Step 1: Be Superior
Consumers and businesses want value;
not necessarily the lowest price
Many businesses think their prospective buyers just want the lowest price. After all, the yellow pages and newspapers are loaded with ads that focus on price. However, our surveys show that what buyers really want, whether consumers or businesses, is value. Buyers want the best quality, fastest service, etc., at the best possible price.
Why your advertising no longer works
As 2009 draws to a close, numerous industries have seen consumer spending drop by 50 percent or more from two-year-ago levels. And, for the most part, when people do buy, they spend less. Thus, many businesses need to triple or more their market share just to regain their 2007 level of profitability!
Because people consider they have to watch every penny, advertising filled with generalities and fluff that used to work no longer produces results. Consumers and business purchasers have lost their patience with false promises and statements that fail to make products and services appear to be any better than their competitors. Yet, most advertising you see and hear continues to be loaded with ineffective platitudes. There is no wonder why marketing gurus like Al Reis, Seth Goddin and Sergio Zyman believe advertising no longer works. In reality, advertising does perform when it follows The Marketing Formula. Most advertisers, however, are unaware this formula even exists.
In order to create advertising that excites people, in today's economy, you need to make strong, specific statements and prove them to be true. Businesses, however, cannot execute this task unless what they provide is clearly superior to what their competitors offer.
Thus, the first step of The Marketing Formula is to ensure your business provides a product or service that is clearly superior to your competition. Superiority must be in terms of the quality of the product or service itself, and/or customer service... preferably AND customer service rather than OR. Also, potential buyers must believe the way in which you are superior has value to them. For example, if your service is friendlier than your competitors' but your market is more concerned with the quality of your service, promoting friendly service might keep your cash registers empty. Therefore, you must first know exactly what will make your business perceived as being superior in a way that is considered valuable. Chances are you think you know the answers but would be surprised by the results surveys reveal.
Survey results may cause you to decide you must make significant changes to your operations. Or, you may already provide valuable superiority and are ready to develop your marketing campaign. If your business requires operational changes, you will need a plan of action that allows for careful implementation. The marketing firm you choose must understand this and possess the managerial know-how to assist you with a smooth and effective transition.
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