Your Market Dominating Position (Part 1) – Introduction

A Market Dominating Position – Introduction.

Most businesses become established, because of a market demand for their product or service. Many build their business by serving that demand and enjoy growing profit. And without putting much effort into long term planning or marketing.

But questions arise about how long this kind of success will last…

    • What happens when that demand slows or stops?
    • What happens when the competition sets up shop with a new and improved version of your product down the road?
    • How do you keep your offering fresh?

The answer is simple. While growing and maintaining your client base, innovate your business.  Also offer extraordinary value by creating a Market Dominating Position.

Consider this, every choice a customer makes when buying a product or service, represents a point of differentiation between one company and their competitors. These differences, weather subtitle or distinct, determine which customers will buy what you sell.

I will give you an example. Consider the well documented case of Domino Pizza. Why did Dominos become a billion-dollar behemoth in an overcrowded market in a just a few years?

    • Did Dominos make the best pizza?
    • Did they offer comfortable in-house dining?
    • Did they offer the largest selection on their menu?

The answer to all these questions is “No”.

They did pretty much offer the same pizza as all their competitors. They dominated by adopting and implementing one major strategy. They created a market dominating position in an area with lots of colleges, which was fast hot pizza, targeted specifically for hungry college kids.

Is “Price” the answer to differentiate yourself from the competition?

Ask yourself what makes your business different from your competitors as perceived by your targeted prospects and customers? For most businesses that answer: “Price”.

Many years ago, Nike offered the top selling Air Jordan 3 for $150 a pair. At the exact same time Target sold an exact same and excellent imitation of the Air Jordan for around $40. But Nike outsold them 10 to one.

Starbucks is a popular place to buy coffee in many parts of the world. Their prices aren’t low. According to the latest data their typical customer spends four times more than they would at their competitors.

Obviously low price isn’t the driving force here. So, what is?

The answer? These companies stake out a specific and targeted Market Dominating Position.

Nike focused their position around being the best athlete, being hip and in style, along with the perception of quality.

Starbucks focused on delicious hand-crafted beverages, which they claimed is the secret to making life better.

When you create your own Market Dominating Position, you will consistently get business and individuals to choose your business over your competitors.

What exactly is a Market Dominating Position?

You can define it as “ Any valued-added customer perceived benefit, or a combination of benefits, that differentiates you from competitors and does so in a strong enough manner that it makes your business the logic choice in the minds of your prospects and customers”.

Some people also know it as USP (Unique Selling Proposition).

I will give you an example: A dry cleaner that offers pick-up and delivery would be the only logical choice for any prospect or customer that values convenience. This simple distinction represents a market dominating position.

Another example of added value would be a gift shop owner, that offers complementary gift wrapping with every purchase.

The key to create added value.

Prospects and customers don’t buy based on price. They buy based on the value they receive for the price they pay. Creating added value is a market or customer relation strategy that can take the form of a product or service that is added to your original offer for free or as a part of a discounted package.

Like all the elements in your marketing toolkit, this is designed to attract new customers and retain existing ones.

If you don’t revisit the value of your offer than overtime your customers will be drawn to a competitor who consistently innovates their business, so they offer exceptional value that you don’t. Ultimately your customers will demand additional value for them to remain loyal and they are the keystones for your business growth.

Everyone can add value to their business. And adding value doesn’t have to blow your marketing budget or take off hours of your time. There are many ways to enhance your business.

The key to adding value.

The key to adding value for a customer is providing a feeling of being appreciated and that their needs will be taken care off. Example are:

    • Determining what your customers and target market perceive as valuable. You must understand their needs, wants, troubles and inconveniences in order to entice them with solutions through added value products or services.
    • Adding values will also add to your profits, but you don’t focus on generally helping your clients, you will have a difficult time attracting them.
    • Another example to add value works for both products and service-based businesses.
      • If you offer a service like hair styling, try treating your customers by offering them a latte while they wait.
      • Complementary shampoo samples or a free conditioning treatment with every sixth visit.
      • If you sell a product, consider offering convenient services like free shipping or delivery to make the customers experience a seamless one.

Watch the short video “Introduction to a Marketing Dominating Position”.

This video is a part of our first video in a serie of 2. Both videos and the workbooks which go with them, are available. Follow the link ……

Market Dominating Position (Part 2) – Differentiation

Market Dominating Position – Differentiation

More about what your Market Dominating Position is, is discussed in the previous blogpost “A Market Dominating Position (Part 1 ) – Introduction”

How to differentiate your business from your competitors.

There is a 5-step process to use to set  your business aside from your competitors by creating a Market Dominating Position (Or Unique Selling Point). The 5  steps are:

    1. Find your Strategic Position in the market.
    2. Determine your Primary Market Dominating Position.
    3. Establish your Supporting Business Model.
    4. Create your Market Dominating Position Statement or Elevator Pitch.

Let’s get over them one by one.

  1. Find your Strategic Position in the market.

What specific niche market or segment of the marketplace should your business focus on?

Finding your niche involves combining the skills your business has with the unmet needs of your targeted prospects. And then design your product or service to fulfill those needs.

Examples are:

        • Domino’s Pizza strategic position was fast hot pizza for hungry college kids.
        • Starbucks delicious handcrafted beverages that makes life better.
  1. Determine your Primary Market Dominating Position.

This is the most important step.  This step separates you from your competitors.

For example: Domino’s Pizza claimed it could deliver its pizza in 30 minutes or less or they would give it to you for free. This was the primary advantage that met the needs of their newly defined position. Hungry college kids that wanted food fast.

  1. Establish your Supporting Business Model.

To establish your Supporting Business Model, you must ask yourself the following questions:

    • How will you specifically deliver what your Strategic Position and Primary Market Dominating Position promises?
    • What changes, if any, do you need to consider making to your business, to ensure you deliver constantly on your position and your promise?

For Example: Domino’s Pizza build a supporting business model that enabled them to consistently provide their promised primary advantage, which was fresh hot pizza delivered within 30 minutes.

To make good on that promise every time, they were forced to create a supporting business model where they build low cost, plain vanilla stores, strategically located near college campuses.

And since these college kids weren’t the most reliable workers on the planet, they were forced to hire additional delivery staff and have additional drivers on standby basis.

Together these innovations allowed Domino’s Pizza to consistently meet and often exceed their Primary Dominating Position. And that is what you should aim for too.

  1. Determine your Secondary Market Dominating Position.

Your Second Market Dominating Position will provide you with additional competitive advantages.

The question here is, what  does your business offer that your customers will perceive as being different from your competition?

Back to our example again: Domino’s Pizza secondary benefits might include special prizing, assorted sizes, a much broader selection of toppings or additional menu items.

  1. Create your Market Dominating Position Statement or Elevator Pitch.

An Elevator Pitch is a simple statement that you can create by combining all the previous steps.

A statement like that helps you to say, without any doubt, how you are different from your competitors.

This statement shows your leads and customers/clients, why they should buy from you and not from your competitors.

Example: Domino’s Pizzas Market Dominating Position is neatly summed up in their slogan “Fresh hot pizza delivered in 30 minutes or less or its free”

Now you need to define your Market Dominating Position and then we can help you to create a powerful and compelling elevator pitch that will show your value to your marketplace.

I will discuss more about your Market Domination Position in the following blogposts.

Watch the video “Introduction to a Marketing Dominating Position”

This video is a part of our first video in a serie of 2. Both videos and the workbooks which go with them are available. Follow the link ……