Pricing Strategies

What price should you ask for your product or service?
If you want to set a price that brings with it a healthy profit... something that will most definitely keep that wolf from howling at your door (and the bank manager at bay)... read our '4 Key Pricing Strategies' below.

4 Key Pricing Strategies

There are at least four ways to calculate your pricing structure:

Cost-plus pricing is calculated on the cost of producing your product or service plus an amount that you need to make a profit. This is usually expressed as a percentage of the cost. It is generally more suited to businesses that deal with large volumes or which operate in markets dominated by competition on price.

Value-based pricing focuses on the price you believe customers are willing to pay, based on the benefits your business offers them. It depends upon you being able to clearly define and demonstrate the benefits your product or service provides to customers.

Target-return pricing involves setting a price to achieve a target return on your investment.

Psychological pricing takes into account your customers' perceptions of your price, including positioning, popular price points (the point at which they are more willing to make a purchase), and fair pricing (what they consider to be 'fair').

1.Pricing Tactics Discounting

Discounting can be a powerful short-term measure but it does carry some dangers too. You could use it to get rid of old stock or to encourage large orders. Consumers may balk at paying full price in the future or begin to perceive your product or service as somehow inferior to competitive brands. Discounting may send a signal to consumers that price is negotiable and that value can be given away. Trying to sweeten the deal by bundling additional products and services with the core offering can drive up costs (and decrease profits) and teach consumers that the product or service is not valuable.

2.Odd Value Pricing

If your consumers buy primarily on price, you can offer your products at a penny or two less than normal on bulk orders.

3.Low Pricing To Attract New Customers

You can sell a product at a low price with the sole aim of winning new customers.

4.Skimming

If your product or service is unique in the market, you can sell it at a high price. There's a danger that you could just price yourself out of your market.

Penetration

To gain market share, you can sell your product or service at a lower price and gradually raise your prices.

Conclusion

However you price your product or service, take time to measure the impact it will have on consumer perception and demand and of course, on your company's long-term profits.

Three Skills to Improve Conversation

Three Skills to Improve Conversation

One key to becoming a great conversationalist is to pause before replying. A short pause, of three to five seconds, is a very classy thing to do in a conversation. When you pause, you accomplish three goals simultaneously.

The Benefits of Pausing

First, you avoid running the risk of interrupting if the other person is just catching his or her breath before continuing. Second, you show the other person that you are giving careful consideration to his or her words by not jumping in with your own comments at the earliest opportunity. The third benefit of pausing is that you will actually hear the other person better. His or her words will soak into a deeper level of your mind and you will understand what he or she is saying with greater clarity. By pausing, you mark yourself as a brilliant conversationalist.

Ask Questions

Another way to become a great conversationalist is to question for clarification. Never assume that you understand what the person is saying or trying to say. Instead, ask, "How do you mean, exactly?"

This is the most powerful question I've ever learned for controlling a conversation. It is almost impossible not to answer. When you ask, "How do you mean?" the other person cannot stop himself or herself from answering more extensively. You can then follow up with other open-ended questions and keep the conversation rolling along.

Paraphrase the Speaker's Words

The third way to become a great conversationalist is to paraphrase the speaker's words in your own words. After you've nodded and smiled, you can then say, "Let me see if I've got this right. What you're saying is . . ."

Demonstrate Attentiveness

By paraphrasing the speaker's words, you demonstrate in no uncertain terms that you are genuinely paying attention and making every effort to understand his or her thoughts or feelings. And the wonderful thing is, when you practice effective listening, other people will begin to find you fascinating. They will want to be around you. They will feel relaxed and happy in your presence.

Listening Builds Trust

The reason why listening is such a powerful tool in developing the art and skill of conversation is because listening builds trust. The more you listen to another person, the more he or she trusts you and believes in you.

Listening also builds self-esteem. When you listen attentively to another person, his or her self-esteem will naturally increase.

Listening Develops Discipline

Finally, listening builds self-discipline in the listener. Because your mind can process words at 500-600 words per minute, and we can only talk at about 150 words per minute, it takes a real effort to keep your attention focused on another person's words. If you do not practice self-discipline in conversation, your mind will wander in a hundred different directions. The more you work at paying close attention to what the other person is saying, the more self-disciplined you will become. In other words, by learning to listen well, you actually develop your own character and your own personality.

Action Exercises

Here are two things you can do immediately to put these ideas into action.

First, make a habit of pausing before replying in any conversation or discussion. You will be amazed at how powerful this technique really is.

Second, continually ask, "How do you mean?" in response to anything that is not perfectly clear. This gives you even more time to listen well.

Client Payment Problems?

Client Payment Problems? Try These 3 Simple Tips

Signing up new clients is a joy…unless their payment bounces. If that happens to you, you’re likely to feel guilty, uncomfortable and wonder what you did wrong. To top it off, a client whose payment bounces is likely to avoid contacting you, leaving you to wonder what to do next.

If this happens to you, the first thing to realize is it’s NOT PERSONAL. Yes, you’re the one temporarily getting the short end of the deal, but keep in mind it isn’t because you didn’t do enough, aren’t good enough or don’t deserve to be paid.

As a woman entrepreneur, you must learn how to navigate these kinds of sticky situations with grace, compassion and leadership. The good news is that if handled correctly, most client payment situations can be quickly resolved and can even help you deepen your relationship with your client.

Let me give you my 3 “best practices” tips for resolving client payment situations and eliminating any feelings of guilt, discomfort or self-blame in the process.


Tip #1 Don’t Let Your Feelings Hijack You From Standing In Your Power

Seeing that “sorry - payment declined” message appear in your inbox can trigger a whole host of feelings: from anger and righteousness to guilt or self-blame. Before you let these feelings hijack you from standing in your power, take a deep breathe… and another. This is not something that was done “to” you. It’s just something that happens when you’re in business.

What will help is if you think about your client for a moment. Are they likely feeling embarrassed, guilty or even humiliated? Probably. And if they are, they’ll typically avoid wanting to talk with you. Instead of letting them shut you out, simply email or better yet, call, and in a confident and compassionate tone of voice, tell them:

“I see that your payment didn’t go through and I’d like to talk with you about how we can get this taken care of.”

If you sound relaxed and confident they’ll feel reassured and you’re much more likely to create a positive outcome (hint: that means YOU getting paid!).

Tip #2 Know In Advance What Your Limits Are

When you discuss the situation with your client you’ll want to know in advance how far you’re willing to flex, how long you’re willing to wait and whether or not you’re willing to continue working with them until their payments are caught up.

At the beginning of your conversation, clearly indicate that you HAVE limits. Doing so will help you feel that you are standing in your power and are not helpless or a victim of someone else’s money drama.

For example, start your conversation by asking them what happened and what their plan is for correcting the situation. Suggest that they make a payment today, with you on the phone, even if it’s for a fraction of what they owe. At this delicate point, intention and consistency is more important than the actual dollar amount.

If your client is feeling like a victim of circumstances and isn’t able to make a commitment, then it’s time to let them know that while you understand they are in a tough spot, asking you to wait compromises your relationship and ability to create the results they want. Stand firm and ask them to creatively brainstorm ways they can create some ready cash. Trust me, if their LIFE depended on it, they would find the money!

Tip #3 Stand Strong — Your Client Is Looking To YOU As The Leader In This Situation

Always assume that this situation is temporary and that your client has every intention of paying. Usually this is the truth, and they just need a little support, a few extra days or some creative ways to get back on track. If you’re there as their advocate and collaborating together, their embarrassment will turn into relief and they’ll thank and appreciate you for your help and support. Just remember, THEIR payment dilemma is not YOURS to take on. By you standing in your power as leader, you’ll help your client stand in their power too, even when they initially didn’t feel they could.

While Client Payment Issues Aren’t Personal, They ARE An Opportunity For Personal Growth…

Experiencing the occasional client payment issue is a fact of doing business. If you’re experiencing this situation more than occasionally then it’s time to take a look at why you’re attracting these situations into your life. Whether they happen to you rarely or more frequently, each time is an opportunity for you to stand in your power — with compassion — and gracefully negotiate an outcome that’s a win-win for both of you.

Competition Brings Out The Best

Competition Brings Out The Best
By Brian Tracy

In a free market society like the U.S., there is a continuous competition for talent and skill. Every business knows that the critical constraint on its ability to grow is competent to people who can get results. Like cream rising to the top, people who can do a good job are hired sooner, paid more, and promoted faster. People who are not competent or motivated are not. No laws can change this. They can only mask it temporarily.

Compassion or Condescension

Compassion can quickly become condescension. Minority groups can become victims of what President George Bush called “the soft bigotry of reduced expectations.” People begin to judge them by lower standards and expect less of them in comparison with others. This is completely unacceptable in America. The way to bring the best out of people is by challenging them-by setting high standards, by demanding their “best game.”

