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Essay / Small Business Differentiation Strategies - 1692
In today's marketing world, every small business is looking to stand out among a myriad of competitors. Because American consumers have so many choices, companies that fail to differentiate themselves from the competition struggle to survive. However, an effective differentiation strategy can help a small business not only survive but also thrive in the market. Marketing experts Jack Trout and Steven Rivkin combine their genius to describe practical concepts about business differentiation. With their in-depth knowledge, a small business executive can glean three valuable differentiation strategies that help a small business gain a competitive advantage over the competition. A small gourmet supermarket chain in Ohio called Dorothy Lane Market will demonstrate these concepts in practice. Authors Trout and Rivkin argue that a savvy small business can achieve brand differentiation by possessing a heritage, uniquely transformed product, or brand attribute. Having a Legacy The presence of a business legacy provides a company with a differentiation strategy. Trout and Rivkin confirm that a long and successful history leads consumers to believe that the company must be doing something right; the company must produce a reputable and reliable product or service that meets the needs of its customers (2008, p. 125). Owning the differentiating business heritage strategy powerfully creates a positive image of trust in the minds of consumers. Authors Trout and Rivkin describe two specific types of assets a company could possess to differentiate itself. Local heritage Local heritage claims an association with a country already known for manufacturing a specific product. For...... middle of paper ...... like "Selling the highest quality natural and organic products" (WholeFoodsMarket.com). Note that while Dorothy Lane also offers a wide selection of similar natural and organic foods, it does not differentiate itself in this way. DLM chooses to differentiate itself by having a broader attribute, which implies that its specialty grocery store meets all of its customers' specialty food needs. A business must create an effective differentiation strategy to succeed. By having a heritage, specialty, or attribute, a company can differentiate its brand and product/service offerings so that a customer knows what benefits the company offers. A small business executive who implements one of these three practical differentiation strategies developed by marketing experts Trout and Rivkin will gain a competitive advantage over market competition..