think

4 Principles of Marketing Strategy | Brian Tracy



Sharing buttons:

hi everyone its felicia here checking in

with you on day two of the total

business mastery seminar did you know

that there are four principles of

marketing strategy i didn't either

watch this brand new footage where Brian

explains exactly what they are and how

you will become more successful once you

start using them ourselves oh yes

sometimes I ask my business clients I

say who sets your prices sometimes have

a whole room full of business owners who

sets your prices by the way and who

determines your market share and who

determines your profit levels and who

determines how fast you grow and who

determines the future of your ism I do I

do we do know you don't your competitors

do your competition determines

everything your competition determines

your level of sales the prices you

charge and how much money you make I've

done a lot of work on military strategy

and one of the great principles I

learned in military strategy is that no

strategy can be made independent of the

enemy in other words you can't sit there

and plan military strategy ignoring who

your enemy is and where they are and how

big they are and what their plans and

intentions are so no strategy and

business can be made without thinking

about your competition and who are they

and what do they do and why do people

buy from them and how can I get them to

buy from me and how will they react if I

get their customers there's there's

volumes of books in the libraries on

this and I've got them all there's one

book called competitive analysis it's

this big by Michael Porter so a six

eight hundred pages and it's all on

things that you have to think about to

position against competition big stuff

you can get PhDs in marketing focused on

competitive analysis so the four

principles of marketing strategy are

these number one is your decisions in

these four areas whoops these that your

decisions in these four areas determine

the success or failure of your business

the first is specialization

specialization is determining where you

are going to specialize which we'll talk

about in your product or service and

I'll talk about this I'll define it a

little bit better the second is

differentiation differentiation was

really the key to business they say that

all business strategy is differentiation

strategy

competitive advantage is how it is that

you are different and better than your

competitors because human beings in the

marketplace customers always want to

know why should I buy from you rather

than from someone else and you'd better

give me a better reason than your

competitor does or I'll buy from your

competitor and it's not personal it's

just I want to get the very best deal as

a customer I want to get the highest

quality for the lowest price you tell me

why I should buy from you why you are

giving me the highest quality the lowest

price and if your answer is better than

that of your competitors I'll buy from

you and if it's not I won't and it's not

personal no emotion involved we get

emotionally involved because it's our

business so differentiation is the key

is how and why and where are you

different segmentation means looking at

your market and saying who are the

specific customers in the market who

value my area of differentiation and who

will pay more for my area of

specialization than anybody else so in

other words in every market place and

they say that all marketing out all

marketing today is segmentation is

segmenting and identifying those

customers who are most likely to buy

from you the fastest and finally there's

concentration once you have determined

your very best market segment for what

you do really well what you do is you

focus all your energies on them so let's

look at the specialization says this is

the product service customer market or

area of technology where you focus all

your efforts we also say in

specialization it can be a product or

service it can be a particular that you

want to serve or it can be a particular

market area that you want to work in

I'll give you an example McDonald's

McDonald's customer is people who want

to eat quickly and they want cleanliness

efficiency value price and pleasant

surroundings and so what they will do is

they will offer every product that they

possibly can for people who want to eat

quickly

whether it's a salad or whether it's a

a shake or whether it's a type of coffee

or whether it's in other words they're

constantly looking for other products

that they can offer to that customer who

wants who's in that market segment which

wants to eat quickly and efficiently and

they trust they test continuing very

clear about that so the next one is look

at that okay and so and so

differentiation is your competitive

advantage which you've heard me talk

about but you'll never hear me talk

about too much because if you can

identify and/or create a competitive

advantage and convey it to your

customers the dam will break you can

make more sales and more money in a year

with a clear competitive advantage to

your customers then you might make in a

lifetime if your competitive advantage

is unclear so number two it's your area