A System Gone Astray

The U.S. education system, once the best in the world (and still the best at the University level), has become a tragedy and a trap for more young people caught in it and unable to escape. In 1947, 97 percent of Americans were literate, reading several books a year, and often each month. By 2004, fully 47 percent of Americans could not read above the seventh grade level. People who have not mastered the three R's by the time they leave school are destined to lifetimes of low income, under achievement, and wasted potential.

"Reach Your Maximum Level of Achievement"

While many people have "dreams and aspirations" about how they want their futures to turn out, very few people actually have a plan to get there. No matter what your dreams and aspirations are, one thing is certain: To achieve them, you must have the right tools to guarantee your success.

Failing Schools

Today, African American students test at four grade levels below white and Asian students in the same schools. Even worse, they are not allowed to escape their failing schools, especially in the inner cities. They are trapped into lifetimes of below-average incomes, insecurity, and eventually envy, resentment, and feelings of victim-hood.

Enter the Unions

The first teachers union was formed in the 1950's. In a few years, driven by expediency, the focus of teaching shifted from student achievement to teacher pay and benefits. As Albert Schanker, head of the American Teachers Federation, once said, “When the children start paying union dues, then we'll start caring about the children. ”

Competition is Key

The Economist magazine wrote on June 11, 2005, “The schools the poorest Americans attend have been getting worse rather than better.” This is partly a problem of resources, to be sure. But it is even more a problem of bad ideas. One poll of 900 professors of education found that 64 percent of them thought that schools should avoid competition. The only way to reverse the educational system is to change the structure of incentives in such a way that academic excellence is pursued and rewarded. Without competition, there is no motivation to improve.

Action Exercise

Get involved in your children's education, and whenever possible, vote for the betterment of the educational system.

How to profit from customer complain

How to profit from customer complaint
By Marie Moody





Obstinacy can push an entrepreneur to persevere when any sane person would quit. But obstinacy can also kill your business if it keeps you in denial.
Because I am obstinate, I pursued my dream of creating a premium pet-food company that sells what it claims to sell and not some unidentifiable substance in a dressed-up bag. Stella & Chewy's ingredients include organic fruits and vegetables and meats that are free of antibiotics and hormones.

Originally we packaged our foods in transparent bags. In fact, transparency became our guiding philosophy. Today we offer open plant tours, publish our meat sources and test every batch of food for salmonella and E. coli using codes that can match each bag to its lab result online.

To launch the company in 2003, I pounded the pavement, visiting every pet-food store in Manhattan -- where I lived then -- and some outside the city. By 2006 Stella & Chewy's was sold in 250 stores, mostly in New York City. In 2007 I moved the company to Muskego, Wis., where I opened a manufacturing plant. That year our revenues were almost $500,000.

But getting my product into stores was just the beginning: I then had to persuade pet owners to buy it. We were competing against much bigger pet-food companies whose monthly marketing budgets dwarfed our annual sales. So we invested in brochures and a Webs ite and even stood on sidewalks distributing samples. Eventually we developed a loyal following.

With more customers came more feedback -- much of which I dismissed. Your dog doesn't eat lamb? He's allergic to blueberries? You hate the name Stella & Chewy's? You're concerned about where the cows sleep? We responded diplomatically to these concerns. Still, my gut told me that I knew what was best for my company.
I was also fielding complaints about ice crystals on the food. Ice crystals form when the air temperature changes. Practically every frozen food item develops ice crystals by the time it hits the retail store because of slight temperature changes during transport. For this reason, most frozen foods are packaged in opaque bags or boxes. Studies have proved that ice crystals have little, if any, effect on either the quality or the taste of the food. Basically, there's nothing wrong with a little ice.

So I ignored the complaints. After all, I told myself, we were better than competitors that wouldn't even reveal their products. We weren't hiding anything.
In 2007, the popularity of frozen pet food soared after some of the bigger American pet-food manufacturers issued recalls. Some of their products had been contaminated by melamine, a chemical found in an ingredient many of those companies imported from China. Thousands of dogs and cats died from the tainted food, so consumers sought smaller pet-food vendors that they hoped would have better control over their ingredients. Suddenly we had more competition.

Our sales kept growing, but not as fast as those of our rivals. Retailers told me that consumers who were new to the frozen pet-food category -- crucial customers for sales growth -- were choosing products packaged in opaque bags. Hearing this over the phone from a store employee or from the occasional customer was one thing.
However, when I visited the stores and forced myself to consider my product objectively, I had to agree: The ice crystals undercut the look I wanted. The food didn't appear fresh; it looked as if a blizzard had hit the inside of the bag.
We switched to opaque bags and overhauled our in-plant freezers so that the food would freeze faster, resulting in smaller ice crystals. Customers responded: In 2009 Stella & Chewy's was sold in 2,500 stores across the country. Annual revenues should exceed $5 million this year.

Today we can afford to use consumer focus groups. It's tough to sit behind a one-way mirror and listen to people criticize the brand. "Is this a treat or a meal? Why no pictures of cats on the bag? Why does Stella [one of my dogs] look like a Cyclops on the logo?"

But now I take a deep breath and remember that the critics might just be right.

Prospecting From Your Customer Base

Prospecting From Your Customer Base
Written By : Carleadbest

It's easier to keep a customer you have than to get a new one. However, many salesperson get so caught up in the 'excitement of the chase' - the pursuit of new clients - that they forget about the client base they already have.You want to do more than just keep your current clients-you want to expend the amount of business you're doing with them.

It take work to keep any relationship going and growing.You can't depend on your product to keep your customers loyal.Currently, there's so much product parity that if you want to keep the competitive edge, you've got to provide the one thing your customers can't get from anyone else-personalized service.Your present customers can be the best source of future business. Here are some suggestions for prospecting from your customer base:

1.Make personal contact a priority.

Keep your best customers on speed dial so that you can call them when you have a free moment to say hello.This serves as a constant reminder of who your key contacts are and that you should keep in touch. With the press of one button, you can call to say hello, find out what's new with their business and see if there's any way you can be of further service.

2.Keep your customers in mind

If you see an article in a newspaper or magazine that might be of interest to them, send it to them. It could be some relevent industry news ( theirs or yours), or it could be something related to a sport or hobby that interests them.

3. Follow your MAP

Use your MAP ( Management Account Profile)board to keep track of customers' buying cycles. Then send out mailings to them every three, six or 12 months ( or whatever their cycle is ) announcing a new product or development, or to find out if there's any way you can be of service

4. Implement customer satisfaction surveys.

Many customers who have a minor complaints will never say anything about them , they just won't buy from you again. If you ask them for their opinion, however, they'll be glad to give you the chance to solve the problem. Call your customers and ask,"Is there anything we're not doing we should be doing?" Or, every few months, send current customers a one page survey about how you and your product or service are performing. The survey has two function: It give you a chance to correct any problems and it can be used as a selling tool for prospective clients. A positive survey from a satisfied customer reassures a prospect that he, too, can expect satisfaction.

5. Build a reputation as a problem solver

Problems are opportunities. Research conducted by the United States Office of Consumer affairs showed that of consumers who complaint and receive a satisfactory response, 70% out of them become the company's most loyal customers. If you should receive a compalint, go beyond the customer's expectations in solving the problem.

6. Learn about your customer's business and think of way to help their business grow.

Help your customers in any way you can, whether or not it has anything to do with sales. You might run into someone who could benefit from your customer's product or service. You might be in position to help get your customer some publicity or have some promotion ideas. Whatever you can do to help your customer's business will help yours as well.

7. Remember that customers buy from people they like, trust and respect.

- Like: A customer doesn't necessarily want to become your friend but she does want to feel comfortable with you.She has to feel a connection with you.She want to know that you are being yourself and that you can listen and respond to her needs.

- Trust: The basis for all sales relationships, especially those that entail ongoing and long-term sales cycles, is trust. TRUST is an acronym for the critical elements of a strong relationship:

Truth:Be totally honest
Reliability: Never promise something you can't deliver
Uncommon effort: Go the extra step to earn the business
Service: Superv service builds trust
Truth:Openness and honesty, start to finish.

-Respect:Customers will respect you when you are knowledgeable about your product or service and when you're prepared and professional on your calls. But they'll respect you even more when you take the time to learn their business and their needs and show your commitment to helping them achieve their goals.

Create a Successful Business Plan in 30 days

Create a Successful Business Plan in 30 days
Written by Janis Pettit

It’s time to make business goals. How much time have you scheduled in for planning this year? If you want a successful business, you have to plan!

The reason many small and solo business owners don’t plan is because they are caught up in an endless list of daily tasks that keep them running. By the end of the day you may find yourself too tired to do the creative thinking and brainstorming necessary for successful planning. So what you need to do is reserve thirty minutes or more first thing in the morning when you are refreshed and not stressed where you can think clearly and when great ideas can bubble to the surface. Do this for just 30 days.

Go ahead and schedule that time right now. Go ahead. Because if you don’t you’ll read this and then go back to doing things the way you have always done them. It’s human nature.

