| |
| |
|
Entrepreneurialism Information |
|
|
|
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 elevator speech, but then they ask you that dreaded question, "So what makes you different?" Then, all those self-doubts creep in, and you just aren't sure what to say. Differentiation can boost confidence--yours in yourself and that prospective customer's confidence in you! -- Dif-fer-en-ti-ate v. tr. To perceive or show the difference in or between; discriminate. -- In business terms, to differentiate means to create a benefit that customers perceive as being of greater value to them than what they can get elsewhere. It's not enough for you to be different--a potential customer has to take note of the difference and must feel that the difference somehow fits their need better. (Other words that mean virtually the same thing: Competitive Advantage; Unique Selling Proposition; or Value Proposition.) As you are building your business, you can use differentiation to attract more customers. Once you have momentum, differentiation allows you to charge a higher price because you are delivering more value to your customers. Make a point to evaluate and adjust your differentiation methods at least annually. The various methods of differentiating your businesses fall into four general categories: Price Differentiation Focus Differentiation Product/Service Differentiation Customer Service Differentiation Price Differentiation Differentiating on price is probably the most common and easily understood method. HOWEVER, for Solo Entrepreneurs, caution is in order. On the one hand, potential customers might expect a lower price from you than from your larger competition because they perceive you as having less overhead, etc. On the other hand, cheaper prices can evoke perceptions of lower quality, a less-stable business, etc. And if you compete on price against competitors with deeper pockets, you can price yourself right into bankruptcy. Be creative with this differentiator by competing on something other than straight price. For example, you might offer: - More value--offer more products or services for the same price. - Freebies --accessories, companion products, free upgrades, and coupons for future purchases. - Free shipping, etc.--convenience sells, especially when it is free! - Discounts--includes offering regular sales, coupons, etc. (see cautions above) Focus Differentiation For Solo Entrepreneurs, this is the most important method of differentiation, and in many ways, the easiest. Why? Because as a Solo Entrepreneur, you simply can't be everything to everybody, so you must pick a specific way to focus your business. Once you have done that, you have an automatic advantage over larger companies because you can become more of an expert in that one field --and you can build close relationships with key customers that will be hard to duplicate. For example, you might differentiate yourself through: - Location--take advantage your closeness to prospective customers. - Customer specialization--be very specific about what characteristics your customers will have-for example, racing bicycle enthusiasts or companies with a spiritual conscience. - Customer relationships--know customers really well, form partnerships with them, and get them to speak for you! - Affinity relationships--associate your product/service with a well-known person or organization. - One-stop shopping--offer everything your target market needs, in your area of expertise. - Wide selection (within your niche)-although this one may seem to be the opposite of focus--the key is to be very specific in one dimension and very broad in another. Product/Service Offering Differentiation How much you are able to differentiate your product or service offering will vary based on what type of business you are in. For instance, if you are in a highly regulated business, your options may be limited. Explore a totally new market or type of product or service, however, and the possibilities abound. The key to successful differentiation in this category, again, is to know your customers, really, really well. Talk to them often, and you will know what they need most and be able to offer it, long before your competitors know what is happening. For example, your product or service could stand out in one of these ways: - Quality--create a product or service that is exceptional in one or more ways. Examples: Lasts longer - Better - Easier to use - Safer - New/First--be the first one to offer something in your location/field. - Features/Options--offer lots of choices, unusual combinations, or solve a problem for a customer in a way no one else does. - Customization--as a Solo Entrepreneur, you may be able to more easily handle special orders than big, mass-market competitors. Customer Service Differentiation Have you noticed how customer service seems to be out of vogue these days? This situation makes excellent customer service a great opportunity for differentiation and another natural advantage for Solo Entrepreneurs that already know what's important to their customers. Build your reputation on making customers feel really good about doing business with you. Works great with referral marketing, too. Examples: - Deliver fast--next day, or one-hour--make it faster than customers think possible. - Unique channel--offer a service over the phone or Internet instead of in person or in their office rather than yours. - Service-delight customers!