The Elements of Value Innovation

Have you ever wondered how some companies achieve sustainable growth while other struggle to keep up? W. Chan Kim and Renée Mauborgne stated in an article from the Harvard Business Review, Value Innovation, “In a five-year study of high-growth companies and their less successful competitors, we found that the answer lay in the way each group approached strategy”. The authors go on to explain that the conventional way of thinking, beating the competition, wasn’t the type of strategy that high-growth organizations adopted but rather the strategic process of making the competition irrelevant. The article explained in detail that it didn’t matter what size the organization was but how they logically approached strategy that impacted growth. What can we learn from this as small business owners? The lesson is that we truly have a great opportunity. We, the small business owners, are more flexible, more agile, and more creative and we have less bureaucracy. That’s why entrepreneurs still have a chance to create successful businesses even in the most uncertain economic times.

Let’s talk more about the elements of value innovation. To innovate value you have to skillfully integrate an idea, competitiveness and emotional value for consumers. Ask yourself these questions:

• What do you stand for (value proposition)?
• What makes you stand out (marketability)?
• What makes you compelling (brand story)?

Consider this value innovation model when developing value innovation for your company:

To consider each of the strategies surrounding your value proposition look at:

1. Core Capabilities – Look at what value you have to offer your clients. Are you capitalizing on your strengths? Each of the following strategies will strengthen your core capabilities making you more marketable to your clients.
2. Partner Network – Develop partnerships and alliances so that you can win more accounts. Think outside-of-the box. Remember, the goal is to make the competition irrelevant if you want to master value innovation. Bring in more partners and alliances and you will build your core capabilities for a unique client experience.
3. Customer Relationship Management – How will you manage your clients? What unique value do you offer over the competition? Start by knowing the competition and defining how your CRM strategy will differ.
4. Distribution Channel – Distributing your product or service is the one of the most important strategies to consider. Think about the many products and services you can offer to build your core but more importantly determine how accessible will it be for your client.
5. Target Customer – The idea is to have a niche market. Define a small or narrow target and it’s much easier to offer them precisely what they need. Again, you may have several target customers if you have a variety of core capabilities but the idea is to identify each segment skillfully.
6. Cost Structure – Determining your cost structure will contribute to your competitive advantage. If you are a small business you have less overhead than larger companies and can add more value at the same time. Never price yourself out of the market or below. Investigate pricing strategies that will work for your clients.
7. Revenue Streams – Consider multiple revenue streams and structures. Think about funneling buyers through the buying process. First you have to build awareness, then interest and ultimately trial (A.I.T.). So, if you think about your revenue strategies you might want to think about different packages you can offer your client to augment your business. Start with a small package to build trust and win them over for repeat business in the future.

An Example of Value Innovation:

Amazon’s business model or value model combines an idea, competitive pricing and an emotional experience for the customer:

• Shopping convenience
• Ease of purchase
• Speed
• Decision-enabling information
• A wide selection
• Discounted pricing
• Reliability of order fulfillment

It’s the integration of all these processes and emotional benefits that makes Amazon a great value to consumers. Your business can do this too! You just have to plan to strategically position your company and products. Understanding that high-growth companies approach strategy differently really helps new companies create a sustainable model from the beginning. If you want to attend a free seminar on Value Innovation see our FaceBook Events page for more details.

Trisha Ahlman is a marketing strategist and small business owner. She has worked in just about every marketing function possible for nearly 20 years. Augment Marketing Group's specialty is helping small businesses build strong brands, increase visibility in the market, and generate sales - this is called our B.I.G. (tm) system. To contact, email trisha@augmentgroup.com.

Repositioning a Brand - It's Going to Be a Long Road

A long road? It doesn't have to be. Today, branding is such a broad term used loosely to explain a concept that for some isn’t so easy to define. In our entrepreneurial training classes, we explain that the only way to describe branding is to say that ‘branding is everything’! From the way your employee answers the phone to how you dress and even how the company is structured internally. In fact, described by many professionals like LaCosta Lolly of LLS International Consulting, a international strategic firm, “developing a strong brand starts from the inside out”. I couldn’t agree more. I have taught in many courses that in order to brand or reposition an existing brand you must start from the inside out.