It wasn’t until I really grasped the crucial nature of planning for a successful business that my business growth exploded. Since then, in my work as a small business coach, I’ve walked hundreds of small and solo business owners through this process and it really can be fun and exciting. So how do you get started?

You need to create a Business Design that is based around your long term goals, your lifestyle and around creating both active and passive income streams so you’re not stuck just selling time for dollars. You got into business to live a certain lifestyle and you need to consider that when planning. A Business Design will take you through several important steps that will end up being a repeatable system that you can implement over and over in your business.

1) First you need to determine where there is an obvious need in the marketplace, within the scope of your talents, skills, passion and knowledge that you can fill. Where are there people searching for the solution to a problem you can solve, who are willing and able to pay for that solution? Don’t make the frustrating mistake of creating a product or offering a service because you think people want it. Go find out what they want first by doing some basic online research.

2) Once you’ve identified an obvious need or growing trend within your area of expertise, you’ll need to develop a series of sequential or related products and services that can address that need and that group of people over time. I call this the Product Funnel. If you get a client, you don’t want to lose them after a single sale, do you? So you need to plan out a natural sequence of products that you could sell over time to that customer.

3) Next you’ll need to figure out how you will lead people from one product to the next. One way might be to offer levels, like beginner, intermediate and advanced. You could have a basic version of a product and a fully loaded version. You could create a product or service that addresses sub niches within a bigger niche. For example, people that need to learn about marketing their business need knowledge in many areas: how to create a great website, traffic generation, how to use e-mail marketing, how to use social media, and how to write good sales copy. So how can you logically move buyers from one purchase to the next in a way that will increase the value you give them and the loyalty they have for you and your business.

4) Figure out the “plumbing”. What marketing materials will you need? What new web pages will you need? Will you need to add new autoresponder lists and write new e-mails for new leads? Do you need any programming done? What about photos, graphics or videos? Make a list of what you’ll need to support each product in your funnel.

5) Decide on a Marketing Design. Pick 3 primary marketing activities you will relentlessly focus on implementing to drive leads to your business and generate online traffic. Obviously working on your webpages and following an online lead generation system is crucial. You may also include search engine optimization or pay per click ads with Google or Yahoo. Don’t forget to focus on active marketing offline as well. Pick marketing that allows you to connect directly with your leads, through speaking, networking or phone sales.

6) Finally, map out a schedule for next year, or at least for the first 6 months:

•Decide exactly which marketing activities you’ll do each week and month.
•Decide when you’ll launch new products and when you will need to start marketing your new product.
•Schedule tele-classes, webinars, speaking engagements—whatever you can plan in advance.
•Schedule in your vacation times so you know when not to plan business activities.
•Add any regular activities to your schedule.
In one month, with just 30 minutes a day, you can complete this task. I cannot tell you the feeling of elation when you see your business plan there, on your calendar, in black and white. The energy, focus and clear goals that it creates are so motivating. And the successful business that will be the result is the real reward.

So the next time you’re tempted to skip the planning, think of what you really deserve to achieve and how you’ll get there so much faster by planning.

Eight keys to successful prospecting

Eight keys to successful prospecting
By Carleadbest


Johnny Appleseed had the right idea. Everywhere he went, he scattered apple seeds all around him. He knew that some seeds would take root and grow, bur many would not. Yet that didn't discourage him. In fact, it gave him incentive to sow more apple seeds, knowing that more would take root and eventually the whole country would enjoy the fruits of his labor.

Prospecting is based on the Johnny Appleseed principle. If you are prospecting all the time, you chances of reaping rewards are greater. There are eight keys to successful prospecting:

1. Always be prospecting

Plant so many seeds that you don't have to worry about each individual sale. You have much more confident when you know that if one sale falls through, another will sprout in its place. Constant prospecting gives you the experience needed to gain confident.

2. Qualify your prospecting activity.

Target key customers who have the greatest ability to buy your product or service.

3. Build relationship.

Treat prospects as if they are already your best customers.

4. Understand that rejection comes with the territory

Nobody likes rejection, but there is one basic truth in selling: If you are not getting a lot of rejections, you are not working hard enough.

5. Learn from your mistakes.

You're bound to make some along the way- ask yourself what you can do differently next time.

6. Believe 100% in your product or service.

If you believe that your product or service can help people solve their problems and make their lives a little easier, then you'll want to be out there selling all the time.

7. Keep an organized list of who to call.

Use research, networking and referrels to increase your chances of success.

8. Don't be afraid to move on.

Make sure you're not wasting your time with people who are stalling or leading you on. If you have enough other activity, you don't need 'going -nowhere" accounts.

Successful selling is not nine to five job. Top sales people are prospecting all the time. The more you put in your sales career, the more you get out of it.

The marketing system that guarantees success, Pt. 1

The marketing system that guarantees success, Pt. 1

By Annette Bau
Managing Member and Founder, MillionDollarMarketingPractices.com
Featured Expert: Sales and Marketing Strategies


My entire life has been dedicated to studying and interviewing successful people. I have interviewed hundreds of multi-millionaires to get inside their head and learn what they do differently to achieve amazing levels of success. Not surprising are the differences that separate an average producer and a top producer, or a millionaire and a non-millionaire. While subtle, these differences are clearly critical to reaching the ranks of the upper echelon in business and life.

From my 20+ years of researching successful people, I define success as a person who achieves a balanced life consisting of wealth, health, happiness and peace of mind. While most people who want to remain seated would not sit on a four-legged chair that was missing a leg, you shouldn't focus on wealth at the cost of failed relationships or health. In studying people who have long-term success in their business and balanced lives, the importance of a solid foundation quickly becomes clear -- which includes a plan and a clear vision.

Step 1: Decide

The first step is to decide what you want. When are you at your best? What motivates and inspires you? Take time to clearly see your future. Once you are clear on your ideal future, then create both a visualization board and a visualization book. This is a collage of pictures that motivate and inspire you. Each morning when you rise and each evening when you retire, review your book. Put your board where you can see it during the day.

Step 2: Write out your mission

The next step is to write out your mission statement. It should be clear, easy to understand and you want to memorize it. For example, MillionDollarMarketingPractices.com's mission statement is: "We are a consulting and coaching firm that provides solutions and strategies to help advisors grow their business and increase their income while creating a wonderful life."

Sun Microsystems mission is "To solve complex networking computing problems for government enterprises and service providers."

The key is to clearly and concisely identify your desired outcome.

Step 3: Write affirmative goals

The next step is to write out goals in every area of your life, including your career, finances, family, relationships, health, spirituality and community. The most effective goals are positive, present-tense.

Examples:
o I earn $500,000 per year working with 100 non-traditional affluent women.
o I weigh 125 pounds, work out for 30 minutes four times per week and eat lean protein, fresh vegetables and complex carbohydrates.

Step 4: Create HVFDAs for each goal

A successful life is a balance between your affirmative goals and actions. I recommend that you identify two actions, which I refer to as high-value fixed daily activities (HVFDAs), for each goal. These are actions you must do consistently on a daily basis to achieve your goals.

For example, sample HVFDAs for the first affirmative goal above could include:

o I complete one community feeder workshop each week.
o I prospect and make calls each day from 10-2.

Putting it all together

It's important that your goals, affirmations, HVFDAs, and objectives resonate with you and motivate you. If you have a tendency to procrastinate, or find it hard to remember or find time to set goals, I encourage you to create a daily checklist.

Once you have created a foundation, determined what you want, written out your goals and HFVDAs you are ready to choose a niche market.

Top producers who also have a balanced life understand the power of identifying and serving a niche market. Creating a target market is critical to becoming a rainmaker, because it allows you to streamline your business, become a specialist, and increase your value to prospects and clients.

I recommend no more than two niche markets, but you need to determine what works for you. No matter how many you go for, I think it's a good idea to become successful in one niche market before expanding into another.

So how do you pick a niche market?

The first step in determining the best niche market for you is to determine with whom you are compatible. When you work with clients whose values and personality profiles complement your own, work becomes fun, clients feel more like friends, and success comes with greater ease.

The four main personality profiles I use to classify people are:

Doers get to the bottom line and make decisions quickly.

With doers, it's essential to stick to the basics and keep it simple. Because time and results are so important, they need to get to the bottom line as quickly as possible. Ask them about their morning ritual and they'll sum it up in one or two sentences. Examples include most businessowners, executives, and non-traditional affluent women. Expressives and other doers tend to work well with clients who are doers. Amiables can work well with doers, if they learn to not take the doers responses personally.

Expressives are talkative and outgoing extroverts.

They know everyone and everything that's going on. They need you to listen and ask them questions, but don't leave the questions too open-ended or they'll just keep on talking. Examples of expressives include salespeople of all types. Amiables can work well with clients who are expressives.

An amiable's goal is to be your friend.

