Think of this grocery aisle in terms of all the financing options in today’s market.
How do regional banks compete with national banks? They win through
placement of strategic locations and by being market incumbent and product
heavy. How do national firms compete against regional players? They always win
on price, sometimes by product offering and certainly by national exposure. Each
has a competitive advantage. A regional has just one market whereas a national
has broad reach and can’t win everywhere.
How do alternative lenders separate themselves? Certainly not by rate, but
their new products are more unique than ever and their placement (or distribution) is changing all the time.
We are currently in a competitive environment where money is a commodity
and there has never been such intense competition. The firms that best execute
the five Ps of marketing to create a clearly differentiated brand are the ones that
win time and time again. What is your firm doing to build its brand? abfj
CHARLIE PERER is head of Originations at Super G Capital and a member of its
We live in a world full of choices, and the exciting part about
branding is that the people behind the brand can define it any way
they choose if starting from scratch. At Super G, we take a “literal”
branding approach by using the letter “G,” which stands for the
founder’s last name. We want each client to know we are committed
and that the “G” is an actual person who is a successful entrepreneur.
Our branding goal is to be able to relate to business owners. This
helps us connect when they realize we are a small team committed to
financing their company.
Wells Fargo and Bank of America rely on institutional recognition to provide national and global reach. Another form is literal
branding, as in the case of JPMorgan where there is actually a historic
figure behind the brand. These are just some of the ways to look at
branding. I make these points to spur smaller firms to think about
their own positions so they are not lost in a crowded aisle.
The Five P’s
I would argue the most successful firms are the big banks that have
successfully executed the five P’s of marketing: product, price, placement (where your product is sold), people and promotion. They are
able to accomplish this because they have massive capital bases,
great marketing teams and a commitment to human resources that
enables them to master all the key items. The rest of us are not so
fortunate and must use our entrepreneurial skills to come up with
creative ways to pick our spots.
We are currently in a competitive environment where
money is a commodity and there has never been such
intense competition. The firms that best execute the
five Ps of marketing to create a clearly differentiated
brand are the ones that win time and time again.