Customers often ask for discounts when they have options or objections. This is especially true when they are considering purchasing a product or service that is also offered by competitors. When there are multiple options available, customers may choose to shop around for the best deal, which can prompt them to request a discount from you.
Furthermore, customers may also raise objections when considering your product or service. If they notice any faults or drawbacks, they may be hesitant to make a purchase unless they receive a discount. In such cases, a discount may be seen as a way to alleviate their concerns and make the purchase more appealing.
In finding, it is important to understand that customers may request a discount for various reasons, and it is up to you as a seller to determine whether or not it is appropriate to grant their request. By acknowledging their concerns and addressing any objections they may have, you may be able to successfully negotiate a fair and mutually beneficial deal.
Eliminate Options and Objections
In order to increase your market share and avoid having to offer discounts, it is important to eliminate any options and objections that customers may have regarding your product or service. This can be achieved by identifying and addressing any objections that customers may have, and taking steps to eliminate them. By doing so, you can establish a monopoly in the market and gain a competitive advantage over your rivals. Therefore, it is crucial to be proactive in identifying and addressing any potential objections, and to take action to eliminate them in order to achieve success in the market. So, take the time to carefully analyze the market and your customers' needs, and make the necessary adjustments to your product or service to eliminate any options and objections that may hinder your progress.
Identity Your Perfect /Target Audience
As an entrepreneur or organizational leader, it is crucial to identify your target audience accurately. One common mistake that many individuals make is attempting to market their products or services to customers who are not within their target audience. It is essential to recognize that every product or service has a specific client base, and a successful entrepreneur/leader is one who can identify them.
To identify your "perfect customers," you can use the NICE analysis, which stands for Needs, Interests, Concerns, and Expectations. By analyzing these factors, you can determine who your ideal customer is and tailor your marketing efforts accordingly.
For instance, let's take the example of Domino's Pizza. Their perfect customer would likely be male or male-identifying individuals between the ages of 7 and 45 years old, with a monthly income between 30K and 1-1.5 L per month. This customer is typically a literate, indecisive, not very ambitious, and casual individual who is unmarried or single and living in a city. This customer also likes to experiment and prefers to eat convenient foods.
To accurately identify your target audience, you must delve deeper into the psychographics and demographics of your customers. You must determine their age bracket, income bracket, gender, marital status, social status, economic background/lifestyle, education, mindset, interests, culture, aspirations, and location. By understanding your ideal customer's characteristics, you can tailor your marketing efforts to meet their specific needs and interests, ultimately increasing your chances of success.
Identity Portfolio of Products/Services
Once you have identified your ideal target market, it is essential to take a closer look at your "portfolio of products and services." This entails determining the range of products and services that you provide to your customers. For example, Domino's product portfolio includes multiple variations of vegetarian and non-vegetarian pizza with a broad selection of crusts and toppings, burger pizza, vegetarian and non-vegetarian tacos, bread dips, various pasta options, and desserts, among others. Similarly, you must also compile a comprehensive list of your products and services.
How Can You Create an Entry Barrier in Your Industry?
If you're looking to establish a dominant position in your industry and achieve a near-monopoly, there are some strategic tips you can follow. One approach is to create an entry barrier that makes it difficult for new competitors to enter the market and challenge your position. This might involve investing in proprietary technology, building a strong brand reputation, or securing exclusive relationships with suppliers or distributors. By effectively locking out new entrants, you can solidify your position as the dominant player in your industry, enjoy higher profits, and maintain a level of market control that is difficult for others to replicate.
Intellectual Property Rights
Intellectual property rights refer to the legal protection granted to individuals or entities over the products of their mental labor. These rights provide the creator with exclusive control over the use, distribution, and reproduction of their intellectual creations for a specified duration. Intellectual property encompasses intangible works of the human intellect, such as literary, artistic, and scientific works, and includes copyrights, patents, and trademarks. For instance, Microsoft is an excellent example of a company that holds multiple intellectual property rights to safeguard its innovative products and services.
Patents and Licensing
When it comes to protecting intellectual property, patents and licensing are crucial. Specifically, a utility patent that is well-crafted and robust provides the owner with the exclusive right to prevent any other party from making, using, or selling the patented invention within the territory covered by the patent. This is especially important in fields such as pharmaceuticals, where a patent can prevent a new company from manufacturing certain medicines until the original company's patent has expired. Ultimately, patents and licensing play a vital role in ensuring that creators and inventors are able to protect their ideas and innovations from unauthorized use or infringement.
When a company has been established in an industry for a considerable amount of time, they have had the opportunity to establish a resilient distribution network. This network comprises of key individuals who are involved in the process of delivering the product to the customer. The company has built a rapport with these individuals and is able to optimize the distribution process for maximum efficiency. A few examples of companies with a robust distribution network include Samsung, Oppo, and Vivo.