They value relationships, harmony, and connecting, and will avoid confrontation at any cost. Amiables will tell you something you what to hear in order to avoid a confrontation. Examples include traditional women and caregivers such as nurses, social workers, and teachers. Doers tend to work well with amiables, who are often married to doers. Just be sure they get to talk on their own, without pressure from a domineering spouse. I would say something like, "It's important to me as an advisor to take turns with each of you answering the questions, so I really understand how you both feel."

Analytics are technicians who enjoy all the details.

They're perfectionists and value being right -- which they often are. To work with this personality type, you need to provide plenty of data and release your need to be right. Analytics may have trouble making decisions or coming to conclusions. They can also be viewed as difficult or boring, unless you're as analytical as they are. Examples include scientists, engineers, CPAs, architects, and researchers. Analytics tend to work well with analytics.

Obviously, these personalities exist along a continuum, and often you'll have to make allowances for specific clients. But knowing basic personality types -- and knowing how they mesh with your own personality profile -- can help you find work that's as enjoyable as it is profitable.

Now you want to list your clients (from most favorite to least favorite) and then determine their personality profile.

So let's say, for example, that you decide you're best suited to work with doers. The next step is to take the time to research groups and associations where doers congregate. Once you have a list put together, call and find out if these associations allow affiliate memberships for people who are not CEOs, entrepreneurs, etc.

Once you have determined the niche market you want to work with, the next step is to learn how to serve them successfully... guaranteed!

Market Research on a Budget

Market Research on a Budget

Research is the study of groups of people that you would like to sell your products or services to. Spending time to do Market Research minimizes risk and often improves your chances of success.

Researching your target market can provide you with sound and objective data. The problem is that market research can be extremely expensive. So how can you do the research if you are on a tight budget? Low-cost market research is not impossible, let me show you how.

First off, let's consider the things we need to look for when conducting our market research. Your target market should have at least four common characteristics. They are:

1. My target market has a particular need.
2. My target market has enough money to purchase my products or services.
3. My target market has decision making power.
4. My target market has access to my products and services.

In order to determine these characteristics you must spend time researching and asking yourself the following questions:

• My customers have a particular need. What is that need?
• My customers have enough money to buy what I am selling. Who needs and can afford what you are offering?
• My customers have decision making power. Who has the authority to say yes to what I'm offering?
• My customers have access to my products and services. How accessible are my products or services to my target market?

Where Should You Begin Your Market Research?

First Resource: Secondary Research

The best place to start looking for secondary research is online. Visit association web sites that are aligned with your industry. If you are in the consumer industry, visit the government agencies because you will find all kinds of consumer information on their sites. A great resource that you won't want to miss is the U.S. Census Bureau. Keep in mind that secondary research is not done for you, so some of the information and answers may not be applicable to you. Whoever it was that commissioned the study had their own questions that they wanted to get answered. The information you will find might be in the ballpark but not on first base.

Second Resource: Your Customers

Put together a questionnaire and have your employees ask prospects, customers, vendors, and suppliers to complete it. A couple of questions you could ask are:

• Do you like our products or services?
• What are we doing right?
• What could we improve?/This method of research also works very well when visiting trade shows. Take a walk around the hall and spend time listening to people's conversations and ask questions. Spending time doing this helps you gain insight to what your competitors are doing.

This method of research also works very well when visiting trade shows. Take a walk around the hall and spend time listening to people's conversations and ask questions. Spending time doing this helps you gain insight to what your competitors are doing.

You can also conduct:

1. Open-ended interviews with your customers.
2. Surveys
3. Focus Groups

Third Resource: Comparable Markets

Look for other comparable markets and share the expense of a study. Remember you want to do this with comparable markets but not competitors. For example, if you are a copywriter, find a company that does print advertising. Once you find someone, sit down and decide what information would be beneficial to the both of you and hire someone to do the study.

Author : Laura Lake
Source : marketing.about.com

Selling 101-Part 4- Overcoming Buying Objections

Selling 101
Overcoming Buying Objections

At the top of this article, you assembled a list detailing each of your product's benefits. That was the fun part. Now you have to look at the other side. What objections might you face in a sales call? Salespeople are like baseball players: Generally, their failures at the plate outnumber their successes. But like good hitters, salespeople raise their average by examining their failures and adjusting the next time they come to bat. Always ask yourself why a particular sale didn't happen. What kinds of remarks have you heard from prospective buyers that kept them from going with your product? These are the objections you weren't able to overcome in your sales effort.

You should be able to put together a list of the six to 10 most common objections that pop up during sales presentations. When you have that list, write down your best responses to each of those objections. Some responses may involve several different elements. Some objections may be hard to respond to in a positive way. You've just got to do your best in formulating your answers.

For instance, if the objection is that a piece of equipment is too slow, maybe you can focus attention on other strong points that more than make up for this: perhaps less downtime, lower error rate, greater ease of operation and therefore less training required, and so on. Until you come up with an adequate response, that objection will continue to kill sales.

Once you've developed your list of responses, you must be ready to use them on the spot. You can't call prospects back in four days to tell them, "You know, I was thinking about that bad reaction you had to the high failure rate of our pumps, and I think you're overemphasizing its importance." You have to have all that sales ammunition with you in the room when you're making the presentation.

Never forget that your job is not just selling the equipment or service. In the minds of the prospective buyers, you're the company, and they're judging the company by your performance. Respond smoothly to an objection, and they'll be impressed with your professionalism (and that of your company). But if you get flustered by an objection, or leave without giving an adequate response, you will create the opposite impression.

If you see the same couple of objections arising time and time again, make the smart move: Eliminate that objection before it arises. Build a preemptive strike against that objection right into the core of your presentation, so your prospects won't be distracted by the thought of an apparent weakness in your product or service. As you're able to refine your presentation based on experience, you'll be able to eliminate a good percentage of the common objections you run into. Only then will your sales effort really begin to take off.

Getting to the Dotted Line

Getting someone to say yes is not always easy. And, as anyone with any sales experience knows, everything can be cordial and positive during the presentation. But once it's time for a decision, once someone has to write a check, things can turn dark.

If you see some reluctance to say yes, get involved in helping them make the decision. An effective way to wrap the sale up--without appearing overly aggressive--is to recap why you're there, the need that the company recognizes, and how your product satisfies that need in all its aspects. If you've done your homework well and made a skilled and informative presentation, you should have left them right at the door of making the decision. Respectfully ask them what's keeping them from making the decision right now: Are there senior people who have to approve the decision? Do they have to evaluate a competitor who's yet to present? Is there something about your product/service that they're unsure of? By the process of elimination, you should be able to trim away the possible reasons for delay.

Of course, many business decisions based on a presentation take some time. More often than not, you simply can't force the decision while you're there. If you're told that's the case, learn when you can expect a decision. Then tell them that you're looking forward to the possibility of working with them, and immediately send them a recap of your presentation with some new material--whatever you can pull together to show that your desire to provide them service is still on your mind.
Some salespeople have had success unlocking a sale with the direct question: "Do you want to purchase this service?" Follow it with silence, and let the prospect take over the conversation.

If you sense a negative decision in the making, suggest that you'll send them a recap of the meeting with your final best offer in a day or two. This will buy you some time to come up with a "Plan B."

Finally, let's assume for a moment that you don't make the sale. Your immediate course of action should be to call your contact, acknowledge the inevitable, and then ask if he or she can help you understand why the contract went to another company. This provides you with a real learning opportunity, in many ways more valuable than (although not, unfortunately, as financially rewarding as) winning the sale. Make it clear you're not disputing the decision or trying gamely to alter it. Mention how you put some work into the presentation, and you'd appreciate the chance to use your loss to improve the way you make the next presentation. Was it price? Was it product issues? Was it a superior presentation by a competitor? Probe to get specifics, which you should write up in a call report for later analysis. If you learn why people don't buy, then take steps to remedy either your presentation or the product itself.

If you do get the contract, your job is just starting in two ways. First, you've got to make arrangements to have the product or service actually delivered. Second, you now have a relationship to tend, new people to learn about and perhaps a new application in which to test your product or service. Congratulations.

Fill Out a Call Report

All salespeople hate to fill out call reports. They often feel they are being checked up on, that no one back at the office has to know the details of how the meeting went. Even sole proprietors hate call reports, and they have no one to report to. There's just something so archival and so seemingly unproductive about them.

In fact, call reports are prime marketing ore for future efforts. Think for a moment of the value you can glean from 200 call reports of recent sales presentations:

• Which companies have been approached, when and by whom
• What products they were exposed to
• Who attended the sales meeting--and who is responsible for purchasing your product
• Why they did or didn't decide on your company (assuming your salesperson followed up properly on a negative decision)
What can you do with this market intelligence?
• Study the successes to see what types of companies you're having better luck with. You can then intensify your efforts to make presentations to more of those companies.
• Study the failures to see what you can do to make your product more appealing to those types of companies. With good, concrete follow-up, you can--over time--enhance your product and alter your presentations for greater success.
• Use the unsuccessful presentations as a source for possible future sales activities. If you lost the ABC account pitch because your trucking firm didn't have enough experienced drivers, you can repitch the account when you get a little bigger.
• You know the people who hold key purchasing authority for your product. Keep them on a low-level direct-mail effort, to keep them informed of what's happening at your company.

