|
|
 |
click to return
to archive
Marketing and Sales Strategy
Seven Ways to Differentiate Your Product
or Company That Make a Difference––
to the Customer
by John Graham
Differentiation has long been a marketing strategy used to separate one
particular company from its competition. Unfortunately, there has been
far more interest than action.
Line up 10 of almost any type of business and one looks just about like
the other. Whether its cars or canned goods, restaurants or reality TV
shows, they all seem to become a blur.
There are exceptions, of course. George Forman Grills and Ben & Jerry’s
Ice Cream are just two examples. Yet, whether it’s Lexus, Infinity,
Mercedes or Jaguar, the appeal is based more on what one’s friends
or associates drive or dealership location.
Differentiation works if it’s based on what appeals to the customer.
At one point, when a half-dozen minivans all seemed to look alike Chrysler
held an edge because of its commitment to cup holders.
So, what should you be doing to differentiate your company from the competition?
1. Get inside the customer’s head. The Pontiac Vibe was
the vehicle nearest the entrance to the showroom of a Syracuse, NY, Pontiac-GMC
dealership. The windshield was covered with assorted stickers and posters.
To anyone coming into the showroom, it was just another vehicle on display.
It was also a lost opportunity. With gas prices driving consumers to more
fuel-efficient vehicles, there was the Vibe, an all-wheel drive, near-SUV
vehicle getting 26 mpg in the city and 31 mpg on the highway. Why wasn’t
the dealer dramatizing the Vibe’s performance for customers?
With the windshield cleaned off and large signs calling attention to the
vehicle’s promise of high mileage, the Vibe sold in two days––after
having been on the floor for weeks.
The difference that differentiates is inside the customer’s head.
Your job is to find it. In the case of the auto dealer, why not ask, “Is
great mileage important to you?” If it is, head for the Vibe.
Greg Brenneman, who flipped Burger King from troubled to successful in
short order, states the task clearly, “Focus on giving customers
what they want, not what others think they should have.” (Wall
St. Journal, 4/26/05).
2. Create a sense of excitement. Why do hard working
people with modest incomes and senior citizens with limited financial
resources flock to fancy hotels in Las Vegas or gargantuan casinos? Is
it the shows? The gambling? Perhaps. But chances are it’s really
the excitement.
At the opening of the 2,700-room Wynn Las Vegas, the owner said, “This
is a level of luxury that has never been reached.” Situated on 117
acres, it comes complete with a man-made mountain that includes a breath-taking
waterfall, an 18-hole golf course, 22 restaurants, a shopping mall, as
well as Maserati and Ferrari dealerships. It’s thrilling and exciting,
even for a few days. It’s not just seeing the Taj Mahal. It’s
being part of it.
This is the appeal of “reality” TV shows. The sports industry
has discovered that excitement of the teams isn’t nearly enough
to draw high-paying crowds. As admission prices go up, so does the entertainment.
That’s why it’s easy for millions of spectators to drop a
couple of hundred bucks or more at a single game.
3. Eliminate doubt. Doubt is the major hurdle to making
a buying decision. If it’s purchasing a home, “Will our friends
and relatives like it?” If it’s a car, “What will our
friends say?” If it’s a diamond, “Will she think it’s
big enough?”
Hyundai, the South Korean automaker, overcame serious doubts about its
vehicle quality by making enormous improvements in the product and then
tacking on a 10-year, 100,000 mile warranty.
Rather than either ignoring or debating the issue, Hyundai took action
and stepped up and sent a powerful, unequivocal message to car buyers.
Wouldn’t it be well if General Motors and Ford took a similar path?
If they believe in the quality of their vehicles, why not offer the same
warranty as Hyundai and Kia?
4. Create buyer satisfaction. “Did I look long enough?”
“Will the color printer solve the problem of getting presentations
out fast enough?” “Was this really a good investment?”
After-the-fact worries eat away at customer satisfaction and undermine
the possibility of getting referrals, just as doubt delays buying decisions.
Too many companies act as if their name, size or years in business are
ringing endorsements. Whether it’s clothing, a cell phone, a car
or a vacation, the key is staying in contact with the customer after the
sale. Far too often, this is when the customer feels abandoned and alone.
