Small Business Marketing Guide
In a crowded marketplace, standing out is essential. Differentiation is about being meaningfully different from your competitors — in ways your ideal customers truly value.
Why Differentiation Matters
It’s not about copying competitors. Instead, it’s about understanding:
- Their strategy: How they create customer value.
- Their processes: How they deliver that value.
- Their audience: The type of customer they attract.
Then, use that knowledge to position your business in a way that is uniquely yours.
If you’re already in business, start by looking at your best customers:
- What do they have in common?
- Why did they choose you?
- Why do they stay?
- Why do they refer you to others?
These answers can reveal your true competitive edge.
What Makes a Strong Position?
- Uniqueness: Saying you “provide great service” isn’t enough — customers expect that.
- Customer-Defined Value: Your difference must be something your target market cares about.
- Clarity: Even if your work is technically complex, customers need to easily understand what’s in it for them.
Ask yourself: What’s my unique value proposition (UVP)?
Ways to Differentiate
1. Product
Offer something unique — or pair your product with a service that adds long-term value.
Example: Peloton sells exercise bikes, but keeps customers engaged with on-demand fitness classes taught by world-class instructors.
2. Service
Package your service like a product.
- Focus on outcomes, not just hours worked.
- Offer defined deliverables and fixed prices.
- Give it a powerful, memorable name.
3. Market Niche
Become the go-to provider for a specific industry or audience.
- Specialization often allows you to raise your prices.
- Example: Tesla carved out the electric vehicle market and became the dominant player.
4. Solve a Problem
Address a universal frustration in your industry.
- Example: WOW 1 Day Painters built their brand by delivering complete home painting services in a single day — solving a common inconvenience.
5. Disruption
Introduce a new solution to a mature industry.
- Examples: Uber and SkipTheDishes revolutionized the taxi and restaurant industries through convenience-focused apps.
Next Steps
Your difference is your competitive advantage — but only if your market values it. Take the time to define your unique position, test it with customers, and communicate it clearly in all your marketing.
Need help figuring out what makes your business stand out?