Question

Topic: Strategy

B2b Startup: Finding Pain Points & Differentiation

Posted by Anonymous on 12/31/2009 at 7:01 AM ET 125 Points
I am attempting to start a nationwide staffing agency that provides promotional models for conventions, trade shows, street teams, product demonstrations, product tours, in-store sampling etc. There seem to be 5 "big-boys" in the industry and handle a lot of major clients (verizon, visa, nike etc.). There also seems to be two general markets I need to focus my efforts on, one being event marketing companies that develop and plan event ideas for corporations, while the other being companies who plan and produce their own events.

The industry seems to be highly relationship based, and I have virtually no connects in the industry. Everyone touts the same benefits and services, and the top companies offer innovative technology that allows clients to screen models online. At my current stage I cannot compete with technology innovation. What gives me hope however, is that the only local competition is running a low-tech operation and staffs high-profile events.

My question is:

Can or SHOULD I use "diversity" (age, race, sexual orientation) as a method of differentiation and focus on clients that specifically target based on these demographics? Even though diversity in staffing is implied, will waving the flag high benefit me or will it have little effect?

If going the diversity route, should the name reflect "diversity?" Or is that a message or differentiation saved for the mission statement etc?

How do I approach event marketing firms & direct companies to find the pain in their current event staffing process? How do I go about initiating contact and not being dismissed as a nuisance in researching their current situation to evaluate the market in hopes of later providing better quality service?

How do I compete with the big-boys and vie for contracts with other event staffing firms when it seems to be so relationship driven and that people may not be willing to switch because of their relationships?

I hope I was clear and my question is understandable.
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RESPONSES

  • Posted by CarolBlaha on 12/31/2009 at 7:40 AM Accepted
    First we need to look at some core beliefs that are holding you back. When I hear things like I dont want to be dismissed as a nuisance, or everything is relationshp driven -- those are beliefs that need changed.

    What is that saying "whether you believe you can or can't your probably right?" Do some soul searching, if you can't come up with a reason for someone to change their current provider, you can't ask someone else to.

    If diversity is your niche, then you should go for it. What shows would be especially benefitted by that? Every major show lists exhibitors, start dialing. If you don't know, it's time to find out.

    A company I worked with recently hired their first model at an annual show. They had no relationships with anyone. At the same show another vendor had models so skanky looking that people avoided that booth. I bet they won't use that same agency again. Yes, they can go online, but just like internet dating, the people that show up don't resemble their photograph.

    You aren't selling models, you are selling an additional way to market and build traffic. They are already in pain. They are investing a zillion bucks on this show. In thinking back at my last major show there were very few promotional models. My bet is they don't know how it could improve traffic. My 2nd thought is, as in my 2nd example (the skankies-- who dressed as sleasy as they looked) they think models means "sex" and that worked in these previously male dominated shows-- but that is dated thinking and turns off female buyers.

    So that is where you come in. Don't sell sex, sell increased traffic. And I think diversity fits in very well there. Sell professionalism. Guaranteee the models will enhance the image/brand the company wants to portray. Make this a consultative sell, show them how to use promotional models. Tell them, sure they can bring in someone from the home office, but they're spending more in travel $ than your service. And we can't use the sales staff, they need to be in that booth selling.

    So they are in pain. But as in any sell, sometimes they don't know they're in pain. So you have to show them. Like the last time I was sick, I told someone "I didn't know how sick I was till it quit hurting".
  • Posted by Jay Hamilton-Roth on 12/31/2009 at 8:14 AM Accepted
    You can, but if you're successful, you'll likely to be copied by the organizations that are the leaders.

    Diversity as a differentiator can matter IF there's a tangible benefit to the choice. For example, if you know that (for example) in Ames, Iowa that (all things being equal) white women aged 50-60 increase sales by 25% over other model segments, you've got something unique to talk about - increased success. If you can do this research, and keep the data confidential (so the big boys can't easily obtain it from you), then you have something worth focusing on in your marketing.
  • Posted by michael on 12/31/2009 at 10:24 AM Accepted
    You have to make the calls/visits. You are not a pest...you provide a solution. Every company messes up. If you aren't there, they'll pick another provider.

    I have a client who is fond of saying "what's keeping you up at night?". It's a question that you can ask any prospect.

    The simplest thing to do is to walk in, present your card and say..."I know you're probably using another agency but there might be a time when you need an alternate. We'd like to be your alternate. (then lauch into a quick pitch about your abilities.)

    Make sure you stay in contact.

    Michael
  • Posted by Gary Bloomer on 12/31/2009 at 12:09 PM Accepted
    Dear nada456,

    All of this "don't want to be a pest" stuff? It's self-limiting, defeatist,
    soul-crushing crap. Stop it. The more you focus on what you don't have or on what's stopping you, the higher the barriers to your success will be because YOU BUILT THEM!

    You elevate yourself to status of welcome guest and you become the
    go to person when you position yourself as the logical first choice for smaller clients.

    You tell their STORIES.

    You help them SUCCEED.

    You become THEIR ambassador.

    You become THEIR advocate.

    You make your service about your clients and THEIR success.

    When you give other people what they want and need, they'll help
    you get what you want and need.

    It's as simple as that. I hope this helps. Good luck to you.

    Gary Bloomer
    Wilmington, DE, USA



  • Posted by CarolBlaha on 1/1/2010 at 2:50 PM Member
    I just came back from a NY event in the mountains. On the way back I saw a billboard advertising to market "christian actors". It kind of validates your idea of making a niche on diversity.

    I also see a lot of people said the same thing I did about changing beliefs on being a nusance, etc. The way I coach people thru this is to tell them -- if you truly believe your product or service provides real value, makes money, saves money, time, etc etc, you will overcome the call reluctance. And if you don't, then don't do this venture. When you sincerely believe as stated, you can't keep yourself still!
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