Diaz says business owners should stick by their strategic goals and avoid getting sucked into turf wars. Competing with others is not just about prices, he says.
“People are willing to pay for quality, and that’s what you should focus on first. The volume will come once you have established a credible reputation with clients as a reliable service provider. This is more long term, but there is no room for shortcuts if you want your business to grow,” he said.
3. Educate your customers: One of the main thrusts of any marketing campaign is calling people’s attention to a superior product. This is especially true for ‘new’ products, because the customers are often not aware about what it is and what it does.
“If it’s a new, revolutionary product, then educating the base is half your battle plan. Nobody will buy a product they don’t know or trust. If you’re a new player, make sure people know your products exist and they are better than the competition. Fortunately, technology has made marketing a cheaper medium than it was a few years back. Now, you can reach more customers for less, and this is an advantage your business must exploit,” Diaz said.
4. Don’t ignore catch phrases and product claims: In a cost conscious environment, people place even more of a premium on perception of a product then before. Stating what your product does or the track record it has will help establish some leverage with your target markets.
Chua is not shy about using claims about how his company is a cutting edge player in its field. And although he is quick to admit that there are other companies that use the same slogans, doing so in a consistent but targeted way is an effective tool for any business.
“Being ‘first’ in anything generates instant recognition. People see it as an achievement, and they want to be associated with winners. However, using these phrases must be done in moderation. You can’t have banners screaming ‘first’ or ‘the best’ all the time. We have found that people will see right through false claims, and that is why you should always follow through on these claims,” he said.
Of course, no one business can monopolize a business idea or service, but being in front always has its benefits. Do this by carefully studying and building up your strengths, and concentrating on the market that it best serves. As you develop a solid foundation for your business in the new market, it will help shield you from fierce competition now and in the future.