First, we analyze the brand through the process of what we call the branding wheel model which first starts with the company’s core philosophy. At that point we determine the organizations unique selling proposition moving into the entire brand architecture; ultimately, determining what that looks like and sounds like to the world through creative imagery and messages. To reposition a brand we have to take it a step further and redefine what the organization looks like to its stakeholders. This can be done through the perceptual mapping process. As you probably realize at this point, it isn’t going to be an easy task. It takes a highly skilled professional or consultant to help entrepreneurs step away from the business long enough to develop the foundation of a strong brand.The question is what can you do? The best thing you can do for your company is envision its future. Without your leadership and understanding of where you want to take the company – most likely you will not gain support from those who drive your vision. It doesn’t have to be a long road if you play the visionary role in your business. When repositioning your brand it’s best to understand how to shorten the path to successfully build positive brand equity in the minds of stakeholders.

Here are the top ten things you need to do in order to start:

1. Follow the branding wheel process
2. Develop scenario’s or what if situations
3. Take action (seems simple but many small businesses fail because they do not ‘TAKE ACTION’)
4. Hire someone to help you (a coordinator, an intern, a friend or relative or a consultant)
5. Review the trends 5-10 years out for your industry
6. Develop a spreadsheet that captures the benefits, features, advantages and disadvantages of your competition
7. KNOW the competition better than they know themselves
8. Network, network, network (both online and at events)
9. Remember the 5 P’s of marketing (Product, Placement, Price, People, Promotion)
10. Analyze your internal structure, your vision for the company and how you manage your people

If you want to learn more about branding or repositioning your brand, you can attend one of our free workshops (see events on our Face Book page) or you can visit our Web site. We offer a wealth of information to help small to mid-sized businesses augment their marketing and their brands. Learn from some of the brightest consultants in their fields of expertise like LaCosta Lolly, Harry Futch and others. These consultants have joined our team to deliver sound advice to our readers. Each of them have a passion for helping entrepreneurs realize their dreams.

The Tell-Tale Signs of Poor Brand Strength

by Trisha Ahlman

One of the most important steps of branding is the measurement of internal perception and organizational structure. Change is, no doubt, a very important concept when beginning to rebrand or reposition a company, product or service. The question becomes is your organization ready for change, are you poised for new ideas to flourish, are you aware of the tell-tale signs of poor brand strength? All of these questions could create a war – a tug of war – between what you are trying to accomplish and what might actually happen because of poor internal perception.

Have you ever heard the phrase, “don’t put the cart in front of the horse?” Unfortunately, I see this more times than not in some organizations. Before you can position or market a product or service effectively in the marketplace, you need to look within the organization first. Review the list of tell-tale signs and let’s discuss how to combat internal resistance to change.

1) Inadequate communication or education within the organization

2) Have direct opponents of change because of self-interest not necessarily in the best interest of the company

3) Low tolerance to change because of the fear of an unstable environment

4) Lack of morale and teamwork

5) Strict and rigid policies that prohibit creativity

6) Lack of vision

7) Lack of leadership that fosters poor professional judgment

8) Poor customer service reviews

9) Internal perception reveals poor assessment of leadership and management

10) Unnecessary bottlenecks that cause frustration throughout the corporation

The list goes on. But, these are some of the most common distractions that go against the grain of change. The most important thing for survival in the current state of the economy is to get a handle on internal processes. If you think that you can identify with anyone of these factors, it’s time to take an internal audit of your business. You cannot position your business or brand without understanding that marketing starts from the inside out.

Based on some of the most profound findings by business pioneers like Kotter and Covey, here’s what you can do:

· Set specific objectives from the start

· Have a sense of urgency (be proactive)

· Buy-in and direction from leadership and top management

· Develop and communicate a clear vision (begin with the end in mind)

· Build a coalition for change (internal buy-in is critical)

· Empower people to have an ownership environment (think win-win)

· Learn from mistakes and develop an environment of responsibility

· Encourage education and training within the organization

· Create personal development plans that allows individuals to be a part of the decision making process

· Don’t let problems foster for a long period of time

This all sounds great but how do you start, how do you manage this, and what result should you expect? First, start by taking an assessment. What is internal perception? There should be a person assigned to manage the assessment within the organization that is a supporter of change – perhaps the brand manager – who understands the long-term vision of the company and what the leadership is trying to achieve. Second, you need to develop a team (a coalition) that is scientifically formed. Scientifically means that teams are formed based on personality, results, and synergy among the group and not formed by mishap. The coalition will be responsible for managing change and implementing new standards to support the end goal. Lastly, you should expect a renewed sense of ownership, loyalty, teamwork, personal discipline, improved morale, and continuous quality throughout the company.

