I have encouraging news for you: many of your competitors are afraid of strategy. You might call it strategophobia. Strategy has two terrifying characteristics. First, strategy is a choice. “We are going to go for target customers X, and not the rest,” or “The major benefit we will offer consumers is Z and not all sorts of other things.”

It seems that when you choose, you have to give something up. There are executives who are not willing to give up on a target group of customers, as if they “have them” or stand a realistic chance of getting them all. This is one of the sweetest but most dangerous illusions managers have. They aren’t willing to define a particular benefit as the major benefit they have to offer their consumers, out of fear that the consumer might be tempted to try a different benefit elsewhere. Strategizing means choosing to focus and concentrate your energies in order to provide yourself with an advantage. You go about this by establishing your brand as the source of a certain benefit. If you don’t, you probably won’t be identified with any benefit and consumers will have no good reason to think of you and buy from you when they need or desire something.

When you adopt a strategy, you’re “giving up” all sorts of things that you don’t actually have in order to acquire something tangible, something you can sink your teeth into.

The second terrifying characteristic of strategy is differentiation from competitors. To be different, that’s really a possibility that could cause nightmares. Why? Primarily because basic conservatism says that if that’s what everyone does, there must be a good reason for it. And that’s true. The component of “good management practices,” which everyone strives for, is essential. It doesn’t create an advantage over competitors and you should never confuse it with strategy, but it is essential. Beyond this, managers are always so busy dealing with competition that they are more worried about preventing their competitors from gaining an advantage than they are about creating an advantage for themselves. And so those managers are busy trying to imitate their competitors rather than striving to be different. A good defensive game really does help you not lose. But in order to win, you need to score every now and then.

For this, you need a strategy. No alternative, sorry.

The 5 Percent That Makes All the Difference

By definition, strategy is the way you plan to achieve your goals. In a competitive environment, your goal is for your customer to buy from you and not from your competitors. Therefore, strategy is the way in which you plan to achieve an advantage over your competitors, in the consumers’ eyes. Differentiation is almost always a pre-condition for achieving such advantage. You must do something differently from your competitors so that you provide certain consumers with a good reason for preferring you.

Many marketers think that differentiation means that a company has to be different than its competitors from A to Z. Not true. The comforting secret is that you don’t need to be different in everything in order to succeed, only in certain things. If you look at the managers of competing companies in the same market category, no matter what the field, you’ll see that 95 percent of their concerns, decisions and day-to-day activities are very similar. It may be surprising, but in 95 percent of their actions, executives in competitive companies are doing nearly the same things. That’s the “good management” that we talked about.

If you take cellular company CEOs, for example, and interview each of them separately, asking them what’s important to them, you’re likely to hear pretty much the same thing from all of them: “I want an infrastructure technology with a horizon for future developments; I want more exciting phones; I must have great client service, a flexible and efficient billing system, and great added value and content services.” Everyone will say exactly the same thing, because that is what is expected of a good cellular company. But good management isn’t a strategy.

If everyone does the same thing, and everyone is talented enough to do it well, would consumers differentiate between companies? Why should they prefer your company? Because you do it better? There’s practically no chance that “better” is something consumers will notice, nor is it an advantage that you can maintain over time.

The secret is in the other 5 percent. The 5 percent you do differently is your differentiation which is your strategy. If 5 percent sounds too little for you, I suggest that you remember that human beings and chimpanzees are 98 percent identical in their genetic makeup. If 2 percent can make that big a difference, then 5 percent, planned wisely, can do even more. Other concepts you know, such as positioning (your situation, relative to your competitors’, in the consumer’s mind vis-a-vis his purchasing considerations), and “critical success factors” (what you must do in your field in order to succeed) relate to good management, not strategy. Note that positioning and differentiation are not at all synonymous! Positioning refers to the comparison between you and your competitors in all parameters that are significant to consumers, which they use to compare their options. Differentiation refers to what sets you apart. Since it’s something that is true only about you, there’s no comparison in this respect. Good management provides you with the entrance ticket to the competition. Strategy allows you to win the battle for the consumer.

I want to illustrate the principle of 5 percent difference for you with an admittedly unconventional, but very elucidating example. Mind you, I do not mean to glorify this company, just to make a point.

In Canada, there is a news company called Naked News, and it broadcasts upbeat news and current events programs to more than 170 nations daily on the Internet, as video on demand (V.O.D.) on cable and satellite-TV as well as over mobile phones and other handheld devices.

Most of what the managers and other staff in this news company do is exactly what their colleagues in any other news company in the world do. But Naked News does one thing a little differently, and that’s the reason some viewers prefer it (despite the premium price). Tagged “the channel with nothing to hide,” Naked News’ attractive anchor persons (well, mainly young women) cover politics, business, sports, entertainment and the weather – while totally naked.

You may prefer a less controversial approach. That’s fine. As long as you get the principle right.

The act of social bookmarking is becoming something more than a potential tool for online marketing. Many entrepreneurs are finding social media sites to place business information in an informal setting.

Once you finish developing your social media site the marketing potential is just beginning. Obviously you hold out hope that visitors will drop by your online presence, but you may want to go fishing for friends.

In some social media environments you are allowed to make a ‘friend’ request while other sites invite you to bookmark sites of interest.

What Does It All Mean?

If you wonder why you should care about making or accepting a friend request or participate in bookmarking let me attempt to explain the process.

When you initiate a friend request to an individual or business you are familiar with it is possible that your social media page will be listed on this secondary site. In essence when someone visits this site they also have a compelling link to your site.

On sites where bookmarking is allowed this feature is often divided a second time. In this kind of site environment visitors can see who you have bookmarked or selected as friends, but they can also see how many others have chosen to bookmark your site.

