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Significant advantages that distinguish the product. Competitive advantages of the company

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From this article you will learn:

What is a company's competitive advantage
What are the types and sources of competitive advantages of the company
What are the natural and artificial competitive advantages of the company
How to correctly describe the competitive advantages of the company
How to assess the competitive advantages of a company
How to avoid mistakes in the formation of competitive advantages of the company

The company's market opportunity management system "produces" such a "product" as competitive advantages. No enterprise can exist if there is no demand for its products (services), just as in the absence of competitive advantages there can be no question of market opportunities. The merit of the competitive advantages of the company is its recognition in the market and protection from the effects of competitive forces. If there are no competitive advantages, then the company simply cannot be competitive.

What are the company's competitive advantages

Under the competitive advantages of the company are understood such characteristics and qualities of the brand or product, due to which the organization objectively outperforms its competitors. The economic sphere does not develop in the absence of competitive advantages. They are an integral part of the corporate style of the company. In addition, they protect it from competitor attacks.

A company's sustainable competitive advantage is the preparation of an enterprise development plan that will ensure profit and the most promising opportunities. A mandatory requirement for this plan is that it should not be used by either real or supposed competing firms. Nor should they be allowed to adopt the results of its implementation.

The development of a company's competitive advantages is based on its goals and objectives, the achievement of which depends on the organization's position in the market for goods and services, as well as on how successful their implementation is. To create a basis that allows you to effectively develop the factors of the company's competitive advantages, as well as the formation of a strong relationship between this process and the conditions that exist on the market, it is necessary to rebuild the functioning system.

What are the types of competitive advantages of a company? There are two of them:

What are the main sources of the company's competitive advantage

Competitive advantages of the company have a fairly well-established structure. Michael Porter identified 3 main sources for developing a company's competitive advantages: differentiation, cost, and focus. Let's talk about them in more detail:

Differentiation

Starting to implement this strategy of competitive advantages of the company, you need to remember that it is based on the effective provision of services to consumers, as well as the presentation of the goods / services of the company in the best light.

Costs

The implementation of this strategy is based on such competitive advantages of the company: minimal costs for personnel and scale, automation of all processes, the ability to use limited resources, work on technologies aimed at reducing production costs and having a patent.

Focus

This strategy is based on the same sources as described above, but the target audience covered by the accepted competitive advantage is quite small. Consumers outside the firm may be dissatisfied with this competitive advantage of the firm, or it does not have any effect on them.

All companies have competitive advantages related to the group of natural (basic) ones. However, not all of them are covered. This is not done by organizations that believe that their competitive advantages are obvious or disguised under generally accepted clichés.

The main competitive advantages of the company include the following:

Competitive advantages of the company on the example of various business areas

What are the competitive advantages of construction companies:

Presence of own design division.
The staff is staffed only by highly qualified specialists.
Availability of facilities that have already been put into operation.
A paragraph with a detailed calculation proving the lower price level of company N.
Availability of a fleet of own construction and auxiliary equipment.
All types of insurance issued for each worker, providing all personnel with a full social package, the availability of special permits.
Provision by the company of seasonal discounts (prices are lower in winter).
Engineering control of each object.
Fixed cost of construction, negotiated before the start of work. Guarantees to preserve it even if the ruble exchange rate weakens.
Warranty for delivered items. Not blind following fashion trends and the use of very expensive materials, and the conscious choice of the best and most affordable, already proven.
High speed of calculation of the cost of work (for example, half an hour). Perhaps there is an online calculator on the site.
Full cycle of works. When the work is carried out by one company, customers are less worried about the process.

Transport companies can have the following competitive advantages:

Refund of N% of the order value in case of delay by N minutes/hours.
Free forwarding when ordering from … .
No intermediaries: you entrusted us with the cargo, we will deliver it ourselves.
Equipment Vehicle navigators and satellite radios, making it possible to track the location of the cargo at any time of the day.
Guaranteed cleanliness of vehicles, absence of unpleasant odors that can be absorbed by the cargo.
Free packing.
A good fleet of foreign-made equipment, a small percentage (0.004) of breakdowns from the number of all trips.
Lower price per kilometer than competitors, possible due to bulk purchases of fuel.
An impressive amount of cargo transported during the existence of the company (“Drivers transported N cargo in N years”, or “Driven N million (thousand) kilometers”).
Even if you do not have any idea about the organization of cargo transportation, we will not cash in on you. Our conditions are favorable and the same for everyone.

Competitive advantages of organizations operating in the field of trade:

We carefully control the quality of purchased goods, refusing to purchase second-rate products.

We provide a guarantee for the product, service it after the sale.
Products are purchased in bulk, so we can sell them at low prices.
We are constantly analyzing the market to find the best products.
We listen to our customers, try to understand them and satisfy their needs.
Our marketing activities are not characterized by aggression: we do not impose our products.
Our outlet is conveniently located, it is easy to drive to it, we have equipped ramps, etc.
Promotions are regularly held, within which goods can be purchased much cheaper.
We advise the best, and do not impose the overwhelming and expensive.
Situations when products do not suit you are normal. In such cases, we guarantee a refund of the full cost of the goods without lengthy proceedings.

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Manufacturers have their own competitive advantages. Let's list them:

The technologies used are constantly being improved, the goods produced are of high quality.
Work on a preferential taxation system (low tariffs for electricity, cheap raw materials), which allows setting low prices for products.
A team of highly qualified engineering specialists.
The ability to increase production volumes without compromising the quality of goods.
No regional markups.
Higher quality products compared to last year.
Serious clients (list).
Absence of non-target costs, restructuring of production, due to which it is possible to reduce prices for products for end consumers.
Direct sales (lack of intermediaries).
The presence of old-school employees who can pass on their rich experience to young professionals.

Competitive advantages of international companies on the example of Toyota

High quality products. The main competitive advantage of the company is a top-level car. In Russia in 2015, about 120,000 Toyota cars were purchased. The decisive role of this competitive advantage of the company was voiced by its ex-president Fujio Cho. By purchasing a car from this company, a person can be sure that it was produced using a whole range of modern technological developments.
Wide model range. In Toyota showrooms, you can purchase any model of a car of this brand: Toyota Corolla (the main advantage is compactness), Toyota Avensis (appreciated for its versatility and comfort), Toyota Prius (new model), Toyota Camry (a whole series of cars is presented), Toyota Verso (family format), Toyota RAV4 (small SUVs), Toyota Land Cruiser 200 and Land Cruiser Prado (popular modern SUVs), Toyota Highlander (all-wheel drive crossovers), Toyota Hiace (distinguished by convenience and compactness). This is also an important competitive advantage: from the models presented, you can choose a car for people with different preferences and financial capabilities.
Effective marketing. An excellent competitive advantage of the company is the certification of cars with inspections from Toyota Tested. Those who have purchased a car of this brand in Russia are provided with assistance around the clock, that is, services are constantly working technical support. There is a Trade-In car purchase program that allows you to simplify the process of purchasing a car through advantageous offers from the company.
The client comes first. This competitive advantage is also very significant. The company secured it for itself by developing the Personal & Premium program in 2010. It was presented at the international automobile show in Moscow. The program includes advantageous offers for purchasing a car on credit. Employees of the organization New Car Buy Survey found that the loyalty of our compatriots is the highest to Toyota.
Effective company management. What is the firm's competitive advantage? She has developed an ERP program that allows to control all sales activities of Toyota cars in Russia online with high efficiency. The year of development of this program is 2003. This is a unique competitive advantage of the company, since this program is combined with the market situation, with various features of doing business in Russia, with its current legislation. Toyota has another competitive advantage - the presence of a holistic corporate structure created to help the company and its partners quickly operate information about the availability of certain car models in showrooms, warehouses, etc. In addition, Microsoft Dynamics AX stores all documents for performed with auto operations.

What competitive advantages of the company are called "artificial"

Artificial competitive advantages can be used by a company in the absence of special offers in order to tell about itself.

In what cases is it necessary:

The set-up of companies competing with the firm is similar (that is, they have the same competitive advantages).
The company cannot be classified as either small or big business(that is, its assortment portfolio is not very large, there is no narrow focus, and the cost of goods is standard).
The company is just starting to develop, has not yet developed a customer base, is not very popular among consumers and does not have any special competitive advantages. Basically, this happens when people no longer want to work for someone, they quit and open their own business.

In this case, the development of artificial competitive advantages of the company is required, such as:

Added value. For example, an organization sells computers, but cannot compete on pricing. Then there is the possibility of using such a competitive advantage of the company: installing an operating system and standard software on computers will allow selling equipment at a slightly higher price. This is the added value, which also includes various promotions and bonus programs.

Personal adjustment. It makes sense for a company to have such a competitive advantage if competitors are hiding behind standard clichés. Personal alignment consists of showing the face of the organization and applying the WHY formula. This competitive advantage works effectively in any field of activity.

Responsibility. Differs in efficiency. Excellent is the combination of responsibility with personal alignment. Consumers will be more willing to purchase goods/services knowing that the manufacturer vouches for their quality and safety.

Warranty. There are two types of guarantees: for circumstances (for example, a guarantee of liability - the provision of goods for free if the cashier does not issue a check) and for a product / service (for example, the possibility of returning or exchanging goods within a certain time after purchase).

Reviews. If they are from real customers. Potential consumers care about the status of people who leave reviews about your company. The advantage works great if the responses are submitted on a special form that has a certified signature of the person.

Demonstration. One of the main competitive advantages of the company. If she does not have any or they are not obvious, then you can create a presentation of your product with illustrations. Service organizations are encouraged to make presentations in video format. The main thing is to correctly focus on the properties of the product.

Cases. The absence of cases is not ruled out, especially for new companies. In this case, the development of artificial cases is possible. Their essence is to provide services to themselves, potential customers or existing ones on the basis of mutual offset. So you will receive a case that demonstrates the level of professionalism of your company.

