How Small Companies Are Dominating Big Competitors
Dr. Jonathan Bein, President — Real Results Marketing
• competitive strategy • profit analytics • WayPoint Analytics • marketing practices • business model • customer segmentation • efficiency metrics • Randy MacLean • distributor sales analytics • market share • Real Results Marketing • Dr. Jonathan Bein • business strategy • explain market segmentation • effective market segmentation • segmentation methodology • managing profit • gross profit vs NBC
Thursday, February 06, 2020—The gigantic, dominant companies in the market have clear, obvious advantages over smaller companies. However, the small companies, the "billion and below" have secret weapons up their sleeve, which in many cases they aren't using.
Often times small companies will talk about themselves and act like the big companies. "They're successful, so we should emulate them, right?"
That may have been true in the past when all companies had to go on was their gross margin, but now that deeper analytics are so accessible for all, there are better ways to approach the situation.
A key factor to remember when approaching from this new angle is that your goal is to gain profit, not market share. Market share can bring profits with it, but not always. At some times, a focus too heavy on that can be absolutely paralyzing. Either way, the ultimate goal must be profitability.
It's very easy to get a basket case customer nobody wants, but it's a real challenge to get the super-performing customer that makes money for whoever supplies them. The strength of small companies is their ability to focus in on the cream of the crop, the extra-profitable niches of the market. This leads to efficiency and profitability that simply can't be achieved when focusing on market share.
For more information about Dr. Jonathan Bein, visit: www.realresultsmarketing.com