Category: Target Market

5 STEPS TO CREATING YOUR MARKET DOMINATING POSITION

The majority of small businesses are established in response to market demand for a product or service. Many build their businesses by serving that demand and enjoy growing profits without putting much effort into long-term planning or marketing.

Every choice you make when buying a product or a service represents a point of differentiation between one company and their competitors. These differences, whether subtle or distinct, determine which customers will buy what they sell.

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Consider the well documented case of Domino’s Pizza. Why did Domino’s become a billion dollar behemoth in an overcrowded market in just a few years? Did Domino’s make the best pizza? Not even close! Did they offer comfortable in-house dining? No way! Did they offer the largest selection on their menu? They offered the exact same pizza as ALL of their competitors!

They dominated by adopting and implementing one major strategy. They created a market dominating position, which was fast hot pizza, targeted specifically for hungry college kids.

So now ask yourself what, if anything, makes your business different from your competitors as perceived by your targeted prospects and customers?

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

CREATING A MARKET DOMINATING POSITION INVOLVES A FIVE STEP PROCESS.

Step number one, determine your strategic position in the market.

What specific niche market or segment of the marketplace should your business focus on? Determining this involves combining the skills your business has with the unmet needs of your targeted prospects and then designing your produc

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t or service to fulfill those needs.

Domino’s strategic position was “fast hot pizza for hungry college kids.” For Starbucks, “delicious hand-crafted beverages that makes life better.”

Step number two, determine your primary market dominating position.

This is the most dominating advantage that separates you from your competitors. Domino’s 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 market position – hungry college kids that wanted food fast.

Step number three, determine your supporting business model.

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 consistently on your position and your promise?

Domino’s built 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 this promise every time, they were forced to create a supporting business model where they built low-cost, plain vanilla stores strategically located near college campuses.

Since college kids aren’t the most reliable workers on the planet, they were forced to hire additional delivery staff and have additional drivers on a stand-by basis. Together, these innovations allowed them to consistently meet and often exceed their primary market dominating position.

Step number four, determine your secondary market dominating position.

What additional competitive advantages does your business offer that your customers will perceive as being different from your competition? Domino’s secondary benefits might include special pricing, assorted sizes, a much broader selection of toppings or additional menu items.

Step number five, create your market dominating position statement or elevator pitch.

This is a simple statement you can create by combining steps one through four. This helps you to state unequivocally what differentiates you from your competitors to your targeted prospects and customers.

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Domino’s market dominating position is neatly summed up in its slogan, “fresh hot pizza delivered in 30 minutes or less, or it’s free.” An expanded version of this might say: “Domino’s provides busy customers with fresh hot pizza and other food items within 30 minutes or less. Our assorted pizza offerings combined with our value pricing makes Domino’s affordable to everyone.”

This presentation will focus on helping you to define your market dominating position and then we can help you create a powerful and compelling elevator pitch that will effectively communicate your value to your marketplace.

Learn more on my FREE Online Focus Group on Tuesday 30th June 2020 4-5pm. Register here :

https://www.eventbrite.co.uk/e/discover-the-fastest-ways-to-skyrocket-your-business-growth-tickets-109946035552?aff=LIBlog

If you’re reading this after the 30th June 2020 – then you can access to all the info you need to grow your business at :

www.yourbusinessgrowth.co.uk

By Duncan Mercer – https://www.linkedin.com/in/duncanmercer/

Stop Wasting Your Resources!

Today you’re going to learn how to find a target market of potential customers so you aren’t wasting precious resources on blitz marketing. So, the two questions you have to ask yourself are:
  • What do people really want to buy from me?
  • What related products are they already buying?
Once you figure this out you will know who is more predisposed to purchase your products/services. Then, you find other businesses with the same customer base who you can customer share with. Come up with an incentive and great arrangement to encourage both of your customer bases to shop at both of your stores. The basic concept is this: You want to find existing businesses who have the customer profile that you are looking for to market your products/services to. Then strike up a relationship with those business owners to work out an incentive for customers to purchase from both businesses. As a result, you have an audience to market to and they generate an added value from their current base. So, how do you figure this out? There is a great formula from Jay Abraham you can follow with great success. LV = (P x F) x N – MC Here’s what it all means:
  • LV is the life time value of a customer
  • P is the average profit margin from each sale
  • F is the number of times a customer buys each year
  • N is the number of years customers stay with you
  • MC is the marketing cost per customer (total costs/number of customers)
Once you know how much you need to spend to attract a new customer, you will know how much of an incentive you can offer to a business to help attract new customers. So, here’s your step-by-step process:
  1. Find companies who already have the customer base you are looking for.
  2. Negotiate an incentive for them to share that customer base with you.
  3. Focus your marketing resources to this group of predisposed customers.
If you need help working through this process, please contact us and we’ll set you up with the most comprehensive system of marketing tools and resources.