The high cost of regaining lost customers and market share is a mystery that eludes many business owners, who, themselves, have fallen victim of the turf war. The rate at which products are being churned out by companies leaves most organizations breathless in the bid to catch up with the challenge.
The Re-brand Trend
The re-brand trend is the catch now and most organizations are re-introducing their products under some new names, others, under some new packaging, as a strategy for fighting competition. The food and beverage companies have, perhaps, the largest number of these re-introductions. The consequence of these has been the loss of market share by some organization to other more innovative ones.
Checkpoints
The good news here is that even if you lost out in the product or market war, you can still win your lost customers and regain your market share. But first your willingness to remain in the market is very key.
Winning The Battle
To win the battle, first, enthusiasm must be sustained. The amount of innovation you are ready and willing to deploy is another important element in regaining your market. Please note that a market hardly remains the same after some major organizations drop out of competition.
Role Of Propaganda
By far the most destructive dimension in today’s business competition is the use of propaganda by companies against each other. Some banks in the banking sector have fallen victim of this propaganda, resulting in panic that almost folded up their operations. The food industry has in the past has also had its fair share of propaganda. Since perception is the strongest element in the psychology of choice, it is not surprising that the change in customer perception becomes the first step to abandoning a brand.
Hope
: Market Re-assessment
Market entry strategies are largely different from market re-entry strategy. The size, nature and structure of markets are very different yet they remain very important points for consideration. Markets are, basically, of two broad types: Competitive and non-competitive markets. Like we said, a market hardly remains the way you left it. Almost like a living being, the market is capable of re-locating demand among the remaining organizations, using price difference, among other considerations. Take into consideration the fact your customers have probably switched to a supposedly better substitute which offers a cheaper price. In reassessing and recovering your market therefore, those customer comes first. Ask yourself the big question:What value do these customers attach to the purchase they make from me? What warranted their switch?
Perception Is Everything
A stimulus generates a response called sensation in every human being. It is the interpretation of this sensation that is referred to as perception. Once this perception changes negatively, sustaining a customer becomes a big problem. Several factors determine the way we respond to external stimuli we get from adverts promotions and other marketing efforts. The background of the respondents, the preconceived notions about the product and its industry are part of these factors. So are people’s expectation and their general prejudices. They all affect the way we interpret our external sensation. Sometimes there is a miss-match between the perception intended by the marketer and that which is actually received by the people it is directed at. Aside from the fact that customers often choose what they want to see, hear or believe, adverts are generally received with mixed reactions and no single advert can win the admiration of all customers.
What To Do
Certain notions are commonly held by people about certain products which the manufacturing organization ought to work on. A strong guarantee is often needed to assure intending customers. Customers will always recall how a mistake in, say a food product company, had damaging effect on its customers. An organization facing a threat or propaganda of this nature we emphasize again, must employ the use of strong guarantees. Strong guarantees serve to allay hidden fears while boosting your products acceptance in the market. The strong guarantees that customers consuming a certain food product (reputed to have food poisoning effect) could have their hospital bills catered for by the erring company can be a good perception point. It must however go further into the use of serious word-of-mouth marketing. Propaganda that relies on word-of-mouth distribution can only be combated with word- of -mouth efforts.
Selling Psychology
What you sell is not enough to win people back once it has fallen out of favour in the market. Its fall is already indication enough that it cannot win customer favour without some help. There is a unique psychology behind that product that needs revamping for re-entry into the market. A psyche that reflects the expectations of the people, allays there fears and portrays an image the people can identify with, must be developed. What the product represents must be repackaged for effective market penetration.
Rewarding people for their loyalty to a product in another form of persuasive market re-entry strategy.
Often the people who win promos are those die-hard outsiders who patronize only such occasions. Call them opportunists if you like. The real customers of the promoted product hardly get to win these promos. Business should employ skilled field staff to actually ascertain their true customers and reward them accordingly. As an author once said, "the only way to regain trust after a betrayal is loyalty".
Do Something
Take a step to regain your market share. The key to survival in the business jungle is staying in the flow and not bailing out at every drop in sales. Stay in the game, be open to ideas and more importantly, be enthusiastic about your chances.
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