Right now, this methodology is even more important than ever. Everyone is fighting for job security so what we’ve been witnessing is internal chaos as our brands will ultimately deteriorate over time as a result. The leaders of businesses, large or small, must take corrective – proactive action.

If you want to reposition, rebrand, brand or simply be more efficient and effective throughout your company – you have to start here. Augment has worked with many organizations to help them align internal practices to match external goals when positioning the brand for long-term success.

*References: concepts derived from John Kotter concluded in his book "A force for Change: How Leadership Differs from Management" (1990), the Kaizen method of continuous incremental improvements is an originally Japanese management concept for incremental (gradual, continuous) change (improvement), and the Seven Habits model of management and leadership by author Stephen Covey.

Trisha Ahlman is a marketing strategist and small business owner. She has worked in just about every marketing function possible for nearly 20 years. Augment Marketing Group's specialty is helping small businesses build strong brands, increase visibility in the market, and generate sales - this is called the B.I.G. system. To contact, email trisha@augmentgroup.com.

Action Plans - Why do we procrastinate?

Everyone tells us that business plans are the best way to navigate and build our business - so why is it so difficult to accomplish? And, what about the plans we do find the time to write down but never come to fruition. Unfortunately, these obstacles are the realities of being an entrepreneur or new business owner. We wear many hats and we tend to let our businesses consume us. Action plans (or business plans) tend to be plans that are reactive rather than proactive for small businesses. Sound familiar?

Let's start with the types of plans first, how we can start the process, and how to eliminate waste and get the plans working for you rather than sitting on the shelf.

The following plans are considered to be relevant to small and growing businesses. Depending on the size of your company, these plans may only consist of a one page document or even just a statement. They are:

Business Plan
Marketing Plan
Strategic Plan
Productivity Plan
Tactical Plans
Budgets
Sales Forecasting

As explained by business strategist, LaCosta Lolly of LLS International Consulting, "a comprehensive plan should be developed even if you have to implement in stages". Whether you have the resources to implement the plan or not, planning is still essential. Ms. Lolly goes on to explain, "For the small or mid-sized business seeking to grow or expand, planning is essential. It is important not to focus solely on acquiring new customers without being prepared for those customers and the reverse is true in that preparation without new customers creates unnecessary expenses. Strategic planning will help your business plan for growth from the inside out and determine what is necessary to take your business to the next level." To read more about strategic planning visit LLS International Consulting's NEW informative Web site.

How Can Marketing Help My Competitive Advantage?

Entrepreneurs continue to search for ways to increase their competitive advantage. Winning business from competitors isn't easy. In fact, trying to gain new clients can sometimes take quite a long time - time that most companies do not have if they intend on staying in business. In the weeks to come we'll discuss more about competitive advantage and how to increase it through specific marketing initiatives that perhaps you know - but just haven't had time to touch on in a while.

Let's explore areas that will pollinate your competitive advantage by revisiting the following - Get a pen, write it down, or print it out for your own strategy sessions:

• Increase the time it takes deliver your product or service (increase efficiency)
• Survey your clients to find out their level of satisfaction (know your customer)
• Build strategic alliances so that you never lose a contact (make contacts work for you even if they are not your direct client)
• Lean your processes (better understand supply chain management)
• Touch base with your sales force more often (treat your sales force first class, they are in many cases the first contact with client and they know their pains and needs)
• Know your unique selling proposition (revisit your positioning statement to enhance differentiation)
• Have planning sessions for your business (make sure to spend a time each week that focuses on your businesses no matter how busy you get)
• Create a board of directors or group of people that you can learn from (in many cases, professionals will join forces to share best practices, insight, and planning opportunities)
  

You probably know exactly where I'm coming from, but in order to increase your competitive advantage through marketing here are a few specific items to consider.

