsells them by more than ten to one.
Have you bought a cup of coffee lately at Starbucks?
According to their latest data, their typical customer spends between $3.50 to $4.00 on every visit.
That’s around four times higher than any of their competition.
Obviously, low price isn’t the driving force here.
So what is?
The answer, these top selling companies have staked out a specific and targeted market dominating position.
For Nike, their position revolves around being the best athlete, being hip and in style along with the perception of quality.
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?”
As 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.
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.
Creating added value is a marketing or customer relations strategy that can take the form of a product or service that’s added to your original offering for free or as part of a discounted package.
Like all other elements in your marketing toolkit, it’s designed to attract new customers and retain existing ones.
Another simple example of added value would be a gift shop owner that offered complimentary gift wrapping with every purchase.
If you don’t revisit the value you offer, then over time your customers will be drawn to your competitor who consistently innovate their business so they offer exceptional value that you don’t.
Ultimately, your customers will demand additional value to remain loyal – and they’re 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 up hours of your time.
There are many ways to enhance your business in the eyes of your clients.
The key to adding value is 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 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 hair styling, 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.
I hope this read opened your eyes to opportunities that are missing in your business.
In the next blog I will help you understand how to create your business’ marketing dominating position.
If you need help identifying your Market Dominating Position, connect with me now to introduce your business to me.
To your success!
Robert Jarrett
Your Profit Growth Strategist