-->





Posts Tagged ‘marketplace’

mind LOP logoThe easiest way of getting into the mind is to be first, and for proofs of this concept just ask yourself who was the first person to fly solo across the North Atlantic and the answer is Charles Lindbergh. Now ask yourself who was second, and in most cases it’s not so easy to answer, as it was Bert Hinkler, and most likely you have probably never heard of Hinkler, yet you have probably heard of the third person to cross the North Atlantic…. it was Amelia Earhart. But why do you know her, because she was the first “woman” to do it. Think what is the highest mountain in the world and the obvious answer that everyone knows is Mount Everest in the Himalayas, but now ask yourself what is the second-highest, which obviously most people do not know. Now ask yourself what is the largest selling book ever published, the Bible, of course, and the second largest selling book is, who knows.

Many people believe that the basic issue in marketing is convincing prospects that you have a better product or service, and this is not true as the basic issue in marketing is creating a category you can be first in. It is the “law of leadership” that states “it is better to be first, than it is to be better” and it is much easier to get into the mind first than mindbattleto try to convince someone you have a better product than the one that did the very first, so it is important to always remember, marketing is a battle of “perceptions, not products.”

It is very easy to remember who is first, and much more difficult to remember who is second (no one cares who is second in most cases), and even if the second entrant offers a better product, the first mover has a large advantage that can make up for other shortcomings, however, all is not lost for products that are not the first since it is not about being first physically to the marketplace. By being the first to claim a unique position in the mind of the consumer, a firm effectively can cut through the noise level of other products or services.

If you can’t be first category, set up a new category where you can be the first one and sometimes you can turn an also-ran into a winner by inventing a new category, as Dell computer when it got into the crowded personal computer field by being first to sell custom configured computers by phone.

It is very important to remember that when you launch a new product or service, the first question to ask yourself is not, “How is this new product better than the competition?” but “First what?” In other words, what category is this new mind 090423-mind-sharp-465product or service first in? Charles Schwab didn’t open a better brokerage firm, as he opened the first discount brokerage.

If a product is not going to be first, it’s important it must find an unoccupied position in which it can be first, for example, at a time when larger cars were popular, Volkswagen introduced the Beetle with the slogan “Think small”, and Volkswagen was not the first small car, but they were the first to claim that position in the mind of the consumer.

In a physical contest, the odds always favor the fastest horse, the strongest team, the best player, but it is not so in a mental contest, as in a mental battle the odds favor the first person, the first product, the first politician to get into the mind where_is_my_mindmind of the prospect, and in advertising and marketing, as best as a product is placed in any particular category, it’s even better to be first in the mind.

There was nothing poetic about Michelob beers advertising campaign in the early 80s, as “First class is Michelob” positioned the brand as a premium price American-made beer, and in a few years, Michelob became one of the largest selling beers in the United States, and at premium prices too. Was Michelob the first premium priced domestic beer, no, of course not, but Michelob was the “first to build that position” in the beer drinkers mind.

Schlitz beer was first to use the term “light” in its advertising slogan “Real gusto and great, light beer”, and no one believed, however, the Schlitz was any lighter than Budweiser or Pabst, its two closest competitors. But over at the Miller Brewing Company, they apparently asked themselves what would happen if they initially 020903_1662_0091_oshs-fbthe-door-into-someone-s-mind-posterspositioned a beer as a light beer, so Miller introduced “Lite” beer and the rest is history, a runaway success spawned a host of me-too brands including, ironically, Schlitz Light.

Other “positions” that firms successfully claimed include age (Geritol), high price (Mobil 1 synthetic engine lubricant), gender (Virginia Slims), time of day (Nyquil night-time cold remedy), place of distribution (L’eggs in supermarket), and quantity (Schaefer – “the one to have when you’re having more than one.”).

The three largest selling Japanese imported cars in America are Honda, Toyota and Nissan, and most marketing people think the battle between these three brands is based on quality, styling, horsepower, and price, but this is not true, as it’s what people think about these companies that determines which brand will win.

Japanese automobile manufacturers sell the same cars in the US as they do Japan, and in marketing or a battle of products, you would think the same order of sales would hold true for both countries. But in Japan, Honda is nowhere near the competition, as Toyota sells four times as many cars in Japan as Honda does. So what is the difference you might ask, if you told friends in New York you bought a Honda, they might ask you, “What kind of car did you get a Civic, an Accord, or a Prelude?” If you told friends in Tokyo you bought a Honda, they might ask you, “What kind of motorcycle did you buy?” In Japan, Honda got into Entrepreneurial Mind, Bill Wrigleycustomer’s minds as a manufacturer of motorcycles, and apparently most people don’t want to buy a car from a motorcycle company, so questions have to be continually asked like why is Campbell’s Soup No. 1 in the United States and nowhere in the United Kingdom, and why is Heinz’s Soup No. 1 in the U.K. and a failure in the U.S.?

