One of the great challenges facing getbusinesstoday owners is that they must often battle for customers against larger competitors, who can afford to run more advertising, offer lower prices, and who are better established in the marketplace.
And yet some small business owners do it very successfully. How?
There are some proven marketing strategies to use when competing against larger, more established competitors. These strategies have been used successfully by companies of all sizes to drive sales and carve out a sustainable position in the market. They apply to online commerce and traditional small businesses.
Here are details on two such strategies that you can use as a small business owner to help grow your business when competing with larger competitors:
Take the “Alternative” Position
If you are up against the market leader in your business, shift your market position so you don’t compete directly with them on their turf. Become the “alternative” to the market leader – that is, promote and advertise an aspect of your product/service that the leader simply can’t offer. This is a classic marketing strategy that has been used successfully by small companies and major corporations, because it allows you to compete with the leader in a part of the market where they may not be very strong.
Pepsi couldn’t beat Coke at the cola wars, because Coke was viewed as the original cola drink that had no substitutes. That was fine with Pepsi. It let Coke have that territory, and instead marketed itself as the “Choice of a New Generation”. Its marketing appeal and target audience was young and cool – everything that Coke couldn’t be with their more traditional positioning. Pepsi successfully carved out the number 2 position in the market by becoming the primary alternative to Coke, and made billions in the process.
The rule applies to everything from .com companies to local furniture stores. Survey the competitive landscape in your market and determine how you can position your business as the best alternative to the established market leader. Second place in a given market can be a very nice place to be from a profitability standpoint.
Sell what they don’t have – You!
Many small business owners have found success by building their personal reputations as experts in their field, with significant benefits to their small business. They have become the “public face” for their company.
Some large companies have a “public face”, a person who represents the company in the minds of customers (Richard Branson for Virgin is one). But most don’t. As a small business owner, you can effectively represent yourself as an expert in your area of expertise, and drive awareness for your small business in the process.
One of the most effective ways to build your reputation is through the credibility that comes from publicity and media relations activities.
Here are some guiding principles to working with the media as a small business owner:
View it as a relationship – reporters need story ideas and expert sources – you can offer both when it comes to your area of expertise to create a win-win situation
Pitch story ideas about what’s new and what’s changing – the media likes to break news about emerging trends, either in your industry or related to your experience as a small business owner
Strive for repeat business – once a reporter has identified you as a good source of information on a topic, they will keep coming back to you – so ensure that early in your relationship you are available to them and willing to offer help in getting information for them to pull a story together
Having a single person leading the charge to build media relationships and run the company makes it easier to transfer the goodwill that you achieve in the media over to your business activities. This doesn’t work nearly as well for larger companies, so leverage this competitive advantage and take a personal approach to building your business through publicity.
You Can Compete!
Small business marketing is all about leveraging the built-in advantages of being a small enterprise in the battle against larger competition for customers and sales. Establishing your business as an alternative to the market leader in your business, and building personal credibility that can be transferred to your small business are just two strategies that you can implement to help your small business succeed against bigger competitors.