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Current Marketing Trends – The Extinction of Previously Successful Businesses
John Vachalek - 2.15.2012 4:40 PM
We see it all around us every day. Yet many businesses do not believe it can happen to them. We are witnessing the extinction of previously successful business models. Some of the more obvious examples include:
• Travel Agencies
• Book Stores
• Music Stores
• Smaller Stores (hardware, shoes, candy, etc.)
We are also seeing the closing of post offices across the country. This American institution has been operating since 1683.
For those of you reading this who believe that this shakeout is only happening to old or outdated businesses, let me remind you about MySpace. This social media phenomenon was founded in 2003. From 2005 to 2008 it was the most visited social networking site in the world. It sold for $580 million. In 2006 it surpassed Google as the most visited website in the United States. Then, along came Facebook. Traffic to MySpace has been declining ever since. In 2011 the company sold for just $35 million.
It is critical for businesses to realize that we are in a new world of change. This is not a fad. It is the new environment in which all businesses need to operate now and in the future.
Key distinguishing factors that all businesses need to constantly look at today include:
• How are we truly adding real value to our clients/customers?
• How are we creating a community around their brand?
• How are we engaging our customers and clients in meaningful, emotionally binding ways?
• How can we change to do things better each and every day?
Looking at the previous examples of businesses listed in this article, all of them failed to materially change over time. This allowed them to be overtaken by someone who was able to offer similar services in a new and better way. This made them extinct.
Businesses can no longer rest on the laurels of providing a great product or a decent level service. In today’s wired world, there are plenty of choices available for this level of performance. The odds are also pretty high that someone is able to offer something “close enough,” for a lower price.
So, whether you are a law firm, medical practice, educational institution, construction company or tradesperson, be sure you understand and address the key distinguishing factors listed above. These will allow you to set yourself apart from your competitors, stay ahead of the curve and avoid extinction.
How to use this Information
On a regular basis, take a look at your business, your key customers and the overall competitive landscape in which you operate. Then, being as completely honest as you can, address the key distinguishing factors listed above and make sure you have good answers.
Please share with our readers how your business is truly adding real value to your clients / customers beyond the expected level of product performance or service that they can receive from some of your other competitors.
Posted in Marketing Trends »
3 Responses to "Current Marketing Trends – The Extinction of Previously Successful Businesses"
02/18/2012 11:52:58 AM
With all due respect to this article's author, John, as a successful Travel Agency owner – whose business has actually continued to go UP over the last few years – I have to respectfully disagree vehemently with John’s assessment that all travel agencies have …” failed to materially change over time…and thus...are now extinct.” If we, as travel agencies are truthfully “extinct,”as John has implied, I have to wonder why so many nationally syndicated media publications have been writing articles recently over the "value" of using "true" travel professionals?? How does one successfully utilize a business, that by John’s assessment, is 100% dead, buried, and “extinct.” Just a thought to consider? As a member the American Society of Travel Agents (ASTA) Regional chapter Board of Directors, I am also aware of many other agencies that are also doing exceptionally well. Some actually in the $100,000 + range. That said, while I do agree that those who fail to change in the “distinguishing factors” that John has noted will (and truthfully should) get left behind and die, I have to vehemently disagree with his blanket assessment that all Travel Agencies are now dead and “extinct” – as has implied in this post. Such a statement is, in fact, a complete mis-truth. I do also agree, and support the fact, that "Businesses can no longer rest on the laurels of providing a great product or a decent level service" and with John's thought that "In today’s wired world, there are plenty of choices available for this level of performance." Such truths help to weed out the poor businesses and business models. Honestly there are SOME Travel Agencies and models that have died and I thankful for that. They were poor models that did not service the consumer well and certainly did not practice the "distinguishing factors" that John has noted. They deserved to die. With that noted however, to make a blanket assessment that ALL Travel Agencies are now "extinct" and dead is a complete mistruth. Travel N Relax for one is proof of the complete inaccuracy of this statement. Other then this exceptioanlly major mistruth the article otherwise is well written and does lay out some good points.
02/19/2012 5:39:27 PM
Mr. Hale, Thank you very much for your insights on this article. I 100% agree, that travel agents and true travel professionals, who provide value to consumers in today's marketplace, are definitely NOT extinct. As you pointed out, older, less adaptive, less value driven models are those which have become extinct. The number of agencies in America declined "from 32,000 in 1998 to somewhere in the vicinity of 20,000" by 2007, according to USA Today's David Grossman. The sector has seen further consolidation since then; as ASTA noted, the industry is now "comprised of nearly 10,000 U.S.-based travel agency firms." (as of Aug 2011) From Wikipedia. "...those who remain have managed to survive by promoting other travel products such as cruise lines and train excursions or by promoting their ability to aggressively research and assemble complex travel packages on a moment's notice, essentially acting as a very advanced concierge. In this regard, travel agents can remain competitive, if they become "travel consultants" with flawless knowledge of destination regions and specialize in topics like nautical tourism or cultural tourism. The point of my article is that today's business landscape is changing faster than ever. To succeed, as Mr. Hale is doing, we all need to adapt, change and evolve, or we all (regardless of our specific industry) run the risk of extinction. Thank you again for this input and discussion!
05/04/2012 7:38:16 AM
iagree with john because there are a large number of businesses new and old declining. Mr. Hale you have a good point but it was talking about the general stand point of the buisness econ.
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