Why do some small businesses succeed wildly while
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Transcript of Why do some small businesses succeed wildly while
Finding Your Crack In The MarketHow marketers get it
wrong. . . and right
Why do some small businesses succeed wildly
while others languish or die?• Superior management
• Intelligent owners• Good customer service
• Strong marketing• Hire the best people
•Good understanding of business
The $64,000 Question
Tom Peters – Lessons from America’s best companies “In Search For Excellence”
Jim Collins – Says to get the best people on the bus in “Good To Great.”
Napoleon Hill tells us to “Think and Grow Rich”
Regis McKenna – “Relationship Marketing”
John Maxwell – “Developing the Leader. .”
The Problem with Small Business
Few of the “Excellent” companies remained for Peter’s follow up book
Small business owners can’t afford the best people, and they still do well
I know some successful businesses where the owners really don’t think much
Many successful business owners are poor leaders
Marketing
And… highly successful small businesses seem to defy the experts.
“Give them what they want and they will knock down your door to get it.”
Don Griffith Jr.
What is going on? Small business is not big business
only small• Motivation for small owners is completely
different from large business You only have to be smart/good
enough You must Own your crack in the
market Luck
The Quest Why do small businesses create
wealth for a few (generally) low profile businesses?
What are the characteristics of small business success?
•Education •Intelligence•Exceptional Management•Financing •Perceived Value (Inc. Brand)• Quality• Image• Service • Price
Competency /Competition •Industry Niche•Market, Market Type•Market Leadership•Innovation•Positioning• Emplacement
Who Owns these businesses?
04/09/202313
Where the wealth is. . . the Millionaire Next Door
Largest group are small businessmen Professionals who set up a business Small percentage are corporate
managers Very small percentage are super rich
(actors, athletes etc.)
04/09/202314
Millionaire Next Door Independent Mostly have college degrees, but not particularly
good students (C+ to B-) Most were very social in school, took advantage
of group opportunities Married, wife (spouse) works in business or stays
home, and always supportive Always spend less than they earn, investing the
rest Not status conscious Live in homes way below their means Make kids work for what they want Have a knack for seeing “voids in the market”
that they can fill using their skills or learn to fill.
04/09/202315
Occupy a crack in the market with little competition
Know how to find and serve customers. . .Innovate to differentiate, creating value
04/09/202316
The EvidenceWhy your own
crack is important---PIMS
PIMS - Profit Impact on Marketing Systems
Be in the top 2 or 3 in your marketBe seen as high value
(quality/service)
04/09/202317
PIMS - Market Leadership & Quality
Profit impact of competitive strength Market leadership pays: be number
one or number two in your served market
Competing on quality is better than competing on price
18
PIMS – Reward follows Market Leadership and Quality
Inferior Qual.
Mid Quailty
Superior Qual.L
ow M
. Sha
re
Med
ium
M. S
hare
Hig
h M
. Sha
re
05
10152025303540
04/09/202319
PIMS Principals Review
Seek to be in top 3 market share in your crack in the market.
Strive to be perceived as high quality and service.
(Perception is reality in marketing) Buyers make decisions based on
perceived value.
How do you become a leader in your existing market?
Re-define the market
Narrow the focus Look for a smaller crack where you
can be first
Marketing PositioningMarketing Emplacement
Define your niche
General IndustryGeographicSpecializationSpecification and StickinessDistribution ControlReferral and SymbioticRelationshipAuthenticity
Define your niche
•General Industry•Geographic•Specialization•Specification and Stickiness•Distribution Control•Referral and Symbiotic•Relationship•Authenticity
•General Industry
•Geographic
•Specialization
•Distribution Control
•Specification and Stickiness
• Relationship
A micro-niche- Crack In The Market
04/09/202323
Perceived Value
Components of Value
1. Quality2. Service3. Price4. Image/aesthetics
04/09/202324
Burgess Value Diamond
0
20
40
60
80
100
Quality
Low Price
Image
Service
YOU
Competitor 1
Competitor 2
Wealth Creating Sm. Businesses
Owner(education, motivation,
business degree)
Exceptional Management
Market Leadership
Innovation
ValueHighly Niched
Own Their Crack
In The Market
No marketing / well emplaced
Heavy selling, promotion and marketing
Leads to new cracks in the market
Marketing Emplacement
What Marketers Do Wrong With Small
Businesses• Don’t understand why small business
succeeds
• Can’t communicate the importance of
the Crack to owners.
• We like the activity of campaign battle
• We don’t like strategy
What Marketers Do Right With Small Businesses
• Think Niche, Learn Crack• Learn why and how small businesses succeed, beyond the hype• Understand as much as you Do- Plan first execute second• Recognize that “skills” don’t equal wisdom
Owner - Financially Conservative and Values
Creating Better Value
Selection of Niche Market PIMS
Market Leadership
Business Wealth Building
Company Competencies
Building Blocks of Small Business Success
Where is your company? What are your strategies to move to
the well?
Questions
@ronburgess
Linkedin.com/in/ronburgess
www.FindingYourCrack.com