In today’s marketing world, every small business seeks to stand out among a myriad of competitors. Because United States consumers have so many choices, businesses who fail to differentiate themselves from the competition struggle to survive. However, an effective differentiating strategy can help a small business not only to live, but also to thrive in the marketplace. Marketing experts Jack Trout and Steven Rivkin combine their genius to describe practical concepts on business differentiation. From their extensive knowledge, a small business executive can glean three valuable differentiating strategies which help a small business to secure a competitive advantage over the competition. A small, gourmet supermarket chain in Ohio called Dorothy Lane Market will practically illustrate these concepts. Authors Trout and Rivkin share that a wise small business can accomplish brand differentiation by owning a heritage, a uniquely processed product, or a brand attribute. Owning a Heritage The presence of a business heritage provides a business with a differentiating strategy. Trout and Rivkin confirm that a long and successful past leads consumers to believe that the business must being doing something right; the company must be producing a reputable and dependable product or service that is providing for the needs of its customers (2008, p. 125). Owning the differentiating strategy of business heritage powerfully creates a positive image of confidence in the minds of consumers. Authors Trout and Rivkin describe two specific types of heritage that a business could own to differentiate itself. Locational Heritage Locational heritage claims an association with a country which is already well-known for making a specific product. For... ... middle of paper ... ...as “Selling the Highest Quality Natural and Organic Products” (WholeFoodsMarket.com). Notice that, although Dorothy Lane also offers a broad selection of similar natural and organic foods, it does not differentiate itself in this way. DLM chooses to differentiate itself by owning a broader attribute, which infers that its specialty grocery store accommodates all the specialty food needs of its customers. A business needs to create an effective differentiating strategy to succeed. By owning a heritage, a specialty, or an attribute, a business can differentiate its brand and product/service offerings so a customer will know what benefits the business offers. A small business executive who implements any one of these three practical differentiating strategies by marketing experts, Trout and Rivkin, will capture a competitive advantage over the market competition.
How often does one actually consider where a product originates or under what conditions it was produced? While out shopping a consumers main focus is on obtaining the item needed or wanted not selecting merchandise based on the “made in” tag. It is common knowledge that many products are imported from other countries. However, little thought is given to the substandard conditions that workers endure to eke out a living to maintain a poverty stricken existence. In Mardi Gras: Made in China director David Redmon demonstrates the effect globalization and capitalism have on the lives of the owner and workers of a bead factory in China while contrasting the revelry of partygoers in New Orleans. Underpaid, overworked staff toil and live in an inhuman environment, exploited by a boss who demands much for little compensation while profiting greatly, to support themselves and their families.
Understanding the number of competitors and their capabilities in a particular market is a key function of building strategy. If a company is competing against another company offering the same product or service, it faces limitation in regards to both supplier and buyer power. Customers will always tend to go to the place where they get the same product for a cheaper price, while supplier will tend to flock to places where the deal is considerably high. For CMG, a key differentiation in its competition within the fast food industry is designated I its ability to meet a one of a kind fast food experience where customers experience fine-dining similar to high0end hotels, but a low prices. CMG additionally differentiates totally with its rivals in the sense that they struggle to offer healthy and high-quality food that positively impacts the society.
Many small businesses don’t realize how important their company image really is. The following is a formula for low cost marketing for a small business to create or better their image. To find this formula I interviewed Evan Paull, the owner of a small sign making company based in Annapolis Maryland called ‘Independent Sign Consortium’ or ‘ISC.’ ‘ISC’ was started in 1996 and has had a steady growth ever since. I also interviewed Allison Green, the marketing director of ‘Revisions,’ ‘Revisions’ is based in Baltimore Maryland and is a non-profit organization dedicated to helping the mentally ill.
More important than product, people, and advertising, branding is going forward as one of the most important factors in a business. While Klein has a bias against branding and wishes the reader a word of warning, in this specific essay she focuses on what branding means for the future. Klein starts off her minor claims with the bloating of corporations. “A consensus emerged that corporations were bloated, oversized; they owned too much, employed too many people, and were weighed down by too many things (Klein 769).” Through the use of branding, these same businesses could cut down all of their problems and payrolls through importing and simply putting their brand name on the product. Then when the dreaded “Marlboro Friday” happened, and it seemed that all brand significance was for naught, Klein showed us examples of businesses that thrived from a new age of marketing. “For these companies, the ostensible product was mere filler for the real production: the brand (Klein 774).” With brand driven marketing rather than product driven sales, businesses soared with selling the idea of their products more than their products quality. Using the example of Starbucks, Klein also supports her claims of branding not through marketing but weaving its name into products and culture. “The Starbucks coffee chain was also expanding during this period spinning its name into a wide range of branded projects: Starbucks airline coffee, office coffee, coffee ice cream, coffee beer (Klein 775).” By spreading its name not through marketing, but through spreading the brand through new and different products Starbucks found success in turning their brand concept into a virus and sending it through cultural sponsorship, political controversy, consumer experience and brand extensions. These forms of image building could make a company like Starbucks successful with branding over
Selecting a business strategy that details valuable resources and distinctive competencies, strategizing all resources and capabilities and ensuring they are all employed and exploited, and building and regenerating valuable resources and distinctive competencies is key. The analysis of resources, capabilities and core competencies describes the external environment which is subject to change quickly. Based off this information a firm has to be prepared and know its internal resources and capabilities and offer a more secure strategy. Furthermore, resources and capabilities are the primary source of profitability. Resources entail intangible, tangible, and human resources. Capabilities describe environment and strategic environment. Core competencies include knowledge and technical capability. In this section we will attempt to describe in detail the three segments which are resources, capabilities, and core competencies.
