Most small businesses are started in response to a perceived demand for a product or service. And initially, growing sales & profits may result quite easily.
What happens, however, when the competition sets up shop with a “new and improved” version of your product down the road and that demand slows or stops?
How do you even maintain sales let alone grow?
Create a Market Dominating Position
Examine how Domino’s Pizza became a billion-dollar behemoth in an overcrowded market in just a few years. Did Domino’s make the best pizza? Offer comfortable in-house dining? Have the largest selection on their menu?
No way, not even close!
They dominated with one major strategy. They created a market dominating position, (MDP) which was: fast hot pizza, targeted specifically for hungry college kids.
So what, if anything, makes your business different from your competitors as perceived by your targeted prospects and customers?
If it’s price – you’re in trouble.
Consider Nike and Starbucks. Both offer high-priced items for which there are many knock-off competitors at greatly lower prices. Yet Nike & Starbucks outsells them between 4 and 10 to 1!
Obviously, low price isn’t the driving force here. So what is?
These companies have staked out their MDP.
For Nike, it’s about being the best athlete, hip and in style combined with the perception of high quality. For Starbucks, it’s delicious hand-crafted beverages which they claim is the secret to making life better.
When you create your own market dominating position, you will consistently get businesses and individuals to choose yours over your competitors.
But what exactly is a “market dominating position?”
It’s simply any value-added customer perceived benefit, or a combination of benefits, that differentiates you from your competitors; and does so in a strong enough manner that it makes your business the logical choice in the minds of your prospects and customers.
And when you are the logical choice – selling to your customers becomes easy.