Saturday, October 3, 2009

Suceed Over Your Competition

By Randy Xyssion

Regardless of whether it is intentional, if you are trying to sell a product, you have established a market position. You have chosen a price based upon the perceived benefits of your product, and are actively looking for customers. With this in mind, have you given any thought to the possibility of positioning your product for even greater success?

It's a given that small businesses open their stores with an intent to sell, and have at least a little idea of what their likely client is like. However, hardly any spend the time to determine how their particular merchandise or approach to promoting the product will differentiate them from competitors. This differentiation is their place in the marketplace, and typically determines the company's triumph.

A company generally positions itself to fully pull their merchandise and their market. Whether they are the "Low Price Leader," or "Premium Brand." The company's position determines promotion strategy, sales price, and the company's approach to promotion. Subsequently, determining a how your company should be positioned within the marketplace is one of the first steps to setting your company and product apart from the competition.

As part of your business plan, fully identify your average customer. Define their as many pertinent demographics as possible that make up your potential customer base. Next list your competitors, and specify exactly how they are positioned to service your client. Do they accomplish sales by deep discounts; do they guarantee prestige and quality? What differentiates your competition to your customers in your market?

Now take a look at your own organization and offerings. On which fronts can you compete most effectively? Can you compete in value? If not, can you offer more luxury or prestige? Do you offer more concrete benefits? How about greater safety, security, or benefits. How may you position your business where the competition can't compete?

The position of your company and merchandise in the market is vital to your success. Choose your position wisely and gear both your price and marketing around this position. Make a conscious decision to position yourself and under no circumstances allow the market to make this decision for you. Only by properly positioning your company can you effectively differentiate yourself from the competition and maximize your sales.

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