In certain industries, incumbents may hold the coveted "exclusive legal rights" to the resources that are essential for the industry. This can put newcomers in a difficult position, as they may find themselves needing to purchase these resources from their very own competitors. A prime example of this phenomenon can be seen in the case of Amazon and Flipkart, both of whom have exclusive rights to sell certain products in the marketplace. This can create a significant disadvantage for any other players who seek to enter the market and compete with these established giants.
Economies of Scale
When it comes to manufacturing a product, producing larger quantities can often result in a reduction of the total cost per unit. This is what's referred to as economies of scale. However, it's important to note that achieving this advantage is not always easy, as it requires a significant initial investment to cover the setup costs associated with large-scale manufacturing. As a result, newer and smaller businesses may find it challenging to break into the market due to this barrier to entry. To put things into perspective, well-known retailers such as Big Bazaar and Walmart have been able to leverage economies of scale to their advantage and dominate the market as a result.
When an organization invests in creating a proprietary technology, they are essentially creating a barrier to entry for competitors who may try to replicate their product. Proprietary technology refers to a product or process that is protected by a patent or other legal means, preventing others from easily replicating it. This approach can be seen in successful examples such as Windows, iTunes, Pringles and many others, where the uniqueness and exclusivity of their technology have helped them maintain a competitive advantage in their respective markets.
In the world of business, brand equity is a highly sought-after attribute that can significantly boost a company's profitability. It denotes the extra value that a product with a well-established and recognizable brand name can command in the marketplace over a generic equivalent. The creation of brand equity is a strategic process that requires careful planning and execution. Companies can achieve this by making their products memorable, easily identifiable, and superior in quality and reliability. Some famous examples of products with strong brand equity include MSeal, a well-known epoxy compound, Fevicol, a popular adhesive, and Dettol, a trusted antiseptic liquid. By building brand equity, companies can differentiate their products from competitors and foster customer loyalty, thereby securing a sustainable market position and sustainable growth.
When consumers start associating a particular product or service with their nation, it can create a significant obstacle for new entrants to the market. This phenomenon is illustrated in the cases of well-known brands such as Qantas and Holden. These companies have established themselves as national symbols, making it difficult for competitors to gain a foothold in the market. The emotional connection between the consumer and their country can be a powerful force in shaping their purchasing decisions and brand loyalty. As a result, companies must carefully consider the impact of national sentiments on their business strategy.
Subscription (Memberships/ Reward Points)
Introducing subscriptions and memberships can serve as an effective entry barrier for businesses looking to increase customer loyalty and repeat business. For instance, Applied Project has become a renowned magazine that specializes in immersive projects and business sales, thanks in part to its successful implementation of such programs. By offering rewards points and exclusive content to subscribers, businesses can foster a sense of community and encourage customers to return for more.
Product Differentiation (Price | Durability | Style | Quality)
Product differentiation is an important strategy businesses use to set themselves apart from competitors. One way to differentiate a product is by focusing on its price, durability, style, or quality. Each of these factors can appeal to different customers for different reasons. For instance, Apple is widely recognized for its high quality products, while Xiaomi is known for offering affordable prices. By emphasizing these traits, businesses can attract customers who value them and gain a competitive advantage in the market.
One of the ways to create an entry barrier in the market is to achieve a level of manufacturing efficiency that is unmatched by competitors. A prime example of this is McDonald's Drive Thru system, which allows customers to place their order and make payment at one counter. By the time they reach the next counter, their order is already prepared and ready to be served. This level of efficiency not only saves time but also ensures customer satisfaction, making it difficult for competitors to match this level of service.
Trade secret refers to a piece of information that is crucial for a company's success but is not known to its competitors. This information could be anything, ranging from a specific process or algorithm to a recipe or formula. A classic example of a trade secret is the Coca-Cola formula, which is a closely guarded recipe for the syrup that is used to make the company's flagship cola soft drink. The bottlers add carbonated water to this syrup to create the final product. Despite numerous attempts by competitors to replicate this formula, the company insists that the original recipe remains a secret, shared only with a select group of employees. The protection of trade secrets is vital for companies that rely on proprietary information to gain a competitive edge in the market.
As we come to a conclusion, it is crucial to consider eliminating the AATNA or BATNA (Best Alternative to Negotiated Agreement) from the equation. In order to achieve this, it is necessary to develop a strategic plan that will set your product/service apart from the competition. This involves brainstorming new ideas and identifying innovative changes that will create an entry barrier and ultimately lead to a monopoly in the market. It is important to approach this task with careful consideration and a focus on long-term success.