of excellence or superiority it's

something that you do better than

anybody else and I sometimes joke why is

your product or service better and they

say quality service quality service all

in in service we give quality service

and people don't understand that that is

only an answer if your competitors offer

zero quality and zero service in other

words other than that it's not an answer

if your person says well you should buy

from us because of our quality and

service they're saying I do not have the

slightest idea why anybody should buy

from me I am a complete idiot and I'm a

danger to my company and probably to my

whole society so it's interesting when

Steve Jobs looked at the BlackBerry

looked at all the cell phones that were

out there and he sent out with his

engineers and he said I want a phone

that you can activate with one button I

said it's impossible all these other

phones have all these other buttons to

turn off and on if I want a phone that

you can activate with one button and he

kept sending them back and saying in the

back so they finally came with the one

button you activate it put in your code

and bam you have all your apps and

you're ready to go the game is on one

button it's never been done before in

history can't be done can't be done

can't be done can't be done

I want it done and there's the phone I

said phones cell phones so they should

not be so darn complicated to start up

use get around and so on I had a

blackberry and to get

app on a blackberry which has far fewer

than Apple it's almost like it you need

an act of Congress to get a damn app I

mean you know what I'm talking about

they're so hard and you go to blackberry

and I go to go to Apple which my my

family and my staff got me into within

half an hour I have 30 apps loaded I

mean it's unbelievable or in the one at

a time at whoa and now you can float the

whole world and stuff the stuff that's

on there for apps just the free apps

blow your mind much less the paid apps

and now your four hundred and eighty six

thousand apps think about that but they

make it easy so Apple says you come to

us and it's easy you can access

everybody anything anywhere and then

they come up with the Apple too and they

put that vision video bot model on it

whereas you can act and hold it up and

you can talk my video to anybody in

anywhere in the world has an apple with

the same facility it's the most it's the

most amazing thing I mean you look at

it's almost like a kid how can this be

so what is yours and if you don't have

it you can't compete but if you do have

it yourself 50 million sets and become

the highest valued company in the world

in five years if you can be really clear

about an area of excellence that people

want and we'll pay for your unique

selling proposition what is it what is

it bit and this is called your USP your

USP is the one thing that you offer that

no other competitor offers in the whole

world it's unique

what do we know about the word unique is

it cannot be modified it's the only

adjective that cannot be modified you

can have more and you can have greater

and you can have greatest but you cannot

have more unique or unique er or less

unique or unique guest you have only one

word unique each person here is unique

you are not unique er you are not the

unique guest you are unique because the

only one of you in the entire world

so therefore what is your unique selling

proposition I've worked with people has

spent hours to identify this and when

they finally identified it their

business went up five hundred percent in

the next twelve months they could not

believe it they went from struggling to

living in a big home driving a Cadillac

or a Mercedes because they finally found

it and then all of your advertising all

of your promotion all of your work is

focused and conveying that USP to your

customers getting it to them

so that they are clear what it is and if

it's what customers want and value and

will pay for they will line up around

the street

remember when they brought out the iPad

at because of the iPhone nobody really

knew it was in the iPad except it's

going to be like a whole broad screen

it's gonna have everything that a

computer that they line up around the

streets by the hundreds to beautify to

lay five hundred dollars now five

hundred dollars I don't know about you

but I think five hundred dollars so long

money wouldn't you say five hundred

dollars these are poor people with

flip-flops and sandals and tractor caps

well then they have to put their five

hundred dollars down to get this because

they didn't they didn't know what what

it was but it's going to be like that

it's going to be like an iPod iPhone

with a bigger screen plus all kinds of

other capabilities Wow and they know

what they did they sold 25 million of

them in in less than a year 25 million

and they totally changed the book

retailing industry the book retailing

industry like a ship that turnover went

from basically hardcover books in

bookstores it flipped now 51 to 55

percent of all books are being purchased

on as ebooks and the reason is because

of the iPad because iPad owners are

readers and they buy an average of two

to three hundred books in the first year