Dissatisfaction translates into complaints over minor matters.
Close continued contact not only reinforces the wisdom of the buying decision,
it helps to create a bond that can minimize possible problems.
5. Give it a name. In other words, make it yours.
One regional dry cleaner, personalizes its off-season clothing care service
by calling it Anton’s Closet.
It isn’t just an MP3 player, it’s an iPod, and it
left formidable Sony in the dust. Almost instantly, the name became generic,
such as Life Savers, Kleenex and Blackberry.
No one wants low-priced iced coffee, but premium priced lattes sell! The
name evokes a feeling of something special, a minor luxury. And so we
spend $3.95 to pamper ourselves at two in the afternoon. In the same way,
it’s not just a watch; it’s a Rolex.
Names transform the ordinary––the generic––into
the extraordinary. Wedding planners report that iPods are one of the most
popular gifts for members of a wedding party. Again, not just any MP3
player, but an iPod––nothing else will do. The name
makes the difference. Give it a name and get the business.
6. Breathe life into the company. How do you give life
to Europe’s biggest bank in the U.S.? Not an easy task, even with
enormous resources. Yet, this is exactly what has happened with UBS. A
BusinessWeek survey revealed that the “You and Us: UBS”
campaign rocketed UBS into 45th place of the top 100 brands worldwide.
As someone noted, “It came out of nowhere.”
While few people may really know much, if anything, about UBS, the “You
and Us: UBS” campaign has created a positive and personal feeling.
It has brought the company to life and separated it from the competition.
In the same way, whoever heard of AFLAC before the adorable duck? What’s
more valuable than having a warm, positive feeling about an insurance
company? That’s differentiation at its best.
7. Practice creative destruction. New York’s famed
landmark hostelry, The Plaza Hotel, was on life support for years. The
cost of delivering legendary service to the rich and famous became too
costly. So the Plaza is transformed into condos for the rich and famous.
It’s called creative destruction and it’s driven by market
forces. Rather than lamenting the loss of a great old hotel, the customers
applaud the new possibilities.
With telecommunications deregulation came the break up of century old
AT&T and the spawning of a string of Baby Bells. Now, one of the energetic
offspring has acquired the parent. It’s creative destruction at
work.
Salespeople talk about how “hungry” they are, but studies
show most spend little time actually selling or developing new business.
Most reach an income comfort level and simply “maintain accounts.”
Performance indicates that new accounts are often a low priority. Salespeople
are not alone. Creative destruction applies to people, too.
Business survival, however, demands different values and different performance
standards in every area of business.
Creative destruction––whether it be personal performance or
the way companies do business––demonstrate a daring, innovating
quality that sets them apart from the competition and attracts customers.
In a word, what’s dangerous is staying the same.
It isn’t just smaller companies that need to learn these seven strategies
for differentiation that makes a difference to the customer.
They apply to Fortune 100 firms, too. GM stayed on course building gas-guzzling
SUVs even when gasoline prices skyrocketed, blinded perhaps by their even
bigger profit margins on these vehicles. What made Ford think its “new”
Ford 500 sedan was anything special? What made Buick think the “new”
LaCrosse would to attract crowds of new buyers? Customers have cast their
ballots by ignoring the car. Why not? It may be quiet inside but it looks
dull.
What applies to cars, applies to clothing, kitchens and vacations. If
we don’t bring to the party something that sets us apart from all
the other parties the customer is invited to, the party is over.
© 2005 Graham Communications
 |
John R. Graham is president of Graham Communications,
a marketing services and sales consulting firm. Mr. Graham is the
author of four books on marketing and sales, including Break the Rules
Selling: Success Strategies that Beat the Competition (Superior Books).
Mr. Graham writes for a variety of marketing and sales columns for
business and trade publications and he presents his Magnet Power presentations
at company and association meetings. He can be contacted at 40 Oval
Rd., Quincy, MA 02170; by telephone at 617-328-0069; by fax at 617-471-1504;
or by email at j_graham@grahamcomm.com. The web site is grahamcomm.com. |
click
to return to archive
|
|
