Marketing is about Differentiation
Marketing is about Differentiation
Without a differentiated service, your service becomes a commodity because you become subject to the market, and vulnerable to someone else with a lower price. To command a higher price for your service and maintain superior profit margins, you must differentiate your service and provide more “perceived” value. When done properly, your value proposition becomes well known, the sale becomes easy, and your retention rates will remain high.
The late CEO of Coca-Cola used to say:
“In real estate, it’s location, location, location.
In business, it’s differentiate, differentiate, differentiate.”
Robert Goizueta
Former CEO of Coca-Cola
In today’s marketplace, there are thousands of examples where a company has clearly differentiated their product (or service), customers clearly understand the value proposition, and maintaining this premium is easy because they have effectively differentiated their product. Examples of branded products range from Mont Blanc pens to Miki Moto pearls to Starbucks coffee. In the service world, many large companies now outsource their information technology management to IBM based on trust. Another interesting service that is unique is NetJets air transportation (fractionalized jet ownership). In educational services, many parents support brands like Sylvan Learning, Kaplan and Princeton Review to augment basic educational needs for their children.
Firms that succeed with a differentiated strategy often have the following strengths:
• More insight into their customer’s pain points and needs. This can be accomplished with market research and/or superior market penetration in a particular market sector.
• Strong sales team with the ability to successfully communicate how your service is unique and different. The differentiation can be real or perceived but must be effectively communicated across every customer interaction. Years ago, IBM’s sales force used to say that a purchasing manager never got fired for buying IBM. Although this tactic was heavy handed, it was effective for many years.
• Established reputation for quality service. Many companies have slowly gained market share with consistent quality and reliability. Examples range from Japanese auto manufacturers to Marriott.
To be successful with a differentiation business strategy, you must first gain a keen understanding of your market from three different perspectives. Those three angles are from the eyes of the customer (their needs and perceptions), your competition, and an honest assessment of your own firm.
Everyday, we take for granted examples of differentiated products and the premium price that it commands. If Frank Purdue can command a premium for chicken, Charmin can for toilet paper, and Starbucks can for coffee, shouldn’t you give a little more attention to differentiating your services?
Marketing is about Differentiation - To learn more about this author, visit Hugh Duffy's Website.
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Are you tired of haggling over the price of your service? Have you found it difficult to charge the prices that your services deserve?
Without a differentiated service, your service becomes a commodity because you become subject to the market, and vulnerable to someone else with a lower price. To command a higher price for your service and maintain superior profit margins, you must differentiate your service and provide more “perceived” value. When done properly, your value proposition becomes well known, the sale becomes easy, and your retention rates will remain high.
The late CEO of Coca-Cola used to say:
“In real estate, it’s location, location, location.
In business, it’s differentiate, differentiate, differentiate.”
Robert Goizueta
Former CEO of Coca-Cola
In today’s marketplace, there are thousands of examples where a company has clearly differentiated their product (or service), customers clearly understand the value proposition, and maintaining this premium is easy because they have effectively differentiated their product. Examples of branded products range from Mont Blanc pens to Miki Moto pearls to Starbucks coffee. In the service world, many large companies now outsource their information technology management to IBM based on trust. Another interesting service that is unique is NetJets air transportation (fractionalized jet ownership). In educational services, many parents support brands like Sylvan Learning, Kaplan and Princeton Review to augment basic educational needs for their children.
Firms that succeed with a differentiated strategy often have the following strengths:
• More insight into their customer’s pain points and needs. This can be accomplished with market research and/or superior market penetration in a particular market sector.
• Strong sales team with the ability to successfully communicate how your service is unique and different. The differentiation can be real or perceived but must be effectively communicated across every customer interaction. Years ago, IBM’s sales force used to say that a purchasing manager never got fired for buying IBM. Although this tactic was heavy handed, it was effective for many years.
• Established reputation for quality service. Many companies have slowly gained market share with consistent quality and reliability. Examples range from Japanese auto manufacturers to Marriott.
To be successful with a differentiation business strategy, you must first gain a keen understanding of your market from three different perspectives. Those three angles are from the eyes of the customer (their needs and perceptions), your competition, and an honest assessment of your own firm.
Everyday, we take for granted examples of differentiated products and the premium price that it commands. If Frank Purdue can command a premium for chicken, Charmin can for toilet paper, and Starbucks can for coffee, shouldn’t you give a little more attention to differentiating your services?
Marketing is about Differentiation - To learn more about this author, visit Hugh Duffy's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
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