Selling 101-Part 3 - B-to-B

Selling 101
B-to-B: Giving an Effective Sales Presentation

Business-to-business sales usually involves giving a prearranged presentation, whether in person or on paper, of your product or service. This differs from retail sales to the general public, which is usually spontaneous and immediate.

In business-to-business environments, the selling and buying process is often not simple. Many times you'll never meet the person who will ultimately use your product, the person who'll authorize the purchase of your product, or the person who signs the check. If you're dealing directly with the buyer, consider yourself fortunate. You have to convince only one person of your product's suitability and of its superiority over competing products. If you've pulled together your product benefits properly, if you're talking to a buyer in a market that genuinely needs your product, and if you've positioned yourself appropriately against the competition, you should be in good shape.

However, you may be presenting a proposal to a selection committee of a large corporation. Several of the people present may have competing agendas you don't know about, or you may discover after making your pitch that no one in the room has the authority to say yes. You may be speaking to a purchasing agent who makes the decision based on agreed-upon objective criteria. In that case, all you can do is prepare the best proposal you can, all the while focusing on making the description of your product and your company match as closely as possible the demands of the proposal request.

Despite these difficulties, the bottom line is the same: Personal sales makes commerce happen. And if you are the one making the sales pitch--or if you supervise those who do--fine-tuning your presentation techniques can pump up your bottom line. If you have a meeting with a company, you know that, at the very least, you're being taken seriously and that you have a reasonable chance of coming away with the order. So what should you do? Here's a handful of tips from the experts.

Get informed: know the buyer. Are you presenting to a company that can conceivably use or afford your product or service? Just as a real estate agent must qualify prospects, so salespeople must maximize their time by prequalifying potential clients and eliminating those that don't have the financial resources, that have proved themselves bad credit risks, that have a business that doesn't match up well with the strengths of your product and so on. Focus on prospective buyers whom you have a reasonable chance of winning...and who are worth winning.

Then, once you're at the stage where you're making an oral or written presentation, ask yourself whether the person you're presenting to has the ability to say yes. If the person doesn't, you may be better off trying to work around that person and presenting to someone who can give you the go-ahead. Once you've set up a serious meeting with customers who have purchasing authority, ask your contact who's going to be there and what their stake in the decision is. Get your hands on an organizational chart so you have a feel for the hierarchy. What are the people in the meeting likely to be most interested in? For instance, if the finance person is there, direct your comments on financial payback and return on investment to him or her.

We're talking business politics here, but that doesn't surprise you, does it? You've got to scope out the terrain of the sales battle before you can give it your best shot, and you'll have more success in the major meetings--with significant dollars on the line--when you understand the situation you're confronting.

In addition to knowing whom you are presenting to, give some thought to why you are presenting. What is the company looking for? What is the current situation that's driving their request for your presentation? Is there anyone else who works with you in your office who might have an insight into this company and why they are having you make a presentation? Are you presenting along with other potential suppliers, or is it you or nothing? Are there other noncompetitive suppliers who might give you some information on what's happening inside your target company? If you are able to ask clarifying questions before the actual presentation (this is common in governmental work), don't miss the opportunity to come up with some questions to ask...just to establish a working relationship.

If presenting is something you do several times a week, you may not need to do much research or rehearsing. Let's face it, after a few months of presentations, you'll have your pitch down pat, and you'll have a good feel for the terrain of most sales situations.

Rehearse your pitch. If presentations are not something you do regularly, then you need to rehearse what you're going to say and how you're going to say it. Work with someone in the office, a good friend or your spouse to smooth out the flow of information and make yourself as concise as possible.

Most of us have been in presentations when the presenter was out of touch with his or her audience, rambling on long after any audience interest had left the room in despair. Think in bullet points and headlines. You want the attendees to come out of your presentation with just a handful of clear benefit statements about your product. Don't drown your competitive advantages in a lot of chatter about your company, your history or your golf game.

If you use equipment to make your presentation (flip charts, computer printouts, PowerPoint on a laptop), bulletproof your equipment and carry spares of essential parts like disks, bulbs and power cords. People tend to understand when you have a little technical trouble, but they do expect you to fix it. They're hiring you because of the resourcefulness of you and your products, right?

Get some sleep and eat your Wheaties. No matter how tireless your personality type, you've got to be your best when you're on stage. That means being well-rested, well-fed and relaxed. Get a good night's sleep beforehand, and eat breakfast. Get any materials prepared in advance, and proofread them carefully. Get near the presentation site early, relax with a cup of coffee or juice, and review your notes and your plan of action.

Once the meeting begins, you're expected to be the focus of attention. When people listen to a presentation, they're in a "receptive" mode--they expect to be informed and even entertained. You have to deliver the goods with style and high spirits. You're the driver...make this vehicle go where you want it to. Don't come out of the meeting wondering if you were too low-key.

Sell the benefits, not the features. We've been talking benefits for a while, and now's the time to put them to work. Key your entire presentation on the need your product satisfies, not on your superior technology, not on your well-trained staff, not on your wonderful reputation. What's in it for the people in the room? How will their company come out ahead if they choose to do business with you? What existing problem is this company wrestling with? This should lead your presentation. Your product is the answer.

Also, don't forget that the people you're presenting to also have a personal involvement in the sale. If they hire you or buy your product, will it be a feather in their cap? If they're at risk for choosing you over a better-known competitor, how can you reduce their exposure--extend a warranty, offer additional case histories, provide documentation to pass up the chain of command? Fine-tune your presentation to appeal to the individuals in the room as well as to the company they represent.

Invite a dialogue. When you start your presentation, outline how you plan to organize the meeting--and make sure your audience understands that they have a role beyond merely listening. You expect them to ask any questions they have, raise any objections they feel, outline special applications they may have for your product, and explain how they'd like the product integrated into their operation. By inviting and encouraging their participation, you enlist their help in figuring out all the ways your product or service can benefit them.

Be prepared for any objections. Sales objections give salespeople, especially new ones, the greatest difficulty. You're really rolling in your pitch. You think you're definitely receiving good vibes from the right side of the table. You're well ahead of schedule for your allotted presentation time. Then the mild-mannered fellow in the camel-hair suit scrapes his chair, raises his hand and with fixed eye says: "I just don't see how this will work for us. The specs seem in the ballpark, but you're a new company, unproven, and this piece of equipment is too important to us. We've got to go with a proven provider, even if we give away a bit in capacity. It's just too risky."

The smoke from the explosion clears. Maybe some of the other people at the table climb on board and reveal similar feelings. Maybe you draw some sympathy. Maybe the meeting freezes, with no one set on how to proceed.
If you can't handle high-inside-fastball objections, you're never going to be successful selling. The sales experts counsel a calm approach:

• Hear the objection out. Don't interrupt. Don't cut it short. Focus your attention on what's being said, taking some notes (without cutting eye contact for more than a brief period) so you capture all the details.

• Don't panic. People who object are at least taking you seriously. When you get in a presentation where everyone smiles at everything you are saying, you're in trouble. When people object, they're looking for more information, or they want you to clarify their perception of your product or service. You should be prepared for every objection with a killer response.

• Find something in the objection to validate. No matter whether it is well-founded or ridiculous, the objection must be taken seriously. You want to credit the questioner for mounting the objection. Acknowledge that you're a new and essentially unproven company, for example. In fact, you'd have the exact same objections if you were sitting where they are. If you need a few moments to gather your thoughts, respond to the objection with a clarifying question: "What kind of experience have you had with your existing equipment regarding downtime?" or "What's a doomsday scenario in your production? Let me see if I can address it." This technique will also help you zero in on the true nature of the objection.

• You've already developed a script with answers to every objection, right? Now's the time to pull that script up to the top of your mind and satisfy the objection-raiser. Go through it calmly, getting your inquirer's assent at every step of the way. When you're done addressing the objection, make sure the individual feels comfortable with how you handled it.

Talk money and ask for the business. You shouldn't end the meeting without addressing directly the issue of cost and terms. Some presenters hate to talk money, preferring to dance around the subject while focusing on the product and its benefits. I don't think that's effective. People want to know price, regardless of how little importance you try to attach to it. If your product is more expensive than the competition, make it a point to explain why, emphasizing the greater value the prospective customer will get from your product. If your product is less expensive than the competition, you should hammer away on that benefit, emphasizing how you're able to deliver top quality without charging a high price. Don't apologize for your price, either high or low.

Finally, you have to ask for the business. How does the sale happen? You can make the order form a part of your presentation kit and ask them to fill it out then and there. You can ask about which particular model they want to order. You can inquire as to which delivery timeline they're working with. Make what's called the "presumptive close," by which you presume you've been successful and are simply making arrangements for delivery. This can push some buyers over the edge into making an immediate decision.

