As marketing manager of a big
company how can you develop your competitive advantage in the
marketing and distribution of your new products?
Answers
A small business builds a competitive advantage by providing a better overall value to customers than competitors are able to do. During the annual planning process, the business owner and her management team develop marketing plans to maximize the revenues that result from this advantage. Long-term success in business requires building a sustainable competitive advantage -- one that endures despite new competitors entering the market or existing competitors improving their own products or services.
Align Products with Customer Needs
A small business owner must have a keen understanding of his customers’ needs. An objective of his marketing plan is to identify the customer groups that can benefit the most from the products and services he offers. These are the individuals most likely to become his customers. The marketing planning process helps narrow the target customers to those most likely to buy. This allows the company to use its finite marketing resources to reach out to these prime customer targets and not waste resources attempting to sell to customers who don’t view the product as something they urgently need.
Attack New Markets
In the marketing plan, the company’s management team identifies new markets the company could enter and gain a foothold before competitors do -- sometimes termed "first to market" advantage. Companies particularly adept at marketing planning develop a capacity to spot these emerging markets, which occur as a result of factors like population shifts, changes in consumer taste or technological innovations that could be turned into new products. Effective marketing planning requires the ability to select the potentially most profitable opportunities among the many opportunities available.
Clearly Express the Advantages
A sound marketing plan includes a carefully crafted message that presents the company’s competitive advantages in a concise and compelling way. The most effective messages express not only why the company’s products are a better solution than those offered by competitors but are the ideal solution. Customers don’t have to comparison shop with factors such as price because they don’t see the competitors’ solutions as being in the same class.
Expand Distribution Channels
A small business can increase the odds of making a sale to target customers by increasing the opportunities for the customer to see the product. This means adding distribution channels. A southwestern barbecue restaurant, for example, could add a food truck that rotates locations around the city. The company might also leverage its brand by creating a line of frozen barbecue entrees that are distributed through specialty grocery stores. When preparing the marketing plan, the business owner identifies all the possible distribution channels the company could use and the market potential of each one. Having your products more widely available is a powerful way to build your brand awareness -- a key component of competitive advantage.
Emphasize Customer Service
Owners should include strategies for raising customer service levels. Keeping a customer satisfied produces both repeat business from that customer and the opportunity to send word-of-mouth endorsements to other potential customers. Turning customer service into a competitive advantage is accomplished through such tactics as addressing their concerns promptly, having a person available to speak with them, and taking the time to get to know customers as individuals and finding out how the company can improve its product or service offering. A small business’s strategies of being accessible and interacting with customers can create a formidable advantage relative to its larger competitors and their sometimes impersonal or inattentive approach to service.
References
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About the Author
Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his latest book, published in 2013, "The Pocket Small Business Owner's Guide to Business Plans."