1. Build a strong relationship with your customer by getting to know them thoroughly - do a little research, keep a database of pertinent information that will help targeted messages
   
2. Implement technology that will better serve your client - examples include: email marketing, dynamic Web sites, and customer relations management software
3. Create stickiness - develop memberships, incentive programs, reward programs, or added value for your clients
4. Make sure your brand is relevant - meaning, make sure that your brand means more than just the offering of your product or service - for instance, community initiatives
5. Enhance the customer experience - create a culture that is customer-focused, making sure that your clients have this experience every time is developed through your systems and execution

These are just a few things I recommend in creating competitive advantage. It has worked for hundreds of small to medium sized enterprise and can work for your business too.

Apply these concepts and you will Augment Your Marketing efforts ten fold.

Trisha Ahlman is a marketing strategist and small business owner. She has worked in just about every marketing function possible for nearly 20 years. Augment Marketing Group's specialty is helping small businesses build strong brands, increase visibility in the market, and generate sales - this is called the B.I.G. system. To contact, email trisha@augmentgroup.com.

What works best for small business - PR or Marketing?

I haven't written in a while - I've been just a little busy lately, but I wanted to address the question posed tonight at the Indio-American Chamber of Commerce. I was invited to speak regarding marketing and PR for small businesses. What works: Marketing or PR? Which one can set small businesses apart from their competitors? The answers that resonated are that marketing is everything you do for you business, but PR is one very important marketing initiative that can generate BIG results while gaining credibility as an expert in your field.

I've spoken before about B.I.G. results. In essence, it means to: Build awareness and trust, Increase interest, and Generate sales. PR is a way to build trust and funnel buyers through the decision making process non-offensively. Specifically, we spoke about education marketing and educating consumers about your products and services rather than selling them. With public relations, we tend to think what we hear or see is believable or acceptable rather than a sales pitch or marketing ploy.

I think that marketing and sales professionals get a bad wrap for the most part because of all the high pressured sales people of the world. Quite frankly, car salesman and insurance salesman have given us all a bad name. None the less, we still need to sell our products and services, right?

How do we do this? The answer is PR. Build credibility with your consumers. Here are a few tips from tonight's excellent panel discussion on PR and Marketing for Small Businesses:

1. Spend time blogging or writing articles that demonstrate your expertise in your field.
2. Make sure you have some kind of online presence.
3. Use an integrated approach to marketing - if you do use traditional media for advertising, make sure that you use other guerrilla marketing tactics and online media to help support initiatives for the best results.
   
4. Make a lasting impression with your clients - don't forget the old hand shake and customer relations.
5. Make sure you under promise and over deliver.
6. Be unique and make sure that your marketing mix has a specific message to a specific target - the more targeted the better.
   
7. Use a platform that allows you to tell your story - you finally have it all together, you know your marketing, you know your client, you know your brand ... talk radio is just one way to utilize a platform that gives you more than just a 60 second commercial.

These concepts and so much more were discussed this evening. Everyone participated and we all gained a great deal of insight from the conversation. If you would like to know more about tonight's meeting, please email trisha@augmentgroup.com.

Trisha Ahlman is the CEO of Augment Marketing Group and has over 15 years experience in marketing for corporations and small businesses. She sits on several creative and strategic development boards nationwide. "Inspired by growth" from its inception, Augment's mission is to inspire growth in all businesses large or small when developing strong brands. We believe in inspiring, learning and growing.

How Ready Are You For A Marketing Consultant?

Take the test. Yes or No

1. I know my 'exact' target audience?
   
2. I have a marketing budget for planning?
3. I have a marketing budget for creative, production, and placement?
4. I know what stage of growth my company is in?
5. I understand my marketing mix?
   
6. I have established the right price point?
7. I have supporting marketing initiatives to help with advertising goals?
   
8. I have research to support my decisions?
9. I have someone to implement and enforce marketing ideas internally?
10. I have a system in place to evaluate my marketing initiatives?

If you answered 'No' to most of these questions, you may need to start with a marketing and business plan before calling a marketing consultant; however, if you think you could quickly put these factors in place, a marketing consultant can help with determining your market, budget, and overall plan. If your resources are limited, take each of these sections and find answers. You can send your questions to "Ask The Expert" at trisha@augmentgroup.com.

Marketing isn't an easy job as most of you know. It takes know how, validation, measurement, and just plain hard work. Chances are if you're an entrepreneur, you understand elbow grease. If you don't, marketing is a hands-on job - it's not mysterious or magical. Understanding that will not only help you initiate marketing efforts but will also help you better understand the marketing consultant you hire.

