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Welcome to new subscribers who have downloaded
the study 'Are you paying too
much for your Domain Name?'
The inspiration for my featured article comes
from the repositioning of McDonald’s. From fast food outlet with loud colours
such as yellow and red and straight-back seats bolted to the ground to increase
customer turnover, they intend to change the overall feel of some outlets for a
more subdued colour scheme and comfortable seats. Coffee shops have now an
emerging competitor. Who would have foreseen this move? In my article, we review
the types of competitors and discuss effective web marketing strategies to
counteract those competitive threats.
Hope you enjoy this newsletter.
Henriette
Web competitive strategies
With the Web, existing and emerging competitors come from all directions. The marketplace has expanded from locally to globally (located out of your
country) and also virtually (online presence, no brick-and-mortar premises). But
how do we categorise competitors and compete with them?
Types of competitors
Direct competitors
These competitors provide similar products or services that satisfy the same
buyer needs. These can be:
- Wholesalers that sell directly to the public e.g. manufacturers selling their
own products or authors selling their books.
- Intermediates (distributors and resellers) that retail products and usually
provide customer support.
- Affiliates who do not sell products themselves but make sales commissions when
referring customers to sites selling the products or services.
- Niche product suppliers that wholesale or retail highly targeted products and
have positioned themselves as specialists.
- ‘Solution’ providers who could sell your product as an integral part of their
services e.g. a web designer who include a domain name in their website design
and hosting package.
- Individuals and businesses who sell new or second-hand products on auction
sites e.g. eBay.
Alternative or Substitute Product competitors
These competitors fulfil the same buyer needs but in a different way e.g. people
who want more traffic to their site can choose from advertising with Google,
hiring a Search Engine Optimisation (SEO) consultant or registering multiple
domain names to offer different entry points to their website. Three competitors
provide alternatives to satisfy the same buyer need.
With new technology, competitors introduce products that substitute former
solutions e.g. businesses are embracing email marketing to the detriment of
direct marketing.
Indirect Competitors
These competitors do not satisfy the same buyer need but compete for the
same budget e.g. people can choose to book a holiday rather than buying a new
computer or hire a DVD instead of buying a book. They are competing for the same
pool of money.
Potential customers
These competitors are potential customers who have acquired enough knowledge,
skills and confidence to fulfil their own needs. The Internet has empowered
people to the extent that some services are becoming less popular or redundant
e.g. people can book their own flight without the help of a travel agent or
create their own website with free online tools without the assistance of a web
designer.
Effective competitive strategies start with a deep understanding of your market
and competitors.
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What does my target market really want, need and desire?
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With what potential or existing customers will compare my product or service
with?
Proactive web competitive strategies
- Focus on what you doing well and improve it.
- Identify your competitors’ strengths. Through your documentation, deflect any
possible unfavourable comparison of your product or organisation with
competition e.g. 'We’re not the cheapest but…'
- Don’t assume that people know that your product is unique and your customer
excellent. Educate people on your particular strengths.
- Develop strong relationships with potential and existing customers through
regular email contact e.g. newsletter or reminders. Loyal people are reluctant
to switch their allegiances to newcomers.
- Don’t act desperately. Think twice before reducing prices. Working on a
smaller profit margin could affect vital areas such customer service and
product development. Instead, consider adding value e.g. bonus or guarantee.
- Create original, useful and current content for your website to attract the
attention of people and search engine robots and encourage repeat visits to
your site. It can take 5 to 7 visits before people purchase your product.
- Provide a user-friendly website where people can readily access well-organised
information, complete simple forms and download information. A dysfunctional
website e.g. dead links and pages under construction undermine your
credibility and shy away potential customers.
- Make customer feel that you are easily contactable to answer their queries and
reassure them that in time of crisis you will be there.
- Offer superior online customer support. A substantial knowledge base including
FAQs (Frequently Asked Questions) provides an opportunity to
demonstrate your expert knowledge and understanding of your target market
needs.
- Give positive and optimistic vibes. People are
mainly looking for solutions
with gains and savings. Be their solution provider and saviour.
Nothing will replace a deep understanding of your target market and your
competitors.
Keep abreast of trends and anticipate competitors’ moves. Implement proactive
competitive strategies.
© 2005 Henriette Martel-Lawson
Lessons from
Google Print
Google Print has a new name 'Google Book Search'. The name is more
intuitive and reflects the purpose of their service, that of searching books
online.
Users and publishers reported to Google that the former name, Google Print, was leading
to confusion and could refer to products helping to print web pages.
From this change of name, we can appreciate Google's good business sense:
- They listen to feedback and take action, even when this implies a major
change.
- They appreciate the importance of choosing the right name to attract
qualified visitors.
After all, they want visitors looking for their service rather people
stumbling on their web page who were mislead by keywords.
Time to reflect: will qualified visitors find you based on your name?
Feedback and suggestions
are most welcome. Send to
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