Unique selling proposition. We have already talked about it above. The meaning of this competitive advantage is that the company operates with some detail or provides information that separates it from competitors. The company "Practicum Group", which conducts various trainings, has unique sales offers. This competitive advantage is efficient.

How to find and correctly describe the main competitive advantages of the company

All businesses have their own advantages. Even if they do not stand out in any way - neither in assortment, nor in prices. Even if you think that your company is completely mediocre, you must definitely understand its advantages. The easiest way to do this is by interviewing your customers. Moreover, their answers may be unexpected and surprising for you.

Someone will explain cooperation with you by the proximity of the location (geographically). Someone trusts you, someone just likes your company. Collecting and analyzing this information in detail will help you increase your income.

But the search for your benefits does not end there. Write on a piece of paper what your firm has strengths and weak sides. At the same time, try to be objective. That is, indicate what you have and what you do not yet have. Do not write abstractly, but make your thoughts concrete.

Here are some examples:

Abstraction	specifics
You can rely on us	We guarantee reliability and safety: the amount of cargo insurance is 10 million rubles.
We have a high level of professionalism	Over 10 years of work, we have implemented 300 projects and gained experience, so we are capable of solving problems that others do not undertake.
Goods quality is high	The technical parameters of our products are 2 times higher than those established by the regulatory documentation.
Individual approach	We guarantee the absence of a brief. We communicate live, studying in detail the nuances of the business.
Top notch service	Our support works every day 24 hours a day. It takes no more than 15 minutes to resolve any issue.
Low prices	The products cost 10% less than the competition, because we produce the raw materials for them ourselves.

Mention, for example, on the site, you need not about all your competitive advantages. The task of this stage is to find the greatest number of strengths and weaknesses of the enterprise. This is an important starting point.

Then analyze your weaknesses and figure out how you can play them to your advantage. The formula for this is simple:

yes we have "flaw", but this "advantage".

Here are some examples:

Flaw	Turning into an advantage
Office far from the center	This is true, but the warehouse is located here. And there is an opportunity to immediately see the products. Even a truck can easily park with us.
Higher cost of goods than competitors	It is due to the rich equipment. When buying a PC, our specialists will install the operating system and basic software for you. In addition, you will receive a gift.
Long delivery times	Yes, but we supply not only standard parts, but also rare, custom-made.
The company is new to the market and has little experience	Yes, but we are mobile, we work quickly, we show flexibility. We do not have bureaucratic delays (disclose these nuances in detail).
poor assortment	It is, but we specialize in a brand. That is why we know him deeply. Accordingly, our consultations are more useful and better.

The idea is clear. So you can get competitive advantages of several types at once:

natural(the factual data you have that sets you apart from the competition).
artificial(amplifiers that also set you apart from competitors - guarantees, individual approach, etc.).
"Shifters" are your weaknesses turned into advantages. This is an addition to the first two points.

Now you need to rank the identified competitive advantages of the company in such a way that at the bottom of the list are the least significant for consumers, and then edit the list. It should be short, accessible and understandable.

Analysis of the company's competitive advantages and their assessment

Approximately 90% of businessmen do not analyze their competitors, and in fact on its basis it is possible to develop the competitive advantages of the company. There is only an exchange of new technologies, that is, enterprises borrow the ideas of competitors. It doesn’t matter whose innovative idea it was, it will still be used by others.

Thus, the light saw the following clichés:

Highly qualified specialist.
Personal approach.
The highest quality.
Competitive cost.
First class service.

There are others, and none of them can actually be called a competitive advantage of the company, since not a single organization will say that it produces a low-quality product, and its staff is staffed with inexperienced specialists.

However, there is another way of looking at it. If enterprises have few competitive advantages, then it will be easier for newcomers to develop and attract potential customers. This gives the audience a wider choice.

Therefore, in order to provide consumers with favorable conditions for the purchase and positive emotions it needs a competent study of competitive advantages in the company's strategy. First of all, the client should be satisfied not with the product, but with the company.

How successful a company's competitive advantages are can be understood by fully evaluating the pros and cons of the company's position in the competition and comparing the results of the assessment with competitors' data. For analysis, you can use the method of exponential assessment of KFU.

With a smart approach to developing a plan of action, it is possible to turn the weaknesses of competitors into your competitive advantages.

What should be analyzed:

Is the enterprise stable in protecting its position when the market situation changes in the sphere of its activities, in conditions of fierce competition, in the presence of strong competitive advantages for other firms?
Does the firm have effective competitive advantages? Or are they not enough? Or not at all?
Is it possible to achieve success in the competition if you follow the existing action plan (what is the position of the company in the competitive system)?
How stable is the company at present?

You can analyze the activities of competitors using the method of weighted or unweighted estimates. In the first case, you need to multiply the company's scores for a specific indicator of competitive opportunities (from 1 to 10) by their weight. In the second case, the same significance of all efficiency factors is assumed. The implementation of the competitive advantages of the enterprise is most effective if it has the highest ratings.

The task of specialists at the last stage is to identify strategic mistakes that negatively affect the formation of the company's competitive advantages. For the program to be effective, it is necessary to describe in it ways to resolve any difficult situation.

That is, at this stage, it is necessary to create a single list of problems that need to be urgently solved in order to form the competitive advantages of the company and its strategy. This list is developed on the basis of the results of an assessment of the organization's activities, the market situation and the position of competitors.

To identify the existing problems, you need to answer the following questions:

In what situations will the current program not protect the company from problems - both internal and external?

What level of protection against actions currently taken by competitors does the adopted strategy provide?

Does the current program support competitive advantages, are they combined with it?

How can you lose your company's competitive advantage?

Any competitive advantage has a limited resource, so the company's position in the market depends on how many competitive advantages it has, how significant they are (available to competitors) and how long life cycle competitive advantage. The more unique and hard-to-replicate benefits, and the longer their life cycle, the stronger the strategic position of the company.

Environmental factors may change, which affects the competitive advantages of the company and may lead to their reduction or even disappearance.

Reasons for losing competitive advantage:

Deterioration of factor conditions (increase in costs, decrease in the level of education and qualifications of personnel, etc.).
Decrease in investment attractiveness and innovative potential (it is inevitable if organizational changes are postponed, fearing a reduction in income and not wanting to invest in the future).
Decreased ability to adapt (bureaucratization, work on obsolete equipment, too long development of new products).
The weakening of competition (due to the strengthening of the positions of monopolists, the introduction of high duties on imported products by the state).
The low level of income of the majority of the population, as a result of which people's requirements for the quality and assortment of goods are reduced.

If you correctly use the company's trademark (brand), you can increase profits and sales, expand the range, inform consumers about the exclusive characteristics of products, stay in this field of activity, introduce effective methods development. Therefore, the brand is a competitive advantage of the company.

If the manager does not realize this, then he will not be able to bring his company to the leaders. But a trademark is a very expensive competitive advantage. To implement it, you need to have special management skills and experience with the brand, to know how to position the company.

A trademark is developed in several stages:

Stage 1. Goal setting:

goals and objectives of the company are formulated (this stage takes place when all competitive advantages are formed);
establishes how significant the brand is within the firm;
the position of the brand is established (parameters, long-term, competitive advantages of the company);
measurable brand criteria (KPIs) are defined.

Stage 2. Development planning:

the available resources are evaluated (a single stage for the process of forming any competitive advantage);
customers and performers are approved;
terms of development are determined;
additional goals or obstacles are identified.

Stage 3. Assessment of the current position of the brand (for existing brands):

how popular it is among consumers;
Are potential buyers aware of it?
whether potential customers are attracted to the brand;
What is the level of brand loyalty?

Stage 4. Assessment of the state of affairs in the market:

competitors are evaluated (the first stage in the formation of any competitive advantage of the company);
potential customers are evaluated (based on the study of their preferences and needs);
the sales market is estimated (supply, demand, development).

Stage 5. The wording of the essence of the brand:

the purpose, position and benefits of the brand for potential customers are determined;
exclusivity of the brand is revealed (competitive advantages, value, features);
brand attributes (components, appearance, main idea) are being developed.

Stage 6. Brand Management Planning:

marketing elements are developed, the brand management process is explained (fixed in the brand book);
responsible for brand promotion are appointed.

Stage 7. Introduction and brand awareness (this stage determines whether the company's competitive advantage in terms of brand promotion will be successful):

a media plan is drawn up;
Producing and distributing promotional materials;
multifunctional loyalty programs are being developed.

Stage 8. Analysis of the effectiveness of the brand and the work done:

the quantitative parameters of the brand (KPI) established at the first stage are evaluated;
actual results are compared with the planned ones;
strategy is adjusted.

6 Common Mistakes in Building a Competitive Advantage for Companies

Lack of specificity.

Use of marketing clichés and hackneyed phrases, compliance with generally accepted rules, lack of specific focus on certain products.

Do not use such hackneyed wording:

“Our content is unique.”

“We are the best.”

“We have the highest quality goods.”

- "Only here huge selection goods".

Offering SUCH competitive advantages to your audience means showing disrespect to it. Don't expect your competitors to present their advantages in a different way, call their product ordinary, recognize the average level of its quality and declare that the assortment is not large enough.

Anonymity.

An anonymous statement implies the impossibility of identifying its author and understanding on what grounds it was made. For example: "We sell the best quality products in town." Whose claim is this and where is the evidence for it?

Unsubstantiated.

Remember that your unsubstantiated and lack of concrete facts are a reason for buyers not to trust you. In this case, it is possible to avoid losing a client only if he is loyal to the product, brand, manufacturer, store, etc.

Unable to verify.

That is, the statements of the consultant / sales manager cannot be verified at the moment, or they cannot be verified in principle. For example: "Our company is the only one ...".

Lack of comparison.

Use as evidence of specific facts, values of indicators, but without comparison. And an advantage is something better than anything. For example: "The raw materials for our products are environmentally friendly materials."

Addresslessness.

