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Marketing Strategy: How to make a place in already crowded Business?
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Praveen Puri - Strategic Simplicity®, Former CEO, Executive Business Advisor, Increase sales, profits, and market share answered:

It's good to be in a competitive market. Remember that Burger King builds next to McDonalds, because they will get a flow of customers. As my mentor says, "People don't go into McDonalds to browse." That being said, "providing the best quality" isn't enough to differentiate you. These days, people expect a certain level of quality, which is the floor, and they are skeptical that new providers can provide it. Best quality is valuable, because once they become customers and experience your high quality, they will be pleasantly surprised, and so it is valuable for keeping customers and getting repeat purchases. But, it is ineffective for attracting new clients. You need a different point of differentiation. For example, if you can provide a high level of service to a certain sub-group of clients, then you can target them with your marketing. That doesn't mean you have to turn away other customers, but just focus your initial marketing on this group that you can provide differentiated service. Alternatively, instead of better servicing an area, you might have a better process or feature. For example, if you sell ice cream and have flavors or creative sundaes that others don't offer.

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