Brian Tracey is a Professional Speaker, Best Selling Author, Entrepreneur and Success Expert
In this training he uncovers the 4 Principles of a successful Small Business Marketing Strategy
Felisha: Hey everyone its Felisha here checking in on day two of the total business master seminar.
Did you know that there is 4 principle of marketing strategy? I didn’t either. Watch this brand new footage that Brian explain exactly what they are and how you can become successful once you start using them.
OH yes sometime I ask my business clients who say
Who sets your prices by the way?
Who determines market shot?
Who determine your profit levels?
Who determine how fast you go?
Who determine your feature?
I do, I do , we do but no you don’t your competitors do and your competition determine everything like your level of sales, how much you charge and how much money you make. I do a lot of work on military strategy and one of the principle what I learn in military strategy is that no strategy is to make independently by the enemy. In other words you can’t sit there planning military strategy ignoring your enemies, where they are, how big they are and what their plans & intension are.
No strategy in business can be made without thinking about your competition, who are they and what do they do, why do people buy from them, how can I get them to buy from me and how would they react if I get their customers. There’s volumes of books in the library and I got them all.
There is one book called competitor analysis it’s this big by Michael Porter it’s, 6’800 pages and it’s all on things you have to think about to position in competition big stuff you can get PHD’s in marketing focusing on competitor analysis.
So the four principle of marketing strategy are these in which are your decision in these four areas, which will determine the success and failure of your business
• Specialization- determine where you’re going to specialize in, what you’re going to talk about in your product or service and when I talk about this you would find it little better.
• Differentiation- is really the key to business and they say all business strategy is differentiation strategy in competitive. Differentiation is how you are different and better from your competitors because human beings in a market place (customers) always want to know why should they buy from you rather from somebody else and you better give me a better reason than your competitor does or I’ll buy from the competitor and it’s not personal, it’s just that want to get the best deal as a customer I want to get the highest quality for the lowest prize. You tell me why I should buy from, while you are given me the highest quality at the lowest price. If your answer is better than the competitor I would buy from you and if it’s not I won’t and it’s not personal no emotion involve. We get emotionally involve because it’s our business so differentiation is the key, it’s how, why and where you’re different.
• Segmentation-means is looking at your market and say who are these specific customers in the market are? Who value my area of differentiation? And who would pay more for my area of specialization than from anybody else? So any in market place and they say all market today is segmentation. This is segmenting and identify those customers that are most likely to buy from you the fastest.
• Concentration- once you have determine you best market segment for what you do really well you should focus all your energy on that. So let’s look on this specialization says this is the product and service marketing our area of technology in which you’ll focus all your effort. We also say in specialization it could be a product or service, it could be a particular customer which you’ll want to serve or it can be a particular market area that you want to work in and I will a example : McDonald’s are people who want to eat quickly and they want cleanliness efficiency value, price and pleasant surroundings. And so what they will do offer many product that they possible can for people who want to eat quickly whether it’s a shake, coffee and anyways they constantly looking for other product that they can offer to customer who is in that market segment who wants to eat quickly and efficiently. Very clear about that, so differentiation is your competitive advantage which you hear me talking about but you will never hear me talk too much because if you can identify or create a competitive advantage and can bring it to your customers the dam will break.
You can make more sales and more money in a year with a clear competitive advantage to your customers than what you might make a lifetime if your competitive advantage is not clear. So number 2 is your area of accidents or superiority it’s something you do better than anybody else and I sometime joke why your product or services is better and they say ‘quality service, quality service, quality service’ and people don’t understand that’s only an answer if your competitor offers zero (0) quality and zero (0) service. Anyways other from that, that’s not an answer if the person say you should buy from us because of my quality and service you should have a slightly idea of why person should buy from me, I’m a complete idiot, I’m a danger to my company and probably to my hold society.