Every competitive advantage has both pros and cons. It depends on which side you look at it from. It will not be effective if it is not clearly defined for whom it is intended. For example: “Our speakers stylish design. We recommend paying attention to them. This series is more refined than its counterpart, produced by X. Although the product is compared with other analogues, however, there is no targeting.

Unique Product Advantages (UDTs) are the features and benefits of your product that distinguish it from competitors' products. The point of creating and identifying a CBT is to make your product more attractive to your target consumer than your competitors' product. This is why it is important to ensure that consumers are effectively informed about UDT and spare no effort to do so.

Product life cycle

The most important concept that considers the dynamics of the competitive stay of the product on the market. This is the period of time from the beginning of the creation of a product until the end of its demand on the market and the cessation of production. A product, like an animated being, is born, develops, becomes obsolete and “dies”, i.e., gives way to another product with higher consumer properties and other advantages. There are several stages in the product life cycle:

§ Development, during which the company finds and implements new idea. During this time, sales are zero, and costs rise as you get closer to the final stages of the process.

§ Introduction of goods on the market. It is still a novelty and has to compete with many analogue products. Here the buyer is inert and must be persuaded to "test" the product. At this stage, the main problem is the "education" of the consumer through targeted advertising and the maximum use of incentive pricing. Accompanied by a slow growth in sales volume. No profit due to high costs for marketing activities.

§ If the introduction was successful, the product enters the next stage of the life cycle - the growth stage. The demand for it is increasing, the market capacity is growing rapidly, the popularity of the product is increasing. At this stage, a different set of problems and priorities emerge. All engineering and design work is usually phased out and the focus is on sales organization. Schedules of production and deliveries, programs of promotional events and other components of marketing tactics are promptly adjusted. The period of rapid market conquest and increase in profits.

§ The stage of maturity is characterized by the saturation of the market, the stabilization of the volume of sales of goods. Here, the most important task is to retain the "won" customers through pricing policy and strengthening advertising. The level of profit remains unchanged or decreases due to an increase in the cost of marketing activities to protect the product from competition.

§ Decline is characterized by a decline in production and sales of a product, despite the vigorous efforts of the manufacturer or seller. The product completes its life cycle. It begins its gradual displacement from the market by the next generation of new and promising products. The product is removed from production and sale. Reducing profits.

The duration of the life cycle for different products is different - from several months to several years (Figure 3).

Figure 3 - The life cycle of a product (service)

BCG matrix

To analyze the relevance of the company's products, based on their position in the market relative to the growth of the market for these products and the market share occupied by the company selected for analysis, the BCG matrix was chosen.

"Stars": High sales growth and high market share. Market share must be maintained and increased. "Stars" bring a very large profit. But, despite the attractiveness of this product, its pure cash income is quite low, as it requires significant investment to ensure a high growth rate.

"Cash Cows" ("Money Bags"): High market share but low sales volume growth. "Cash cows" must be protected and controlled as much as possible. Their attractiveness is explained by the fact that they do not require additional investments and at the same time provide a good cash income. Sales proceeds can be used to develop the Wild Cats and support the Stars.

"Dogs" ("Lame Ducks"): The growth rate is low, the market share is low, the product, as a rule, has a low level of profitability and requires a lot of attention from the manager. Get rid of the "dogs".

"Difficult Children" ("Wild Cats", "Dark Horses", "Question Marks", "Dead Weight"): Low market share, but high growth rates. Difficult children need to be studied. In the future, they can become both stars and dogs. If there is a possibility of transfer to the stars, then you need to invest, otherwise, get rid of it (Figure 4).

Figure 4 - BCG matrix

Marketing mix

The idea of what marketing is will not be complete without remembering such a concept as “marketing mix” or 4P (four pi). This concept describes the main marketing tools that can be controlled by the organization:

Goods (product) - what is offered for sale. It is characterized by properties, quality, packaging, brand, service, etc. This includes both goods and services.

Price (price) - the amount of money received in exchange for a product / service for commercial use, or another equivalent for the provision of services within the organization. Also of great importance are the price structure, discounts and terms of payment that stimulate the consumer's desired response for the seller.

Place (place) - the system of supply and distribution of goods / services to consumers that you use, including transportation and storage, networks of wholesalers, shops and retailers.

Promotion (promotion) - this component includes advertising, sales promotion, personal selling and other activities aimed at making the consumer interested in buying a product.

Thus, the 4P concept includes the main set of tactics used by the firm to influence the buyer. It can also be noted that the “product” plays a key role in this complex.

Segmentation

Market segmentation is the classification of groups of potential consumers based on differences in their needs, tastes and / or behavior.

Segment - a group of existing or potential consumers who have the same response to the marketing incentives of a supplier of a product or service.

Segmentation goals:

The division of the market into clear groups of consumers and / or buyers, with the preparation of a detailed profile (description) of each of the selected groups.

The choice of target market segments on which to focus most of the marketing efforts.

Identification of new segments of potential consumers, through which it is possible to increase the company's sales.

The concentration of resources on those groups of consumers whose solvent demand the organization can satisfy.

Meeting these needs is better than the competition.

The most popular is segmentation based on demographic parameters. One reason is that demographic characteristics are easier to measure than most other types of variables. However, with the help of psychographic or behavioral parameters, it is possible to more accurately predict consumer behavior. In practice, the segmentation process is carried out by combining different categories to identify available consumer groups that have a relatively homogeneous set of characteristics in relation to their needs, goals and purchasing behavior.

Segmentation of domestic consumers

Domestic consumers can be segmented for the benefit of internal marketing. You can do this using the following criteria:

Official or functional responsibility

Accommodation (parts or floors of the organization building)

The type and level of information required.

Potential segment selection criteria

Before selecting a segment, an organization must ensure that it meets the following four characteristics:

Size: The segment must be large enough, either in terms of numbers or buying potential, to make trading economically viable. A segment consisting of several small customers will not be profitable for a company focused on large sales volumes (although, it should be noted, many small enterprises successfully target markets that are too small for large companies).

Measurability: You must be able to identify segment members and thus reasonably quantify their numbers and predict behavior as consumers. Otherwise, it may turn out that there is no identifiable segment of consumers in the market to which your goods are addressed.

Relevance: The basis for segment selection should be consistent with the essential characteristics of the goods or services offered. For example, the concept of social position, which is commonly used as a segmentation parameter in various industries, now does not seem to be as useful for this purpose. Income and lifestyle were more useful parameters.

Availability: This means that a segment, once defined, must be available to the organization to work with. This is not always easy to provide, as it may seem.

With the help of the above four criteria, the company determines the potential segments that are attractive to it.

Making a purchase decision

An enterprise that has a clear idea of how consumers react to various product characteristics, prices, advertising, has a huge advantage over competitors.

The buyer behavior model is a model of the reaction of buyers to the action of marketing incentives. Marketing incentives and other stimuli penetrate the mind of the buyer and cause certain responses.

Marketing incentives include four elements:

Distribution methods;

Methods of stimulation.

Other incentives to buy are made up of the main factors of the buyer's environment - the economic, scientific, technical, political and cultural environment. In the mind of the buyer, these stimuli evoke buying reactions: product choice, businesses, timing, and volume of purchase. The consciousness of each buyer has certain features. These features - the characteristics of the buyer, have a major impact on how a person perceives incentives to buy and how he reacts to them.

The task of the marketer is to understand what happens in the "black box" of the consumer's consciousness between the arrival of stimuli and the manifestation of responses to them. The "black box" itself consists of two parts. The first is the characteristics of the buyer, which have a major impact on how a person perceives stimuli and reacts to them. The second part is the process of making a purchasing decision, on which the result depends (Figure 5).

Buyer characteristics

Figure 5 - Characteristics of buyers

Cultural factors

The strongest influence on consumer behavior is exerted by cultural factors, especially its general level, belonging to a certain subculture and social class.

Culture.

Culture is a determining factor in the needs and behavior of a person who from childhood learns in the family and through other social institutions a certain set of values, stereotypes of perception and behavior. Each class or society has its own culture, and in different countries culture influences purchasing behavior in different ways. If this is not taken into account, then the marketing policy will not give the desired result and, possibly, will lead to annoying mistakes.

Subculture.

As already mentioned, each culture consists of smaller subcultures that give a person the opportunity to more fully identify and communicate closely with their own kind. Subcultures are formed on a national, religious, racial and regional basis, many of them form important market segments that manufacturers must consider when developing products and planning marketing programs. Belonging to a certain subculture affects behavior, determines preferences in food, clothing style, leisure and work.

social layers.

Almost every modern society is divided into various social strata. One of the most rigid divisions of this kind is castes, whose members are assigned certain roles, and the transition from caste to caste is not allowed. The division of society into social classes is much less rigid.

Social classes are built in a strict hierarchy, relatively homogeneous, stable social groups, united by common values, interests and behavior.

The categories of division of society into classes include not only income, but also work, education and place of residence. Representatives of different social classes differ in style of dress, speech, organization of recreation and many other characteristics.

To hallmarks a social class includes, firstly, the tendency of its representatives to more or less the same behavior; secondly, the presence of a certain social status; thirdly, education, occupation and income level. And finally, fourthly, the possibility of moving from class to class.

Members of social classes have certain common preferences in the choice of various products and brands, including clothing, home furniture, leisure activities and cars. Social classes are characterized by different media preferences: members of the upper class opt for books and magazines, while members of the lower class while away their evenings in front of the TV screen. Moreover, there is a difference in preferences even within the same type of media, such as television: the middle class prefers to watch the news and art films, and the lowest - "soap series" and shows. Social classes are also characterized by the presence of linguistic differences, which must be taken into account when creating advertising products.

Social factors

In addition to cultural factors, consumer behavior is influenced by such social factors as reference groups, family, roles and statuses.

Reference groups

Reference group - groups that have (with personal contact) a direct or indirect influence on a person's attitude and towards something (someone) and his behavior. Groups that have a direct influence on a person are called membership groups.