and the whole market flipped and borders

one of the biggest and oldest bookstores

in america went bankrupt all in less

than a year when the ipad was introduced

can you imagine I mean we're living in

pretty turbulent times would you imagine

a company that spent decades building

this bankrupt nationwide within a year

with the advent of one new technology so

what is your unique selling proposition

there's this convenience you can get

everything get everything fast

everything convenient more convenient

than anyone else everybody tries to

compete with the iPhone or the iPad

can't do it the Nook can't do it the

hewlett-packard got into it with their

tablet and just quit let's just can't do

it now

who is it not Samsung but the the Korean

company is trying to compete and so on

but they have a unique selling

proposition so my question is what is

yours and I'm going to ask you to answer

that what is yours

what is it that you offer that nobody

else offers now here's is an insight if

you're offering something that everybody

else sells let's say you're a real

estate agent what's your unique selling

proposition as a real estate agent if

every other real estate agent with 100

miles has same unlimited access

to the yeah the MLS what's what is your

what is your USP or can be what could it

be what should it be

come on cheese well the answer is

yourself because you the product is all

the same you don't even control the

product you even control the marketing

everybody else can have it so what makes

top realtors I work with top Realtors

the average realtor makes about 25,000 a

year I work with entire roomful of

Realtors average incomes $833,000 a year

on straight Commission selling and they

all started off with nothing and they're

now at the top of the field and some of

them make several million selling homes

what's the difference personality

personality preparation punctuality

friendliness warmth follow-up notes

phone calls contact in other words they

make a supreme effort to build a really

high-quality relationship with a home

buyer or home seller so that that person

will never think of going anywhere else

I know because I worked with some of

these people in buying and selling my

homes and I would never buy or sell

buyer through anybody else but these

people because they have they are so

good at what they do and every one of

them started off on the street knocking

on doors and diving for dollars and made

a decision that their unique selling

proposition was going to be themselves

and and you as an independent business

owner can make that decision as well

make the decision that I'm going to take

such good care of my customers my

customers would never go anywhere else I

don't have to give them blandishments or

discounts I'm going to take such good

care of them that they will eagerly come

back to me so number four is where are

you or could you be the best where are

you or could you be the best and this is

the great question because everybody

here has the ability to be the best at

something everybody here has the ability

to be the best at something that people

will eagerly pay for and tell their

friends about and your job is to figure

out what it is your job is to figure out

what it is and then do continuous and

never-ending improvement until finally

people say you know you're the best you

are really good at what you do you are

really good look at Lady Gaga I was saw

her at the Grammy Awards as well I don't

know anything about Lady Gaga I've never

listened to a lady Gaga song she came

absolutely from our

you know which is 25 years old she's one

of the top ten tweeted people in the

history of the world and she made last

year 660 million dollars and where was

she singing nightclubs or or bars five

years ago and she's an incredible

entertainer and there ain't nobody like

Lady Gaga you know is unbelievable why

she knew what she had and she goes to

the extreme with her dress and her

appearance and everything else and she

wraps it around a good voice and just

literally has taken over the world of

pop music

so segmentation is who are those

customers who most appreciate your area

of superiority who are your very best

customers you see your best customers

are really easy to sell to they'll buy

and buy again they're happy they like

you they come back they bring their

friends they give you recommendations

and testimonials whereas your worst

customers your customers from hell you

have to literally break your back to

sell them anything they complain all the

time they don't pay when the do pay

their checks bounce and you stand back

and bounce it to you like a basketball

so who are they what are their

demographics why are their

psychographics the demographics are

things that you can observe from the

outside age income education family

formation psychographics are what

motivates them and this is where the

future is in your business and every

pitch that has psychographics and they

have a key psychographic I'll tell you

this in a second how would you describe

your perfect customer I do this by the

way I said imagine that you were at a

social or business gathering and you're

networking and someone came up to you

and said look I know a lot of people in