Selling 101 - Part 2 -What's Your USP

Selling 101
What's Your USP?

When you market your product, you must not only appeal to the customer (and to each type of customer separately), but you must distinguish yourself from the competition. In fact, most products that compete directly against each other share many of the same benefits. No brand of ice cream tastes "unpleasant." No infrared spectrometer talks about its "inaccuracy." All the products in a given category are likely to make a large number of similar benefits claims. So why would a customer choose one over another? There can be many reasons, of course, especially convenience (it's right in front of them). But often it's the USP, the unique selling proposition. It's the compelling benefit that shouts...no one else is like me!

What's unique about your product? What makes it stand out from the competition? What gives the customer a good and irresistible reason to select your product rather than those other fine products? If you're making ice cream, you can't base your whole appeal to the customer by simply saying "it tastes better"--unless you have some credible objective documentation that this is so. Perhaps you can claim your ingredients are uniquely fresh, or that the ice cream is handmade in some particular way, which makes it taste "better" or at least different than other ice creams. Look at Ben & Jerry's: They don't just market their ice cream; they market the structure of the company itself and its commitment to making charitable donations. This helps give them a unique profile in a crowded market.

Many companies base their selling pitch on what's unique about them. For years, Ivory Soap based all its advertising on its claim of being 99 44/ 100 percent pure...so pure it floats! Domino's and its two-for-the-price-of-one pizzas. The unique Volkswagen look, which, thinking small again, has returned.

Once you've established your product's range of benefits and distinguished it from the competition, can you sum all this up in one phrase or brief sentence? Such as "When it absolutely, positively has to be there overnight," "Nothing runs like a Deere," "Better living through chemistry" or "Legendary engineering"?
If you can, then you are ready to take your case to the public. It's time to persuade them to buy.

Selling to the Public: The Four Pillars of Marketing

An old marketing adage says that nothing happens until someone buys something--in short, sales drive every aspect of business. In every company, the salespeople are the front-line troops. In the rough-and-tumble of the marketplace, the slickest manufacturing processes, the shrewdest marketing, the brightest corporate reputations won't make the sale without the face-to-face (at least usually) meeting of seller and buyer.

This is personal selling, and it's the most important and direct aspect of the marketing process, but it is not the only way you appeal to the public and persuade them to buy. While marketing in the large sense involves every aspect of your company, the sales side of marketing is made up primarily of these four aspects:

• Personal selling is face-to-face salesmanship, when you have the prospect in front of you. It includes retail sales, much professional service selling and a healthy percentage of business-to-business sales.

• Advertising is paying for media space or time in which to sell your product at a distance.

• Promotion is a short-term activity, directed at either the distributor or the purchaser, to boost sales for a limited time through special pricing or other offers. Of course, you hope the short-term increase also leads to an incremental gain. It can include advertising and personal selling.

• Public relations is the unpaid (but, alas, not cost-free) marketing effort you undertake to expose your product to potential customers and other interested parties through the press, trade media and special media-related events.

Personal selling, advertising and most promotion efforts are direct activities: In a straightforward manner, you're saying "Buy me!" Public relations is the soft sell, in which you take a visible role in the community and increase the public's general awareness of you.

Selling 101 - Part 1

Selling 101

Don't let the sales process intimidate you. This thorough how-to will teach you how to focus on benefits, develop a USP, and deliver a killer sales presentation.
By Jack Ferrari

Editor's note: This article was excerpted from Successful Sales & Marketing.

OK, so you love your product. You have been around this market for a while, and--quite honestly--you have never seen a product so useful, so inexpensive, so long-lived and so visually attractive. Unfortunately, you are suffering from a condition that affects many businesspeople. Its principal symptom is a blinding lack of objectivity. If left untreated, it can result in the disappearance of entire businesses...company, staff and product, which fade till they become mere ghosts in the annals of business history.

Your customers remain proudly self-centered. They don't appreciate the glories of your product's reputation, the immense practicality of its design or the cleverness of its name. No, they're focused on their personal need. Maybe it's a car that's leaking oil. Or a child's sweater that needs mending. Or a bookkeeping system gone haywire. Or an old coffee pot that's died and gone to Colombia. What do they want? A solution to their problem, not a product. They want to be able to drive without dripping oil; they want something to keep their child warm; and they want an accurate financial report and a cup of java. You've got to present your product as the satisfaction to the need--the scratch to their itch. That, they can buy.

Features Vs. Benefits: The Key to Marketing

In the marketing "Hall of Big Ideas," the distinction between product features and benefits sits on a raised marble pedestal in the center room under a ring of spotlights. This distinction separates marketers and everyone else in the business world just as sharply as the Berlin Wall divided Berlin into East and West. Many entrepreneurs talk about their product in terms of its features: its capacity, color, strength, durability and other technical capabilities. Marketers (that's you) are different. They speak of the product, often as dramatically as possible, in terms of how it will benefit the customer. They describe the need the product will immediately fulfill, offering a vision of the wonderfully satisfied customer living his or her suddenly carefree life. Marketers make a living by wish fulfillment (or sometimes, so I've heard, by just the appearance of wish fulfillment).

Some companies think "benefit talk" is beneath them: "That's for retail types," they say. High-tech businesses, generally selling to technically sophisticated customers, sometimes feel a full-voiced recitation of cutting-edge product features is enough to make the sale. Not so. Every person responds most immediately to what they understand most easily--in this case, what the benefits of the features are. If you spell out the benefits to technical people, they don't have to calculate them themselves. Why make them work? You don't have to talk in baby talk. But be as obvious as you can. State your key competitive advantages as clearly as possible.
Some service businesses are also reluctant to think in terms of benefits--to their eventual calamity. Manufacturers at least have the physical product to talk about. Service providers don't, and they sometimes feel a deep-seated discomfort with the airy nature of what they offer. They often create esoteric jargon to glorify their "product" and make it appear more mysterious and complicated than it is

There's nothing wrong with this, except that when the jargon becomes too murky, it obscures the genuine value. As long as the jargon is benefit-oriented, no one suffers.

Benefits are the satisfaction of a need or desire. Let's take the example of a coffeemaker and study the difference between features and benefits.

What you're doing is translating from a very accurate product description to the words your customer wants to hear. You're quite literally translating from one language to another. A parched Parisian won't respond to "Want some water?" but you'll get his or her attention with "Voulez-vous de l'eau?" It's the same thing when you market a product: Customers may see you talking, but they won't become interested in what you're saying until you speak their language.

Study your product or service with this in mind, and then train your entire organization to appreciate the sometimes subtle difference in perception. The hydraulics engineer will boast of how many gallons of water a western dam holds, but regional residents will only focus on self-serving goodies like cheaper water, more electricity, fewer floods and more opportunities to take the boat out for a spin. Whenever you list a product's benefits, you're answering the age-old question: "What's in it for me?"

Once you master this distinction, you are halfway to becoming a marketing guru.

Compiling a Key Benefit Inventory

What are your products' key benefits? You must first develop an exhaustive list of every feature for each of your products. Grill your product people until you've got everything. Now sit down with your sales manager (of course, this might be just you and a legal pad) and translate, one by one, each feature into a very short benefit statement. Some may not translate. If one isn't "benefitable" after reasonable effort, just cross it off. But experience shows that 90 percent of product features can deliver benefits to some market.

Does each benefit apply equally to every market for a product? Lightweight all-weather jackets might pack an enormous appeal to a serious backpacker, but brilliant colors might clinch the sale to suburban teens. Categorize the benefits by the markets they appeal to most powerfully. Then rank them by importance within each market.

Once you have solidified this listing for each product by market, you have created the most powerful tool your sales force can carry. In every customer contact, your salespeople should deliver the full key benefit message. This works for retail sales just as well as business-to-business. Each carefully crafted benefit will appeal to various clients unequally--that's life. Price may mean everything to one customer, while availability might be the deal-breaker to another. You often can't know which issue might be driving a customer's decision. That's why it's critical to deliver the entire key benefit inventory at every sales opportunity--in sales presentations, in company literature, in displays. If you can't fit them all in (small ad, tight schedule or other reason), use the benefits by rank for the particular market you're addressing.

Key Appeal, Market by Market

Once you have your features translated into benefits, you've got to make sure that you know how important given benefits are to each type of customer. There are some things for which almost all of us are customers: restaurants, clothing, vehicles, watches and so on. Sometimes these items can be mass marketed: The manufacturer can apply the same appeal across a large number of people and be reasonably assured of the results. But more often, you're selling to several different people at once, and you must adjust your product's presentation to appeal to each of these differentiated markets.

Many times, entrepreneurs have trouble understanding that the exact same product has different appeals, depending on the type of customer you are selling to. Small advertising agencies and freelance writers often get instructions when creating a brochure to make it speak to two audiences, such as to both doctor and patient, when promoting a given medical device. Though both doctor and patient are looking for the same final result, their perspectives are unique. You must appeal to them differently, using different language.