Membership groups can be primary (family, friends, neighbors, work colleagues, all those communities whose members interact on a permanent and informal basis) and secondary groups (professional groups, religious and trade union associations, permanent, rather, on a formal basis, communication with members of which is periodic).

Reference groups influence an individual in at least three ways: they can push a person to change their behavior and lifestyle; influence the attitude of the individual to life and his idea of himself; may influence an individual's choice of particular products and brands.

A person is also influenced by groups external to him, of which he is not a member. Groups to which an individual would like to belong are called desirable groups.

An undesirable group is an association whose values and behavior are rejected by the individual. Reference groups have the strongest influence on the choice of brands of cars and color televisions, fashion sets of furniture and clothes, when buying beer and cigarettes.

Opinion bearers are individuals who, in an informal conversation, give advice or information on specific products or product categories: which brand is better to choose or how to use a particular product. The review of the opinion holder about the product becomes more significant if it is respected by the potential buyer.

The family is the most important social association of consumers-buyers. Family members constitute the most influential primary, reference group.

There are two types of families.

The guiding family consists of the individual's parents and relatives. In it he receives religious instructions, here his life goals, feelings of self-worth and love are determined, his position on political and economic problems is formed in it.

Spawned family - spouse and children. In different countries and social classes, the roles of family members vary considerably. It is necessary to determine which of the family members has the greatest influence on the rest when choosing a product. Usually this is one of the spouses, who has great authority in the family or is well versed in the subject of purchase. Here are examples of the traditional division of influence of spouses when buying a particular product:

The opinion of the husband prevails: life insurance, cars, TV and video equipment.

The opinion of the wife prevails: washing machines, carpets, furniture and kitchen utensils.

Subject of mutual agreement: taking a vacation, buying a home, entertainment outside the home.

Roles and statuses.

A person throughout his life belongs to several groups - family, friends, various organizations. His position in each group is determined by his role and status.

A role is a set of actions that are expected of a person by those around him.

Each executable role corresponds to a certain status. The status of a judge of the Supreme Court is undoubtedly higher than that of a sales manager, and, in turn, the status of a manager is higher than that of a simple clerk. Usually people buy goods that should confirm and strengthen their social status.

Personal factors

The decision of the buyer is influenced by his personal characteristics: the age and stage of the life cycle of his family, work, economic status, lifestyle, character traits and self-esteem.

Age and stages of the family life cycle.

Throughout life, a person acquires a variety of goods and services. The child needs baby food. An adult tends to try a wide variety of foods, and in old age he switches to diet food. Over time, human tastes change in relation to clothing, furniture, recreation. The consumption structure of an individual also depends on what stage of the life cycle his family is at. Usually, 9 stages of the family life cycle are distinguished, each of which is characterized by a certain financial situation and typical purchases. It should be noted that not always the inhabitants of one house form a single family. Recent studies have established the existence of psychological stages in the family life cycle. During the mature period of life, a person experiences certain psychological "transitions", or "transformations".

Occupation.

The buyer's occupation has a great influence on the purchase of goods by the buyer. Marketers seek to identify professional groups interested in acquiring specific goods and services, and the company seeks to produce products for them. Occupation has an important influence on the choice of goods and services. Workers buy more work clothes, and employees buy more suits and ties. Based on this, companies can even specialize in the production of goods for a certain professional group. For example, firms that develop software for computers create different programs for managers, accountants, engineers, lawyers, doctors.

Economic situation.

The economic situation greatly influences the choice of goods by the consumer. The economic situation of an individual is determined by the level and stability of the expenditure side of his budget, the size of his savings and assets, debts, creditworthiness and attitude to the accumulation of money.

Producers of goods whose sale depends on the level of income of buyers constantly monitor trends in personal incomes of the population, savings rates and interest rates. If macroeconomic indicators indicate a reduction in household income, the manufacturer can take steps to change the characteristics of the product, its price, positioning, so that the product is still of value to the consumer.

Lifestyle.

People belonging to the same subculture, the same social class and having the same gender, occupation, can lead completely different lifestyles.

A way of life is a form of a person's being in the world, expressed in his activities, interests and opinions. The way of life reflects the "whole person" in his interaction with others.

Marketers seek to find a connection between the company's products and the groups united by their lifestyle. Different methods are used to classify different lifestyles. However, these schemes are by no means universal. For example, the London company McCann-Erickson London believes that the British are divided into avant-gardists (interested in change), dogmatists (traditionalists, "very English"), chameleons (follow the crowd) and somnambulists (happy losers). In 1992, the advertising agencies D'Arcy, Masius, Benton & Bowles published a study, The Russian Consumer: A New Perspective and Marketing Approach, which describes 5 categories of Russian consumers: Merchants, Cossacks, Students, Corporate Executives, and Russians at Soul. Cossacks, for example, are characterized by ambition, independence and a desire to improve their social status, while Russians are characterized by passivity, fear of choice and hopes for an improvement in the economic situation. While Cossacks drive BMWs, smoke Dunhill cigarettes and drink Remi Martin cognac, Russian Souls drive Ladakhs, smoke Marlboros and prefer Smirnovskaya vodka.

The most widely used is the VALS (Values and Lifestyles) classification, developed at the SRI Institute. The VALS 2 classification divides people into groups depending on how they spend their time and money. All consumers are divided into nine classes based on two global indicators: self-orientation and income. Self-orientation groups include self-confident consumers, consumers dependent on public opinion and active consumers. Within each type of self-orientation, consumers are divided into groups depending on their financial situation - with a high level of income and with a minimum level of income. Buyers with the highest and lowest incomes are classified without regard to their self-orientation (active, fighters).

The research of the German company Sinus GmbH defines the main types of lifestyle of people in France, Germany, Italy and the UK, highlighting categories with different value orientations:

Main orientation: traditionalism - to preserve.

Main orientation: materialism – to have.

Changing values: hedonism - be content.

Changing values: post-materialism - to be.

Changing values: postmodernism - to have and be content.

The size and composition of these social strata are varied and depend on the country where the study was conducted. But despite this, there are common features.

By correctly applying the lifestyle classification, the marketer can understand changes in the consumer's value system and determine how they will affect buying behavior.

Personality type and self-image.

The type of personality affects the purchasing behavior of a person.

Personality type is a set of distinctive psychological characteristics of a person that determines his relatively constant and consistent reactions to environmental influences.

Personality type is usually defined on the basis of the following inherent traits of a person: self-confidence, influence on others, independence, respect, sociability, self-defense and adaptability. It can be a very useful variable in the analysis of consumer behavior, provided it is properly classified and justified by the relationship between certain types of personality and a person's choice of a particular product or brand.

For example, coffee producers have found that coffee drinkers are more sociable. That's why ads for Maxwell House coffee show people having a casual conversation over a cup of hot coffee.

A person's idea of himself (or self-perception) is also directly related to the type of personality. The essence of this concept lies in the fact that everything that a person owns reflects his individuality and at the same time influences it; in other words, "we are what we have." Therefore, in order to correctly interpret buying behavior, the marketer must understand the relationship between self-perception and human ownership. In reality, everything is not so simple. What happens if the real idea of herself (a woman's view of herself) does not coincide with her ideal idea of herself (how she would like to see herself) and with the idea of others about her (what, from her point of view, those around her think about her? ). Which self-perception will most influence the purchase of the product? Because it is impossible to answer these questions unequivocally, self-perception theory has had mixed success in predicting buying behavior.

Psychological factors.

Four main psychological factors also affect the purchasing choice of an individual: motivation, perception, assimilation, persuasion and attitude.

Motivation. At any given time, a person experiences a variety of needs. Some are the result of such states of internal physiological tension as hunger, thirst, discomfort, others are the result of such states of internal psychological tension as the need for recognition, spiritual intimacy. A need that has reached a sufficiently high level of intensity becomes a motive.

Perception. A motivated person is ready for action. The nature of his action depends on how he perceives the situation. Two different people, being equally motivated, in the same objective situation can act differently, because they perceive this situation differently. For example, one may perceive a talkative salesperson as arrogant, while another may see this salesperson as helpful.

Assimilation. A person acquires knowledge in the process of activity. Assimilation is certain changes that occur in the behavior of an individual under the influence of his experience. Human behavior is basically acquired. Assimilation is considered the result of the interaction of motives, strong and weak stimuli of responses and reinforcement.

The competitive advantages of a product are its consumer or technical and economic parameters that affect its position in the market.

There are several types of competitive advantages of the product:

1. Price characteristics of the goods. Very often, the buyer purchases a product only because it is cheaper than other products with similar consumer properties. Sometimes a product is bought just because it is very cheap. Such purchases can occur even if the product has no utility for the buyer.

2. Product differentiation - the product has distinctive features that make it attractive to the buyer. Differentiation is entirely related to the consumer (utility) qualities of the product (reliability, ease of use, good functional characteristics, etc.), and can also be achieved through recognition of a well-known brand.

3. Monopolization - the competitive advantage of the product, which consists in its position in the market. This is achieved by securing the buyer, by monopolizing part of the market.

An organization's competitive advantage is the long-term benefit of pursuing some unique value-creating strategy based on a unique combination of in-house resources that cannot be copied by competitors.

There are two types of competitive advantages of the organization: a) low costs and b) specialization.

Under the lower costs refers to less than competitors, the amount of production costs, as well as the ability of the company to develop, produce and sell goods more efficiently than competitors. Specialization is a focus on the release of only a certain range of goods, investing in their improvement, the ability to meet the special needs of customers and receive a premium price for this, i.e. the price is on average higher than that of competitors.

The competitiveness of a product is a complex of its consumer and cost (price) characteristics that determine the success of a product in the market, i.e. the advantage of this particular product over other offered competing products-analogues.

The competitiveness of a product is a decisive factor in its commercial success. Competitiveness is a complex concept, it includes the conformity of the product to market conditions; conformity of the product to the specific requirements and needs of consumers (in terms of quality, technical, aesthetic, economic parameters), advantage over competitors in terms of price and quality of the product.

