“Pg
107
Domestic Geographic Description
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Pg
123
As you begin your competitive assessment,
keep in mind that you need to evaluate only those competitors aiming for the
same target market. If you own a fine French restaurant in midtown Manhattan,
you dont have to include the McDonalds next door in your competitive
evaluation: Youre not aiming for the same customer at the same time. On the
other hand, if you are thinking of opening the first sports memorabilia shop in
Alaska, you have to look far afield, at any such retail stores in Seattle or
Vancouver, mail-order dealers from all over the country, and online dealers
from around the world, as that is where your potential customers shop now.

ASSESS THE COMPETITION

When preparing the competitive analysis
portion of your business plan, focus on identifying:

.0/msohtmlclip1/01/clip_image004.jpg””>

Competitive Position
It is tempting to want to judge your
competition solely on the basis of whether your product or service is better
than theirs. If you have invented a clearly superior widget, it is comforting
to imagine that widget customers will naturally buy your product instead of the
competitors and the money will roll in.
Unfortunately, many other factors will
determine your success in comparison to other manufacturers of widgets. Perhaps
their brand name is already well-known. Perhaps their widgets are much cheaper.
Perhaps their distribution system makes it easier for them to get placement in
stores. Or maybe customers just like the color of your competitors packages
better.
The objective features of your product or
service may be a relatively small part of the competitive picture. In fact, all
the components of customer preference, including price, service, and location,
make up only half of the competitive analysis.
The other half of the equation consists of
examining the internal strength of your competitors companies. In the long
run, companies with significant financial resources, highly motivated or
creative personnel, and other operational assets will prove to be tough, enduring
competition.
You cant be 5% or 10% better than the
competition. You have to be 10 times better. Theres a huge lethargy factor
you dont get people to change their bank account, or whatever youre trying to
get them to change, if youre 10% better; youve got to be 10 times better.

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131
Market Share Distribution
List below the current market leaders and
the approximate percentage of the market each one commands.

.0/msohtmlclip1/01/clip_image006.jpg””>
These elements leave a lot out of the
marketing picture, however, especially as customers have become more
discriminating over the years and look for products or services not just to
fill an immediate need but to enhance their overall sense of well-being.

Most marketing strategists agree that people buy benefits, not
features. In other words, customers are more concerned about how a purchase
will affect their lives than about how the company achieves those results. So
your marketing message must tell customers what they get, such as security or
an enhanced self-image, rather than merely the detailed specifics of what your
product or service does.

Pg 160
What Customers Want: The Five Fs

The Five Fs, described below, are a convenient way to sum up what
customers want.

1. Functions. How does the
product or service meet their concrete needs?

2. Finances. How will the
purchase affect their overall financial situation not just the price of the
product or service, but other savings and increased productivity?

3. Freedom. How convenient
is it to purchase and use the product or service? How will they gain more time
and less worry in other aspects of their lives?

4. Feelings. How does the
product or service make customers feel about themselves, and how does it affect
and relate to their self-image? Do they like and respect the salesperson and
the company?

5. Future. How will they
deal with the product or service and company over time? Will support and
service be available? How will the product or service affect their lives in the
coming years, and will they have an increased sense of security about the
future?

Customers, of course, want to receive benefits in all these areas,
and you should be aware of how your product or service fulfills the entire
range of their needs. However, your primary message must concentrate on one or
two of these benefits that most effectively motivate your customers and that
stake out a competitive position for your company.
You communicate these benefits through every interaction you have
with your customers, not simply through your advertising. Naturally, your
company slogan and any words you use in advertisements deliver an overt
statement to the potential customer. Perhaps the name of the business itself is
a direct message, for example, Toys R Us or Cheap Tickets.
Success key terms
Ecommerce
Conducting sales and transactions on the Internet.
Search Engine Marketing (SEM)
The practice of purchasing ads to increase your websites ranking
and visibility on relevant search engine results pages often called paid
search.
Search Engine Optimization (SEO)
Optimizing your website by planning content and design that leads to
high rankings on search engine results pages when a user searches for relevant
keywords.
Social Media
Content created by individuals and disseminated online through
networking sites such as blogs, YouTube, and Facebook. Used for awareness,
marketing, and customer communication and retention.

Pg 171
Whats your go to market plan to let potential customers know you
exist? If people dont know you exist, youre not going to scale. How will you
let people know you have a solution to their problem?