It is critical to understand and remember that the easiest way of getting into someone’s mind is to be first, since it is very easy for people to remember who is first, and much more difficult to remember who is second, even if the second entrant offers a better product or service, and in order to overcome not being first, many times you can create new categories and enjoy the market power of being the first in the mind.

Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading
Follow TeamAltman :: Grab an eBook

Share |

entrepreneur nation global-business-and-tourism-thumb3968561“Entrepreneurs and their small enterprises are responsible for almost all the economic growth in the United States.”– Ronald Reagan

The voice of entrepreneurs in the Global economy is a quiet voice that will save the US and Global economy, and although their collective voice is several million, entrepreneurs are quietly working hard every day to operate and maintain their businesses, although certain aspects of Entrepreneur Nation is not so quiet since the economic engine is heard loud and clear for those who take the time to listen, but right now it is being drowned out by the special interest groups that own US congressional members and the White House including labor unions and big business that have seen their better days and now only serve to be a major drag on the rest of the economy as evidenced by statistic after depressing statistic directly related to their market place meddling , and because they proportionally demand too much from the people of the United States just for survival, and in the union’s and big business quest for survival they have brought down every corner of the economy.

Many everyday common business names that many of us have grown up with, and developed the mind-set that they would be around forever, have been forced to close or are faced with liquidation and bankruptcy, while others will be able to reinvent themselves in time to adapt to the ever changing markets and trends.

42-16786289This is a critical time in the life of the US and Global economies, as this is the time for Entrepreneur Nation begin to awaken through reinvention, change and adaptation and begin to shine and save both the US and Global economies, since innovation and recognition of opportunities are its cornerstones, and as many businesses are forced out of business because consumers that make up the markets are still not spending, and are currently idling in save mode, or paying off their tremendous share of debt built up over the past 20 years.

With the natural forces of the market place, it is part of the natural occurrence and flow of inevitable market events, that businesses with extremely weak and unfavorable balance sheet and cash flow positions, are too weak to continue operating in today’s economic environment, and should execute any exit strategies they might have, and new entrepreneurs and investors entrepreneur nation global_business_team_630626with clear and concise business plans, and good balance sheet and cash flow positions take advantage and seize opportunities to take their place and meet future demands as markets begin to recover, and develop new innovations to improve services and products.

The Entrepreneur Nation knows that it is unnatural for the tremendously bloated spending and associated debt that is being accumulated by the result of misguided and wrongly influenced bureaucrats in Washington, funding businesses which need to close, or be reinvented or scrapped altogether, scrapped to make room for new breeds of entrepreneurs and business that can meet the new challenges and demands, and change quickly to meet new trends as soon as they are identified and develop new and more effective market strategies. It makes more sense to provide this type of funding to growing businesses with more solid financial positions and detailed business plans to create wealth, jobs and more opportunities.

entrepreneur nation global_business_423132The Global Entrepreneur Nation is made up of innovators that observe and take advantage of opportunities, create new goods and services, and improve existing products, provide choice by adding goods and services to the marketplace, as they offer variety and design different approaches to familiar problems, and finally but most importantly, hire workers for their businesses, and by consuming resources and provide jobs in the industries that supply those resources, and helps the Global economy grow.

Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading
Follow TeamAltman :: Grab an eBook

Share |

strategy-comm_strategy_largeExternal strategy is about your approach to communications and it is built from the outside in, from the customer backwards, and positioning theory provides the body of knowledge for crafting this type of strategy and its focus is purely strategic as opposed to the creative the orientation of internal strategy.

Positioning is used as a communication tool to reach target customers in a crowded marketplace and as advertising executives have begun to develop positioning slogans for their clients, positioning has become a key aspect of marketing communications, and while positioning begins with a product, it’s not what you do to the product, positioning is what you do to the mind of the customer.

Since the concept a positioning is really about positioning a product in the mind of the customer, strategy is therefore planned in the mind, not the marketplace, and marketing then becomes a battle of perception not products. This approach is needed because consumers are bombarded with a continuous stream of high-volume advertising and the consumer’s mind reacts to this high-volume of advertising by accepting only what is consistent with prior knowledge or experience.

In a very general sense, there are only a few generic external positioning strategies including getting into the mind first or finding the niche, positioning yourself to the leader, or repositioning the competition.

external-strategyThe easiest way of getting into the mind is to be first and for proof of this concept answer questions including who was first to fly solo across the north Atlantic? Charles Lindbergh, right? Who was a second? Who was the first person to walk on the moon? The answer is Neil Armstrong, of course. Who was second? What’s the highest mountain in the world? Mount Everest in the Himalayas, right? What’s the second highest? What’s the largest selling ever published? Of course the answer is The Bible, right? And the second largest selling book? Who knows?