The competitive advantages of the product include:

1. Functionality - the purpose of the goods. The presence of not one, but several functions performed - polyfunctionality - is an advantage over other analogue products.

2. Unification - compatibility with spare parts, consumables, software of other models.

3. Standardization - the availability of standard components and parts, which simplifies their replacement and repair.

4. Reliability is a complex indicator that includes 3 parameters:

a) reliability (mean time in hours to first failure)

b) durability (service life)

c) maintainability - the ability to eliminate malfunctions (however, many cheap goods are designed as non-repairable).

5. Energy performance (fuel or energy efficiency). In addition to the cost of acquisition, the buyer can evaluate the cost of consumption - this is the sum of operating costs for the entire life of the product. Therefore, ceteris paribus, the buyer will choose a more economical product.

6. Aesthetic indicators.

7. Transportability.

8. Packaging (its convenience and design).

9. Warranty service (warranty period, list of warranty works, proximity of the service point).

10. Availability of related products ( Supplies, batteries, etc.).

11. The presence of substitute products reduces the competitiveness of the product, because there may be price competition between goods of different groups, but which are substitutes.

12. The availability of complementary products increases competitiveness, as this stimulates the demand for the main commodity (for example, coffee and cream, beer and roach).

The qualities of your product, the benefits of its design and the features of the packaging in which it will be sold. All this is of particular importance for a product intended for sale on the world market, and now on our internal one.

In cases of identical prices for certain types of goods, the advantages are given to producers whose production costs of goods are lower than socially necessary. On the contrary, producers whose production costs are higher than socially necessary ones experience losses to the extent that they are forced to reduce or stop the production of such goods. This shows the activity of the impact of money, through the use of which the reduction of costs for the manufacture of goods is stimulated.

The inventory is based on a continuous count of all goods. The advantage of this method is the accuracy of the results obtained, however, the information obtained through the inventory is very limited for its use in a statistical study, since this method is most often used for audit purposes. It is also very time-consuming and economically unprofitable, since during the inventory period it is necessary to completely close the audited enterprise.

Packaging finds additional use after the product is purchased by the consumer. It is used to store the goods in the process of its use. In addition, packaging can be used as a tool for using the product, which is often a very important factor influencing the buyer when choosing a product. For example, if the package contains a liquid product, the purchase preference may be given to the product, the packaging of which makes it easier and more convenient to pour this liquid. Packages may contain handles, product removal tools and other accessories. Also, the packaging can be used additionally outside of the product contained in it. The most obvious example of this is branded packages.

It is very important to clearly describe the main qualitative characteristics of your product, the advantages of its design, and even - no matter how exotic it may sound for our business executives - the features of the packaging in which the product will be sold. All this is of great importance for a product intended for sale on the world market. But packaging will begin to play an increasingly important role in our domestic market, if foreign goods begin to enter it en masse. The same section also describes the organization of the service if you will produce technically complex products. Having made a choice of production products, having formed the main activities of the company, it is necessary to set certain goals that would reflect the level of development of production, to which the enterprise should strive.

In practice, you start with the Product/Benefit in the corporate code and discuss how each team member contributes. Are team members satisfied and how satisfied are you as a leader? This is, of course, a great opportunity for both criticism and encouragement.

Does the product have advantages over competitive products?

Do competitive products have advantages over this product?

However, the highest level of product quality assurance in the foreign market is considered to be certification by a third party, which is not related to either the production or the sale of this product. The advantage of independent certification is its isolation from interested parties, as well as the ability to comply with the uniformity of requirements for products and a quality control system.

Address lists usually cover the following markets Industrial (manufacturers by industry, construction, trade, contracting organizations) Commercial (banks, financial companies, insurance companies, restaurants, hotels, retail, service companies) Institutional (hospitals, hospitals, schools, government agencies, clubs), etc. Sometimes mass mailings are used on a geographical basis. Usually up to five mailings are made. The main content of the letter, its idea and fundamental provisions remain the same, but the design changes. Emphasizes other advantages and benefits of the product, certified by users (usually well-known firms or

A combination of dark and light vertical stripes (strokes) of various widths with numbers printed below them. Currently, bar coding in the retail trade in consumer and industrial products covers most of the product range in the United States, Japan and many Western European countries. Sh.-k. are also used in a number of branches of mechanical engineering (for managing assembly operations, etc.), printing, transport, etc. Various bar coding systems have been developed and used, the most widely used of which are the Universal Product Code (UTK or code (ETK or EAN), compatible with each other, code 2/5 with interleaving, etc. The International Association of EAN Codes currently unites more than 30 countries, including Russia. The ETK code has the following structure: the first two characters are the code of the country of origin of the product, the next five characters are the manufacturer's code, the five characters following it are the product code, the last character is the check digit. For the technical implementation of bar coding, the following equipment is required: a device for printing markings with a bar code, a Sh. Sh.'s application - to. inevitably associated with the use of computers. This is due to the fact that the codes represent in a machine-readable form not the information itself about the encoding objects, but their symbols. This information about each coding object is contained in the computer memory, from where it is automatically retrieved in accordance with the read codes. Sh.'s application - to. provides a number of advantages, including speeding up the input of information into a computer by a factor of 4-5, a significant reduction in the probability of an input error, and ease of working with sh.-k., which does not require special skills. Effect of Sh.'s application - to. It also consists in a significant reduction in the cost of accounting work in the warehouse, protection against deliberate distortion of accounting data when receiving and dispensing products from the warehouse, increasing the throughput of the dispensing and receiving areas by at least 50%.

A firm that truly understands how consumers react to various product characteristics, prices, advertising arguments, etc., writes F. Kotler, will have a huge advantage over competitors. That is why both firms and scientists spend so much effort on the study of dependencies between marketing incentives and marketing responses.

A special section is devoted to the peculiarities of consumer behavior in relation to new products. The author introduces readers to the individual differences in people's willingness to accept innovation (Kotler uses the word perception in this situation, interpreting it as an individual's decision to become a regular user of the product), dividing all consumers into innovators, early adopters, early majority, late majority and laggards. In addition, the success of a novelty largely depends on such characteristics of the product itself as comparative advantage, compatibility, complexity, divisibility of the dating process and communicative visibility. It seems that such an assessment of a new product can clarify a lot in the behavior of potential buyers.

The problem, which is the core of marketing activity, on the solution of which the company's success or failure in the market ultimately depends, is the content of the chapter Market segmentation, selection of target segments and product positioning. Figuratively speaking, these are the three pillars on which marketing strategy and tactics rest. F. Kotler considers the principles of segmentation separately for two types of markets - the consumer market and the enterprise market. Noting the trend of recent years - the transition from mass and product-differentiated marketing methods to target marketing, the author convincingly demonstrates the advantages of the latter, as it helps sellers to better identify available marketing opportunities. For each target market, he can develop the product needed for this market. To ensure effective coverage of each such market, he may vary prices, distribution channels, advertising efforts. Instead of dispersing his marketing efforts (shotgun shooting), he can focus them on the customers most interested in purchasing the product (rifle shooting) (p. 253).

Of these four ways of satisfying needs, exchange has the greatest advantage. Under him, people do not have to encroach on the rights of others, do not have to depend on someone's charity. They do not have to produce any essential item on their own, regardless of whether they know how to do it or not. You can focus on creating things that they have mastered the production of, and then exchange them for the right items made by others. As a result, the total production of goods in society increases.

The first characteristic of the novelty is comparative advantage, i.e. the degree of its apparent superiority over existing goods. The higher the perceived benefits of using personal computers, say, in calculating income tax or doing financial accounting, the sooner these computers will be perceived.

Specialized shops. The specialty store offers a narrow range of goods of considerable saturation. Examples of specialty retailers include clothing stores, sporting goods stores, furniture stores, flower shops and bookshops. Specialty stores can be further subdivided according to the degree of narrowness of the offered assortment. Clothing stores are a stand-alone full-line store, a men's clothing store is a limited-stock store, and a store that sells men's custom-made shirts is a specialty store. According to some experts, the fastest growth in the future will be the number of highly specialized stores, taking advantage of market segmentation, target segment selection and product specialization. There are already stores that sell only sports shoes, only clothes for tall men (mostly jeans) or only calculators.

The success of corporate chains is based on their ability to achieve price advantages over independent merchants by increasing sales and lowering margins. Networks ensure their profitability in several ways. Firstly, their size allows them to purchase large quantities of goods, receiving maximum discounts for quantity, and at the same time save on transport costs. Secondly, they are able to create effective organizational structures by hiring good managers and developing special techniques in the field of sales forecasting, inventory management, pricing and promotion. Third, chains are able to combine wholesale and retail functions, while independent retailers have to cooperate with many wholesalers. Fourth, chains save on promotional costs by purchasing advertising that benefits their stores and spreading the cost of advertising over large quantities of products. And fifth, chains give their stores a certain amount of freedom to accommodate local consumer preferences and compete successfully in local markets.

This method is believed to have a number of advantages. First, being calculated as a percentage of sales means that the amount of the incentive allocation is likely to vary depending on what the firm can afford. This satisfies finance executives, who believe that costs should be closely tied to the firm's sales performance over different periods of the business cycle. Second, this method forces management to consider the relationship between promotion costs, the selling price of the product, and the amount of profit per unit. Third, it contributes to maintaining competitive stability to such an extent that competing firms spend about the same percentage of their sales on promotion.

However, apart from these advantages, the method of calculation as a percentage of the amount of sales almost does not justify its existence. It is based on the roundabout argument that sales are the cause of incentives, not the effect. It leads to the fact that the size of the budget is determined by cash, and not by available resources. It prevents experimentation with other types of incentives and methods of offensive, aggressive spending. The dependence of the incentive budget on changes in sales performance over the years hinders forward planning. This method does not provide a logical basis for choosing a particular percentage, except in the case of actions based on past experience or the current actions of competitors. Finally, he discourages stimulus budgeting based on what each individual product and each individual sales area deserves. COMPETITIVE PARITY METHOD. Some firms set the size of their incentive budget at the level of the corresponding costs of competitors. An illustration of this approach is the question asked by one of the senior officials to a representative of the industry press Do you have any figures used by manufacturing firms?

