Differentiation:  A Smart Small Business Marketing Strategy

Being unique in the marketplace is an imperative small business marketing strategy. Uniqueness can be a make-or-break virtue in today’s hyperactive business world. How do you set your small business apart?

Have you ever been hesitant when you talk to prospective customers because you can’t readily explain why they should select your offer rather your competitors? You have your 30-second elevator speech, but then they ask you, “So what makes you different?”  This is when you better be prepared! Do you have an answer?

What makes you different? What differentiates you from the competition? Do you have a clue?

To differentiate your business means to create a unique benefit that clients perceive as being of greater value to them than the other options placed before them. It's not enough for you to be different; you need to have the unwavering ability to assert your Unique Value Position (UVP).

It is essential, as you are building your business, to use differentiation to convert more prospects to clients. Once you have established your UVP, differentiation becomes part of your marketing small business marketing strategy and allows you to take a leadership position in the marketplace.

However, your UVP is not a static slogan on a piece of paper tacked to your wall. The only constant is business is change. The value you bring to the market must change and evolve as the market shifts. You must adjust your UVP to remain in tune with the needs of your prospects and clients. Make a point to evaluate and adjust your differentiation approach at least annually.

The various methods of differentiating your businesses fall into four general categories:

1. Your Price/Value Position
2. Your Marketing Focus Position
3. Your Product/Service Position
4. Your Service Position

Let's take a look at how you can integrate these into your marketing strategy.

Your Price/Value Position

No other factor in small business marketing strategy cause such consternation and hand wringing as price. Staking out a price position that the market accepts and competitors can’t use against you is difficult. However, for the small business owner it can be one of your strongest tools.

As a small business, prospects might expect a lower price from you than from your larger competition because they perceive you as having less overhead. On the other hand, lower prices can be perceived as lower quality, desperation for business, or an unstable business. We they think of you matters and your price strategy speaks volumes.

Your larger competitors with deeper pockets can price you right out of business. So it is critical that you differentiate yourself through less tangible, more creative methods. The most powerful way is to adopt a marketing strategy based on building relationships. Show them how much you care by getting their names, asking them questions about what they like, and being a friendly, persona source for them. Remember, clients only buy from people they like.

Always place the value of what you are selling before the price in all of your marketing and sales materials. For example, you might offer:

• More value: offer more products or services for the same price.
• Discounts: use sparingly and offering regular sales and coupons to get people motivated; everyone loves a good deal!
• Promotional freebies: add-on accessories, companion products, free upgrades, and coupons for future purchases.
• Free shipping: people always perceive high value when it offers them convenience.

Your Marketing Focus Positing

This is the most important method of developing your UVP because it is the easiest. As a small business owner you simply can't be everything to everybody, so you must pick a specific marketing identity and stick with it. It is an either or proposition in the prospect and client’s minds.

Are you the best price or the highest price? Best quality or mid quality? Top shelf service or no-frills convenience? You get the idea.

Once you have developed your focus and dedicated all of your marketing strategy to it, you position yourself as an expert for that area. This creates a huge advantage over larger companies can build close relationships with clients that will be never be able to duplicate. You are a building relationship, not just selling them stuff.

Here are some examples to differentiate yourself with marketing focus positioning:

• Location: take advantage your closeness to prospective clients.
   
• Customer focus: take the time to get to know your clients and be very specific about their needs, wants, and desires. Then building your marketing to meet those.
   
• Customer relationships: become a real trusted source, form partnerships with them, and engage them every chance you get!
   
• Affinity relationships: build your personal referral networks and associate your product/service with trusted sources.
   
• One-stop shopping: strive to be come THE source for their needs in your target market; position yourself to be an expert.
   
• Wide selection:  choice is always a valuable marketing tool, but keep it focused on your niche and what they want; not just have a lot to offer.

Your Product/Service Position

This is the big one! No matter what you do, they purchase your product or service because of how it improves their situation. Your ability to differentiate your product or service offering will vary based your market and type of business.

If you are in a highly regulated business like financial services, your options may be limited. Other markets let you be creative and get a little crazy, like restaurants.

Your product or service could stand out in one of these ways:

• Quality: create a product or service that is exceptional in one or more ways. Better quality, more benefits, lasts longer, higher value, etc.
   
• Be a leader: be the first one in the market to introduce a new product or service.
   
• Features/Benefits: offer the best choice, best results to solve the problem for a prospect or client’s challenges or needs.
   
• Customization:  fit your product or service offering to meet the specific qualifications of the client; you may be able to better handle special orders than big, mass-market competitors.

Your Service Position

Remember, the quality and value of customer service is always defined by the client. All you can do is strive for excellence in filling their expectations and needs.

You can differentiate your small business marketing a great deal in this area. It is full of opportunity to stand out from your larger competitors because you genuinely care more about your clients. They are worth more to you because you need them more. They are your life blood.

So get to know what is important to your clients and give it to them often! This will build your reputation and naturally lead to referrals and repeat clients. That is when your small business marketing strategy is really working – your gaining business by the marketing gravity your are creating in all your do.

Here are some examples of key areas to position your service:

• Fast Delivery: exceed their expectations - next day, or one-hour-make it faster than customers think possible; FedEx built and empire on this one.
   
• Unique channel: offer a service over the phone or Internet instead of in person or in their office rather than yours.
• Delight customers: commodity based businesses must excel in this are; it may seem expensive to offer exceptional service--but it pays off.
   
• Sales support:  before, during, and after; provide support to clients using your product. Let them know your value their business and care that your product or service does what you claim!
   
• Guarantee: reduce their risk by offering 100% money-back, or free replacement parts.
   
• YOU: offer yourself, your unique blend of talents and skills, to attract customers.