Question

Topic: Customer Behavior

Stopping Customers Buying From Cheap Competitors

Posted by Anonymous on 9/2/2010 at 6:56 AM ET 250 Points
We are a large medical consumable company with a very reasonable share of the market. However in recent times due to our lax in importing a range of disposables from China we have opened up a niche market for smaller, less service orientated companies to develop market share.

My question is: What marketing strategies can be used both in print media and online to sway customers back from a (better price) only competitor? And what strategies can be used to develop a customer base happy to pay a little more for a higher quality product and service?

The competitors main method is using common products as loss leaders to attain orders for their cheaper home brand products.

Lastly are there certain marketing ideas that work best for reactivating dormant accounts? we are currently working on perhaps giving a gift of a perceived value to attain orders of a certain dollar value?

Many many thanks,

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RESPONSES

  • Posted on 9/2/2010 at 11:48 AM Member
    I was wondering, are you selling to hospitals and doctors or straight to consumers? I think it would be a different strategy depending on who your target is.

    Also, would you be willing to post your website, so we can suggest any changes to what's already there?
  • Posted on 9/2/2010 at 12:42 PM Accepted
    The best strategy is to stress the unique positioning benefit you promise and deliver. If that's superior service, you need to promote that as a compelling reason for your customers to select you/your products. Explain WHY that's a benefit for them, how it saves them money, how it increases the value of their purchase, etc.

    You're not going to win on price, so don't try to defend with price-oriented promotion. Stress the advantages your customers will realize when they deal with you. If they are compelling enough, they'll gladly pay more for your product. If they are not, you'll lose either way -- either because they won't buy from you, or they will, and you'll lose money on every sale.
  • Posted on 9/2/2010 at 2:17 PM Accepted
    I think you said it right with "less service oriented companies". What it will come down to is your customer relations and your brand personality.

    If these are your unique benefits, you should stress quality and high-end service. If you're dealing directly with hospitals or other health industry businesses, get face to face time. Build strong relationships. Always go the extra mile for clients.

    Other thoughts are to talk about your track record, numbers and reliability. "Trusted. Reliable. And used in over X number of hospitals nationwide for over X number of years."
  • Posted by Jay Hamilton-Roth on 9/2/2010 at 9:20 PM Accepted
    To reactivate dormant accounts, you need to reconnect with them (i.e., listen to their problems and solve 'em): What are their needs? Why did they stop buying (from you)? What other unmet needs do they have?

    And if your product is a commodity, then there isn't a value to buying from you...unless you make one (service, add-ons, education, training, etc.).
  • Posted by Peter (henna gaijin) on 9/2/2010 at 11:04 PM Accepted
    I am with the others - promote your USP (Unique Selling Proposition). Here is some basic info:
    https://en.wikipedia.org/wiki/Unique_selling_proposition

    There is a saying in the bicycle industry (and many others) - "strong, light, cheap - choose any 2". If you want a strong and light bike, it won't be cheap. If you want it cheap, you either need to give up strong or light.

    o, you competitors are selling cheap. What feature or function are they giving up to do this that you offer? That is what you need to promote.

    Some notes:
    - you won't get every sale. There are some who are price focused, and if your product is now the low price product, you won't get those sales.
    - if after a lot of thought you can not define what your USP is and think it all comes down to price, then you may have a commodity. In this case, you need to work on creating a USP or you need to accept that it will all come down to price.
  • Posted by Peter (henna gaijin) on 9/2/2010 at 11:04 PM Member
    I am with the others - promote your USP (Unique Selling Proposition). Here is some basic info:
    https://en.wikipedia.org/wiki/Unique_selling_proposition

    There is a saying in the bicycle industry (and many others) - "strong, light, cheap - choose any 2". If you want a strong and light bike, it won't be cheap. If you want it cheap, you either need to give up strong or light.

    o, you competitors are selling cheap. What feature or function are they giving up to do this that you offer? That is what you need to promote.

    Some notes:
    - you won't get every sale. There are some who are price focused, and if your product is now the low price product, you won't get those sales.
    - if after a lot of thought you can not define what your USP is and think it all comes down to price, then you may have a commodity. In this case, you need to work on creating a USP or you need to accept that it will all come down to price.
  • Posted on 9/3/2010 at 1:18 AM Author
    To all that posted. A huge thank you. In just a few paragraphs you have opened inlets into rivers of thought regarding where to go from here.

    We can go away now and further develop the strategies you have enlightened me with.

    Thanks again,
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