
Making Businesses Better Not Bigger
by Gene Muchanski, Editor
The Dive Industry Professional
With a new diving season starting in September, August has always been a time when dive industry businesses get their products ready for production or distribution, conduct their sales meetings, and prepare their sales force for a September launch. At this point in time, dive businesses should already have finalized their marketing plans and decided who they are as a company, what they are selling next year, and who they are selling too. Marketing Departments can then roll out their strategies and exhibit plans for Surf Expo in September and Dema Show in November.
I recently had an opportunity to participate in a marketing survey for a major diving industry vendor. I can’t say for sure if it was a marketing analysis survey or a marketing rebranding survey. It really didn’t make a difference to me from a professional marketing perspective, because a marketing analysis always comes before any marketing rebranding effort. Only after a company has determined where they currently stand competitively, can they begin to formulate a rebranding campaign for growth and success. To even think about rebranding before you have measured and analyzed your current competitive position, would be putting the cart before the horse. Or an operation before the diagnosis.
My opinion on conducting a marketing analysis is to first define what your business was started for and why. What are your core competencies and what is your purpose and mission. The products you sell should be in support of your purpose and mission and the grand majority of your revenue should be coming from the sales of those products. If your top revenue generating products are not in line with your advertised purpose and mission, then your company has somehow, some way gotten off course. This may be one reason to repurpose or rebrand your company so that its revenue stream and intended purpose and mission are in line.
Should your company leadership and the majority of your customer base want you to be true to your original purpose and mission, the best solution may be to make your business better at what it does and grow stronger, rather than diversifying too widely and growing competitively weaker. There should be a great deal of thought and planning with senior management and company executives, when making decisions between depth and width of product lines and even with customer personas. There are many factors to consider before finalizing your strategic plans or marketing rebranding efforts. The results may vary widely, and in many cases, the consequences may be irreversible.
What Business Are You In? When you know deep down that you are in the business of doing something specific, every decision you make should be in support of that specific purpose. When a company is true to their specific purpose, that purpose becomes their calling card, and how they perform that purpose becomes their unique selling proposition (USP).
Who are you in Business For? Knowing who your true customers are is probably the most important aspect of your business. Companies that are customer centric build their company and their reputation around the people they serve. When Product Managers in our industry are working on expanding their product lines, their first thought is how it will benefit their targeted customer base and other consumers like them. The key to building better businesses is by continually improving your customer satisfaction department. Satisfied customers become loyal customers, who in turn become repeat customers, who in turn become life stylers. People who have not done business with you before will find out about your satisfied customers and become prime candidates to be converted into new customers for you.
Profitable Growth: Not all growth is good. The preferable business growth should be controlled and profitable. If you focus on building a better business, there is a higher probability of the business getting bigger. If the goal is to build a bigger business, it doesn’t necessarily mean that it will become better. In fact, history shows us that uncontrolled growth often leads to business failure and bankruptcy.
Ways to Make Your Business Better: Make product management and customer management the cornerstones of your business. Staying within your core competencies, continually improve the products you create, distribute, and sell. That will give your business a good reputation for quality products. Continually track your ideal consumer persona and monitor your customers’ journey with your company. Create a customer satisfaction department that nurtures initial customers into repeat customers and life stylers. When you build the best products that you can, for a customer base that you are familiar with, your growth strategy can be planned in small increments, within acceptable standard deviations from your current path.
Become a Member of our Global Diving Business Network: Annual Membership in the Dive Industry Association is $125 and includes placement in a number of Trade Directories and websites. Our organization uses websites and directories in advertising and marketing campaigns to refer business to our members. By joining our network, you are becoming part of a network that works on your behalf to bring buyers and sellers together for the benefit and growth of the Global Diving Community. Download a Membership Application today.
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