Competition and the Consumer’s Mind

Formulas, Goals, and the Battlefield

I usually agree with Seth Godin on most things, but this one is a bit too far out for me.  I’ve included the entire post on his blog below, it short, and also a link to his blog if you want to read any of the comments there.  So take a quick read and I’ll continue below:

Compared to magical

The easiest way to sell yourself short is to compare your work to the competition. To say that you are 5% cheaper or have one or two features that stand out–this is a formula for slightly better mediocrity.

The goal ought to be to compare yourself not to the best your peers or the competition has managed to get through a committee or down on paper, but to an unattainable, magical unicorn.

Compared to that, how are you doing?

– Seth Godin

Formula: Short Sale

I do agree with Godin that many companies sell themselves short.  Always trying to lower the bar in the hope of gaining a few customers.    Where I disagree with Godin on this is that it’s not because of the comparison to competitors, but rather a poor strategy for taking consumers away from those competitors based on the tactics that are short sighted.

Goal: Long Term Relationship

The tactics you use should be based on the principle that your company is seen as the better choice.  There are many areas a consumer could focus to answer this question.  It is your job to make the answer self-evident when it come to comparing your company to your competitors.

The Battlefield

We fight on the battlefield of the consumer’s mind.  It’s one of the smallest battlefield you will ever find yourself on, about 6 inches.   You should create campaigns that, hopefully, take up territory.  And if you do it well, you should hold more ground then your competitors.  The strategy is different for each company.  It is based on the position of your product in the market place and how our competitors currently stand.  We recommend following the “Marketing Warfare” strategies laid out by Ries and Trout.  So make sure your strategy fits your goals.

Because the last time I checked … your consumers aren’t looking to buy Magical Unicorns … and I’m fairly certain you haven’t hired anyone with unicorn making skills recently.

Good Hunting and would love to read your comments on this topic.

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Social Media Busyness Doesn’t Equal Business Value

Image via Wikipedia

Lately, I  have been pounded with a theme of challenges around the question “Why take part in Social Media if it takes up so much time and has such poor tangible results?”  And my general response is, it should take as much time as needed to accomplish your business objectives which have been created to help you reach your goals.

I also have to explain that social media, executed poorly, is far more expensive then doing nothing at all.  The below article caught my:

Top Five Social Media Marketing Mistakes?

You know about all the wonderful things the blogosphere can do for your business. But how can you prevent the not-so-wonderful stuff?

Social media initiatives have become standard components of companies‘ marketing and communications strategies. Large or small—from the local bakery to General Motors (GM)—businesses see the value of engaging in online conversations already taking place about their brands. While social media best practices have emerged, brands still struggle with how best to engage with their consumers. Here are five common mistakes:

1. Not (or Barely) Monitoring:

2. “Down-sourcing” to Interns or Junior Staff:

3. Fast Beats Perfect:

4. Faking It:

5. Having an “Off” Switch:

At the end of the day, brands must earn their “social currency.” There are no shortcuts or substitutes to authentic engagement in the realm of social media.

via Top Five Social Media Marketing Mistakes – BusinessWeek.

Busy-ness vs Business

Unfortunately, I see many small or medium sized companies try their luck with social media and treat it like some shiny new toy that consumes all their attention, as they forget about all the other things they could be doing.  I find they over tweet, over post, and over blog themselves to the point that they justify leaving the scene altogether because it’s not worth the effort for the little results they see.

This is where I come in.  I sit down with them and ask some simple questions.  What activities, events, promotions, or other marketing objectives are coming up in the near future?  After I have that list, I can then sit down with them and explain the role of each of the social media tools and how they can fit into the marketing plan for the upcoming several months.  We also start by setting up measurements so that they understand where their leads are coming from.  As a simple example, this may include a unique 800 number for each channel (print, tv, radio, and each site they are using – it’s not that expensive really)   I explain how their phone bill or on-line phone records can then be used to measure campaign success, if inbound calls are one of the means by which we will measure the campaign success.

Social media can be a valuable tool for small and medium sized companies.  It can level the playing field quickly for a company that is dealing with a regional or national player, especially if these companies have their marketing and advertising plans controlled by corporate.  Often these larger companies are incapable of adjusting to local pressure applied by small companies and their ideas.

I’d love to hear of examples in which small companies attack the larger companies by using social media.  Please share them in the comments.

Good Hunting.

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