S.H. Kress achieved a unique architectural distinction in both defining a brand identity while simultaneously fitting in with the five-and-dime market and the local main street character of each town. He was a pioneer in creating company brand identity through a “signature storefront”. He viewed his buildings as an advertisement and each store had some components that were standardized, reflecting the popular assembly line approach at that time, while other components varied based on the location to fit within each town culture.
In the modern world of conducting business, any company that wishes to succeed must differentiate its products or services from others in the industry. Differentiation makes it possible for consumers to point out notable differences between one company’s products as compared to those of competitors. Differentiation helps companies build brand loyalty as the uniqueness keeps customers fixed on a particular product. BMW is one of the most popular automakers in the world today. It definitely uses differentiation as a strategy to beat off competition by building products that are innovative, detailed and incomparable to those of competitors.
It is a well-known fact that marketing is a way to get the business off the ground. Without marketing, then no one will know about the goods and services a brand is selling. “Good marketing makes the company look smart. Great marketing makes the customer feel smart.” (Chernov).
The term product differentiation refers to the process of distinguishing a product or service from the competitor’s product, to make it more attractive to a particular target market. A firm uses marketing to differentiate its product, which refers to all necessary activities for a firm to sell a product to a consumer. A firm uses brand management to build a brand and unique identity of a product for the long run; this helps the firm to have an independent identity and to differentiate its products from the competitor’s product. So its uses brand management to maintain product differentiation over time. Firms use advertising as a tool to try to shift the demand curve to the right and make consumer demand for their product inelastic. This creates consumer loyalty of brand loyalty for the product. Since my movie theater doesn’t have IMAX screens, one way to advertise it could be by advertising it as affordable neighborhood theater. This way it would create brand recognition of a comfortable, homey and affordable theater for families and teens to be entertained on a budget. Product differentiation helps firms to create a unique identity of their product, which helps people become more attracted and loyal to the product even though substitutes are available, making the demand more
Marketing is a vital component in the success of businesses. Smaller businesses rely on business advertising, expenses, knowing if the business is networking with the right people, or joining the best organisations that lead to success (EStartup business blog, 2010). Marketing concentrates on customers and what the customers want. Customers are the source of sales and profits. Many small businesses are faced with remarkable hardships due to not developing the right marketing plan (EStartup business blog, 2010).
Discussion Question 6.1 What are some drawbacks and risks to a broad generic business strategy? Differentiation and cost leadership are two generic business strategies. The goal of a differentiation strategy is to create a value that is higher for the customers than the value created by the competition. Costs are kept low and features that are unique are also delivered to the customer. On the other hand, with cost leadership the goal is for the firm to create a value for the customer that is the same or similar but at a lower price (Rothaermel, 2013). There are several drawbacks and risks to a broad generic business strategy. With differentiation there will always be in a change of customer’s taste or what the customer wants. In addition, there will imitation by the competitors of the firm. Other companies often are able to gain a higher level of differentiation because of being more diverse and seeking a focus strategy. A drawback with differentiation strategy is that profits will be higher than with a cost leadership. Differentiation often will create a barrier that is higher and a cost
There are four main business strategies that can be used they are Cost leadership strategy, Differentiation strategy, Focus strategy (low cost) and Focus strategy (differentiation). We can use Porter’s generic business strategies to understand the difference in these strategies.
This paper argues why both brand identity and packaging are vital to a successful marketing strategy, and that they are more powerful intertwined, than as two separate elements.
a company can familiarize itself with cultural nuances which may impact the design, packaging or advertising of the product. Moreover, traveling abroad allows one to locate and cultivate new customers, as well as improve relationships and communication with current foreign representatives and associates
Burger King’s core competency is fast food restaurant franchises specializing in made to order, flame-broiled hamburger sandwiches, particularly the “Whopper”. Using the strategy of industrial organization to capture market share Burger King offers a similar product (hamburgers) in a different way (flame-broiled). This strategy of product differentiation is part of the firm conduct category that Burger King uses to set itself apart from its competitors. In order to compete with its fast food competitors Burger King accentuates its core competencies in its marketing and product strategies, thereby leveraging market share.