Some social media sites provide their own inner site rankings based on the popularity of a site. If your site ranks well that also provides the opportunity to have your site publicized even more.

Social bookmarking is the process of establishing a network among peers, friends, family and interested guests.

This is an important component when it comes to the already established benefits of owning a social media site. In this environment you can invite guest comments, you can receive private inner site emails from those who may have questions and you can participate in blogging. In some cases you may even be allowed to post pictures, video or audio to enhance the experience of your site and promote your online business.

Connecting Links

Links can easily be established to your primary site where you can welcome visitors to a more business-oriented experience.

The reason so many online business owners are adopting the use of social networking sites is because they can be obtained at no cost in most cases. Each of these sites can be designed to point back to your primary website. In that way they are extremely useful in the promotion and marketing of your main business site. These ancillary sites also provide a valuable backlink to your online business presence that is useful in improving potential in site rankings. For every backlink to your primary website the greater trust most search engines place in your site.

Putting It All Together

In a practical sense social bookmarking provides a trail back to your social networking site. That process opens the map so the visitor can find their way directly to your business site. The process acts as spokes in a wheel. Social media sites are the spokes that, through backlinks, lead to your hub of business, which is where you want them to end up in the first place.

One of the great debilitators in online business is simply the perceived (or real) lack of time. Business owners are used to moving forward. An online web presence can make them feel tied to an office chair learning skills they aren’t sure they want to know.

It’s not uncommon for those who deal in full time web design to have individuals contact them for a site design, but have absolutely no idea what they want. Furthermore when the designer questions them the response might be, “I don’t know, just make it look nice.”

Let’s not forget the core values or mission of the business. Many business owners have no idea how to answer those kinds of questions. They may stare blankly for a moment or two and there’s no more time for further deep thought so they go back to action – without answers.

In many cases it is possible to answer some of the questions needed, but it may require taking time away from a familiar setting. It may also require more time than you think you want to give.

If you can get to a place of concentrated contemplation you are likely to find yourself stripping ideas to their core to find out what your business is trying to accomplish and what your ultimate goals might be.

As with almost any project you can turn frustration around if you will just take the time to come to terms with your vision.

Sometimes we spend so much time ‘doing’ we never stop to ask the question, “Why?”

This process can be a bit like taking a bus that drives around the park. You keep looking at the flowers and the park bench and long to sit in the quiet shade of a tree and just absorb the calming atmosphere. You know they will have a positive effect on you, but for some reason you just can’t seem to find the energy to get off the bus.

It seems to me there are some sites that are misguided or rarely guided that could benefit from the process of self-evaluation. These sites may look nice, but there is a sense of disconnection that may not be easy to identify, but it’s fairly obvious to visitors.

Creative energy is at a minimum while business owners simply tackle what seem to be the most urgent details.

As more people gravitate to online business there needs to be a shift in the thinking of how one goes about doing business online. In many ways it can’t be approached in the same way a traditional business is developed, yet that is typically the way many new web commerce ventures choose to tackle the subject.

You may discover your business will be more successful if you take some time for rigorous reflection. The time set aside can be a bit like an architect that takes the time to develop plans for a new building. You wouldn’t expect the architect to simply tell a construction crew to, “Go out there and build – something.”

Work at ‘building’ your online business in a comprehensive way. Your effort can develop a firm foundation for long-term success.

Yes, we’re in a recession. But people and companies have not locked up their wallets completely. If you keep your wits about you, you’ll ride out the recession just fine.

Four Recession-Fighting Marketing Tactics

1. Emphasize the value you provide. Whenever possible, position your offering as an investment rather than an expense – not necessarily by using the word “invest” but by making it extremely clear how and why the customer will be better off having bought your whosie-whatsit. For instance, suppose you sell a weekly menu service that provides recipes and a shopping list for wholesome family meals. Instead of allowing the consumer to think of this as a luxury (after all, they can do this on their own, without paying for it), explain why subscribers are able to stretch their food budget while serving their families more healthful, delicious and varied meals. Explain the hidden costs of grocery shopping on impulse or with a flawed shopping list.

2. Make sure clients are happy with what you’ve done. Create some sort of feedback routine in which you give every buyer the opportunity to tell you what went wrong – or right – with their purchase. If someone gives negative feedback, fix the problem immediately. Do not tolerate shortcuts or shortcomings! Reputation reigns supreme when people are concerned about spending money on something that may not work as advertised.

3. Create special offers. Instead of a long “a la carte” menu of products or services, or an indefinite invitation like “call us and we’ll figure out how to meet your needs,” put together specific packages of what buyers receive with a special price for a limited time. For instance, a spa could promote a Get Ready for Summer Special, good through June 14. The deadline and a clever name for the offer both help motivate customers. To avoid training your clients to hang back and wait for a discount, try adding irresistible bonuses like a free MP3 player or “two for one” coupons at a local restaurant rather than cutting prices.

4. Contact inactive clients. According to copywriting guru Bob Bly, simply by calling past clients to say hello and to find out what’s going on in their business, you’ll get an average of one out of ten giving you a new assignment because you showed up in their awareness at an opportune time. “Don’t call up and say, ‘I’m not busy and need work right now; do you have any assignments?‘” he warns. If you’re not the “just wanted to chat” type, a good excuse for getting in touch is “I’m calling to get an update on the results you had from the last project we did together. How did that work out?”

To paraphrase a famous saying of Eleanor Roosevelt, “Nothing can pull your business down without your consent.” You have a choice about what attitude and actions to take. If you refuse to adopt the mindset of those running around right now like Chicken Littles, you will be able to look back on the era of gloom and doom with a smile on your face and a big bankroll in your pocket.