Tell us about your experience with a marketing consultant? We want to hear the good, the bad, and the ugly. It helps all marketing consultants better when they understand their strengths and weaknesses.

[Trisha Ahlman is the CEO of Augment Marketing Group and has over 15 years experience in marketing for corporations and small businesses. She sits on several creative and strategic development boards nationwide. "Inspired by growth" from its inception, Augments mission is to inspire growth in all businesses large or small when developing strong brands. We believe in inspiring, learning and growing. She can be reached at trisha@augmentgroup.com]

Are You a MicroPreneur?

Harry Futch of MicroBiz weighs in (or visit MicroPreneur),

"Business blogs are very popular right now, but we intend to focus on the MicroBiz - and for our purposes that means less than 10 employees and a burning desire to compete on the level of much bigger companies. We have assembled a talented crew of guest writers from our local area (Houston, TX). As we progress, we will be asking some of our respondents to serve as guest writers also.

As the CEO of a microbiz (that’s Chief Everything Officer), I’ve spent hours on the Web searching for information on running my business more efficiently and effectively. I’ve been fortunate to be surrounded by people much more talented and much smarter than myself. I have been, however, smart enough to get them to share information about what made them successful. I intend to pass along as much of that information as possible.

Unlike many blogs, this one does not have the feel of Holy Writ. What works for one business might not work for another. The importance of this type of exchange is to keep a free and open flow of ideas and techniques. Together we are more powerful than we are alone. Let us hear from you. "

For more information on how you can grow your business visit the MircoPreneur Blog

Inspired By Growth: Augment Addresses Advertising

A famous writer by the name of Roy Williams tells the best stories. He is literally THE guru of writing, marketing, and advertising. He created the Seven Laws of the Advertising Universe in his book "The Wizard of Ads" (excellent reading). I thought it would be fun to offer the perspective of the consultant or agency in this article. For One, I thought perhaps clients didn't know what it was like to be in our shoes and would want to hear this perspective. Secondly, I think that it will open your eyes to really great ideas that will manifest new growth in your advertising.

I have picked four out of seven key laws and made a comment after each describing the other perspective to illustrate how best to approach or think about the law.

1) An Energy of Words has existed since the day He said, "Let there be light." Learn how to use this energy. You are created in his image. Trisha's comment - with the internet growing by leaps and bounds daily, small businesses have no choice but to create presence on the internet. Some clients still have not taken the plunge believe it or not. Words are our energy. Begin writing. Develop a program or guide for your clients. Developing key material for your company is essential to your success. Let words augment your growth. Do not let fear of the unknown keep you from taking the first step.

2) Intellect and Emotion are partners who do not speak the same language. The intellect finds logic to justify what the emotions have decided. Win the hearts of the people, their minds will follow. Trisha's comment - this is soooo true in advertising. Some clients begin analyzing campaigns to death. I call this "analysis paralysis". Certainly, you will not augment growth if you never make a decision. Emotions or evoking emotive responses work very well in advertising. That isn't to say that you should not take an educational approach to advertising. In my experience, what works best is a balance between Education and Emotion. A winning combination.

3) Opportunity and Security are inversely proportionate. As one increases, the other must decrease. High returns are gained form low-risk strategies only through the passage of time. He who will cheat time must embrace the risk of failure. Trisha's comment - Again, Roy Williams is superb. Number three can go hand-in-hand with number two. If clients never take a risk, how will they have the opportunity to test the market. Creativity comes from the gut many times because it is evoked by emotion. Sure, one can fail utilizing all emotion and no logic, but isn't it fair to say that great ideas are often ideas that can come literally from a vision. It can happen that fast. I say that to say, take a chance.

4) Engage the Imagination, then take it where you will. Where the mind has repeatedly journeyed, the body will surely follow. People go only to places they have already been in their minds. Trisha's comment - I do think that the more you allow your advertising agency, your employee, your partner, or your marketing consultant to engage in creativity and use their imagination, the more often you will gain the best they have within them. Harnessing imaginations keep creativity from flowing. Allowing it to flow can create some of the most amazing marketing and advertising ideas ever to be produced. [This excerpt was taken from "The Wizard of Ads" by Roy H. Williams, renowned advertiser, marketer, and author.]

