How To Successfully Position Yourself In The Marketplace
Published by Natalie December 12th, 2006 in Practice Builder Reports.
Tags: adr practice reports.
By Natalie J. Armstrong,
www.MarketingMediation.com
“To be successful, you must not follow strategies that your top competitor is pursuing; if you try to be someone else, the best you can be is second best.”
–Sun Tzu, The Art of War
Traditionally, strategy involves broad decisions about who you want to appeal to, how you will position yourself, and so on. Tactics are specific ways of implementing strategy. That is the most important strategic decision you can make about your marketing.
The growth of mediation and arbitration has changed the process of choosing a provider. Consumers have much more knowledge about ADR processes and the kinds of providers they want. It is usual for sources of referral to provide prospects just one name. It’s not uncommon for parties and counsel to shop around for a provider.
This is when a clear positioning statement can differentiate your practice.
Al Ries and Jack Trout in their book ‘Positioning’ suggest that in order to create a positioning strategy you need to answer their six simple questions. These questions are easy to ask, tough to answer and may require a bit a soul-searching and courage.
What position do you own? Positioning is thinking is reverse. Instead of starting with your self, you start with
- The mind of the prospects.
- What position do you want to own?
- Whom must you outgun?
- Do you have enough money?
- Can you stick it out?
- Do you match you position?
Let me tell you the story of a service provider who found more success than he could imagine simply by repositioning himself. A family friend here in Los Angeles has been a structural engineer for more than 30 years.
He worked and struggled in this very competitive industry to build himself a small but profitable firm. He had several assistants and draftsmen. And in this modern era of computer-aided engineering, he has remained true to his art and provides his clients detailed, delicate, hand-rendered specifications. Although his skills and talents are
vast and great, he was loathe to charge more than his competitors for fear of losing the business he had so carefully cultivated. One night at a dinner party he was lamenting that although his firm had grown, his personal profit had remained nearly the same, and in fact, he was spending even more time away from his family since he not only had more jobs but also many more staff to manage. He was considering closing his firm and taking an early retirement. Well, my father (from whom I have learned most of my negotiation skills) made a simple suggestion that moved this hard-working man and his practice into the top 1% of his field.
His suggestion was this: Let go of your draftsmen and assistants.
My father advised, Next time a potential client calls your office, let them know that your calendar is booked, you have more work than you can handle, but that for a rush fee you might be able to consider their project. Now, since our friend would be letting go his staff, the statement wasn’t a falsehood.
He next suggested that the price for a set of drawings should be raised raised to a level of the top 10% of fee schedules in our area. His reasoning is that people expect to get what they pay for. If you charge a minimum fee, folks assume they will get a minimum service (i.e. if you charge a competitive fee, they assume they will get a competitive service.)
Our friend more than doubled his prices and let go his staff and high overhead. He asked his wife to help him in his newly obtained two-room office. She was instructed to let potential clients know that he was already overbooked, but as a personal favor to them, she would ask her husband to consider their project (at a much greater fee, of course). She is an artist in her own right when it comes to creating a sense of urgency and demand for her husband’s drawings.
Within the first year of their transition, our friends had made more money than in the past decade’s history of their now defunct firm. They were finally able to travel internationally and visit their children and grandchildren at their leisure. They have moved out of their tract home in the suburbs and built their dream home in Beverly Hills.
They work less and earn more. They charge more and play more. Our friend and his wife have created a thriving practice simply by establishing the perception that he was the best and most sought after. If you want the best structural engineer in the area (and trust me, in LA, you do) then you pay the price and wait on line.
He truly IS one of the very best, and his fees now reflect his skills. From a marketing standpoint, it’s all about perception. The perception of the general public is that they will get what they pay for. That’s one example of positioning. You can position yourself in ways other than price. Your personal values or the values you imbue your practice with might be appropriate (e.g. peace, empowerment, closure). You can also consider your lifestyle, culture, political philosophies, or religious preferences. Some very important positioning points will be your practice specialty like employment, family, construction, etc. Do you favor facilitative or evaluative (maybe a combination of the two)? Do you practice from an emotional position or a business position? Do have stringent or flexible office hours?
Most marketers will tell you that being first to market is key. Well no big news here that you’re not the first ADR provider. However, you might be able to be a first in your area with your chosen specialty to offer flexible office hours. Again, if you follow in someone’s positioning footsteps, the best you can be is second to market. You might eventually become better known, but why fight an uphill battle.
Differentiate yourself from the competition. The old cliche that you fight fire with fire is silly. You fight fire with water. Take advantage of the position that your direct competition does not. The French have saying that sums this up nicely ‘cherchez le creneau’Â or look for the hole. Look for the hole then fill it.
The Name Game
A key component in positioning is choosing a name for yourself. Since we’ve already determined that you can’t be all things to all people you have to choose a name that summarizes who you are, how you provide your service, or with what belief systems.
A name should be short, easy to say, and easy to spell. Alliteration is a powerful tool in naming (e.g. Mosten Mediation). A name should be positive, active, and show a benefit. How can all of these attributes be put into a name that deals with a negative industry? Just flip the negative around. Instead of naming your company Dispute Specialists try Solution Specialists. Instead of Employment Dispute Resolution try Employment Empowerment. You get the idea dwell on the positive and say what you do.
Many providers who have already solidly established themselves in an industry don’t necessarily need a name. For instance Allan Matt of Matt Construction is highly regarded in the construction industry. At the beginning of his practice if he chooses a name like Construction Conciliation he will in essence be throwing aside the respect and reputation he has spent decades building. A more powerful name for him to use would be Allan Matt Mediation. His prospects will recognize his name and associate his mediation practice with his construction experience.
However, if the folks in your target market aren’t familiar with you don’t fall into the noname trap. Let your business name do the talking.
Natalie J. Armstrong is the Founder and Managing Director of Golden Media, a marketing and consulting firm dedicated to promoting resolution industry. She is the author of The Essential Guide to Marketing Your ADR Practice and speaks internationally on business developement and the successful marketing strategies of the conflict resolution industry. More ADR Practice Development articles and information about Ms. Armstrong and Golden Media can be found at www.MarketingMediation.com.




















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