--it may seem expensive to offer exceptional service--but it pays off in word-of-mouth advertising. - Before/during/after-sales support--provide technical or other support to customers using your product. You might use joint ventures to provide that support--but customers will perceive it as being from you! - Guarantee/warranty--offer 100% money-back, or free replacement parts. - YOU--offer yourself, your unique blend of talents and skills, to attract customers. Make sure they get access to you, too! Keys to Successful Differentiation: - Know your customers, really, really well. - Pick a blend of differentiation methods that, in the eyes of your customers, truly sets you apart. - Talk about your differentiation in terms of customer benefits. - Tell everyone about what differentiates you--often. - Keep your differentiation fresh by listening for changing customer needs. Copyright 2002-2003, Terri Zwierzynski, Accel Innovation, Inc. _________ Terri Zwierzynski is a coach to small business owners and Solo Entrepreneurs. She is also the CEI (Conductor of Extraordinary Ideas) at Solo-E.com and the author of 136 Ways To Market Your Small Business. Terri is an MBA honors graduate from UNC-Chapel Hill. Terri has been coaching for over 10 years in a variety of settings, including 6 years as a senior-level coach and consultant for a Fortune 500 company. She opened her private coaching practice in 2001. You can reach Terri at http://www.TerriZ.com. _________ ***** Find more articles like this at http://www.Solo-E.com - Keeping Solo Entrepreneurs Juiced in Business and in Life. Our team of Solo Entrepreneurs are comprised of small business experts who support others in finding business success with the flexibility and freedom to have a life, too. Network with other freelancers, self-employed and Solo Entrepreneurs in our forums, enjoy our articles and newsletter, and find other online training opportunities. *****
MORE RESOURCES:
Entrepreneurialism - Google News |
|
|
|
RELATED ARTICLES
My Nemisis Living in the twilight zone has its advantages. In the early days of starting my business, I found the limitations of living in a rural area to be restrictive. Used-Book Case Study Dwight Payne and Gary Heap reside in Santa Barbara, CA, where they attend college and pursue their mutual hobby of science-fiction book collecting. They pooled their book collection of over 4,000 volumes, and sci-fi magazines going back over twenty-five years. Top 10 Mistakes Entrepreneurs Make Before They Even Start So you want to start a business. You have an idea. Find Out If You WILL Be Successful As a Franchisee? Will I be successful as a franchisee?One of the soundest pieces of advice to take when considering becoming a franchisee is to 'Assess Yourself'. Assess whether you can accept direction. Oil Change Guys History; Part IV One trait of franchisors and something you will find in all their biographies both; official and unofficial is their competitiveness and refusal to give up. Now onto Part IV of our saga:Mr. The 7 Traits of an Exceptional & Successful Entrepreneur How often have you either referred to or considered the expression, "Success is a journey and not a Destination?" Probably many times, yet often being in a hurry to get there, we forget that success is not an end unto itself, but is instead an ongoing process.Though some people seem to have the Midas touch and easily turn everything to gold, most of us have to give our endeavors lots of time, effort and the sweat of our brow before seeing things come to fruition. Competing With The Big Dogs You run a small consultancy. You're well qualified, experienced and dedicated. The Entrepreneurs Dilemma In business, you plan to protect your inventory, your unique ideas and approach, and your money. It's easy to replenish inventory, come up with new ideas and make more money. Innovation incubator: Build it and keep it running If your company is like the one I work for, your people are talking about the need for innovation. Mine has just announced a new program "that will bring a standardized approach to gathering and evaluating your ideas for generating new revenue and improving our business. Your Company Needs A Mission Statement; Make It Count Does anyone remember that book "Built to Last" done y the Stanford class and professor? Well change that to "Built to Merge." My grandfather was personal friends with Bill Hewlett and David Packard and I bet they would not have wanted this merger with Compaq either. Cut to the Quick - What is an Entrepreneur? The Inside Story Enjoying the title of entrepreneur is a hollow feeling.If you have ever been out of work and joined a multi level marketing outfit, or joined the ranks of "commission only" sales reps you are considered to be an entrepreneur. What Part of Handwriting on the Wall Dont You Understand - They Dont Hire People Over 50 In a recent talk to the Detroit Economic Club, President Bush told of a powerful statement made to John Bailey by his wife, "Just what part of the writing on the wall don't your understand - companies don't want people over 50!" The White House staff had become aware of an amazing story of entrepreneurial success stemming from John's wife's words.John's wife was very quick to read the writing on the wall, rationalizing that it would be virtually impossible for John to find a new job. Online Women Entrepreneurs Need To Pace Themselves Saving time means pacing yourself, being organized, and always prioritizing your duties, responsibilities and efforts.Pacing yourself means allowing time for unexpected situations, such as having enough time to check the ever-growing inbox, setting-up special autoresponders for automatic responses (a miraculous tool?really), and other technical issues of running an interactive website and blog. How Good Is Your Big Idea Q: I want to start my own business. I have tons of business ideas that all sound great to me, but my husband is not so sure. Youth Entrepreneurship, A Disappointing Truth The psychology of entrepreneurship can be very rewarding to one who dreams of starting their own business. The freedom of being your own boss has billions of people seeking financial independence and other entrepreneurial expectations. Herb Filled Pillows Make Over a Million Dollars Lauren Rosenstadt was a single mom working at a herbcompany in Bethesda, Maryland. A herb (pronounced "erb") isa plant that has medicinal, savory, or aromic qualities. Envisioneering It never ceases to amaze me. Almost everyone peers into the future through a rear-view mirror. Double Down on Marketing If you want to compete in the world of high growth startups, you better know how to play the marketing game. Marketing has become a big stakes game where companies are betting fortunes on the success of their products. Raising Capital for Your Business - How Long Does it Take? Most companies vastly underestimate the time commitment necessary to successfully complete a financing. In actuality, a company seeking financing needs to budget between 500 to 1000 work-hours to the capital-raising process, spread out over a 6-9 month time period. Will Your Business Survive Without You? I had a health scare in December.As it turns out, everything's perfectly okay.
|
| Good Credit Loans | home | site map | School Bus Clothing | Florida Pool Heating |
| © 2006 |
