Marketing Differentiation Why Is It Important
Are you fortunate to have NO competitors
In an ideal world you would be the only company who supplied the product or service that you are providing. That way when a customer or prospect comes to you and requests your product or service you don’t have to worry about
- The pricing that you apply. With no competitive products if a customer can afford your product and wants to buy it why would they worry about price
- The quality :if yours is the only product then direct comparison is difficult.
- Where you are located: If people want what you offer and there is nobody else to provide it, then customers / prospects will make an effort to find you
- The package : What you actually provide in the product you deliver, in terms of additional product features or extras
If you don’t have any direct or indirect competition then happy days make sure that you maximise profits before things change (the future competition)
- Direct competition: companies offering exactly the same product or service as you
- Indirect competition: companies who offer a different product or service to you but are competing for your money
- Future competition : companies / products that are being developed that will transform the way that a customer purchases in the future
What if you have direct competition
Unfortunately most companies have direct competition so what is the best way to compete
- Price: you could be the cheapest but do you have the lowest costs and by being the cheapest will you be able to make a sustainable profit
- Quality: You could offer the highest quality (unlikely that you will be the cheapest now), or you could offer the lowest quality (unlikely that you will get repeat customers)
- Location: make sure you are located where its easy for your customers to find you. That could be your physical location or being easily found on the web.
- Package: you could do things differently as you provide the product / service that are of value and importance to the customer but don’t actually add (significantly) to your direct costs. Importantly you need to understand what is important and of value and then communicate it
The picture of a vending kiosk in New York, shows part of the differentiation process. There stall is different to the hundreds of other street vendors ‘we are different’ unfortunately the product offering and service didn’t match the expectations. So publishing that you are different when you are not, probably wont work as a long term promotional strategy. A great sales and marketing question to ask yourself that helps with the differentiation challenge is “Why should I buy (whatever you sell) from you”.
Marketing Differentiation And Its Importance In Sales – Struggling to identify what makes you different?
If you are struggling to establish what makes you different then give click here a call on 01733 361729 where we can use our unique ‘Marketing Differentiation Tool‘ to help you identify what makes you different.