If sales began to fall or the company is significantly behind on this indicator from competitors, it's time to find out the reasons and to develop an effective positioning strategy in the market.
The first thing to do is to understand the key factors affecting the choice of goods by consumers. So, according to a study by The Forum Group, the high price of product causes buyers to abandon the purchase only in 15% of cases. The main reasons lie in the service offer - poor service (45%) and insufficient attention paid by managers to the client (20%). That is why on the market you can often find companies offering products at a reasonable price, while the sale of one of them, much higher than the competitor.
Thus, lowering the price does not guarantee sales growth. There are also many cases when the company sells a similar product even more expensive (for example, shampoo or toothpaste), and, thus, more effectively compared to competitors. This is due to the fact that she was competently able to identify the needs of customers and correctly positioning its product in the market.
Based on the analysis of consumers, draw conclusions as You can to increase the value of the goods for buyers. Convey to the consumer what additional benefits he will receive when purchasing the product. For example, by pointing to the unique functionality of products.
It is also important to understand which service factors are relevant to Your customers. For example, You can sell cars more expensive, but offer with free set of additional options apart from the competition. Or increase the warranty period from one to two years.
Assessment of competitiveness of goods is also based on a study of buyers.
The product satisfies the customer needs, it should meet certain parameters:
technical (product properties, scope of application and purpose);
- ergonomic and aesthetic;
- regulatory (compliance of the product with current regulations and standards);
- economic (level of prices for goods, service).
Based on the analysis of competitiveness it is necessary to develop measures on maintenance of necessary level of competitiveness of production. For example, to change the packaging of the product, or to increase the ease of use.
Causes of the ineffectiveness of sales in its most General form can be reduced to the low competitiveness of the product itself or a high enough level of service relative to other market participants. Therefore, after you determine the needs of buyers, it's time to analyze the activities of competitors:
- assess their strengths and weaknesses (market share, loyalty of customers etc.);
become their client and see the company from inside.
Determine based on the analysis of own market position and weaknesses and try to be "one step ahead" of competitors.
To win in the competition, the most important thing is to understand the needs of their clients
The first thing to do is to understand the key factors affecting the choice of goods by consumers. So, according to a study by The Forum Group, the high price of product causes buyers to abandon the purchase only in 15% of cases. The main reasons lie in the service offer - poor service (45%) and insufficient attention paid by managers to the client (20%). That is why on the market you can often find companies offering products at a reasonable price, while the sale of one of them, much higher than the competitor.
Thus, lowering the price does not guarantee sales growth. There are also many cases when the company sells a similar product even more expensive (for example, shampoo or toothpaste), and, thus, more effectively compared to competitors. This is due to the fact that she was competently able to identify the needs of customers and correctly positioning its product in the market.
Based on the analysis of consumers, draw conclusions as You can to increase the value of the goods for buyers. Convey to the consumer what additional benefits he will receive when purchasing the product. For example, by pointing to the unique functionality of products.
Define your key competitive advantage and summarize it within a USP (unique selling proposition). It should be the leitmotif of your marketing efforts.
It is also important to understand which service factors are relevant to Your customers. For example, You can sell cars more expensive, but offer with free set of additional options apart from the competition. Or increase the warranty period from one to two years.
Rate the competitive position of the product
Assessment of competitiveness of goods is also based on a study of buyers.
Problems of analysis of competitiveness of the goods not only in assessment but also in the forecast of competitiveness of production, as well as studying the factors that affect it.
The product satisfies the customer needs, it should meet certain parameters:
technical (product properties, scope of application and purpose);
- ergonomic and aesthetic;
- regulatory (compliance of the product with current regulations and standards);
- economic (level of prices for goods, service).
Based on the analysis of competitiveness it is necessary to develop measures on maintenance of necessary level of competitiveness of production. For example, to change the packaging of the product, or to increase the ease of use.
Analyze the activities of competitors
Causes of the ineffectiveness of sales in its most General form can be reduced to the low competitiveness of the product itself or a high enough level of service relative to other market participants. Therefore, after you determine the needs of buyers, it's time to analyze the activities of competitors:
- assess their strengths and weaknesses (market share, loyalty of customers etc.);
become their client and see the company from inside.
Determine based on the analysis of own market position and weaknesses and try to be "one step ahead" of competitors.