Everyone wants to get in on the social media party. The question I get asked most by potential clients these days is, how to build a social media presence. Of course, I remind them that you have to begin with a coherent marketing strategy, and only one piece of that is building a Facebook page or using Twitter. While social media is the marketing flavor of the day, companies often have core issues that need to get fixed before they can improve sales or profitability.
One of these core issues is competition. Marketers and senior executives often downplay the strength of their competitors in an effort to be positive leaders and inspire their troops. You have to be realistic. Strong competitors can make it virtually impossible for you to accomplish your goals, especially if you've set the bar too high on market share. While you can always find a way to position your brand and differentiate yourself, I'm really struck by how difficult it is to change consumer perception and convert them to your offering.
Consider the tablet market. We have Apple and Amazon entrenched in leadership positions. Who else has cracked this and made headway? HP? RIM? Microsoft? Dell? Nope. Barnes & Noble? Maybe. You would think a market that's growing this quickly would offer opportunities for everyone. What happened to the old saying that a rising tide lifts all boats? It's been replaced by the law of oligarchy — market share tends to be concentrated in the hands of a few powerful brands.
I think one reason for this is we are bombarded with choices in life and we need to make things simple. I do that all the time. I don't have enough free time to comparison shop and I don't want to risk making a bad decision, especially on a major purchase. When I need a television, I buy a Sony. New laptop? My only decision is between the 13" and 15" MacBooks. Time to relax and sip a capuccino? Where's the nearest Starbucks? I know there are lots of good alternatives to these brands but I don't have the time or the inclination to seek them out.
So what do you do if you're not one of the big players in a given market? Don't give up but know that your job is going to be challenging. You will definitely need to innovate, find some way to change the game with either product design or customer service. Look for a niche segment that's not well served by the big guys.
That brings me back to social media. If you haven't effectively differentiated yourself, don't expect people to sign up as Facebook fans or subscribe to your Twitter feed. Consider the entire brand experience and then find a way to use social media as one element in the marketing mix. Just remember to sort out your brand strategy and positioning first.