At this point, you should already understand the first three quadrants of the Rainmaker Marketing Simplified Strategy Matrix . . . the Archer, Brander, and Clumper quadrants.
Recapping quickly, the four basic types of markets most practitioners face are:
- A large market with many competitors, suggesting the Archer strategy, a version of Porter’s Focus Strategy,
- A small market with many competitors, suggesting a Brander strategy, a sub-set of Porter’s Differentiation Strategy,
- A large market with few competitors, suggesting a “Clumper” strategy, a combination of Porter’s Generic Differentiation Strategy and his Generic Low Cost Leadership Strategy, and now
- A small market with only a few competitors, suggesting the Developer strategy, another sub-set of Porter’s Differentiation Strategy.
In this fourth quadrant, you will inevitably find it easier to develop relationships that result in a recognition of you as a trusted advisor, resulting in networking referrals and “pay back” for favors done.
In a market with few competitors, your practice will be called upon to provide more of the basic services, and will encounter fewer opportunities to engage in specialty services.
And, because there are fewer choices in the selection of providers, client churn will be reduced.
With a small market, there will also be fewer points of contact required in order to become “known” of as an entity or service provider.
However, just as there are fewer points of contact for positive growth, there are the same number of contact points for negative growth, and the negative growth fluidity or ability to spread knowledge is ten times more active than the positive fluidity.
The fact that there are fewer points of contact available for communication in a small community results in a situation where practice growth can be slow, and in cases where client defection is high, a practice can can easily “bottom out.”
This makes it almost an imperative that you develop positive relationships that will block the flow of any negative feedback, utilizing the Positioning sub-strategy from Porter’s Generic Differentiation Strategy to position yourself as a specifically valuable resource for your target market.
Providing the highest quality work-product in the community will only benefit you if your clients are aware of the quality.
In order to make your clients aware of the quality of your work-product, you will be required to develop an internal marketing program that communicates this quality.
In a “Developer” market, you must develop relationships that will deliver positive, and continuous messages about you and your services.
The contact points in this market will react to the relationships you build more quickly than any marketing message you may attempt to deliver through any other means.
Later in the course, I’ll begin explaining how you can use the differences between these simplified market definitions, along with the unique business model you have developed earlier, to build and implement your own marketing strategy.
Then, once your strategy is fully developed, I will help you select the proper tactics to use in your particular situation.