By no means, am I saying that all decisions are emotional, immediate responses; but, I am saying that in order for "juices to flow" to create ideas that will possibly enhance your image and increase revenues, it's a risk worth taking. Be creative, take chances, live on the edge. Cutting-edge, break-through ideas do not come around everyday. Thinking in the box will not get you there. You would never know when a campaign, a new logo, or a new tag would augment your company to an entirely new level.

Coming from the consultant side, I hope I've given "you" the entrepreneur or small business marketer some advice on how to work with consultants and employees to produce the absolute best results.

Inspired by Growth Blog is driven to gain insight for those seeking advice as well as receiving advice. Your marketing and advertising may be in the hands of someone else, but if you are the kind of person that is really, really good at what you do....let your consultants or agencies do what they do best and await the results. I promise if you step back, you'll be amazed at the results.

A little perspective goes a long way sometimes.


[Trisha Ahlman is the CEO of Augment Marketing Group and has over 15 years experience in marketing for corporations and small businesses. She sits on several creative and strategic development boards nationwide. "Inspired by growth" from its inception, Augment's mission is to inspire growth in all businesses large or small when developing strong brands. We believe in inspiring, learning and growing. She can be reached at trisha@augmentgroup.com or www.marketingmyinternetbusiness.com ]

Entrepreneurs are creating massive wealth with new marketing software business!

Last year was an amazing year for my company Augment Marketing Group. To top it off, I have had the opportunity to work with some of the largest universities, oil companies, and medical centers in Houston not to mention the vast number of small businesses I have consulted over the years. But what really takes the cake, if you will, is an opportunity I found to buy a marketing software business that literally turns the B.I.G. system I created over one year ago into a true reality.

As a marketing consultant for small businesses, I have entrepreneurs work through a comprehensive survey to develop a customized marketing plan to best suit their needs (found on my website www.augmentgroup.com). Many of the businesses I have worked with have all needed the B.I.G. System because it helps build brand awareness, increase interest, and generate revenues. What I was missing however, was a turn-key implementation system that helped small business owners implement their marketing plan. I actually even thought about developing this software on my own. Now, I don't have to - thanks to this amazing new marketing software business.

I'm only telling you about this because if you have to rely on your own efforts to do the marketing for your business or you want an opportunity to provide marketing solutions to your clients you might want to research this grand opportunity. With a team called Mentors4u of Passport to Wealth, I have been able to provide my clients with marketing software to help implement more effective marketing strategies.

For more information, visit the marketing software business website. I found that only this team provides the kind of support to really achieve massive results in building wealth with online marketing. They offer free weekly webinars, support and training to their members. Records indicate that entrepreneurs and marketers are seeing immediate results.

As a marketing consultant, this software solution has given me a huge edge over my competitors. I can bet they are not offering this type of free training.

Aged Shelf Corps with Funding Gives Businesses a Boost

Are you looking for a way to boost the foundation of your business? You can actually purchase (which can be costly), an Aged Shelf Corporation that will give your business the distinction of being in business as long as the aged shelf corp was in business. Imagine what this can do for you when trying to obtain funding or trying to get a large contract. The credibility of being in business for over five years can play a huge role with banks, potential clients, and government requisitions.

There is a lot of information out there. It's really hard to distinguish which companies are legitimate and which ones might not be knowledgeable. Here are some things to look for:

1. Full disclosure
2. Funding options included in the offer
3. Marketing packages should be included
4. Paydex scoring
5. Customer service and support

Aged Shelf Corps Funding is a website that I felt offered the full agreement right up front. You don't have to call a sales rep just to know more about it, you do not have to rely on someone calling you back, you don't have to wait for answers...It's simply all right there at your finger tips. I thought that was very important.

If you can afford it, it's an amazing boost to your business. The success of a business begins with the strength of the foundation. Purchasing Aged Shelf Corps and matching that with Funding can turn your business into a profit making machine. Augmenting your business can be that easy.

Aged Shelf Corps plus Funding is one solution to building a strong corporation from the very beginning. Trust me when I say, the banks care and your clients care. Wouldn't it be nice to tell them, not only do I have 15 years experience, but I've owned my corporation for 10 years.

No that is not dishonest. It simply is a corporation that you purchased. Like a subsidiary or a franchise, turn-key business. Large corporations do this all the time to expand and so can you.