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How To Position Your Business To Boost Sales In 2019
Starting a business without understanding the niche you serve can have either outcomes? You get lucky and business booms. Or your business does not catch on. And you struggle. Because buyers in any market have different needs. Trying to address every buyer’s needs is the beginning of a long struggle. The solution is - segment your market, target a niche and position your business in the mind of your niche. Success in this process can lead to massive adoption of your product or service.
Let’s start at the beginning. What is a market? A market is an exchange between a buyer and seller. How a business sells its product in this market is down to who has power in the market. In the first type of market, monopoly power rests with the seller - seller’s market. The buyer has no options. In the second type, there are competing sellers so the buyer can exercise power in the form of choice - buyer’s market.
Every business owner’s dream market is a monopoly market (seller’s market). The business owner can sell as much as s/he can. Growing its market share lets the business lower costs and prices: which allows both new and old buyers to buy more. To keep growing the business the owner finds new markets or develops new products. The seller focuses more on developing new products than on marketing. It is not so hard to persuade customers to buy what the business wants.
A buyer’s market is an entirely different proposition. The business owner has too compete. The business has to give buyers a reason to buy from it rather than competitors. There is more focus on marketing. To persuade the customer to buy from you to have sell what the customer wants.
Most Startup businesses quickly realize they can’t sell to everyone. And taking customers away from incumbents is hard. Thriving in a buyer’s market comes down to growing their share of the wallets of customers they have got. By charging a premium price, by cross selling, up selling and/or simply getting repeat transactions.
But to succeed in capturing a larger share of customers’ wallets there is a process to follow.
The reality of business in today’s customer centric marketplace requires the entrepreneur to segment the market his or her product addresses.
What is market segmentation? Saying “yes” to some customers and “no” to others! This is also called strategic marketing and these are the steps.
Know your market.
What is your product’s unique selling point and who will buy from you?
Group customers into bundles.
Decide what is most important to them. Group these points into bundles and learn which bundle matter most to your customers.
Commit to be first in the market you serve.
Be the best in the bundle they care about and on par with competitors on the other bundles.
Before going after a segment to deliver on the bundle they care about it is also important to evaluate its growth potential. When considering the attractiveness of any one segment to target here are some points to pounder.
Size of the segment
Growth of the segment
Value of the segment
Stability of the segment
A segment that scores well on the aforementioned points will provide sustained and profitable patronage for your business.
A target segment will have a preference for one of these three general bundles of a products selling points.
Operational excellence. This customers care about cost effectiveness (low price) and don’t care about bells and whistles.
Performance superiority. This customers are willing to pay more for higher performance.
Customer personalisation and customisation. These customers want products delivered in way tailored to their preferences.
To capture any segment you offer one of these bundles at a superior level to competitors and compete at the same level in the two bundles.
Whatever bundle you go with it is time to position yourself as the best person to meet their need.
What is positioning? Positioning is the impression you create in the mind of the customer. Positioning is how you differentiate your product from the competitors. This difference is captured in a positioning statement.
Every positioning statements has three components:
Point of parity
Point of difference
Example of a position statement, “for business owners pursuing growth, we help businesses replicate marketing strategies employed by the fastest growing companies.”
Target segment- small business owners pursuing growth
Point of parity- marketing strategies
Point of difference- help businesses replicate the fastest growing companies
A good position statement can take many iterations and time to be coherent. Once it reflects your business's vision it can be an internal compass to guide all your marketing effort.
“Think of prospecting as you going out there, you are fishing but you’re using a spear. Positioning, I think of that as fishing with a net.” Dan Lok. Following this principle of segmentation, targeting and positioning can do more for your business in 2019 than relentless random prospecting.