Reimagining Your Marketing Strategy

A large portion of our success as a firm comes from our ability to provide insight, and results in real-time, for challenging issues within an organization.  It is amazing what happens internally the moment a capable leader can see clearly.  It is as if they instantly know exactly what to do! The secret to our ability to bring clarity has to do with our understanding of business principles and how to apply them as frameworks.  The framework we unpack in this article will guarantee to contribute to the quality of decision-making for your next marketing campaign.

Why Not Focus on Competitors?

From time to time we get disagreements on our approach from critics with principles that conflict with ours. One philosophy that catches a lot of flack is our unwillingness to entertain the notion of “eliminating the competition”.  It is not uncommon for you to sit in on a meeting or consultation where the primary question is, “What are our/your competitors doing?”  This question is completely useless in your company’s operational and financial success.

The inquiry originates from the competitive analysis, which was made popular from general business plan templates (designed for investors and bankers) to predetermine the size of a market, and potential growth opportunity.  

For added measure, as a former professional athlete, it is safe to say that I have a clear understanding of the word “competition” and its value to society, but it has absolutely nothing to do with your client/customer’s willingness to patronize your business.  

Here are a few reasons why this focus is irrelevant: 

• There are only two ways to make more money: get more customers or get current customers to pay more. Well, which one is more likely?  The latter of the two is far more likely, because they have already made the decision to buy.  It is easier to focus on creating more value for current customers.  What’s even better is that current customers will become your promoters because they have been served.  There is no requirement here to concern yourself with a “competitor”.
  

• The Law of Focus says, “What you focus on grows, and what gets measured gets managed.”  Managing a business requires an immense amount of focus.  Too much, in fact, to allocate attention to anything that does not lead to better people, processes, products, and profitability.  Yet again, no requirement to concern yourself with a “competitor”.   So why would we want to pay attention to anyone that is not your client?  The client is the one that determines a business’s vitality, not another service provider.  This type of thought process is one of scarcity and lack. 

• Collaboration is far more powerful than competition.  War drains nations of their resources, revenue, and relationships.  An alliance expands a nation’s resources, revenue, and relationships.  Do you prefer war or alliance?

It’s All About Producing WINs

Undoubtedly, someone will read this and say, “Well how are we supposed to know what other companies are offering?”  My reply is simple, it really does not matter what any other company is doing. You can look at industry projections and ad dollars spent to tell you all you need to know about the health of any particular service or product. But there is just one thing that matters; it’s your ability to produce a WIN in your client/customer’s lives.  “WIN” is an acronym  which stands for Wants, Interests, and Needs.   This is all that matters, and nothing gives you insight on how to produce a WIN better than your buyer.  Align all three with your product or service, and that is when all of the magic happens.

In Your Purpose is Your Power

There are a few common reasons people entertain the thought of competing with other companies in the same market; the primary reason is because of a primal selfishness that believes one person’s gain is another person’s loss.  This limited view leads to a premise to “buy-out or crush” the competition, assuming it will grant a larger market share.  While this may be the case for a period of time, the marketplace has a way of evening the score.

Instead, what we at Marq Neasman Consulting choose to look through a different lens.  It is actually good that other service providers exist.  It’s the reason you typically see McDonald’s and Burger King across the street from one another; or Walgreens and CVS.  Some will say that proximity is a clear indicator they are competing, but there’s a greater truth.  

Ever thought to consider they actually need each other to validate the service, and drive more traffic?  Ever stopped to consider that people are more likely to frequent an area when they know there is access to a variety of options? Just as a bouquet of roses brings more joy than a single rose, and an assortment of clothing is better than just one pair, your buyer feels the same way.  Further, the science of buyer consciousness reveals that just 5% of the population are brand loyal.  The average customer buys based on factors like circumstance, price, and availability.

“Where there is untamed selfishness, its blood relative, greed, is never far away.”- Marq Neasman Sr.

