What Makes YOU So Special?! An Exercise in Differentiation!

Copyright 2006 Audrey Burton

Targeting your marketing is the cornerstone to a successful
marketing plan. But, what if you’re in a business that is
in a highly competitive market? A good example of a highly
commoditized business includes residential real estate.
There are many, many residential real estate agents who
charge about the same amount for their services, regardless
of the type of home.

In a highly commoditized business, competition is often
based solely on price. For example, if you wanted to
purchase manila file folders and there were a drug store
and an office supply store selling identical items, next
door to each other, you would likely purchase the less
expensive item.

The same can be true for businesses – the more
commoditized, the more likely you will compete based on
price. It doesn’t have to be that way, and I advise you
not to go that route!

Let’s again consider the RE agent. Since the commission
received for selling a home is about the same for everyone,
the agent MUST differentiate herself from others. If she
begins to compete on price and cuts her commission, she
devalues herself, and it’s difficult to climb out of that
hole.

If the client does any comparison shopping, and they will,
you need to be prepared. Here are examples of ways in
which a RE agent can differentiate herself:

(1.) years of experience
(2.) expertise in a specific type of home ($1MM+, condos,
co-ops, etc.)
(3.) expertise in a certain neighborhood/area
(4.) education level
(5.) types of clients serviced (entertainers, first-time
buyers, Spanish-speaking)
(6.) awards won
(7.) sense of humor/personality!

When the potential client is shopping around, it is
important for you to stand out, to be remembered. Don’t
always use all your points of differentiation; pick the
best one and sell it. In addition, make sure your points
of differentiation are actually DIFFERENT than what your
competition says about themselves! Don’t use generalities
like “best service”, “highest quality” or “great value”.
Be specific!! These statements are like so much white
noise – your target won’t even hear them.

If you have a more unique, less commoditized business, like
a small business coach for example, it is still important
to understand your points of difference in case the
prospect asks. Even if they don’t ask, it can sometimes
help you in your sales interaction (website, business card,
networking, advertising, in person meeting) to mention your
differences. My points of differentiation include:

(1.) 50% longer coaching sessions than ‘average’
(2.) practical, not metaphysical or spiritual, approach
(3.) lots of flexibility in appointment timing
(4.) no long-term contracts

In hearing your points, the prospect may lose interest in
shopping around and be more convinced to make a purchase,
or she may know right away that yours is not the right
product for her. This is better for you, also, as you are
not wasting your time continuing to follow up for nothing.


About the Author:

Audrey Burton is a practical Small Business Coach. She
eliminates business/marketing overwhelm and gets you
excited to work on your business again! To sign up for her
free, monthly email newsletter, visit her site:
http://www.TigressCoaching.com .