Why Serve a Niche Market?

Why Serve a Niche Market?
A jack-of-all-trades is a master of none.
By Afarin Bellisario

Entrepreneurs who see a direct correlation between the size of a target market and the probability of success miss the opportunity to serve healthy niche markets. Niche marketing not only provides startups with an opportunity to launch the business successfully, but can also help them grow into major players in a larger market. Healthy, profitable businesses such as Traulsen, Aman Resorts, Zamboni and Peet's Coffee and Tea all serve thriving niches.

Niche players share a common set of traits. These include a deep understanding of their customers and their customers' needs and the ability to stay engaged with those customers. Ideal niche market companies should consistently produce quality, innovative products and possess a genuine regard for the well-being of their employees. Serving a niche allows companies to focus on meeting the needs of a smaller group of customers without compromising their chance to increase the appeal to a broader market.

Look at some successful niche players--some that have gone on to become household names--to see how they achieved, and continue to achieve, success.

A Specific Interest

The iron is one of the oldest and most common household items. It's a commodity product that generally retails for less than $30. That makes the prospect of successfully selling irons priced from $900 to $2,500 farfetched, if not outright ridiculous. Nevertheless, that's exactly what Laurastar has done since 1980, selling more than 2 million really high-end irons to households in 40 countries. Switzerland-based Laurastar serves a seemingly small market niche of people who share one interest--pressing their clothing professionally at home. While forgoing a large market in favor of smaller one may not sound logical to venture capitalists, Laurastar has proved that serving a smaller subsegment of the market with special needs can be profitable and sustainable.

In some cases, niche players concentrate on serving a combination of subsegments of a market with similar interests or lifestyles. Aman Resorts doesn't target just sophisticated, wealthier travelers. Aman Resorts' niche market has a lust for faraway places, an interest in cultural authenticity and a desire for environmental friendliness. The company, which operates properties in Asia, Europe and U.S., has done away with the over-the-top pretentions associated with other luxury brands (think marble reception areas) in favor of small, distinct establishments. Each property is designed to be in harmony with its surroundings and the prevailing local architecture.

Similarly, Peet's Coffee prides itself on serving coffee devotees, or "Peetnicks," people who appreciate great-tasting coffee or tea from many places around the world. The company emphasizes smaller batches, freshness, superior beans and a darker roasting style that produces coffees with greater richness and complexity.
Facing Competition?--Innovate

Niche businesses are not immune to competition, especially from larger market players with substantial resources and economies of scale. So in the face of competition, how should you respond? Successful niche businesses will respond with innovation and higher-quality products, rather than cost-cutting measures.
When larger competitors threatened Laurastar, the company responded by hiring a team of high-caliber engineers to create the world’s smartest iron. The new home pressing system is lighter, easy to handle and features sensors which produce steam automatically with a slight movement of the wrist as the iron is pushed forward; it stops immediately when the iron is halted or moved backward--eliminating the need to press a button to activate the steam. An active board and blower systems also assist with pressing the garment as soon as the iron moves. The combination reduces ironing time by half and saves energy.

Take Care of Employees

Another common trait of successful niche businesses is good human resource policies and labor relations. These companies have realized that offering superior service and products requires hiring, training and retaining superior employees. Niche businesses normally pay higher wages than the industry average and offer generous benefits. Most also enjoy much higher retention rates than their industries average.
A substantial group of niche businesses are family-oriented or family-run. For example, many of the employees at Traulsen and Zamboni are from second and third-generation families.

Peet's uses an operating strategy common among niche players--it does not franchise. The corporation operates all of its stores, this isn't just for quality control, it's to maintain high employee standards. The company offers extensive employee training, a health care plan and other benefits even to part-time workers. Aman Resorts publically attributes its success to its staff; everyone from cleaners to cooks and bus boys.

Growth Options

Once the niche market is saturated, opportunities for growth can come from a number of sources. One option is global expansion. After reaching 25 percent penetration in Swiss markets, Laurastar decided its next level of growth would come from selling abroad. Some niche businesses, such as Patagonia, grow naturally as their offerings and brand appeal to larger markets. Patagonia was originally established to outfit serious outdoor enthusiasts, but today its products have a large following among hip urban youths.

Some venture capitalists are reluctant to invest in niche businesses; this makes it difficult for entrepreneurs to fund their growth through that avenue, so growth sometimes comes from partnerships with larger firms. A by-product of this is many niche-market companies are eventually acquired by those larger companies. Traulsen, for example, was acquired by Illinois Tool Works after merging with Hobart, another food preparation equipment vendor. Sometimes the new corporate governance doesn't work. Take Nantucket Nectar; first it was sold to Ocean Spray and then to Cadbury Schweppes, only to be sold back to its founders.

The bottom line is that despite some difficulties--securing funding and managing growth-- many entrepreneurs who are focused on niche markets find it incredibly profitable and fulfilling. The keys to success are to stay in touch with your customers, understand their needs and keep a laser-sharp focus on serving those needs with a commitment to continuous innovation.

Dr. Bellisario is the founder and principal of TranStrategy, a Boston-based consulting firm that specializes in the commercialization of technology. She's a mentor with MIT’s Venture Mentoring Service as well as a catalyst for the Deshpande Center at MIT. Dr. Bellisario can be reached at afarin@transtrategy.com.

Market With Meaning

Market With Meaning
By Rosalind Resnick



When Rob Kaufelt bought Murrays Cheese in 1991, the Greenwich Village cheese shop was a mom-and-pop hole-in-the-wall known mostly to the locals.

Today, Murrays Cheese is a thriving emporium that not only sells gourmet cheeses and meats but offers everything from hands-on classes and online tutorials to catering, a cheese cave and freshly made grilled cheese sandwiches. With eye-popping sales of $2,500 per square foot, Murrays has grown by 15 percent to 20 percent a year at its Bleecker Street store, added two locations in New Yorks bustling Grand Central Terminal and just inked a deal with a national chain to open mini-stores in supermarkets across the country.

Murrays has also become a well-known tourist destination where visitors from around the world can come to get a taste of what New York City is all about. The store was named New Yorks Best Cheese Shop by The Village Voice and has been featured on MSN Money and Today, as well as in The New York Times and Martha Stewart Living.

So just how much did it cost Kaufelt to turn his mom-and-pop cheese shop into a national brand?

"Our advertising budget has been zero point zero zero since the day I bought the company," says Kaufelt, who grew up in his familys supermarket business in New Jersey. "Its like my grandfather always said, 'Here,taste!'"

Adding Value

Like Murrays Cheese, companies of all kinds--from retailers to restaurants--are discovering that it's no longer enough to blast out marketing pitches touting the virtues of your company's products and services. You need to create a marketing campaign that entertains, educates and adds value to your customers' lives.

Whether that means doling out mouthwatering samples from behind the counter, creating interactive games to play on the web or offering online courses that teach people how to make their own pasta, todays marketers need to deliver more than slick sales pitches and rock-bottom prices--or risk getting left in the dust.

"Do you know what makes people say 'wow'?" asks marketing guru Seth Godin, author ofPurple Cow, the best-selling book about how companies can transform themselves by becoming remarkable. "Connection, meaning, humanity, things that change them in some way. No one is impressed by your features or even your price. What we talk about is art, generosity, and products and services that make a difference."

Sounds like a pretty tall order--especially for a startup or small business. Funny videos and interactive games may be great marketing tools for Fortune 1000 companies with seven-figure advertising budgets, but how can SMB owners create the same kind of impact as Nike and Burger King?

"Actually, one of the greatest viral videos of all time was created by a small business," says Bob Gilbreath, author of The Next Evolution in Marketing: Connect with Your Customers by Marketing With Meaning and Chief Marketing Strategist atBridge Worldwide, one of the nation's largest digital advertising agencies and part of WPP.

According to Gilbreath, Blendtec was a little-known, 186-employee player in the high-end home blender category until its new marketing director, George Wright, walked past the company lab and saw piles of sawdust on the floor. Once Wright discovered that the R&D manager regularly tested blenders with lumber, he decided to share his discovery with the world. The first of what would become a series of videos called Will it Blend? was shot and posted on YouTube for $50. "That first video received 6 million views in its first week," Gilbreath says, "and Blendtec went on to see sales rise 43 percent over the next year."

How can your business achieve similar results? In his book, Gilbreath proposes a Hierarchy of Meaningful Marketing that consists of the following three levels (loosely based on Maslow's hierarchy of needs):

1. Solution marketing: Free offers, cash savings and loyalty rewards that offer customers real solutions to their problems. "A free sample is a no-cost way for customers to experience your product or service," Gilbreath says. "'Free' tends to make people feel compelled to like your product, and usually the cost is very low."

2. Connection marketing: Online videos, interactive games and social networking that connect customers with the brand. "Entrepreneurs already know their customers well and have a right to earn a place on their 'friend' lists," Gilbreath says. Examples: One deli announces the daily specials to office workers at 11 a.m. when they are beginning to think about where to go, while a pet boarding service uses Facebook to share updates and pictures with pet owners while they are away.

