1)
Price - This factor is very often hard to control. It can
be difficult for small businesses to compete on price because
larger businesses can spread their overhead over more product
and can afford to have lower profit margins due to volume. Small
businesses can compete on price when they find a unique niche
or develop a new technology or process.
2)
Product - This includes the quality of the product and
consumer desire for the product.
Quality - Businesses
need to develop and continually update rigorous quality control
measures. Tom Greenlee, owner of the Forest County Sports Center,
says that even a hermit has 10 friends that he will tell if he
got a bad product.
Consumer Desire
- There needs to be a widespread and long-term desire for a product
or service. Sometimes products become obsolete because the company
has failed to keep up with consumer changes. There are few products
that sustain consumer desire for more than a few years. This means
that products and services need improved and updated periodically.
3)
Convenience - This includes location, usability of product,
hours open, parking, time spent by consumer, etc. Drive-through
windows, microwave meals, mail-order business and superstores
that carry a lot of products are examples of marketing for convenience.
A study done
by the University of Michigan points out that consumers between
25 and 45 years of age rank "time" as their number one priority.
Businesses marketing their product to this age group should give
convenience a high priority.
4)
Familiarity - If you were driving in an unfamiliar town
and saw two restaurants side-by-side that offered the same menu,
which would you choose? Chances are you will choose the restaurant
that you recognize the name. We tend to purchase familiar brands
of shoes, clothing, computers, etc. It takes a lot of advertising
dollars to build widespread familiarity. When trying to build
customer familiarity, advertisers should make sure that they have
a message that is simple, focused, and repeated often. One of
the biggest mistakes made in advertising is saying too much.
5) External
Appeal - This includes product packaging, the attractiveness
of the store, the "shopping experience," the entertainment experience,
etc. External appeal can help consumers have confidence in the
company or product and/or it can provide an entertaining shopping
experience. Example: One specialty gift shop, Wendall August
Forge, has a few highly unusual and expensive gifts for sale
along with their main line of products. (They have a crystal vase,
hand-cut using a stone wheel, on sale for $75,000.) They do not
expect to sell many of these specialty items, but they attract
customers who come in to see them.
6)
Customer Service - This includes relationships built with
customers, as well as salesmanship, education, friendliness, and
consumer satisfaction. While most businesses gives some effort
to customer service there are relatively few companies that are
great at it.
Customer service
needs to start from the top of the organization. Companies
sometimes hamper their employees' ability to offer great service
in various ways:
a) Company policies;
("I'm sorry sir, we can't do that."),
b) Well-intentioned
company direction; ("We need to sell, sell, sell by any means
necessary!")
c) Faulty organization;
("I need to check with my boss, who will check with his boss,
who will check with her boss, who will run it by the accounting
department, who will consult with God.")
d) Untrained
or undertrained employees. A good salesperson will educate the
consumer by answering questions, pointing in the right direction,
and helping the consumer solve their problems. Many times, we
don't train employees adequately to address customer needs.
Businesses need
to place a strong emphasis on customer service. This includes
hiring people who are motivated to provide quality service, training
all employees to have the ability to give great service, and setting
company policy to support great customer service.