It is very easy to remember who is first, and much more difficult to remember who is second, and even if the second entrant offers a better product, the first mover has a large advantage that can make up for other shortcomings, however, all is not lost for products that are not the first as it’s not being first physically to the marketplace, and by being the first to claim a unique position in the mind of the consumer, a firm effectively can cut through the noise level of other products.

If a product is not going to be first, it didn’t must find an unoccupied position in which it can be first, for example, at a time when larger cars were popular, Volkswagen introduced the Beetle with the slogan “Think Small,” now Volkswagen was not the first small car, but they were the first to claim that position in the mind of the consumer.

external-strategy-and-consultingConsumers rank brands in their minds and if a brand is not number one then to be successful it somehow must relate itself to the number one brand, and a campaign that pretends that the market leader does not exist is likely to fail, as Avis tried unsuccessfully for years to win customers, pretending that the number one Hertz did not exist. Finally, it began using the line, “Avis is only No. 2 in rent-a-cars, so why go with us? We try harder.” For 13 years in a row Avis lost money and after the campaign, Avis quickly became profitable, and whether Avis actually tried harder was not relevant to their success, rather, consumers finally were able to relate Avis to Hertz, which was number one in their minds.

Remember, you must own your niche and own it out right and no one else can occupy your space, and if you can’t own it, especially from a marketing expenditure outlay, then decrease the size of niche until you can, and if somebody else occupies your chosen space you must try to reposition them.

All successful external strategies must start with the mind of the consumer and then work backward and this is true because the answer is not contained within the product or service itself, and no amount of creative thinking or analysis will result in the insights needed to successfully position your company, product, or service. The answer rests instead in the mind of your customer and you must begin with what’s already there and then work backwards, or outside in to create your external strategy.

external-strategy-shapeimage_1Ask yourself, “What position do I own now?”And remember external strategy is thinking in reverse, so instead of starting with yourself, you start with the mind of the prospect and instead of asking what you are, you asked what position you already own in the mind of the prospect, and changing minds in our over communicated society is an extremely difficult task, as it’s much easier to work with what’s already there.

Next, ask yourself, “What position do I want to own?” Then ask yourself, “How can I be the first to claim a unique position in the mind of my customer?” And here is where you try to figure out the best position to own from a long-term perspective, and “Own” is the key word, as too many programs set out to communicate a position that is impossible to preempt because someone else already owns it.

Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading
Follow TeamAltman :: Grab an eBook

Share |

masketWhen launching a business into the marketplace is not a good idea to assume that just because you show up the market gets bigger, since most of your business will come at the expense or loss of market share from the competition, or from their slice of the pie, and the real question is, of course, just how big is the pie? Remember, and market segmentation, any market niche worth considering must be measurable and substantial enough to be profitable, and to test this criteria you must estimate the size of your chosen market segment, also, most formal business plans require you to provide some estimation of the size of market you are targeting as most investors will want some answer to this important question.

Another reason to estimate the size of your market is to test for market saturation and market saturation occurs when there are too many competitors competing for the same market segment, and one way to measure this is to do a peer comparison of like markets and see how many establishments per how many customers there are and to make a correlation to your market.

A good place to begin is with the economic census produced by the US Census Bureau, but before you start, however, you will need to determine the geographic scope of your market including your market’s geographic boundary, and next you would need to know your business NAICS code, and with that information in hand, you are ready to go to the economic census online.

Another way you can estimate the size of your market is to use population figures of your targeted market multiplied by the average expenditure or amounts for the market, and this information is also available at the US Census Bureau’s website.

Another important factor that should be considered when developing your market size and share analysis is the underlying population required to support your business and generally this calculation is also based upon statewide data, and you can approximate this by dividing the population by the number of establishments which will equal the average number of people per business. When you compare the number of potential customers per establishment in your local area to the state average you will be able to tell if there are enough consumers to support your business.

marketAnother method of evaluating your potential and the market is to calculate a breakeven analysis to determine what percentage of the market’s population you would have to capture in order to succeed.

Calculating the size of a business or industrial marketplace is a little trickier, and the best way to approach this problem is by using the Business Expenditure Survey report from the Census Bureau to find what you’re customer spend on your kind of product and services, and using this survey you need to find the business market your business is targeting and the closest respective expenses.

It is important to realize that there is a significant amount of information you can find on the Internet specific to your industry and location that can give you a very close approximation for the size of their market and the average revenue of the industry in your specific state, along with average expenses that you can use to determine benchmark information for comparison purposes when projecting your target market size and its potential revenue.

This information can help you determine whether it is feasible or not to pursue the business project based on both assumptions and market information and all of this information should be included in detail as part of your business plan.

Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading          Entrepreneurial Ideas Worth Spreading
Follow TeamAltman :: Grab an eBook

Share |
  • Categories

  • Archives