What is cannibalization in Marketing?

Small business owners hear the word marketing and quite often their not to sure what it means or the full extent of what marketing can do for their business. Do not confuse business marketing with simple advertising. Advertising are one off efforts to bring prospects in and convert them to sales. Marketing is so much more than that. It is creating a community where your clients, customers and prospects all hang out interacting with you and the wider community.

Already 40 – 50% of people would have stopped ready by this point. Community, I don’t need one of those, is the typical response I hear.

Imagine if you had everywhere you went people speaking about you, your business and your product and services. Imagine how many referrals you would get, imagine how many more sales you would make, imagine how much easier it would become.

Business marketing put another way is simply building your profile. The more people that know about you and your business the more people will use it. So unlike advertising that are one off efforts, business marketing is a continued process with consistent efforts over period of time.

There are many was to market your business including, videos, articles, social media, online and offline magazines, newspapers, blogs, email marketing just to name a few but all them only work when a consistent effort is put in.

So what I’m saying is you can’t just decide to do it for a week and think well my job is done.

On average a business owner should be spending 80% of their day on marketing and sales. I know through chatting with business owners that this number for most people is more like 30%. So where do we get caught up, admin.

Creating a community of followers is extremely rewarding when done correctly. Not only do you know that you’re providing a great service or product but your helping to change lives for the better.

A common thought by small business owners is that you need to be a certain type of person with personality plus to have such community. I disagree as it is purely a mindset on how you approach your prospects, clients and customers. I know to us everyone in our community is a valued person, no matter whether they are a client or not, it doesn’t matter. Being able to provide information, advice, tips and hints I see as a privilege.

A mission for our community is to be able to interact with them, gain feedback from them and get them to start to interact with one another. We do this through social media platforms, blogs, video’s and articles.

Business marketing should be fun, if your thinking that it’s a chore or something you can put off for another day, then my guess is your probably not going to be real successful in the long run.

To work out if you have a good community base ask the following questions.
Do people respond to emails that I send out to a mass crowd
Do people write comments on my blog
Do people provide me with general information about themselves
Do people communicate on social media with me

These are all great ways to begin to understand how much of a community you really have.

So what is it you could do today to start building a community around your business?

In marketing strategy, cannibalization refers to a reduction in sales volume, sales revenue, or market share of one product as a result of the introduction of a new product by the same producer.

Market Cannibalization