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The Middle Is Murder. Dominate a Niche

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The Middle Is Murder. Dominate a Niche The middle is murder. Dominate a niche. Christopher P. Ramey [email protected] Domotex USA 561.876.8077 March 1, 2019 Atlanta, Georgia USA Marketing is “the science and art of exploring, creating, and delivering value to satisfy the needs of a target market at a profit. Anonymity is a bad idea. It pinpoints which segments the company is capable of serving best and it designs and promotes the appropriate products and services.” Dr. Philip Kotler On November 7, 1665, the first issue of the Oxford Gazette came off the press, authorized by King Charles II to tell the privileged classes what he wanted them to know. He had it printed 60 miles west of London in an effort to escape the Great Plague that was killing so many residents of that city, and inaugural issue contained the government’s “Bill of Mortality” listing the epidemic’s latest victims. Television was the perfect mass marketing channel. Change occurred at warp speed . Newspapers . Radio Stations . Television stations . Internet websites The expansion of commercial television stations reflects the fragmentation of viewers. Then, the internet exploded. “It would be ridiculous to ignore the speed and possibilities of the digital landscape.” Anna Wintour Fashion Guru It’s extremely expensive to compete effectively in the mass market. It’s too fragmented. Worse, the cost of marketing is increasing while the ROI on any given medium is diminishing. Everything you learned pre 2010 is a trap. Your website is your flagship. Household Income 2017 US Census Bureau 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Under $15,000 $25,000 $35,000 $50,000 $75,000 $100,000 $150,000 $200,000 $15,000 to to to to to to to and over $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 Household Income 2017 US Census Bureau 18.0 65% 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Under $15,000 $25,000 $35,000 $50,000 $75,000 $100,000 $150,000 $200,000 $15,000 to to to to to to to and over $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 The pressure to find new customers by moving to the middle is immense. But, suicidal. Household Income 2017 US Census Bureau 18.0 73% 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Under $15,000 $25,000 $35,000 $50,000 $75,000 $100,000 $150,000 $200,000 $15,000 to to to to to to to and over $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 Marketing is a battle of perceptions and ideas, not services/products; it is the process of dealing with those perceptions. The essence of marketing is narrowing the focus. Existing on referrals or word of mouth means you’ve handed-over your most important responsibility; your means for growth and future profitability to somebody else. A CONFUSED MIND BUYS NOTHING AND/OR DEFAULTS TO PRICE. Customers define you by every touchpoint, including your graphics, website, address, accents, your associations, where they find you, your apparel, showroom, displays, brands you carry, etc. No touchpoint is left unjudged. You lose if there’s a disconnect. How’s the middle working out for brands in other categories? “You Don’t Need to Sell Online, but You Must Compete Online.” Pam Danziger Author Unity Marketing Retail-rescue.net Household Income 2017 US Census Bureau 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Under $15,000 $25,000 $35,000 $50,000 $75,000 $100,000 $150,000 $200,000 $15,000 to to to to to to to and over $24,999 $34,999 $49,999 $74,999 $99,999 $149,999 $199,999 The litmus test If you ran an ad that didn’t have your brand in it, could it be anybody’s ad? A CONFUSED MIND BUYS NOTHING AND/OR DEFAULTS TO PRICE. Something happened that’s more insidious than the ineffectiveness of mass media. People stopped buying and behaving like they were supposed to buy and behave. They became the niche. For example, consider two British gentlemen born in 1948, wealthy, married with children. Historically, they behaved and bought alike. No focus means no future. Differentiate your brand and own a niche. “Minds don’t change.” Jack Trout Author, Marketing Guru Create a sustainable floor covering firm by owning a niche Market place realities: . Too much noise (7500 ad impressions each day) . Less trust in businesses and institutions . Very limited brand awareness . The internet is a bullhorn for misinformation and agendas . The mind does not cope well with overload . Values matter more than price. People want to see a difference to justify what their heart tells them. If there’s a disconnect then you’re, in their mind, lying to them. Flooring is diminishing in importance as it’s not a passion product, brands have limited awareness, and it’s not bought often. WE ARE ‘BOTTOM OF MIND’ CATEGORY. The moral of the story: The Middle is Murder . Hyper-competitive . Marketplace is too fragmented . People buy from those who match values – not product value . Marketing ROI is hideous . You’re one of many. The greatest opportunities are with niche markets My Way by Paul Anka RecordedTwo choices: by •Frank1. SinatraOwn your DNA/POV/niche• Samantha Jones •Paul Anka 2. Be a commodity• The Pogues’ Shane MacGowan •Jon Bon Jovi •Elvis Presley • Herman Brood •Gabriel Byrne • David Bowie •Julio Inglesias • Jay-Z •Sex Pistols’ Sid Vicious • Mina •Mika Nakashima • Oscar the Grouch Creating a sustainable floor covering firm I. Accept the market has changed. Be a change agent for your company. To thrive you must forget everything you believe to be true about competition, customers, margins, pricing, marketing and how you will succeed. 1950 – 2018 2019 4 P’s 4 E’s • PRODUCT • EXPERIENCE • PRICE • EXCHANGE • PROMOTION • EVANGELISM • PLACE • EVERYWHERE Pam Danziger, Unity Marketing Creating a sustainable floor covering firm I. Accept the market has changed. Be a change agent for your company. II. Pick a niche and dominate it. The lesson is survival is owning a niche (and you must be a brand): . High-end/luxury . Dominate segments . Design professionals . Political party . Insurance Religion . Millennials . Low-end/promotional . Categories . Organic . Builders . Inventory on floor . New residents . Multi-category . Realtors . What else can you do to separate Commercial your brand? . Main Street Look outward and beyond Creating a sustainable floor covering firm I. Accept the market has changed. Be a change agent for your company. II. Pick a niche and dominate it. III. Must be a brand; invest in marketing. In a competitive market, the best marketer always wins. Awareness Attract (values) Need Desire Engage Client path Client to purchase No one buys anything from anyone they don’t know exists. Consumers edit who they allow into their lives. It’s not about selling them. It’s about matching values in such a way they’re fascinated enough to communicate with you. No detail is too small. The difference between a product and a brand. A PRODUCT IS: A BRAND IS: . Made in a factory . Bought by a customer . Sits on a shelf . Rests in the mind of the customer . Can be copied . Imitated, but never copied . Commodity . Less price sensitive Creating a sustainable floor covering firm I. Accept the market has changed. Be a change agent for your company. II. Pick a niche and dominate it. III. Must be a brand; invest in marketing. IV. Think bigger & move faster. Dig deeper and market more aggressively. Creating a sustainable floor covering firm I. Accept the market has changed. Be a change agent for your company. II. Pick a niche and dominate it. III. Must be a brand; invest in marketing. IV. Think bigger & move faster. Dig deeper and market more aggressively. V. Always be paranoid. www.thehometrust.com Christopher P. Ramey The Home Trust International 561.876.8077 / [email protected] www.AffluentInsights.com / www.thehometrust.com 401 South County Road, #2754 Palm Beach, Florida 33480 USA This presentation is the property of Affluent Insights and Christopher P. Ramey. Any unauthorized copying, disclosure, use or distribution is strictly prohibited without the express written consent of Mr. Ramey. For more information please contact Chris Ramey at 561.876.8077 or [email protected]. .
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