MARKETING VIA EXPERIENCES
Some companies have figured out how to get paid to market themselves, rather than spending money to do the same. By creating marketing "experiences," these companies involve their customers in unique, and often offbeat, physical environments that in and of themselves draw customers -- with the product being almost an aside. Creating fun, stimulating, or simply comfortable experiences in the lives of customers can differentiate a company from its competitors. A simple example is Starbucks. Starbucks finds that its cafes are large enough draws -- that the cafe experience is pleasant enough even before patrons buy a drink -- that the company needs to do very little traditional advertising. The experience IS their advertising.

Of course, even with live music and wireless hotspots for laptop users, a cafe is still a cafe, and it's no surprise that a coffee company employes cafes as part of its sales and marketing. But consider ING Direct, a bank with no physical branches that does its commerce strictly via the Net or telephone. In New York, ING opened the ING Direct Cafe. The Cafe has a comfortable lounge atmosphere where patrons can order coffee drinks, read financial newspapers, watch the market move on large plasma screens, use the complimentary computers to surf the Web, or simply hang out. Ironically, the one thing that customers cannot do is perform financial transactions. Not much to do with banking, right? Yet ING reports that within a year of opening, this single "branch" yielded more than $200 million in new accounts and mortgages. ING realized that financial services had become so commoditized that an engaging physical experience was the best way to expose potential customers to its financial offerings.

Here's the best part: while ING won't reveal the details of its operations, a conservative estimate of expenditures versus the income generated from pricey coffee drinks and bakery items suggests that ING almost certainly makes a profit from the Cafe. In short, the company found a new way to generate huge amounts of new business... and got paid to do it.

Remember, if a marketing venture actually makes money, the outlay is zero dollars -- and that means that the return on investment is infinite. Not a bad way to draw new business. By providing experiences that customers will remember -- experiences that are engaging and memorable -- companies keep commoditization at bay and can reap some substantial economic rewards.

Source: www.strategy-business.com

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DON'T WORRY ABOUT YOUR COMPETITION
Many companies, when considering their positioning in the market, tend to spend a lot of time analyzing the competition. Analyzing is okay. Strategy is okay. Worrying, on the other hand, can waste a lot of time and energy, says Mike Schultz, a principal with the Wellesley Hills Group. Schultz offers the following counterintuitive tips for assessing your place among the competitors:

Tip #1: Forget Marketing 101
Beginning textbooks in marketing say that you should be the first mover in a market, and that you need to be number one or two in that market in order to make any money. But there are many, many high-end investment firms in Boston, with names ranging from John Hancock and Citigroup to Fidelity, Morgan Stanley, and Paine Webber. Does it really matter who was first? Marketing 101 would also have you believe that a new, small startup firm has no chance in this market. This simply is not true if they do good work and establish a few loyal customers.

Tip #2: Don't worry about crowded markets
How many Italian restaurants are there in New York's Little Italy? They survive and thrive because there is a demand for Italian food in that market. And how many authentic French bistros are in Peru, Maine? Just because Peru is not a crowded bistro market doesn't mean that great success awaits the first firm to begin selling foie gras there. If the market isn't crowded, it may mean that there's simply no demand. And remember that even if there are already 300 Italian restaurants in Little Italy, a 301st can make it if the food is good.

Tip #3: Drop the cliches
If a phrase or buzzword is a cliche, there's a reason. It's because everybody says it, and because it means little. When you answer the question, "What makes you different?" try not to fall back on answers like "our people go the extra mile," "we're cutting edge," or "we're efficient, effective, and customer-centered." Be specific instead of vague, and have something meaningful to say. If possible, use case studies as examples when speaking to potential customers: "Here's how we were able to help XYZ company, which was in a situation very similar to yours." This not only focuses attention on tangible advantages you offer, but also positions you as both experienced and as an expert in the field.

Tip #4: Overcome customer indifference
For product companies, the competition is another product company. For service businesses, the stiffest competition is often the indifference of clients. You'll need to convince customers of the value that your services will bring to the table, instead of worrying about how you compare to a competitor. Worry less about who your competitor is, says Shultz, and worry more about how you can demonstrate your ability to help the customer. Interestingly enough, doing this will allow you to beat the competition without even thinking about it.

Source: www.whillsgroup.com