Seven questions to consider before starting a business Question 4. Can you create a true differentiated market position?
Well, we had the next level of pitching in the #YouthStartCT competition yesterday. In my view, everything went up a level or two! Nerves, quality, seriousness, depth and….impact!
Now comes a further thinning from 25 quite solid pitches, down to 15. Some unique ideas and businesses. Watch this space as the Mayor will announce the final three winners on the 15th June! (See photo’s of Saturday)
Tonight I want to look at the 4th question:- Can you create a truly differentiated market position?
This is about what will make you different from other businesses offering similar products or services to your target market.
This means you need to truly understand your market through thorough research. (We drill this in at the CFE that unless you have a market, you don’t really have a business)
Seth Godin writes a business classic called purple cow.
This is what he writes, “In simpler times, marketing was straightforward. It involved the following P’s: “product, pricing, promotion, positioning, publicity, packaging, pass-along and permission.” Today, however, a new “P” is far more important than all the rest: “Purple Cow.” A purple cow is something “remarkable” – the product, the way it is packaged, the way it is positioned, how it is priced or even the store in which it is sold is different from the competition’s product. Your company’s strongest chance for success depends on marketing something truly noteworthy. That is the only way to emerge from the crowd.”
So what will make your target market sit up, take notice and “remark” about your product/service?
Is there something different about….
- The quality?
- Is it a cheaper price?
- Easier to use?
- Does it have new capabilities?
- Is there a new way of buying? (One of the competitors on Saturday has opened up a traditionally “unsafe” area by building an online platform to deliver within the area!)
If you don’t push yourself hard on this way, you may sink into a plethora of “Me too” businesses, where you aren’t differentiated at all. The effort to create a “Purple cow” is truly worth it.
Building strong businesses, led by resilient entrepreneurs.