3. Achievement marketing: Online courses, free seminars and cause-related marketing that let customers actualize their potential as human beings. "When done in a way that clearly links to your business and is something your customers care about, cause marketing can significantly drive your sales," Gilbreath says. "For example, Amy Adam, a real estate agent in Cincinnati, donates a percentage of her house closing fees to the charity of her customers' choice." Much of her new business is attributable to her campaign. Besides strong post-sale satisfaction levels, "She's [gotten] specific comments from customers who like the idea and have never heard of something like it before," he says.

Proof is In the Results

Whats the ROI for marketing with meaning? Ask Tara-Nicholle Nelson, an Oakland, Calif., real estate broker and founder and Chief Visionary of {RE}Think Real Estate. Nelson projects the $75,000 she invested in positioning herself as an expert--empowering women to buy their own homes--to yield $1 million in brokerage commissions, speaking engagements, content licensing deals and other revenue by 2010.

Her marketing campaign included a targeted book, website and PR efforts coordinated to position Nelson as the Dear Abby of women-owned real estate--helping female homebuyers overcome their fears and find solutions to their real estate problems. "I can track about $250,000 in revenues directly back to the book and the original campaign," Nelson says. "The fact that no commission or compensation [is] riding on my answer is a major credibility point."

B2Bmarketers can use marketing with meaning to jumpstart their sales efforts, too. Elyissia Wassung, CEO of 2 Chicks With Chocolate in Matawan, N.J., has made sampling the centerpiece of her sales pitch to corporate clients. By letting customers taste, "they get a clearer understanding of the actual product itself," Wassung says. "Textures, flavors, the experience of it dissolving in their mouths--it changes their participation level completely. Suddenly, they're personally involved and asking questions whereas before it was more of a polite response."

Thats why, when it comes to marketing to todays customers, its not enough to win a share of their wallet. Youve got to win their hearts, minds and, sometimes, their taste buds, too.

Says Kaufelt of Murrays Cheese: "When you walk into our store, we want you to walk out with an experience whether you buy something or not."

How to Answer the Toughest Sales Question

How to Answer the Toughest Sales Question
By Charles H. Green

It was a moment most salespeople could appreciate. On April 13, 2004, President George W. Bush held a press conference at which he was asked, "What would you say your biggest mistakes have been and what have you learned from them?"
The question left the President a bit tongue-tied and he finally left the question up to historians to decide.

I'm confident Bush knew the features and benefits, so to speak, of his presidency by rote. He likely had answers for a wide variety of specific questions that could be asked. But when faced with a large, open-ended question, he froze. A seemingly simple question became the toughest.

If I asked, "Which sales question would you say is the toughest one to answer?" Different people may have different candidates, but I suspect we'd all rate this one pretty high: "Why should we buy from you?"

It is this large, open-ended query that generally produces a poor answer.
Most of us end up fumbling through some rehashed version of our elevator speech, or website, or brochure. Those answers often end up sounding hollow and canned.
And no wonder! The question itself is a setup. The customer doesn't always mean it as a setup--but it is nonetheless.

Here's why. The question almost certainly demands an answer based on you--your services, your product, your business. But any answer that's all about you is simply not going to fly. People buy for their own particular reasons--not yours.

And yet, you probably can't give a customer-based answer either. This isn't a question that comes up after a long relationship, this is a question for the courtship, and at that stage the truth is you honestly don't know enough about the customer to give a credible answer.

So there you are, set up like a bowling pin; precluded from giving a good answer, just waiting to get knocked down. Is there no hope?

Yes, there is hope, and it's very simple. Tell the truth.

The truth is, only a deeply customer-based answer is going to work, and you don't know the customer well enough to know what that answer is. So that question needs reframing. Here's what it might sound like.

Customer: So, tell us this. Why should we buy from you?

You: Honestly, it would be arrogant of me at this point to say why you should buy from us. I'm not even sure you should buy from us, much less why.

What I can tell you right now is why certain people buy from us, and why certain people don't buy from us. I can also give you an idea of why others buy from our competitors, and why some don't.

That's not bluster. Some customers put a great deal of emphasis on flexibility, others value clarity of contracts. I don't know which you value more. And that's just one small component; I'd be happy to list the issues we need to talk about in order to learn who you should buy from.

Nobody is better than everyone else across every single dimension--including us. So it's critical we talk about your various needs to determine who your best supplier is. If we sit down and talk honestly about what's important to you, together we'll learn whether my company is your the best supplier.

So let's get to work. Let's start working to figure out who you should buy from.
Some salespeople will applaud this example and some may deride the answer. But clients will find the thorough and honest examination refreshing.

Charles H. Green is the founder of Trusted Advisor Associates and a speaker and executive educator on the role of trust in professional services. He's taught executive education programs at Kellogg and Columbia Business Schools. Author of Trust-Based Selling, and co-author of The Trusted Advisor, Charles has written for the Harvard Business Review, American Lawyer and the CPA Journal. He blogs at http://www.trustedadvisor.com/blog.

Get to Know Your Competition

Get to Know Your Competition
By JK Harris



Business is war and the competition is the enemy--right? Wrong. Though competition is a fundamental aspect of being in business, savvy entrepreneurs know that viewing competitors exclusively as adversaries is shortsighted and potentially damaging. A better strategy is to build alliances with your competitors and let them help you become better and stronger. Here's how:

Know who your competitors are. This sounds basic, but it's a mistake many business owners and salespeople make. If you have a retail store, your competitors are obviously other retailers who sell similar merchandise (both online and brick-and-mortar). But that's not all. You're also competing with the businesses that are meeting the needs of your customers with products and services you don't offer and haven't thought about offering, and the businesses that might make your products obsolete. You need to know who all your competitors are--not just the obvious ones, but the ones flying under the radar as well.

Find out everything you can about the competition. Don't get blindsided; pay attention to anything your competitors do. Set up intelligence files for each competitor. Look for articles about them in trade journals, newspapers and magazines. Study their websites. Use programs likeGoogle Alertsto track what's said about them online. If possible and practical, shop them secretly on a regular basis to observe their operations firsthand.

Develop relationships with your competitors. Once you've researched your competitors, reach out to them. Join industry and business networking associations so and get to know the people who own and work for competing companies as individuals. You never know where those relationships might lead.

Be prepared to cooperate and collaborate when necessary. If something is going to have a strongly positive or negative impact on your industry, reach out to your competitors so you can join forces and take appropriate action. For example, you may want to unite to oppose or endorse pending legislation that could affect your companies.

Depending on your particular business, you may also find that competitors can serve as backup resources. For example, you might get an order that's too big for you to fill alone. If you have excellent, reciprocal relationships in place, you might be able to outsource part of the work to a competitor. Or if a competitor suffers a disaster of some sort that prevents that company from serving its customers, you can step in and help out. Not only is that good business; it's also the right thing to do.

Let your competitors make you better. When a competitor is beating you, do your best to figure out why--but don't use that as an excuse to accept defeat. Once you understand what your rival is doing that the market prefers, figure out what you could change to make you even more attractive than the competition. Don't simply copy everything your competitors do; take their best ideas, test them for effectiveness and improve on them.

Resist the urge to compete on price. It's tempting to cut prices to gain market share, but it's a strategy that doesn't work in the long run. There will always be a cheaper product, trying to undercut every competitor is a race to the bottom. Instead, focus on providing greater value.

• If you're not convinced holding firm on price is the way to goconsider the arguments of "Get Past the 'Budget' Roadblock."

Be prepared for the competition to play dirty. Fair competition is great; It forces everyone to give it his or her best. But all competitors don't play fair. There are always people who think that the best way to build their company up is by tearing others down or cheating in some way. When that happens, a fitting action in response is necessary. Don't delay legal action if it's appropriate.

The internet is a common place to find competitors pulling dirty tricks. Monitor what's said about you online and have a proactive online reputation-management plan in place in case you become the target of an internet attack.

• Keep your brand and reputation under control with,"Are you Losing Control of Your Brand Online?"

Competition is a natural part of being in business in a capitalist economy. You must be vigilant if you are to maintain and grow your market share, so let that work to your advantage. Your best competitive tactic comes from Sun Tzu, a Chinese general and military strategist from around 400 B.C. Tzu said, "Keep your friends close and your enemies closer"--and if you happen to turn an enemy into a friend, all the better.

JK Harris is the founder of Flashpoints Consulting, LLC and ofJK Harris & Company, the nation's largest tax resolution firm. He's the author ofFlashpoint: Seven Core Strategies for Rapid-Fire Business Growth, available April 2010 fromEntrepreneur Press. Harris is a popular speakerand a successful business consultant advising mid to large-sized businesses around the world. For a free subscription to Flashpoints newsletter, plus a free copy of JK Harris' e-book, The Mindset of High Achievers, visittheflashpoints.com.