Strategies for Dealing With a Highly Competitive Market

More than a few of the small business owners in my network entered a highly competitive marketplace.  Among them are financial planners, insurance agencies, pizza bakeries, and life coaches: a mixed bag.  I watch their marketing with great interest because they have the task of establishing their own credibility where there are already very successful entrants.

Frankly, too many adopt a doomed strategy in promoting themselves.  This one can be illustrated by a slogan that seems to be on every pizza delivery box in America: "You've tried the rest, now try the best".  Consumers' tastes are varied enough that such a claim is ridiculous on its face.  Trying to tell the marketplace that your business is "the best" looks like a hollow boast.

There are two ways to compete effectively in a market full of seemingly identical players.  And they both involve establishing a competitive advantage.  One depends on the first wave of customers and clients passing on the word that your business is superior on the basis of product, service, price (or combinations thereof).  That's up to you: be a superior provider every minute of every day.

The other is putting together a marketing campaign that calls attention to meaningful competitive differences.  This does not involve claims of better products, better service, and better price.  Trust me, you won't be believed (look at that pizza box again!).  Do you offer a product or service that you're especially good at or which is not as well represented in the market?  Do you have an expertise serving particular types of consumers?  Do you have certifications or credentials that make you stand out?  Stumped for ideas? don't hesitate to ask existing clients and customers what they like best about your offerings.

For example, a financial planner I know has a significant proportion of clients who are owners of small businesses.  He can make a point of positioning himself as an expert meeting the specific needs of entrepreneurs.  None of his competitors of which I am aware "own" this space.  It's an opportunity!

It is possible to win in a tight market.  But it requires thoughtful marketing work.  You can do it!