So it’s interesting when Steve jobs look at the blackberry and look at all the cellular phones their and send it over to his engineers I want a phone you can activate with one button they say it impossible all these other phone have button that can turn on and off but he want a phone that can be activate with one button and he keep saying it back and back till they finally came with the one button activate put in your code and bam! You have all your apps and ready to go. It was never done before in history, can’t be done, can’t be done, can’t be done and when it done here’s the phone. Cellular phone should not be so complicated to start up use, go around and so on.
I had a blackberry and to get an app on a blackberry which fewer than apple is almost like you need an active congress to get a damn app!! You know what I’m talking about it’s so hard and when you go to apple which my family and my staff got me into in 30 minute I have 30 apps loading one at a time I was like wow! And now you can surf the whole world and stuff design on the app and the free apps blow your mind much less paid ones 486,000 apps when you think about that but they make it easy so you can access everybody, anything, anywhere then they come out a app too and they put an video where you can hold it up and talk video to anybody anywhere in the world that has an apple with the same facility it’s an amazing as thing.
So what is yours and if you done have it you can’t compete and if you do you sell 50 million setts and become the highest valid company in the world in next five year. If you can read really clear bout an area of excellent that people want and will pay for your unique sign proposition this is your USP.
Your USP is the one thing you offer that no competitor offer in the whole world it’s unique whether you have you heard of the word unique? Is that it cannot be modify only adjective that can’t be modify. You can have more you can have greater you can have greatness but u can’t have more unique, uniquer or uniqueness because there is only one of you in the entire world.
So therefore what is your unique selling proposition? I’ve work with people to identify this and when I finally identify this their business went up 500% more in the next 12 months they could not believe it they came from struggle now in a big home, driving a Cadillac or a Mercedes because they finally found it and all off your advertising, all of your promotion, all of your work if focus on the convene of the USP to your customers, getting it to them so that their on what it is and that is what customer want and will pay for they will line up along the street. Remember when they brought out the iPad because of the iPhone nobody no it was an iPad except it’s a broad screen and have everything that a computer has and they line up around by the streets to lay $500 dollars down, I don’t know about you but I think $500 is a lot of money which is. These are poor people with flip flops & sandals and tractor caps putting down their $500 dollars down and they don’t know what it was or what it’s going to be like a iPod or an iPhone with a bigger screen plus all type of other capability wow! And you know what they did they sold 25 million of them in less than year and they totally change the book reading industry. The book retail in industry got a shift turn over went from hard cover book basically flip now to 51% to 50% of all book are being purchase on as eBooks and the reason is because of the iPad because iPad owners are readers on average of 2 to 300 books in the first year and the whole market flips in boarders and some of the biggest and oldest book stores in a America went bankrupt all in less than a year when the iPad was introduce and you imagine we are living in a terrible times.
Can you imagine the company building over decade bankrupt? Nationwide in a year because of one technology. So what is you unique selling proposition theirs the convenient get everything fast and convenience than anybody else?
Everybody try and compete with the iPhone or the iPad can’t do it the note can’t do it, Neil Packer got in to it with their tablet and just quiet, who is it not Samsung but a lot of other company try an compete and that’s the heavy selling proposition.
So my question is what’s yours? And I’m going to ask you to answer that what is it that you offer that nobody else offer? Now here is an insight.
You offer something that everyone those just say you’re a real estate agent, what is your selling proposition as a real estate agent, if every other real estate agent in a hundred miles has same unlimited access to the MLS. What is your USP? What can it be? How should it be? But the answer is yourself because the products are all the same, you can control the product and control the marketing everybody else can have it, so what makes top realtors? I work with realtors that make $25000 a year, I work with an entire room full of realtors average income is $83000 a year on straight commission selling and they all started off with nothing and there are now on the top off the field, some of them make several millions selling homes. What’s the difference? Personality, preparation, punctuality, friendliness, want, follow ups, notes, phone call and contact. In other word they make supreme effort to build a really high quality relationship with the home buyer and the home seller so that person would never think of going some were else. I know because I work with some of these people when buying and selling my homes and I will never buy or sell trough anybody else but these people because they are so good at what they do.
