Monday, April 30, 2012

Don't waste your time...


...reading this month's marketing thought if you can complete the following statement in ten words or less :

"What makes my product or service better than anyone else's is _______________________."

OK, I assume you weren't able to do it, or you'd have quit reading.

You're not alone-most companies haven't identified a unique competitive advantage. And even if they have, it often suffers from one of two additional problems:

1) The advantage they've identified isn't meaningful to their audience ("Who cares if your car can parallel park itself?"), or

2) They can't deliver on their supposed advantage ("No, your customer service isn't world-class. In fact, it's dismal...")

This isn't just an academic exercise. The ability to articulate, execute, and publicize a competitive advantage has a huge effect on your marketing spend. The more desirable and unique your offering is, the less you have to spend to generate awareness.

Don't get me wrong, you'll still have to advertise. But when everyone's advertising collateral is saying the same thing, the only way to stand out is to say it more often, to say it in bigger advertisements, to provide more giveaways, and so on. If you've got a believable, relevant, unique (or even relatively unique) feature or benefit, you don't need to outshout the competition. And that means lower marketing costs.

And remember, parity products sell on price. Products with a competitive advantage can command premium pricing. So whether you're interested in cutting (marketing) costs or pumping up revenue, creating a competitive advantage is key.

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