Finding Your Crack In The MarketHow marketers get it

wrong. . . and right

Why do some small businesses succeed wildly

while others languish or die?• Superior management

• Intelligent owners• Good customer service

• Strong marketing• Hire the best people

•Good understanding of business

The $64,000 Question

Tom Peters – Lessons from America’s best companies “In Search For Excellence”

Jim Collins – Says to get the best people on the bus in “Good To Great.”

Napoleon Hill tells us to “Think and Grow Rich”

Regis McKenna – “Relationship Marketing”

John Maxwell – “Developing the Leader. .”

The Problem with Small Business

Few of the “Excellent” companies remained for Peter’s follow up book

Small business owners can’t afford the best people, and they still do well

I know some successful businesses where the owners really don’t think much

Many successful business owners are poor leaders

Marketing

And… highly successful small businesses seem to defy the experts.

“Give them what they want and they will knock down your door to get it.”

Don Griffith Jr.

What is going on? Small business is not big business

only small• Motivation for small owners is completely

different from large business You only have to be smart/good

enough You must Own your crack in the

market Luck

The Quest Why do small businesses create

wealth for a few (generally) low profile businesses?

What are the characteristics of small business success?

•Education •Intelligence•Exceptional Management•Financing •Perceived Value (Inc. Brand)• Quality• Image• Service • Price

Competency /Competition •Industry Niche•Market, Market Type•Market Leadership•Innovation•Positioning• Emplacement

Who Owns these businesses?

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Where the wealth is. . . the Millionaire Next Door

Largest group are small businessmen Professionals who set up a business Small percentage are corporate

managers Very small percentage are super rich

(actors, athletes etc.)

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Millionaire Next Door Independent Mostly have college degrees, but not particularly

good students (C+ to B-) Most were very social in school, took advantage

of group opportunities Married, wife (spouse) works in business or stays

home, and always supportive Always spend less than they earn, investing the

rest Not status conscious Live in homes way below their means Make kids work for what they want Have a knack for seeing “voids in the market”

that they can fill using their skills or learn to fill.

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Occupy a crack in the market with little competition

Know how to find and serve customers. . .Innovate to differentiate, creating value

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The EvidenceWhy your own

crack is important---PIMS

PIMS - Profit Impact on Marketing Systems

Be in the top 2 or 3 in your marketBe seen as high value

(quality/service)

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PIMS - Market Leadership & Quality

Profit impact of competitive strength Market leadership pays: be number

one or number two in your served market

Competing on quality is better than competing on price

18

PIMS – Reward follows Market Leadership and Quality

Inferior Qual.

Mid Quailty

Superior Qual.L

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Med

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M. S

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Hig

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10152025303540

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PIMS Principals Review

Seek to be in top 3 market share in your crack in the market.

Strive to be perceived as high quality and service.

(Perception is reality in marketing) Buyers make decisions based on

perceived value.

How do you become a leader in your existing market?

Re-define the market

Narrow the focus Look for a smaller crack where you

can be first

Marketing PositioningMarketing Emplacement

Define your niche

General IndustryGeographicSpecializationSpecification and StickinessDistribution ControlReferral and SymbioticRelationshipAuthenticity

Define your niche

•General Industry•Geographic•Specialization•Specification and Stickiness•Distribution Control•Referral and Symbiotic•Relationship•Authenticity

•General Industry

•Geographic

•Specialization

•Distribution Control

•Specification and Stickiness

• Relationship

A micro-niche- Crack In The Market

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Perceived Value

Components of Value

1. Quality2. Service3. Price4. Image/aesthetics

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Burgess Value Diamond

0

20

40

60

80

100

Quality

Low Price

Image

Service

YOU

Competitor 1

Competitor 2

Wealth Creating Sm. Businesses

Owner(education, motivation,

business degree)

Exceptional Management

Market Leadership

Innovation

ValueHighly Niched

Own Their Crack

In The Market

No marketing / well emplaced

Heavy selling, promotion and marketing

Leads to new cracks in the market

Marketing Emplacement

What Marketers Do Wrong With Small

Businesses• Don’t understand why small business

succeeds

• Can’t communicate the importance of

the Crack to owners.

• We like the activity of campaign battle

• We don’t like strategy

What Marketers Do Right With Small Businesses

• Think Niche, Learn Crack• Learn why and how small businesses succeed, beyond the hype• Understand as much as you Do- Plan first execute second• Recognize that “skills” don’t equal wisdom

Owner - Financially Conservative and Values

Creating Better Value

Selection of Niche Market PIMS

Market Leadership

Business Wealth Building

Company Competencies

Building Blocks of Small Business Success

Where is your company? What are your strategies to move to

the well?

Questions

@ronburgess

Linkedin.com/in/ronburgess

www.FindingYourCrack.com