Every one of these realtors started off on these streets knocking on doors, dying for dollars and made a decision that their unique selling proposition was going to be them self and you as a business owner can make that decision as well. You make a decision that I would take good care of my customers so that they will never go anywhere else. I don’t have to give those blemishes or discounts, I’m going to task such good care of them that they will eagerly come back to me.
So number four is where you are of could be the best? And this is the best question. Because everybody here has the ability of be the best of something that people will eagerly pay for and tell their friends about and your job is to figure out what it is and then do continues and never ending improvements till finally people say that you the best, you are really good.
Look at lady gaga, I saw her at the Grammy awards as well I don’t know anything about lady gaga I never listen to a lady gag song but she came absolutely from now were she is 25 year old she is one of the top ten tweeted in the history of the world and she made last year 60 million dollars but where were she singing at night club the last five years ago and she is an incredible entertainer and there is nobody like lady gaga why because she knew what she had and she go to the extreme with her dress, appearance and anything else which raps around her good voice. Just little taken over the world in pop music.
So segmentation is who that customer appreciate area of in priority, who are your very best customers? You see your best customers is easy to sell to they buy they buy again they happy and like you they come back again, bring their friends build your recommendation testimonial.
Whereas your worst customer, your customers from hell you will literally break your back to sell them anything, they complain all the time, they don’t pay and when they do pay their cheques bounce and they stand back bounce it to you like a basketball.
So who are you were is the demographic and cryptographic. The demographic is thing you can observe from the outside age, income, education and family formation. Cryptographic is what motivate them and this is where the future is in your business and everybody have cryptographic.
How would describe your perfect customer? I do this by the way imagine you’re on a business gather networking and somebody came up to and say look I know a lot of people in this community how would you describe your perfect customer? Don’t tell me what your product and services is I don’t want to hear just tell me who your customer would be in terms of their want and needs, age, education and income position. So you would have to describe your perfect customer without mention you product and service at all personally you don’t even know what you’ve sold you describe the customer this is want the person is and this is what they are. For example IBM at one time was 80% of the world competing market and then they made some mistakes know they have much less. They had some mush the federal government tried to break them up for 13 years, they bought trust into IBM just like how they tried with Microsoft. They finally Raiging came into power they started 1983 they raigings attention that the federal government has pursuing IBM 1n 100 million dollar for 13 years and did they come up with people bought IBM because they really like IBM ,IBM treats them really well. So if they can’t come up with something and IBM will drop the law suit so we can’t come up with anything. IBM customer love them worldwide they drop the suit after 13 years they did the same thing with Microsoft they harass them, harass them because they wasn’t get enough politically distribution that was the major reason over years and many people buy Microsoft because they like the product, their product is good, it cheap and flexible.
So how would you describe your perfect customer? The point I’ve been make about IBM is that they realize that when they first start selling the 360 main frame in 1964 the customer was really the president of the company making a major strategic decision that we are going to put the company on computers because everything was papered at that time. So they would have to make their presentation to the senior executive of the company and work out the numbers but as computer get popular and they start to have PC’s and desktop.so the whole decision making shift to the purchasing manager of the large companies, so they had to focus and change all of their marketing and focusing purchasing manager and they learn more on how purchasing manager think, walk, talk, breath and communicated, educated, age, family formation, income, cryptographic and demographic to focus. Purchasing manager has been top selling company in the world 80% of the world market because they knew their customer, hope I’m making a point here. So many people we describe your customer without mentioning you product and service.
So demographic here are the key demographic by the way if you don’t know these find out what we do know do survey or ask your customer offer them a prize if they full in the blanks age, gender, income, how much do they earn, education how educated are they, occupation, location, where they live and family status.