Direct American investment in Western Europe, and to some extent in Japan, was predominantly in the manufacturing industry and, in particular, in the petrochemical industry. Subsequently, significant funds were directed to the banking sector, insurance companies and audit firms. Undoubtedly, the preference for the manufacturing industry was due to the monopolistic position resulting from the technological superiority of American enterprises over their European competitors. The relative advantage of the manufacturing industry was explained mainly by the action of factors of production, in particular, the use of new technologies and production management. As far as the product market was concerned, the advantage of the Americans was product differentiation. Finally, the integration of the European durable goods market allowed American companies to maximize profits from the scale of domestic production. Special circumstances have intensified the investment of American capital abroad. American antitrust laws and measures to protect the balance of payments stimulated investment abroad, while developments in the European currency exchange markets facilitated the financing of these investments. The revaluation of the dollar jeopardized US exports and reduced the relative size of US participation in European firms. American businesses bought up a growing number of these firms or set up subsidiaries in other countries. The purpose of this strategy was to strengthen the position of the United States in foreign markets63.

Knowledge in the world of distribution is power. Wal-Mart doesn't rely solely on scale to ensure its channel leadership. The company seeks to have the best information by maintaining its own satellite communications system, through which it collects and accumulates data on daily sales for all stores in the chain. Further, the information is converted into requests for the purchase of goods, which are transmitted daily with the speed of lightning through the electronic network to 4 thousand suppliers of goods. The advantages of Wal-Mart's information system allow it to restock twice a week, on average, while a typical convenience store does so once every two weeks. And such an information system

What are the advantages of assigning individual brand names to products? The main advantage is that the company does not associate its reputation with the fact that the market accepts or does not accept a particular product. If the product fails, it will not cause any damage to the name of the company.

There are certain advantages to the strategy of assigning a single brand name to all products. The costs of bringing the product to the market are reduced, since there is no need for large advertising costs, which will ensure recognition of the brand name and create preference for it. Moreover, sales will be successful if the manufacturer's name is already well received by the market. Thus, the Campbell company brings new soups to the market under its single brand name without any difficulty and with instant brand recognition. As can be seen from Box 17, General Foods also uses the same Jello brand name for new products offered to the market.

SETTING ZONE PRICES. The zone pricing method is a cross between the FOB price method at the point of origin of the goods and the flat price method with shipping costs included. The firm identifies two or more zones. All customers located within the boundaries of a particular zone pay the same total price, which becomes higher as the zone is removed. Peerless can set up an East Zone and charge all of its customers a $10 shipping charge, a Midwest Zone with a $15 shipping charge, and a West Zone with a $25 shipping charge. price advantages over each other. Customers in Atlanta and Boston will pay Peerless the same total price. However, claims are not ruled out that in this case the customer from Atlanta assumes part of the transport costs Marketing Management (2001) - [

Today, it is no longer enough to create a brand, a strategy for its promotion and development, and work on positioning, hoping for customer loyalty and love for the company. The whimsical buyer wants to trust the company. To know that he can give his money and get what he expects without risk. Therefore, it is important for any company to present its competitive advantages to its potential client, showing that it is it that can satisfy its needs. In this article, we will talk about what is competitive advantage, why they are needed, what they are and how to find, select and group them.

Competitive advantages and benefits: what is it and how do they differ

The concept of competitive advantage refers to the superiority of a company, product, service or brand over other existing market participants - competing companies working with you in the same niche. For business, competitive advantage helps to solve a number of critical tasks:

Strengthens the company's position in the market;
Creates the prospect of stable growth and uninterrupted operations;
Creates difficulties for competitors who enter the market.

But the most important value of competitive advantages is their ability to bring profit to the company. Any company works for profit, for its development and expansion of its customer base. And competitive advantages, like nothing else, help her in this. They become the main motivator for the consumer, encouraging him to take the actions that we need.

Benefits and benefits. Same?

In both marketing and Internet marketing, you have probably come across the concept of advantages and benefits more than once. When developing a quality landing page, a block with a list of advantages and / or benefits is an indispensable part of the selling strategy and structure. But many business owners perceive the two concepts as equivalent, which is a big mistake.

Benefits and benefits are identical in value and impact on the customer. They bring the same result. But they differ in meaning, so it is important to understand what they are, as well as to know how and when to use them.

Advantages are formed based on the characteristics of a product, service or company as a whole. With their help, the client understands why and how your company is better and why it's best for him.

Benefits are the derivative of the benefits provided by the feature. They help the client solve their problem, make life easier, save time, money, or what is relevant for the buyer at the moment.

Despite the fact that the competitive advantages of the organization and the benefits are different in their specifics, they are united by common requirements. They have to:

Stand out from competitors;
Satisfy the needs of customers;
To be stable and unchanged in a volatile market;
Be unique and make it clear that no other company will provide such advantages and benefits;
Work for the profit of the enterprise.

Competitive advantages should be based on the desires of the target buyer, which must be studied. After the benefits are formed, you can highlight the benefits based on them and demonstrate to your buyer. Let's take an example based on a laptop repair service.

Client Desires (I WANT):

I want my laptop to work without failures and glitches;
I want my laptop not to slow down or heat up;
I want to be comfortable working on my laptop.

Client Criteria (AS I WANT):

I want it not to be more than the amount I'm counting on;
I want my laptop repaired in 1-2 days;
I want original spare parts installed;
I want to be given a repair guarantee of at least 6 months;
I don't want to go to the service center myself.

Based on the analysis of the criteria set by the potential client , we form the advantages:

Laptop repair from 100 UAH;
Repair time - 1-2 days;
Installation of original spare parts Asus, Acer, Samsung. We do not use Chinese analogues and fakes;
Repair warranty - 12 months;
Courier delivery of a laptop to a service center and hands after its repair.

The benefits are defined. Let's move on to the benefits:

Save time - repair takes only 2 days;
Saving money - laptop repair will cost 20% cheaper than in other service centers;
Saving effort - the courier will leave the laptop there and back.

Ideally, both advantages and benefits should be stated. Any information affects the conversion of the site, so be sure to work it out and show it to your buyer.

If you are planning to open a company selling consumer goods, which is sold by fifty other companies in your city, and it seems to you that it is impossible to single out competitive advantages, then you are deeply mistaken. For any company, you can develop strong advantages that will set it apart from the rest. The main thing is to know how to do it. And we'll be happy to tell you more.

What are the types of competitive advantage

Competitive advantages can be natural or artificial. Natural advantages state a fact and convey truthful information. Artificial advantages are manipulative, but can be of great benefit if presented correctly.

What is included in the group of natural benefits

Very often, companies do not demonstrate natural advantages, thinking that they are obvious. And this is a big mistake, since even the most common values among competitors can be very powerfully presented. Next, we list what is included in this group.

1. Price / income

Perhaps the most powerful advantage. Especially if your competitors don't have it. But here it is important to correctly format the information. Do not write formulaic phrases: “Low price”, “Discounts for regular customers”, “Wholesale prices”, “Prices from the manufacturer”, etc. Write specifics: “25% discount on refrigerators”, “prices 30% below market prices”. Always speak in numbers. This is very important, especially for B2B companies. Information about earnings is also very good at catching a potential buyer. This is very often used by information businessmen, presenting the opportunity for the user to earn money as an advantage of the service.

2. Timing / energy savings

Your client always wants to save their time. Give him this opportunity by specifying specific deadlines. If your logistics department is well developed and you guarantee fast delivery, write how many days it will take to ship the goods from one point to another. It is also important here to exclude clericalism and formulaic phrases, such as "Fast delivery". Write "Delivery in 1 day from Kyiv to Dnipro" or "Delivery in 1 hour to anywhere in the city." A valuable advantage can be information about the benefits that will help the consumer save their strength, energy, time or increase their own productivity (for example, when using the services of a cleaner, the client pays for cleaning and saves his energy by getting clean in his house). Such customer care inspires confidence and motivates the consumer to take action.

3. Your experience

Here it is very important not to cross the fine line, approaching the hackneyed phrase "We are experts in the field ...". Such expressions no longer work and are of no interest to anyone. If you decide to declare your experience, then speak in fact - what you have done in 10 years of your activity: built 150 houses, opened 15 branches throughout the country, introduced a new production line of goods, etc. Your client is looking for facts about your success, not information about your years of work.

4. Terms of cooperation

Here, any features of cooperation can be an advantage. Don't be afraid to list the ones your competitors also list. The fact that you accept cash and non-cash payments can significantly increase the chances of a sale, as it provides convenience to the buyer. Indicate all the factors of cooperation: the presence of a showroom, the possibility of manufacturing a product model to order, the geographic location of the office next to a public transport or metro stop. Even the possibility of self-delivery and your own warehouse or any information that gives the client the benefit of saving their time or effort, as a competitive advantage, can play into your hands by providing the buyer with maximum comfort.

5. Achievements

Diplomas, diplomas, certificates, a list of partner companies and large client companies with their logos work as social proof that inspires confidence in the company, which is the main goal of competitive advantages. With the help of documents that you demonstrate to your potential clients, you will emphasize your experience, status, and authority. And this is very important for buyers, as it says that you are working for the future and development, which means that your company will not close tomorrow.

6. Specialization

If your company operates in a narrow specialization, then you definitely need to tell your client about it. Imagine that you are using an Ariston brand washing machine. And one day it broke. Which company will you contact - the one that only repairs Ariston washing machines or the one that repairs all brands of washing machines? Surely, in the first place, since you subconsciously conclude that its employees are more experienced in matters of your washer.

