This document discusses how marketers often get their strategies for small businesses wrong by failing to understand why small businesses succeed and focusing too much on promotional activities rather than strategic positioning. It argues that successful small businesses own a niche or "crack in the market" and create value through quality, service and image rather than just low prices. To help small businesses, marketers need to think niche, learn what really drives small business success, and focus on first understanding the business and developing the right long-term strategy before implementing tactics.

1. How marketers get it wrong. . .
and right

2. •Superior management
•Intelligent owners
•Good customer service
•Strong marketing
•Hire the best people
•Good understanding of business

3.  Tom Peters – Lessons from America’s best
companies “In Search For Excellence”
 Jim Collins – Says to get the best people on
the bus in “Good To Great.”
 Napoleon Hill tells us to “Think and Grow
Rich”
 Regis McKenna – “Relationship Marketing”
 John Maxwell – “Developing the Leader. .”

4.  Few of the “Excellent” companies
remained for Peter’s follow up book
 Small business owners can’t afford the
best people, and they still do well
 I know some successful businesses where
the owners really don’t think much
 Many successful business owners are
poor leaders

5. And… highly successful small
businesses seem to defy the experts.

9.  Small business is not big business
only small
• Motivation for small owners is completely different
from large business
 You only have to be smart/good enough
 You must Own your crack in the market
 Luck

10.  Why do small businesses create wealth for
a few (generally) low profile businesses?

11. •Education
•Intelligence
•Exceptional Management
•Financing
•Perceived Value (Inc. Brand)
•Quality
•Image
•Service
•Price
Competency /Competition
•Industry Niche
•Market, Market Type
•Market Leadership
•Innovation
•Positioning
•Emplacement

13.  Largest group are small businessmen
 Professionals who set up a business
 Small percentage are corporate managers
 Very small percentage are super rich
(actors, athletes etc.)
10/19/2012
13

14.  Independent
 Mostly have college degrees, but not particularly good
students (C+ to B-)
 Most were very social in school, took advantage of group
opportunities
 Married, wife (spouse) works in business or stays home,
and always supportive
 Always spend less than they earn, investing the rest
 Not status conscious
 Live in homes way below their means
 Make kids work for what they want
 Have a knack for seeing “voids in the market” that they
can fill using their skills or learn to fill.
10/19/2012
14

15. Know how to
find and serve
customers. . .
Innovate to
differentiate,
creating value
10/19/2012
15

16. PIMS - Profit Impact on Marketing
Systems
Be in the top 2 or 3 in your market
Be seen as high value (quality/service)
10/19/2012
16

17. Profit impact of competitive strength
 Marketleadership pays: be number one
or number two in your served market
 Competing on quality is better than
competing on price
10/19/2012
17

18. 40
35
30
25
20
15
10
5 Superior Qual.
0 Mid Quailty
High M. Share
Medium M. Share
Inferior Qual.
Low M. Share
18

19.  Seek to be in top 3 market share in your
crack in the market.
 Strive to be perceived as high quality and
service.
(Perception is reality in marketing)
 Buyers make decisions based on
perceived value.
10/19/2012
19

20.  Re-define the market
 Narrow the focus
 Look for a smaller crack where you can be
first
Marketing Positioning
Marketing Emplacement

21. General Industry
Geographic
Specialization
Specification and Stickiness
Distribution Control
Referral and Symbiotic
Relationship
Authenticity

22. •General Industry
•Geographic
•Specialization
•Distribution Control
•Specification and Stickiness
• Relationship
A micro-niche- Crack In The Market

23. Components of Value
1. Quality
2. Service
3. Price
4. Image/aesthetics
10/19/2012
23

24. Quality
100
80
60
40
20
Service 0 Low Price
Image YOU
Competitor 1
Competitor 2
10/19/2012
24

25. Owner
(education,
Value
Highly motivation,
Niched business Exceptional
degree)
Management
Wealth Creating
Own Their
Sm. Businesses
Crack
In The Market
Market Innovation
Leadership

26. Heavy selling, promotion No marketing / well
and marketing emplaced

27. Marketing
Emplacement

28. What Marketers Do Wrong
With Small Businesses
• Don’t understand why small business
succeeds
• Can’t communicate the importance of the
Crack to owners.
• We like the activity of campaign battle
• We don’t like strategy

29. What Marketers Do Right
With Small Businesses
• Think Niche, Learn Crack
• Learn why and how small businesses
succeed, beyond the hype
• Understand as much as you Do- Plan
first execute second
• Recognize that “skills” don’t equal
wisdom

30. Business Wealth
Building
Market Leadership
Selection of Niche Creating Better
PIMS
Market Value
Owner - Financially
Company Competencies
Conservative and Values

31.  What are your strategies to move to the
well?
Questions

33. @ronburgess
Linkedin.com/in/ronburgess
www.FindingYourCrack.com