Summary: Your market position is the place
you occupy in the mind of your prospective clients. It's how they think of you as compared
to your competitors. Try conducting some competitive research to find out what it is that
clients like about the people you compete with. Your research might uncover that your
service isn't packaged in a way that prospects want to buy it.
Are you finding many of your best prospects already working
with competitors? When you pursue a new opportunity, is someone else capturing the prize?
Maybe it's time to re-evaluate your positioning.
Your market position is the place you occupy in the mind of
your prospective clients. It's how they think of you as compared to your competitors.
Adjectives like established or cutting-edge; high-quality or inexpensive; convenient or
full-service are all relative terms. When applied to you and your business, they
distinguish you from the competition.
Your clients' impression of how your business compares can
determine whether they work with you or not. Try conducting some competitive research to
find out what it is that clients like about the people you compete with. Are those
qualities you can emulate? In what areas are clients not as satisfied? Could you offer
more satisfaction there?
Ask your current and former clients about their experience
with the competition. They may be quite candid with you about what they liked and didn't
like, and give you some valuable insight into why they chose you. Check out how your
competitors are positioning themselves by surfing the Net. Mission statements, lists of
features and benefits, etc. will often be posted on their web sites. You can also have a
friend request their literature, or hire a professional market researcher.
Target market research can help if prospects are telling
you they don't need what you are offering. If you think they need a team-building retreat,
but they are looking for more skills training, you won't make a sale. If you learn more
about how prospects view their own challenges, you can develop a new market position to
better match their mental, or real-life, purchase order. Your retreat might fly if you
called it "an intensive three-day training program in the critical skills needed for
effective teamwork."
Ask your satisfied clients for a testimonial letter. The
way they describe the work you do and benefits they received from it can give you valuable
clues in how to sell it to others. An evaluation questionnaire can be used for the same
purpose. Try asking, "How would you describe my service to someone who could use
it?"
Your research might uncover that your service isn't
packaged in a way that prospects want to buy it. Developing a better service package could
make what you offer more attractive. A marketing consultant who has been charging by the
project might find clients more receptive to a monthly retainer they can budget for. An
interior designer encountering resistance to his hourly fee might instead raise his
commission rate on furnishings, and no longer charge by the hour.
Sometimes just naming your service package can make a
difference. An image consultant might be much more successful selling the "One-Day
Makeover" than asking clients to buy six hours of her time to revamp their whole
look. When doing your market research, try asking your prospects how they prefer to buy
services like yours, and tailor your offering to their preferences.
You may make the discovery that you've chosen the wrong
market -- the perceived need for what you offer isn't strong enough, they aren't willing
to pay what you need to charge, or the size of the market is too small. In this case, it's
time to position yourself for an entirely different market.
A career counselor who can't find enough individuals who
will pay her fee can market herself to companies who need outplacement services. A
software trainer who discovers that large companies prefer training firms that can serve
them nationally might find a better market in midsize organizations. Keep asking the
question, "Who is MOST LIKELY to hire me?" until you find the right fit. |