7. Business features

Any fact specific to your business can become a competitive advantage. The use of a certain technology or equipment, a range of products that exceeds the competition, the purchase of raw materials in Europe - all this will help you get into the kings. Keep this information in mind when generating benefits.

What advantages can be called artificial

Such advantages can help out a company that operates in a very popular niche. It is usually very difficult for such firms to find competitive differences, since all organizations most often work on the same principle. Or, the formation of artificial advantages will help a young company that has just entered the market and cannot “compete” with established participants stand out. Let's list what can serve as such advantages

1. Added value

Let's say you sell women's dresses. In this niche, it is very difficult to compete with similar companies that may even buy from the same supplier as you. There is a way out - to create added value: to offer your client something that competitors do not offer. For example, when buying a dress, an accessory as a gift. In other words, any even the most ordinary action will help you create an advantage over competitors and attract the attention of buyers.

2. Responsibility for the product / service

It works very well, but on the condition that you are ready to be really responsible for what you sell. For example, you claim that the doors you sell will last 30 years because you know they are made from oak without the use of cheap substitutes. Customers will be drawn to you if your statements are persuasive.

3. Warranty

Any guarantee will become a competitive advantage if its conditions are met. A guarantee can be given for both the service and the product. For example, you can guarantee the possibility of returning and exchanging goods within 30 days, despite the fact that by law this can only be done within 14 days. Or guarantee a refund if the service does not bring results. Don't worry that customers will often return goods or demand a refund. Generally, if the user is not satisfied with the purchase, he forgets about guarantees. But this is not a reason to offer low-quality goods / services in the hope that compensation will not be required for them.

4. Demonstration of your offer

If your product or service does not have clear advantages (which is quite common), then you can simply show your potential client what is offered to him in the form of a demo. If this is a product, then you can make a video about its appearance in order to show the person how it really looks. If the service is the process of its execution. Remember, a person perceives 85% of information visually. Therefore, demonstrating your offer will be a significant advantage for your company.

5. Testimonials from your customers

It is important that the reviews are real. In this case, they will become social proof, a reason to trust your company and its activities. It will also create a competitive advantage over other firms. They work better with video reviews, where real customers express their opinion about a company, product or service. But if this option is difficult to implement, you can use a text review by inserting a phone number, a link to a social network or an email address of the client with prior agreement on the publication of his personal data.

6. USP

We won't go into detailed description unique selling proposition and its value, as it has already been done. Let's just say that with the right analysis of business and target audience, as well as the competent construction of a USP, it can become a powerful advantage for your organization and increase its sales.

Creating competitive advantages: how to turn “simple” into “golden”

Before you begin to develop a competitive advantage, you need to conduct two critical analyzes - the target audience and competitors.

Target audience analysis

You need to understand who your client is, how old he is, what social status. And, most importantly, what problems he wants to solve with the help of your product, service or company as a whole. Problems can be completely different: from the urgent need to buy a product here and now due to lack of time to meeting the requirements for its safety. For example, a person wants to make sure that all the tools in your beauty salon are disinfected.

If your target audience consists of several different groups, you need to select one, which will be the focus of your site and the development of benefits. Ideally, the developed competitive advantages should satisfy the needs, address fears and solve problems of the entire target audience, even if it consists of several groups. But sometimes this is impossible to do, so it is advisable to work out competitive advantages for the most important and promising group.

Competitor analysis

Advantages would not be called competitive if they were not superior to your competitors. When analyzing market participants in your niche, it is important to highlight their strengths and weaknesses. Understand their advantages - what they do better than you. And, on the contrary, to determine their weaknesses, which in the future you can make your superiority over them.

Stages of developing competitive advantages

After you are already familiar with your target audience and competitors, proceed to the main thing - work step by step on highlighting the benefits.

Stage 1. Determine all the competitive advantages of the company / product / service

Highlight all the benefits that you know. This is very important in order to further highlight those that will become competitive. If you are identifying the benefits of a product or service, you can ask your customers which benefits are more important to them.

Stage 2. Benefits ranking

Once you've compiled a list of benefits, you need to sift through those that are least important to your consumer and those that are most important. This is necessary in order to highlight the most valuable factors that will help you grow your business and be able to "overcome" your strong competitors.

Stage 3. Comparison with competing companies

The list of selected advantages must be compared with the advantages of competitors. You need to know which of them companies in the market have and which do not. And also know what they are better and worse at.

Step 4: Highlight Unique Benefits

You need to highlight absolute advantages - those that your competitors cannot copy. These are the benefits that only your company, service or product has. For example, only your company uses German equipment that allows you to print in a unique format. Or only your company presents the product in a unique limited edition packaging.

Stage 5: Develop false benefits

It is not always possible to develop natural competitive advantages, especially in very popular and saturated niches. The only way out is to create false advantages.

False advantages are advantages that work on the emotions and persuasion of the consumer that your company / product / service is unique. For example, in an ad for Jacobs coffee, it is announced that it has "aromoxomite magic." The concept of "aromoxamite" does not exist in nature, but this brand's unique selling proposition has become its most important advantage.

Stage 6. Development and control

Formation of competitive advantages should end with the development of a plan. You need to strategize how to develop based on the identified advantages and how to keep them in the future.

The most common mistakes in developing competitive advantages

A huge number of companies in the formation of their advantages make critical mistakes, after which, while working, they wonder why they can’t become leaders due to a large competitive pressure. Such errors are so common that they occur all the time. Most often, this is the use of stamps and stationery. Here are the TOP 6 most common competitive advantages that have long ceased to be them.

We can do what you don't need

Very often, companies, making up their competitive advantages, completely forget about their customers. They talk about what they have to offer, forgetting what their target customer really needs. As a result, such benefits do not work. They simply do not arouse interest, since the person understands that they will not bring him absolutely no benefit.

Tip: When creating advantages, focus on the desires of your buyer, leaving your opportunities in the background.

We help you increase your profit by 40% with our business plan.

15 years of experience

Almost every company considers it their duty to indicate their work experience. But this information is no longer valid for a potential client. He does not care that you have worked 5, 15 or 30 years in the market, never closing. He cares what you have done during this time.

Tip: If you want to list the experience of your company, be sure to indicate what you have achieved during this time.

Over the 10 years of operation of the Gradostroy company, we have built 2 nine-story new buildings, in which 70 families already live.

High level of service/quality

To be honest, your client absolutely does not care that certified specialists work in your company. The presence of certificates does not affect the quality of service at all. Therefore, the use of template phrases: “We guarantee a high level of service” or “We provide a high quality product” is just a waste of time.

Tip: Always be specific and condition your statements. Tell the consumer how he will be provided with a high level of service.

The service station will perform a free diagnosis of the automatic transmission of your car and provide a 2-year warranty upon completion of the service.

Individual approach

A boring, hackneyed and annoying phrase that already hurts the eyes and ears. By using this phrase to your advantage, be sure that your potential customers won't believe you. At least because it is used by a dozen of your competitors and thousands of other companies with whom they met.

Advice: Do not use this ill-fated phrase never and under no circumstances. If you want to show your buyer that you work on special terms, say so directly.

You can buy this product under the order; we will develop a custom-made layout taking into account your dimensions; We will deliver the goods by courier at a convenient time and place.

Affordable prices

Leading the way in all the pompous benefits that companies like to use is the affordable/loyal pricing claim. Your client will not even perceive this phrase, not to believe it.

Tip: Be specific, speak the language of numbers.

Cheaper than market prices by 10%; 5% discount for every customer; save 30% when buying this set.

Wide range of

And for dessert, a phrase that will surely appear before your eyes on the website of an online store or in an advertisement for any commercial company. This advantage has become so boring and banal that potential customers do not even realize it.

Tip: If you want to focus on the assortment, speak specifically about the assortment of which product you are talking about.

1000+ models of women's boots made of leather, suede and nubuck.

Your company benefits don't have to be traditional and hackneyed. Try to highlight unique features that can not only grab the reader's attention, but also motivate them to take further action. After all, this is exactly what you expect from your potential client.

Tips on how to write competitive advantages and benefits

The best friend of competitive advantage is specificity. Each benefit must be clearly disclosed so that the potential buyer does not invent something superfluous and completely unnecessary. We will give recommendations on how to and how not to present the advantages and benefits of the company through examples.

Only in fact

Rid your client of vague phrases that do not carry value. Always be precise, to the point.

We are the best in our niche;
We sell the highest quality goods;
We cooperate with large companies;
A wide range - only with us.

We do not use wet mixes to reduce the construction time of a house;
All products have been tested by the sanitation station and comply with GOST standards;
When buying a frying pan, we offer a choice of 10 models of lids;
We cooperate with the WOG, Gefest and Parallel petrol stations.

Without anonymity

Anonymity is confusing, and understatement only raises doubts. All claims must be substantiated. Experienced users can easily see through your farce, so bring the facts.

We use the best parts for your car.

We use new BMW parts from the manufacturer.

Only with evidence

Everything is clear here. If the client does not clearly highlight his benefit, then your statements are empty.

We offer favorable terms of cooperation.

Saving 35% when purchasing a cinder block in the amount of 20,000 UAH.

Possibility of verification

Your customer must trust you. And trust does not appear in a vacuum. Therefore, give him the opportunity to verify your statements.

We build modern and comfortable objects for life.

You can visit and inspect the facilities built by the company at a convenient time for you.

Orientation to target audience

Not always a competitive advantage is focused on all groups of the target audience. Therefore, only partially can be useful. It is very important to understand who the competitive advantage is designed for, otherwise it will not bring efficiency.

Headphones transmit clear sound and do not get confused in your pocket.

Earpods have a sensitivity of 113dB, which allows for accurate sound reproduction for sound engineers. Frequency response range - 8 - 27000 Hz, which will allow you to enjoy clear, deep bass and crystal clear high frequencies without distortion;
The fabric braid prevents the headphones from getting tangled in your pocket, you will not waste time unraveling them.

