What is competitive advantage?

The simple definition of competitive advantage is: “a condition or circumstance that puts a company in a favorable or superior business position”. In a nut shell, competitive advantage is what sets you apart from your peers. There are several different components that factor into your competitive advantage. Most of the time we think about price, but a company or business cannot be successful just by offering low prices and not making a profit. Your advantage may be your customer service, hours, and products. When it comes to competitive advantage I think back to the bank I used to work for, Bank Independent. A service like banking is met by many competitors. The number one focus for the Bank was customer service. Our priority was providing the highest level of service to our customer. Another advantage on our competitors was our hours. The Bank’s drive-thru hours were available from 8:30 am to 8:00 pm Monday through Saturday. These two components combined showed to be a competitive advantage for the bank.

Why location is important?

Where your business is located can play an important role in the success of your business. This success also depends on what type of business you have.  You may be running a home-based business, a retail, commercial or even an industrial business.  Each business location will very. My focus throughout my ETP courses have been a retail business. I have always dreamed of opening my own boutique. The location of a business like a boutique can be crucial. There are several factors that need to be considered when selecting a location.  Foot traffic is extremely important. The flow of customer in a retail business will be your success. Your location also needs to be easily accessible to your customers. A location that is tucked in a corner or on a side street will not receive the same attentions as a business located on a main street. Another thing to consider is your location in relation to your competitors. Being located closely to your competitors can have its pros and cons.  You may have an advantage if your prices are lower or you offer a product or service that is in higher demand. On the flip side, you make have to market more or more creatively. No matter what type of business you have or think about starting, location is an important factor to consider.

Is The Price Right?

One thing entrepreneurs must focus on is the price of their products or services. There are several different pricing strategies entrepreneurs can consider before deciding on a final price.  Two of the strategies are cost-plus pricing and competitive pricing. These two strategies can prove to be successful for entrepreneurs. Cost-plus pricing, in my option, is the simplest. This strategy simply takes the cost of the product and adds too it the mark-up profit desired. The mark-up can be anywhere from 1%-100%, depending on the cost of the product. On the other hand, competitive pricing is looking at the price of the same or similar product offered by your competitor. The strategy of competitive pricing focuses on the price that will make you the most desirable among your competitors. As an entrepreneur, you must do your research and choose competitors in your footprint. Entrepreneurs are charged with choosing the strategy that will be the most profitable for their business. After all, we  want the biggest bang for our buck.   

Your Brand...."People Ask For It By Name"

It's important to establish your brand. This is what people remember your product or service by. Think about cat food. Yes, cat food. What the first brand that pops in your mind? I bet for most of you, like me, its Meow Mix and their jingle, "Meow, Meow, Meow...... So good, cats ask for it by name". Meow Mix has mastered their branding to set them apart from other cat food brands. Something as simple as a catchy jingle can be your key to branding your product. Always think our side of the box, come up with a new or exciting way to brand your product. 

Keep Your Eyes Open

As an entrepreneur or business owner it's important to keep your eyes open to the latest and greatest ideas. Always be thinking about new products and services. Look at the growing trends, the consumers will let you know what they demand. Never get discouraged with yourself or ideas. Many entrepreneurs fail the first time around. The most important thing is to keep your head up and continue to push forward. Developing a product or service that will be successful won't happen over night. It will take time and lots of hard work. Never give up and.... 

 

Social Media Marketing

Who doesn’t have a Facebook, Instagram or Twitter? I guarantee you that everyone in our ETP class has one of the three. While there are a wide range of social media outlets, one reigns above all. Facebook is the champ of social media sites. Facebook ranks in the #1 spot where friends connect and share online. More than just a meeting place for friends, Facebook has become an outlet for businesses to market themselves through interaction with customers and self-promotion. For an entrepreneur or small business owner, Facebook is a powerful marketing tool. It’s a great space to keep customers informed, develop brand identity, and broaden your reach. A Facebook page is a great free marketing tool for businesses. These pages let businesses identify themselves. This is not just through listing product offerings and services, but also by sharing links, images, and posts on a custom page to give a better sense of a business’s personality and character. Your Facebook business page is a great spot to develop your brand identity and show your human side. Facebook is where you can loosen the tie a bit, don’t be afraid to be funny.  Use free social media marketing to your advantage, make your business go viral!  

What is the key?

Offering a product or service people need or want shouldn’t require marketing, right? Wrong! As a business owner, you can never assume your product or services doesn’t need to be promoted. The heart of every business’s success lies in its marketing. Most aspects of your business depend on successful marketing. The overall marketing umbrella covers advertising, public relations, promotions and sales. Marketing is the way your product or service is introduced and promoted to potential customers. Even if your product or service is in high demand, this means you are going to have competitors. Marketing is the key for a successful business venture.