A Comprehensive Guide on How to Gain a Market Advantage in Business
With 86 percent of consumers checking out competitor prices on at least half of the products they buy, are you doing enough to stand out?
Gaining market share is a tough task for any company with all the competition battling for the same consumer base.
Marketing professionals and business leaders have come up with some creative new ways to gain a competitive advantage.
If you are looking to gain a market advantage, look no further, this complete guide will uncover the ways leaders in industries all over the world are doing just that.
Gaining A Market Advantage
Gaining market share is at the top of every business's to-do list. This leads to the company having a competitive advantage over the competition, and in turn, will lead to higher sales.
Check out these proven techniques business leaders have been using to gain a market advantage over their competitors.
One way to gain control of your market is by controlling the price of the product. If you and a competitor have similar products, one way to gain an advantage over them is by dropping the price. This technique is only recommended when comparing lower priced items that are very similar, such as a toothbrush.
For some companies, it may not be a good idea to drop the price at all but instead to keep it high. A study published in the Journal of Marketing shows that consumers tend to relate the price of a product with the quality of that same product. Researchers noticed this is especially true when comparing local products.
With the usage of social media skyrocketing to all-time highs, consumers are more likely to find products on their social media page rather than in the store. For this reason, it is vital to have someone with experience with web design , to draw consumers in and keep them coming back for more.
More than 50 million small businesses are using Facebook to connect with their customers. On top of that, 70 percent of business-to-consumer marketers have acquired customers through Facebook.
Social media is a great place to start for businesses wondering how to gain a competitive advantage.
One way companies have found success with social media marketing is through the use of ultra high definition photos.
For example, Airbnb ran an ad campaign called " Don't go there, Live there ." They challenged followers to travel a different way. The campaign turned out to be the most significant 6-month increase in the companies history. This is how Airbnb rose to become one of the world's leaders in vacation rentals.
Another way business professionals are gaining a competitive advantage is through community outreach programs.
Community outreach can be done in several ways. One idea is by organizing a community cleanup. It is an excellent chance for employees to connect to the community while also contributing to society. The community will appreciate the hard work, and it will allow you to get your name out there in a positive way.
Consumers are more likely to buy from a company that practices responsible behavior. According to a study conducted by Cone Communications , 9 in 10 global citizens said they would refuse to buy from a company that was involved in irresponsible behavior.
One area of business any business could benefit from improving is customer service. A study by American Express shows the majority of Americans have decided not to go through with a purchase due to a bad customer service experience.
It is crucial to practice excellent customer service with any business looking to retain customers.
Consumers will also go to the extreme to show how appreciative they are of an excellent customer service experience. A separate study by American Express shows 70 percent of customers have spent more money to do business with a company that practices excellent customer service.
The cost of losing customers is higher than many think. According to the Harvard Business Review , it can be anywhere from 5 to 25 times more expensive to get a new customer than it is to keep a current one.
Create A Community
One way businesses are finding success and gaining a competitive advantage is by creating a sense of community with their customers and even with their employees.
Companies have tried all different methods of creating a culture within the company, but it is more important to develop a sense of community . Companies all over the globe have had success in creating a community culture.
For example, Tasty Catering, based in Chicago, makes sure all employees have a voice in the company. This makes the employees feel like they are engaged, and in turn, the company gains a competitive advantage from having the employees involved.
If you know your product or service is the best, its time to show the consumer why it is the best.
People respond best when information is backed up by facts and figures. If it is possible, do some research on your product or service and publish the results. You will be surprised how consumers react to having real data to base their purchasing decision on.
You can do this as simple as conducting a survey on the companies social media page. From there, gather the results and interpret them in a way that makes sense when presented to the customers.
For example, a pizza shop owner conducts a simple study on the customer's favorite pizza selections. The results show 61 percent of customers prefer cheese, 30 percent prefer veggies, and the rest prefer supreme. The pizza shop owner can then use this information to create promotions like cheese pizza Mondays at a discount price to sell more pizza and get consumers in the door.
For More Small Business Information
Now that you have these tools available to you, it is time to put them to the test and gain the market advantage you have been looking for. By achieving a market advantage, you will have a unique competitive advantage that will put you in a position to grow and thrive as a company.