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.
Like this article? Share it with your friends
 |
Related Articles |
|
The Fear of Differentiation
|
| |
Building a unique small business brand requires some courage. Why are unique brands so scarce while middle of the road products, services, retail stores, etc dominate the business landscape? My theory is that it has...
|
The Science of Differentiation
|
| |
There is enough evidence in the annals of branding to convince even the most skeptical small business owner that differentiation is a critical component of building a successful brand – yet there are very few that e...
|
What does brand differentiation really mean?
|
| |
Brand differentiation and Product differentiation are often mixed up. In what way they are different is covered in the article.
|
Brand Differentiation
|
| |
This article discusses branding strategies
|
Differentiation – Smart Marketing Strategies for the Solo Entrepreneur
|
| |
Are you ever frustrated or hesitant when you talk to prospective customers because you can’t readily explain why they should come to you rather than go to your competitors? Sure, you might have your 30-second elevat...
|
 |
Related Businesses - Evan Elite Authors |
|
Dave Kurlan
Dave 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 |
|
Accessible Business Consultants
Dave Turkin, President, of Accessible Business Consultants is a full service business consultant that has over 32 years of experience working with small-medium size businesses. Dave has designed and implemented numerous business and marketing plans, designed internal programs for accounting and operational procedures. He has analyzed businesses and prepared strategic plans setting budgets for growth, expansion and business restructuring.
He currently sits on the Board of Directors of various corporations as an advisor. For many years he has been the Business Coach to many executives offering advice and guidance from old and established companies as well as new companies just getting started.
Dave has the ability to analyze a business quickly and get a strong indication as to the necessary steps to improve operations, productivity and profitability. - Visit Accessible Business Consultants's Website |
|
Anne Barr
Anne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations,
networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business
ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
|
The Evan Elite Authors program is currently in beta phase. For details please contact us.
|
|
|
Hugh Duffy
(Visit Hugh's Website)
Co-Founder and Chief Marketing Officer for
Build Your Firm (www
.buildyourfirm.com), which is a
marketing, coaching and practice
development firm for accounting firms
throughout the US. Hugh has over 25 years
of marketing, selling and general business
management experience.
Build Your Firm provides accounting
marketing workshops throughout the US for
small accounting firms, website
development and search engine optimization
services, outsourced marketing, practice
management and outsourced marketing
services.
The foundation of Hugh's background
includes consumer packaged goods marketing
complemented with direct response
marketing and internet advertising.
Hugh's free monthly email newsletter
reaches over 3,000 small accounting firms.
|
|
|
|