MichaelMMM

What makes your product-offering notably different from others that you compete with?
Without at least one “hook” you will need to rely on “shouting louder” than your competition. That’s a very expensive alternative.

So, what’s this “hook” we refer to (with such affection)?
The hook is an outstanding characteristic (or 2) that makes your product/ or business particularly “special” in the eyes of the customer, and that is not easy for competitors to copy.

The “hook” may be included in any of the elements of the marketing mix – i.e. in any of the: Product, Price, Promotion (Marketing), or Place (Distribution channel). That’s why we refer to the “product offering” above, and not simply the “product”.

SOME EXAMPLES:
• Product hook: A chicken restaurant concept we established in Australia has “flat” chicken & peri peri spice.
• Price Hook: A digital signage software company that we established has the “Worlds First Free Digital Signage Software”.
• Place (Distribution Channel) Hook: Dell computers elected to go direct to the customer primarily through the internet. (Yes … we know that a bricks & mortar retailer alternative is now on the cards. That indicates that every strategy is fluid and subject to change over time & according to prevailing or expected conditions).

The hook may be something as simple as:
• The location of the outlet being particularly convenient (relative to the alternatives) to the target market;
• The speed of service that is provided
• The extent of professional product-knowledge that the store offers to customers
• Etc.

Once you’ve identified the hook, it should be used as the basis for attracting & keeping customers.

Finding or developing “the hook” and implementing it is challenging, and it has substantial repercussions for the business.
It may necessitate a fundamental re-think of the financial and overall business for the business to operate profitably with that hook.

For example: If the hook is “speed of service”, the supporting services, processes & infrastructure required to deliver that speed must be in place. This will require a complete assessment of the resources, processes etc necessary to deliver the promised speed, and to ensure that the business can do so whilst remaining viable.

Remember, the market and industry environment in which you operates changes all the time. You must be sensitive to developments in order to change/ modify your hook when required.

Developing a hook is essential to most businesses. Developing one and then failing to “deliver” on it is probably worse than having none at all.

So … What’s your hook?

Michael Marcus - The Franchisees & Independent Business’ Advocate Group
Saving Franchisees. Assisting Independent Business. BEFORE it’s too late!
The Franchisees Advocate Group - Australia
Business and Franchise Help - Australia

Ziggy

Exellent Post!