DIFFERENTIATION:

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WELCOME
DIFFERENTIATION CREATING YOUR POSITION IN THE
MARKETPLACE Presented by Bruce Hodes, CMI 711
South Boulevard, Suite 10 Oak Park, IL
60302 Phone [phone], (800)
883-7995 Email bhodes_at_cmiteamwork.com Website
www.cmiteamwork.com
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SESSION OBJECTIVES

• To help you think through your differentiation
  and branding strategy
• 2. To teach definitions that will assist you in
  branding and differentiating
• To promote dialogue between participants on
  differentiation and strategy
• To learn, to grow and to give consumers a choice

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GROUND RULES

• This is highly participative
• Its an aerobics class
• Be safe
• Ask a lot of questions
• Be prepared to apply this material
• Use it or lose it
• You can apply this material back at the ranch

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DIFFERENTIATING YOURSELF FROM OTHERS
IS YOUR COMPANY BUILT TO LAST?
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REMEMBER.
A RISING TIDE LIFTS ALL BOATSorIN A TORNADO,
EVEN A TURKEY CAN FLY
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The Economy Has Suddenly Changed
WHAT HAPPENS WHEN THE WIND STOPS BLOWING
OR THE TIDE STOPS RISING?
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What is the HOLY GRAIL in Business?
TO BE THE ONLY GAME IN TOWN, or HOW CAN YOU BE A
BIG FISH IN A SMALL POND?
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SPECIALTY

• Unique product or packaging
• Market perceives clear superiority
• Sales result from having the right product
• Strong margins/profits per unit

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COMMODITY

• Little differentiation
• Substitutability
• Sales result from low price
• Weak margins/profits per unit
• From Simplified Strategic Planning by Robert
  Bradford and J. Peter Duncan

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STRATEGIC COMPETENCIES TEST

• Is it a combination of skill, processes and
  knowledge?
• Does it differentiate the company from the
  competition?
• Does it create strong value for the customer?
• Is it difficult to copy?

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THE NEW WORLD OF COMPETITION
FIVE NEW PREMISES UNDERLIESUCCESSFUL BUSINESS
PRACTICESTODAY Taken from The Discipline of
Market Leaders by Michael Treacy and Fred Wiersema
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SUCCESSFUL BUSINESS PRACTICES
1. Companies can no longer raise prices in
lockstep with higher costs they have to try to
lower costs to accommodate rising customer
expectations. 2. Companies can no longer
assume that good basic service is enough
customers demand premium service - and raise
their standards continuously 3. The internet
and e-commerce have irrevocably altered the game
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SUCCESSFUL BUSINESS PRACTICES
4. Companies can no longer aim for less than
hassle- free service. Their customers enjoy
effortless, flawless, and instantaneous
performance from one industry and want it from
every other. 5. Companies can no longer
compromise on quality and product
capabilities. They must build products to
deliver nothing less than superiority and
eye-popping innovation.
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Discipline of Market Leaders

• The business must have competence and strength in
  these capacities
• Customer intimacy
• Product innovation
• Operational excellence The question that needs
  to be agreed upon is What competency do we
  lead with?

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WHAT IS A BRAND?

• A product is something made in a factory a
  brand is something bought by a customer.
• A product can be copied by a competitor a brand
  is unique.
• A product can be quickly outdated a successful
  brand is timeless.
• Stephen King WWW Group, London

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Strategic Positioning

• Define the market to your advantage
• Identify something distinguishable your customer
  can relate to
• Specific, not generic, descriptors
• How to Build a Brand? By John Kilcullen

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RECAP on EXTERNAL DIFFERENTIATION
YOU CANT BE ALL THINGS TO ALL PEOPLE
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THEREFORE
PICK YOUR NICHE
PICK YOUR CUSTOMERS
CREATE YOUR CULTURE
FOCUS, FOCUS, FOCUS
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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
USE OPEN BOOK MANAGEMENT AS A FOUNDATION FOR THE
BUSINESS
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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
NUMBERS and FINANCES are THE LANGUAGE of
BUSINESS. EVERYONE has to KNOW THE LANGUAGE! YES,
EVERYONE!
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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
OPEN BOOK MANAGEMENT IS SOMETHING WE
CONTINUOUSLY DEVELOP AND ENHANCE. IT IS A PROCESS
AND A WAY THAT WE DO BUSINESS.
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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
Healthy Company Growth is positive Good for
everyone Owners Contractors Employees Consultants

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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
Customers are partners in growth, not
victims. For the owner, growth is about
others. For the others, growth is about education
and development. Your culture helps you
differentiate yourself internally and externally
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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
Eat your own dog food Model the behavior
you want from others
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CREATE AN ORGANIZATION FULL OF BUSINESS PEOPLE
The Company sees itself as a high
performance work team.
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A FEW THINGS WE MAY HAVE MISSED
SUCCESSFUL COMPANIES IN THE LONG TERM HAVE A
FORMAL YEARLY PLANNING PROCESS
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A FEW THINGS WE MAY HAVE MISSED
SUCCESSFUL COMPANIES SEE THEMSELVES AS, AND WORK
TO BE, HIGH PERFORMANCE WORK TEAMS
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Five Steps to Building Customer Focus

• STEP ONE
• Distinguish out the customer
• Its a special relationship
• Customer is not always right, but is always the
  customer

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Five Steps to Building Customer Focus

• STEP TWO
• Distinguish between task behavior
• and service
• Service covers the product
• Service is a differentiation

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Five Steps to Building Customer Focus

• STEP THREE
• Define the service strategy
• How do I make them loyal?

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Five Steps to Building Customer Focus

• STEP FOUR
• Implement service strategy
• If its not implemented, you have done nothing
• Thinking about it gives you zip

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Five Steps to Building Customer Focus

• STEP FIVE
• Build feedback loop
• Voice of the customer needs to be shared
  internalized

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AND A FINAL REVIEW

• Experiment!
• Customer Service strategies need to be planned
• Be flexible
• Try new ideas that will make your organization
  indispensable to the people it serves

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Recommended Books

• Good To Great, by Jim Collins
• The Discipline of Market Leaders, by Michael
  Treacy and Fred Wiersema
• Open Book Management, by John Case

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AND AS YOU LEAVE, REMEMBER
THERE IS VERY LITTLE DIFFERENCE BETWEEN ONE WHO
DOES NOT KNOW, AND ONE WHO DOES NOT USE WHAT ONE
KNOWS
USE THIS STUFF OR YOU WILL LOSE IT!
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THANK YOU!

• For spending your
• morning learning
• Differentiation Creating Your Position in the
  Marketplace!
• If you have any questions,
• please see Bruce!