It is very important to demonstrate truthful benefits. Otherwise, fictional facts will only cause a negative impression of the company or product from the buyer, and he will go to your competitors.

Learning to develop a company's competitive advantages based on its weaknesses

Not all companies, especially young ones that are just entering the market, can compete with their competitors. To stay afloat, they have to inflate prices, extend the delivery time due to the not yet fully formed logistics department. All this can negatively affect the business, alienating customers. After all, no one wants to pay more or wait for their order longer when competitors have everything much cheaper and faster.

But there are special tricks that help to make an advantage out of disadvantages. These are the facts that become a counterbalance to your weak points. Let's give concrete examples.

Inconvenient office location, far from the center	The company's office has a showroom where you can see the goods live. The warehouse is on site. There is convenient parking, including for trucks. Local pickup and delivery available.
The price is much higher than in competing stores	Yes, but the package includes additional “goodies”: an operating system updated to the latest version, a case, headphones and protective glass For a present.
Long delivery on order	It is possible to order spare parts from the manufacturer without intermediaries. It is possible to order rare spare parts.
Young company with no experience	Sending goods on the day of order by Ukrposhta, Nova Poshta, Intime or Delivery, free consultations, without prepayment.
Very small selection of products	Narrow specialization in a particular brand. Detailed advice on the specifics of the product.

As you can see, even those shortcomings that can lead a company to failure can become powerful competitive advantages that even established firms in the market cannot provide.

Examples of competitive advantages in different areas of the company's business

Theoretically, it is much easier to develop competitive advantages for companies in the field of trade than for those in more niche businesses. Therefore, we will give specific examples for some niches that can become inspiration for you and the basis for your ideas.

Benefits for the tourism business

Tours to remote corners of the planet;
Discounts on last-minute tours up to 80%;
Free guide;
Free transfer by luxury car;
Gifts from the tour operator when ordering certain tours.

Benefits for a law firm

Specialization;
Availability of lawyers, notaries and other highly specialized specialists;
Geographic location of the office;
Free online consultation;
15 years of company experience and 98% of successfully completed cases in favor of the plaintiff.

Benefits for the transport company

Own car park with different tonnage;
Free delivery and escort of cargo when ordering for a certain amount;
Built-in navigation in the car and the ability to track its location;
Responsibility for the condition of the cargo upon arrival;
Official contract for cooperation.

Benefits for a cleaning company

Collaboration by agreement. Full responsibility for the result;
Cleaning is carried out using professional equipment from sulfate-free detergents;
Financial responsibility for the condition of expensive interior items;
Financial responsibility for the safety of material assets;
Work with difficult pollution.

Brand value development

The value of a brand is not only the positive characteristics and quality of the product. These are the emotions and associations that the name evokes in a potential buyer, allowing him to be confident in himself and in the company. When a brand becomes famous and wins love, it becomes the strongest motivator of a person to action. Logically, if we know that a particular brand of toothpaste will help reduce tooth sensitivity, then we will choose it, and not any other, whose advertising announces a similar feature of the product.

How to develop brand value?

There are many ways to create brand value and further develop it. But, first of all, it is necessary to analyze the target audience, its needs, desires. You need to understand what is most important and valuable to them in order to emphasize this when forming values. Once the target audience has been analyzed, you can use one of the following methods to form and develop values.

Value + Benefit

It is very effective to present to the buyer not only value, but also the clear benefit that the brand will provide to him. For example, Head&Shoulders shampoo for women not only creates volume in hair, but also eliminates dandruff. This means that girls using this brand's shampoo will get clean hair, voluminous hair and self-confidence due to the absence of dandruff. The important thing to note here is that the benefit is real and the brand really lives up to its claims.

Expectation Formation

Brand value can be developed based on the formation of any expectations. At the same time, a person subconsciously creates for himself a certain picture, image and feelings that he expects to receive using the brand. Even if the actual result is not as powerful as expected, the consumer will experience it to the maximum, as he has already convinced himself of this. For example, the slogan of the energy drink Red Bull: "Red Bull inspires." This does not mean that a person will be able to fly. But he makes it clear that the boost of energy that he will receive after drinking the drink will allow him to feel a significant surge of strength.

Help effect

This method involves creating conditions under which the consumer participates in solving any problems. For example, McDonald's periodically arranges promotions to help orphans. When ordering fast food, the client is given a palm-shaped sticker where he indicates his name. Thus, he is given to understand that he gave part of the money with his purchase to help those in need to these children.

Creation of an alter ego

Some brands demonstrate their value in the ability to shape the customer's alter ego. A person gets the feeling that, using this particular brand, he is capable of something that he would not have dared to do before. Such brands very often work for a provocation. Often this method is used in brands fashion clothes. Or for perfumes. For example, Ax men's deodorant is positioned as a way to reveal your sexuality and attract the attention of women.

Brand value works very well for the company as a whole. With the right value development, the company will receive stable growth and a constant increase in consumers due to the effective positioning of its brand.

Developing Benefits and Creating Product Value

It is not always possible to compete on the advantages of a product, especially if the product is in a very common niche. However, if your company is a manufacturer or you are the first to bring goods to the market, then you have every chance of becoming a leader.

But do not forget that your competitors are not asleep, and after a while they will present a similar product to consumers. Therefore, it is very important to develop absolute advantages that competitors cannot take from you. And, first of all, it is necessary to analyze the target audience, identifying their desires and needs. Based on the resulting portrait of the target consumer, form the benefits of the product. It could be:

Low price compared to competitors;
Unique product in one, several or many properties;
Unique composition or use of very rare ingredients;
Special type, shape, volume or packaging of the goods;
The product is more efficient than analogues;
You, as a manufacturer, create an innovative product;
The product is sold under special conditions.

When you become an innovator by introducing an entirely new product concept to the market, you can create value for it. With its help, the recognition of your product and, consequently, its sales will increase. For example, Apple, having released the iPhone, advertised an absolute innovation in the field of smartphones - a unique operating system, unique processors. This became the main value of the product at the stage of its introduction to the market.

Each developed advantage of the product should be beneficial for the consumer. That is why it is important to know exactly what your target audience wants to get when purchasing a product.

Benefits of a product / service as an emotional component

The sale of a product or service has the most important goal in terms of consumption or use - to satisfy the main need of the buyer. A person who buys something in your store wants positive changes to happen in his life with their help. He wants to get something, to become someone, or to avoid something that might bring him discomfort.

Therefore, first of all, the key advantage of the product is its ability to satisfy the desires and emotions of the buyer. Agree, because once a month you visit a hairdresser not to get a haircut, but in order to look more attractive and more confident after the hairdresser's service.

Marketers and specialists in the promotion of goods and services distinguish 7 areas, one of which is the most powerful motivator for the purchase of a particular product / service, depending on their specifics. Let's take a look at each one and give specific examples.

Money

The client / buyer wants to make a profit or not lose it.

We save your money when promoting with the help of SEO-audit for website development

When ordering a service, a client, you will certainly avoid all sorts of mistakes in the development of the site, which will negatively affect the promotion. Result: saving money on finalizing the site and eliminating errors.

Energy/time

When purchasing a product or ordering a service, a person’s goal may be an urgent need to save time or effort: to facilitate or speed up work, to increase their personal productivity.

Lose weight without getting up from your favorite couch

Preparations based on natural ingredients will help you lose weight and get the figure of your dreams without wasting your time and energy on trips to gym and grueling workouts.

Health/beauty

An important motivation for buying a product or ordering a service can be the desire to improve your health or the health of a loved one, get rid of illness/pain, or maintain your health at a certain level.

This remedy is your self-confidence

With this line cosmetics for problem skin care, you will get rid of imperfections on the skin, eliminate oily sheen. As a result, you will get healthy skin and self-confidence, your attractiveness.

Status/affiliation

By purchasing goods and services, a person may aim to emphasize his individuality, taste with their help or attribute him to any group or, conversely, highlight him.

You are unique in this dress.

When you buy a one-of-a-kind haute couture dress, you emphasize your personality and individuality. Declare yourself by letting others know that you are an independent woman.

Safety is above all

With our Cuckoo alarm you will increase the safety of private property, life and health.

Recognition/compensation

The motivation to purchase a product or service may be the desire to receive confirmation of its value or avoid criticism.

We are not united by one price or how to develop a competitive advantage of a product without affecting the issue of its cost

Too many entrepreneurs believe that the single most powerful competitive advantage of their product can be price. If the price of a product is lower than that of competitors, then your company will instantly receive an increase in profits. And this is quite possible. But not always the company can reduce the price due to the alleged damage. And not always customers are only interested in price.

Consider on what characteristics of the product it is possible to form its advantages and benefits for the buyer.

Features of the product itself

The unique characteristics of the product will create its competitive advantage. They can be the main motivator to buy, even if the product is more expensive than your competitors. Benefits may include:

Functionality;
Corporate identity, symbols, logo;
Appearance;
Range;
No need for maintenance;
Quality dominance.

Place of sale of goods

Significant benefits for the product will be:

Location of the point of sale of goods;
Availability of the product;
Display of goods;
Ease of access to the product.

Staff and people

It can be important for the consumer who represents the product and when demonstrating the benefits in this category, they become a powerful motivator to purchase. These benefits can be:

Employees of the company who provide free advice on the characteristics of the product;
Point of sale staff ready to recommend or advise on the product;
Manufacturer, whose name characterizes the quality of the goods;
Public figures advertising the product.

Is it always necessary to demonstrate competitive advantages and benefits?

In the framework of fierce market competition, demonstrating to consumers the advantages of a company, product or service and the benefits that they will receive as a result, becomes almost the only way to promote their business and work for the future. This is a fairly simple option for promoting and positioning your name, which does not require financial investments, but at the same time is an effective tool for competing. Therefore, do not ignore our recommendations, work on your competitive advantages in order to take a leadership position in your niche in the near future.