.0/msohtmlclip1/01/clip_image008.jpg””>Pg
107Domestic Geographic Description.0/msohtmlclip1/01/clip_image002.jpg””>Pg
123As you begin your competitive assessment,
keep in mind that you need to evaluate only those competitors aiming for the
same target market. If you own a fine French restaurant in midtown Manhattan,
you dont have to include the McDonalds next door in your competitive
evaluation: Youre not aiming for the same customer at the same time. On the
other hand, if you are thinking of opening the first sports memorabilia shop in
Alaska, you have to look far afield, at any such retail stores in Seattle or
Vancouver, mail-order dealers from all over the country, and online dealers
from around the world, as that is where your potential customers shop now.ASSESS THE COMPETITIONWhen preparing the competitive analysis
portion of your business plan, focus on identifying:.0/msohtmlclip1/01/clip_image004.jpg””>Competitive PositionIt is tempting to want to judge your
competition solely on the basis of whether your product or service is better
than theirs. If you have invented a clearly superior widget, it is comforting
to imagine that widget customers will naturally buy your product instead of the
competitors and the money will roll in.Unfortunately, many other factors will
determine your success in comparison to other manufacturers of widgets. Perhaps
their brand name is already well-known. Perhaps their widgets are much cheaper.
Perhaps their distribution system makes it easier for them to get placement in
stores. Or maybe customers just like the color of your competitors packages
better.The objective features of your product or
service may be a relatively small part of the competitive picture. In fact, all
the components of customer preference, including price, service, and location,
make up only half of the competitive analysis.The other half of the equation consists of
examining the internal strength of your competitors companies. In the long
run, companies with significant financial resources, highly motivated or
creative personnel, and other operational assets will prove to be tough, enduring
competition.You cant be 5% or 10% better than the
competition. You have to be 10 times better. Theres a huge lethargy factor
you dont get people to change their bank account, or whatever youre trying to
get them to change, if youre 10% better; youve got to be 10 times better.Pg
131Market Share DistributionList below the current market leaders and
the approximate percentage of the market each one commands..0/msohtmlclip1/01/clip_image006.jpg””> These elements leave a lot out of the
marketing picture, however, especially as customers have become more
discriminating over the years and look for products or services not just to
fill an immediate need but to enhance their overall sense of well-being.Most marketing strategists agree that people buy benefits, not
features. In other words, customers are more concerned about how a purchase
will affect their lives than about how the company achieves those results. So
your marketing message must tell customers what they get, such as security or
an enhanced self-image, rather than merely the detailed specifics of what your
product or service does.Pg 160What Customers Want: The Five FsThe Five Fs, described below, are a convenient way to sum up what
customers want.1. Functions. How does the
product or service meet their concrete needs?2. Finances. How will the
purchase affect their overall financial situation not just the price of the
product or service, but other savings and increased productivity?3. Freedom. How convenient
is it to purchase and use the product or service? How will they gain more time
and less worry in other aspects of their lives?4. Feelings. How does the
product or service make customers feel about themselves, and how does it affect
and relate to their self-image? Do they like and respect the salesperson and
the company?5. Future. How will they
deal with the product or service and company over time? Will support and
service be available? How will the product or service affect their lives in the
coming years, and will they have an increased sense of security about the
future?Customers, of course, want to receive benefits in all these areas,
and you should be aware of how your product or service fulfills the entire
range of their needs. However, your primary message must concentrate on one or
two of these benefits that most effectively motivate your customers and that
stake out a competitive position for your company.You communicate these benefits through every interaction you have
with your customers, not simply through your advertising. Naturally, your
company slogan and any words you use in advertisements deliver an overt
statement to the potential customer. Perhaps the name of the business itself is
a direct message, for example, Toys R Us or Cheap Tickets.Success key termsEcommerceConducting sales and transactions on the Internet.Search Engine Marketing (SEM)The practice of purchasing ads to increase your websites ranking
and visibility on relevant search engine results pages often called paid
search.Search Engine Optimization (SEO)Optimizing your website by planning content and design that leads to
high rankings on search engine results pages when a user searches for relevant
keywords.Social MediaContent created by individuals and disseminated online through
networking sites such as blogs, YouTube, and Facebook. Used for awareness,
marketing, and customer communication and retention.Pg 171Whats your go to market plan to let potential customers know you
exist? If people dont know you exist, youre not going to scale. How will you
let people know you have a solution to their problem?.0/msohtmlclip1/01/clip_image008.jpg””>”