this community how would you describe

your perfect customer don't tell me what

your product or service is I don't here

just tell me who would your perfect

customer be in terms of their wants

needs a check a shin income position and

so you would have to describe your

perfect customer without mentioning your

product or service a tall person would

not even know what you sold you describe

the customer this is what this person is

is where they are give you an example

IBM at one time at 80% of the world

computing market 80% then they made some

mistakes and now they have much less but

they had 80% they had so much that the

federal government tried to break them

up for about 24 13 years they

right antitrust suits against IBM just

like they tried to break up Microsoft

they finally Reagan came into power they

started in 1970 in 1983 the bot was

brought to Reagan's attention they said

the federal government has been pursuing

IBM in 50 million hundred million dollar

lawsuits for 13 years and what did they

come up with people buy IBM because they

really like IBM and IBM treats him

really well they said well if they can't

come up with something on IBM they have

to drop the lawsuit and I said we can't

come up with anything they the custom

did antitrust is supposed to be in favor

of protecting customers IBM's customers

loved him worldwide and dropped the suit

they dropped the suit after 13 years

they did the same thing with Microsoft

they harassed them and harassed them and

harassing because they weren't giving

enough political contributions that was

the major reason they weren't giving

enough political contributions finally

after years I had to say why do people

buy Microsoft because they like the

product the product is good and it's

cheap and it's flexible and everything

so so so here's so how would you

describe your perfect customer this

point I was making with IBM his IBM

realized that when they first started

selling the 360 mainframe in 1964 the

customer was really the president of the

company making a major strategic

decision are we going to put everything

in our company on computers because

everything was paper at that time you

know and so they would have to make

their presentations to the senior

executives of the company and work out

all the numbers and so on but as

computers became more and more popular

and they start to have pcs and desktops

and so on the whole decision-making

shifted to the purchasing manager of the

large companies and so they had to focus

and change all of their marketing so it

focused it on purchasing managers and

they learned more about how purchasing

managers think and walk and talk and eat

and breathe and communicate and where

they're educated and the size of their

family and their income and their

psychographics and demographics and they

focused all of their effort on

purchasing managers and became the

biggest selling company in the world 80%

of the world market because they knew

their customer I hope I'm making a point

here many people you say describe your

customer to me without mention your

product or service they go home

well somebody wants it the alright so

demographics here that here are the key

demographics by the way if you don't

know these find out what we do you know

we find out do surveys ask your

customers offer them a prize if they're

fill-in-the-blanks age gender that's

important income how much do they earn

education how well educated are they

occupation what sort of work do they do

location where do they live and so on

and family status those are the main

demographic features and you've got to

be very clear because if you change the

demographics of your customer you change

your total marketing approach your

selling approach your packaging your

product your service your people and

everything else now your psychographics

are even more important and this is

really neat is what are their goals and

ambitions because remember people are

motivated to buy because you offer to

help them achieve a goal that they have

or what are their wants and needs and

motivations that want to buy because

they have a need for what you're selling

and what are their hopes and dreams and

aspirations what do they want to be in

the future and can your product or

service help them get there and for what

are their fears or doubts or worries

here's one of the great breakthrough

discoveries for me in the last few years

it's as always one reason why people

will buy from you there's one major

reason and you have to find out what it

is and convince the prospect that you

can give them that benefit there's

always one major fear that will hold

them back there's always one major doubt

that holds them back from buying and you

must find out what that is and alleviate

it you've got to do both in every sale

what's the major reason how does Brendan

relieve e8 the fear of making a mistake

of going to his program how does he do

that yes not only that not only n is the

entire the entire fees refundable he'll

pay your airfare and your hotel and he

does by the way he'll pay your airfare

and hotel for coming just to not waste

your time because he's so confident in

the value of his program so in other

