Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sun Sep 07, 2008 9:59 am Post subject: What Toyota and Disney Know And How Can We Use It
Basic economics states that price is largely based on two things. Demand for the service and the ease of which replacement for the service can be found. For instance, demand for a given service could be large, but as long as supply and other options are equally large, the price will not rise. This is because clients are very smart. They are good at finding the best value for their money and this is as it should be. Any service is only worth what a buyer is willing pay.
This is also where opportunity has always existed for those few who are truly client focused. In every field of endeavor there are a few that tend to rise above the crowd. These businesses do financially well, have clients that love them and continue to grow. They also lead the pack in another important area. They provide value, as defined by the client.
Such businesses are rarely the lowest priced, though they may be. The point is, they largely disregard competition and set the pace. They are able to provide a service that clients see as superior to their other options. In my opinion this will always be from the perspective of cost rather than price. Cost contains several factors not covered in price. For instance, how long will it take, is it available now, how long will it last, how well will it work and on and on.
In order for a business to capitalize on this competitive edge, they must first realize what the client needs [wants.] For example, a client does not want a wheel alignment. They want the vehicle to drive properly and not wear tires. This is a huge difference! Providing what the client wants will be quite a bit more effective than advertising a low price alignment.
Businesses largely cannot regulate the number of competitors they may have. They can [with thought and work] create services superior to those competitors offer. They can demonstrate the superiority of their services. When businesses do this, they effectively eliminate competitors. They now provide service that is not available elsewhere. This allows clients to do what they do best, pick the best value for their money.
Joined: 04 Sep 2007 Posts: 47 Location: Grand Rapids, MI, USA
Posted: Sun Sep 07, 2008 10:48 am Post subject: Re: What Toyota and Disney Know And How Can We Use It
Louis:
I believe that the success of any business is primarily determined by the quality of the marketing and the customer experience with the people they deal with.
The product itself only has to be very good, it does not have to be excellent or the best (I'm not advocating that, I just believe that is how it is). Very good (above average) is just fine with the vast majority of consumers. Very few seek the absolute best. Instead, it is far more important to most customers do deal with NICE people.
Great marketing brings them in, nice people keep them there. This recipe will generally beat out a fantastic product or having the lowest price.
Of course, then there is WalMart....exceptions to every rule, I guess.
_________________ Tom Ham
AutomotiveManagementNetwork.com - Hams Management Systems
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sun Sep 07, 2008 11:16 am Post subject: Re: What Toyota and Disney Know And How Can We Use It
Hi Tom,
Tom Ham wrote:
Louis:
I believe that the success of any business is primarily determined by the quality of the marketing and the customer experience with the people they deal with.
The product itself only has to be very good, it does not have to be excellent or the best (I'm not advocating that, I just believe that is how it is). Very good (above average) is just fine with the vast majority of consumers. Very few seek the absolute best. Instead, it is far more important to most customers do deal with NICE people.
Great marketing brings them in, nice people keep them there. This recipe will generally beat out a fantastic product or having the lowest price.
Of course, then there is WalMart....exceptions to every rule, I guess.
I think much of America today agrees with this theory. GM and Ford for instance build a good car, market it like crazy and provide extreem "smile training" to all of their dealerships. Still they continue to loose market and money.
Slick marketing and big smiles can fool people for a while, UNTIL they become aware that better exist. Quality has one function, it lowers cost. The better the quality, the lower the cost. An ever growing number of people feel Toyota cost less than GM and Ford products, as a general rule and over time.
Of course there is no reason why the company with that offers the best there is, cannot also market agressively and be very nice. Afterall, they have a lot more to smile about
Joined: 04 Sep 2007 Posts: 47 Location: Grand Rapids, MI, USA
Posted: Sun Sep 07, 2008 11:48 am Post subject: Re: What Toyota and Disney Know And How Can We Use It
Louis Altazan wrote:
Hi Tom,
Tom Ham wrote:
Louis:
I believe that the success of any business is primarily determined by the quality of the marketing and the customer experience with the people they deal with.
The product itself only has to be very good, it does not have to be excellent or the best (I'm not advocating that, I just believe that is how it is). Very good (above average) is just fine with the vast majority of consumers. Very few seek the absolute best. Instead, it is far more important to most customers do deal with NICE people.
Great marketing brings them in, nice people keep them there. This recipe will generally beat out a fantastic product or having the lowest price.
Of course, then there is WalMart....exceptions to every rule, I guess.
I think much of America today agrees with this theory. GM and Ford for instance build a good car, market it like crazy and provide extreem "smile training" to all of their dealerships. Still they continue to loose market and money.
Slick marketing and big smiles can fool people for a while, UNTIL they become aware that better exist. Quality has one function, it lowers cost. The better the quality, the lower the cost. An ever growing number of people feel Toyota cost less than GM and Ford products, as a general rule and over time.
Of course there is no reason why the company with that offers the best there is, cannot also market agressively and be very nice. Afterall, they have a lot more to smile about
GM and Ford do indeed market like crazy, but the marketing itself is often very poor. The GM and Ford people also frequently do not compare to those with the imports.
_________________ Tom Ham
AutomotiveManagementNetwork.com - Hams Management Systems
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Sun Sep 07, 2008 12:55 pm Post subject: Re: What Toyota and Disney Know And How Can We Use It
Tom Ham wrote:
GM and Ford do indeed market like crazy, but the marketing itself is often very poor. The GM and Ford people also frequently do not compare to those with the imports.
According to TVB.org, GM is the top television advertiser, comscore ranks them as number one online, mediacom says they're number one on radio. Cable and print are the same, in fact they are number one in every ad media I checked, some of that has to be good. GM, Ford and Chrysler have some of the greatest marketing minds there are working for them. If they can't do it, how can anyone hope to?
I think the answer is very simple. People know chicken soup from chicken $..T. It's not the available market for quality products and services that is the problem, false promises and failure to deliver are the issue.
Marketing and being nice are great and necessary, but at some point the product has to deliver on what is promised. If it does not or if better is available at lower cost, marketing and being nice will only forestall the inevitable, in my opinion.
Joined: 26 Jul 2008 Posts: 11 Location: Ketchikan, AK, USA
Posted: Tue Sep 09, 2008 8:23 pm Post subject:
Competition is fierce, if you focus on it.
At our shop, we have done barely any advertising for a few years now. Our customer base is almost entirely from word of mouth. Why do our customers choose us over our ‘competitors’ who are often cheaper? Because we offer something the customers want, and something the competitors do not have.
We offer a genuine caring attitude. The customers know that we care, and that we are honest. That brings them to us.
Find what you have to offer –something that your ‘competitors’ do not have, and let your customers come to you.
Joined: 15 May 2007 Posts: 774 Location: Baton Rouge, LA
Posted: Wed Sep 10, 2008 7:00 pm Post subject:
Hi Dwayne,
dharman wrote:
Find what you have to offer –something that your ‘competitors’ do not have, and let your customers come to you.
It need not even be something your competitors do not have. A business can do exceedingly well, offering the same services as everyone else, only at a much higher level of quality.
Executed perfectly, a business may be the sole source of supply for a given quality level, amidst hundreds of "competitors."
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