Another reason leaders succumb to the notion of beating “competitors” is due to the natural human tendency to be lethargic. It is not uncommon for business leaders to skip or overlook the time consuming task of mapping their ideal client’s pain points.   This lack of willingness, or awareness, to go through the trouble to discover customer wants, interests, and needs is the primary culprit of demise. 

Take This to the Bank

The purpose of a business should be to provide more value for those we serve. This is simple, not easy.  

If your service results in a delighted customer and you will never lack clients/ customers.  Let this serve as a legally binding agreement to my guarantee that if you focus on the preceding statement you will never have a need for buyers to patronize your business.  I’ll back this guarantee with a $7,777 check.  However, if your chief aim is to simply satisfy customers, then you will be forced to look to other ways to remain relevant.   

If our theory has done a half decent job of suspending your thoughts, the next question is likely, “So how should business leaders approach the context of value marketing?” 

Well…so glad you asked.  

What if the truth is that the world is a place of abundance, and there is more than enough resources for everyone? What if the truth is that simply functioning in your strengths and aligning with your purpose are the keys to unlock a flood gate of clients? Through this lens of purpose and abundance, there would be no need to compete.  The only requirement would be that one set out to maximize their potential and master success through value and creativity. 

For the most, these statements are in fact true. If you are reading this, you live in America. Our nation prints its own money, so there will never be a shortage.  And if, for some strange reason, your product is no longer able to be produced, you can always sell a new product, or provide a different service.

Practical Application of the Value Marketing

Cutting to the chase, your core values are your differentiators, everytime.  Sure, there is some degree of value in having a proprietary technology that others do not, but it will not be the compelling factor that leads to a conversion.  Chances are your end user could care less. 

Let’s take a look at Nike, a billion dollar company which has built a brand on selling commodities in shoes and clothing.  Nike charges ten to twenty times the price of what it costs to make a shoe; clearly they are not selling affordability.  They outsource the vast majority of creations to third party shops which supply a vast amount of other well known brands, so exclusivity is not the selling point either.  

So what exactly does Nike marketing?  

Well, they are marketing an idea.  The idea is the feeling that a Nike product gives you.  The idea was planted into the minds of their buyers through the association with great sports figures, time and time again.  Nike is not marketing a shoe, they are marketing an idea; a core value.

So how does this relate to you? How can you take this same concept and apply it throughout your company?  Well let’s start by not attempting to poke holes in those that help your market to exist.  

Use the following apply the value equation. The equation takes into consideration the most prominent concerns and psychological barriers of your client/customer(s). It will uncover the gold to transform tire kickers into raving fans:

Desired Outcome x Potential of Happening (Risk)
_________________________________________________________
Time to Result x Required Sacrifice (Effort/Money)

The desired outcome is obviously what your client wants and needs most.  The potential of it happening is relative to the risk required in your solution.  In other words, do your buyers believe you can “make it happen”?  Time to result is the time that must pass between their current status and the desired outcome of the future.  Required sacrifice is what the buyer has to give in exchange for what you are offering. This will typically be money, effort, or both. 

The companies that perform this algorithm best have a goal to get the denominators as close to 0 as possible.  The closer to zero, the better the chances of winning. Think Amazon: two-day shipping, with the click of a button, using a card on file, all from your phone.  They have almost eliminated time and effort completely.

Power Thought

In closing, we have unveiled a deep truth behind the power of value marketing, in the masquerade of focusing on competitors.  Overcome selfishness by realizing that others in your industry further validate your existence.  Focus on differentiation through your core values and creativity.  Conquer laziness, by becoming obsessed with delighting (not satisfying) your customer.  Start with creating a detailed customer avatar.  Crush greed by maintaining the thought that there is more than enough for everyone, and your greatest fulfillment will come from who you become, not what you obtain.  Create massive value by applying the Value Equation. 

We hope this article has been transformative in your approach to marketing your product and service.  Do not hesitate to send this to a colleague in marketing to get their feedback.  If you need help implementing this model feel free to contact us.