words he's making it a risk-free thing

for you to do what is the biggest risk

that you have with Brendan's terms and

conditions that you'll really like it

and we'll watch your money back and

you'll be out the money that you at

faith because you really enjoyed it

because you've got your money's worth

that's a real tough downside number five

is what is the problem to be solved is

pp we call this PT BS PT BS PT BS

problem to be solved problem to be

solved problems to be solved people buy

your product or service because they've

got a problem to be solved like a parent

problem to be solved problem to be

solved problem to be solved and a goal

and achieve is a problem unsolved and

need unsatisfied is a problem unsolved

the pain not taken away is a problem

unsolved this is the focus of your

business what is the problem that you

solve for your customers when they use

your product or service and you must

know that with crystalline clarity you

know like that in the movie with Tom but

was it was it another perfect gentleman

you're the movie I'm talking with with

Tom Cruise and yeah not risky business

did you move my with a head Jack heart

Jack yeah what does he say when he says

do you understand what I'm saying and he

looks into the camera he says crystal by

that is my is what I'm saying crystal

clear he says it's crystal well you must

be Krystal when you're clear when you're

thinking about what it is you do for

your customer and all your advertisers

all your promotion all your business is

based around conveying that crystal to

your customer so they understand crystal

you know how a cafe advertises on the

side of the freeway or the highway

you're going down the road you see a

great big it doesn't say mom and pops

best selling meatloaf and family cook

food and and come and visit us sometime

it says the big sign is hungry question

mark and the next one says turn at the

next exit for the best food on the

highway in other words they first of all

get your attention because if you're

hungry what happens hungry you'll see

that reciprocal the reticular activating

system will see that see that word

hungry now it's got your attention the

next time is turn here our food want

food turn now

real simple so concentration is the

fourth part concentration is where you

folk

your time money and resources remember

the old saying 50% of my advertising is

wasted but I don't know which 50% it is

well maybe 80% 90% of advertising and

promotional dollars are wasted and if

you can just increase the efficiency of

your advertising by focusing your

message with greater clarity on your

best customers you can get 5 and 10

times the response per dollar of

advertising that you were getting before

so what are the best possible ways to

contact your ideal customer and this is

moving very quickly today it's shifting

all the time second of all what are the

best possible media for you to use most

of you use the internet exhaustively but

the Internet is only one method of

communication and it's still small

relative to all the other forms of

advertising and promotion I have a

friend who does 35 million dollars a

year with radio ads 60 60 120 minute

radio ads to get people to phone a

number where then they are interviewed

and then sold into another telephone

call where they are introduced to a

product which takes into another

telephone call just 35 million a year

and with radio ads so there's all kinds

of ways

imagine if you could run an ad 60

seconds and how do you test an ad we're

working with one of the top companies in

the country they develop an ad they

narrate the ad they are happy with the

ad and then they run the ad in a tiny

market a small town they pay $5,000 get

50 spots and see what kind of response

rate they get they will run the ads 5

days a week they'll run one ad on Monday

one hour Tuesday Wednesday Thursday

Friday and 5 different ads and they see

which one causes the phones to ring and

then they'll take that and they run it

in New York and what works in podunk is

called podunk is going to work in New

York at a hundred times the scale in

other words they debug the system got a

nice ad and what if you can have an ad

that would cause qualified people to

phone you all day long phone you and

call you and say please please PLEASE

sell me your product or service I've got

my credit card handy is that possible

say yes it's been done all that's been

done all the time you ever listen to

radio those people are not advertising

for fun they're advertising because

they're making a lot of

doing it hi everyone thanks for tuning

in to your virtual backstage pass

you just watch Brian explain the four

keys of marketing strategy which ones

will you be implementing we want you to

share what you've learned with us so

make sure you leave us a comment below

this concludes our backstage pass for

day 2 at the total business mastery

event but if you want to see what

happened over the past two days and get

live streaming access to day three click

the get virtual access Now button below

we've got great new segments to share

with you on the third and final day of

your total business mastery backstage

pass so please make sure you stick

around we'll see you then