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7-Sigma Selling

Written by: Neil Mahoney

Article Overview: Selling a product or service is more than making presentations to prospects. It's making presentations to the RIGHT prospects at the right time. It's also about treating prospects right ON time. "Prompt response to needs and requests" is ranked by prospects only 2nd to pricing.

7-Sigma Selling

1. Identify & target the heavy-user/high-growth groups

Case History: A long-time highly respected manufacturer of precision measuring devices was trying to enter the hardware market. Looking at the US market as a whole - 75 million purchasers of hand tools annually - it was clear that it would take years of Sales & Marketing effort to establish adequate dealer coverage. Further study showed that fewer than 5% of that total - the contractor pros - accounted for over 50% of the sales. Thus, this became a very practical objective, and one that played to all the company's strengths: superior product, knowledge of the distribution channels, superior brand recognition.

The moral: Bigger is better. Find & focus on the heavy users. Case History: A magazine written for owners & managers of Commercial Buildings had a competitor that had more circulation, but as a group they operated fewer buildings. By emphasizing that to advertisers, the magazine was able to re-capture lost advertising.

The moral: Bigger is better. Find & focus on the heavy users.

2. Ensure you've included all key buying influences

Case History: A leading supplier of Scientific Instruments sold through two national Scientific Supply distributors, and targeted three major markets: Education, Health Care, and Analytical Chemists in industry. Sales had stagnated for several years, but it was finally recognized that distributors were easily just as important prospects as the "major" buying influences they had been targeting. Once distributors began to be treated both as prospects and as partners in selling and motivational programs were put in place for them, sales rose considerably and continued to do so.

The moral: Ensure you've targeted all key buying influences.

3. Consider related markets & buying influences where you can readily compete

Case History: Magazines written for managers who were involved in Industrial Finishing accounted for about 75% of the total market, but only about 40% of the total ad revenues. The magazines that served the producers of the coatings only served 25% of the market, but had access to the great bulk of the ad pages. By including the producers of coatings in the circulation, the magazines that served the finishers could increase their access to ad pages by 50%, just by increasing their circulations by only 1/3.

The moral: Consider related markets & buying influences where you can readily compete.

Case History: A magazine in Charlotte was written for owners & mangers of Commercial Buildings. It had gained strong ad support from that segment, but revenue growth had peaked. By shifting direction and focusing on business owners who were considering relocation, the magazine greatly increased its appeal to companies that provided products and services to businesses that were relocating - office furniture & equipment, interior decorators, movers, computer network specialists, etc.

The moral: Consider related markets & buying influences where you can readily compete.

4. Make it easy for prospects to find it, try it, buy it.

Case History: A major manufacturer of Quality Control measuring devices sold through a large number of Industrial Distributors nationwide. Because they had so many, they thought their prospect base was well covered. An analysis of their market coverage on a sectional basis showed many areas were under-represented. By focusing their efforts on specific geographical areas, they greatly improved their availability to prospects.

The Moral: Make it easy for prospects to find it, try it, buy it.

5. Objectively prioritize your prospects' want & needs

Case History: A digest-sized metalworking magazine had developed significantly greater reader coverage of US industry in order to compensate for its smaller size. Ad sales had not only peaked, but had begun to decline. Realizing that advertisers and ad agencies greatly preferred full sized ads, the magazine was easily able to increase its size, while its competitors could not increase their circulations anywhere as quickly or easily. The result: Revenues for the new up-sized magazine doubled in 18 months and profitability increased 80%.

The moral: Prioritize your prospects' wants & needs. Give them what they want most.

6. An area in which you have a minor edge, but is very important to prospects, will create more sales than areas where you dominate, but is less-important

Case History: See Case History #5.

7. Prospects rank "Prompt response to needs & requests" 2nd only to pricing

Case History: As Publisher of the metalworking magazine mentioned in Case History #5 above, I was asked by an Industrial Distributor's association to survey the market to learn what prospects most wanted. The questionnaire included over a dozen benefits. "Prompt response to needs & requests ranked far above all other benefits except price. It's an advantage that's so easy for companies to provide, yet very few do. Go figure.

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Article Tags: amp, analytical chemists, brand recognition, case history, commercial buildings, competitor, distribution channels, education health care, further study, growth groups, hand tools, hardware market, history magazines, measuring devices, motivational programs, product knowledge, prospects, scientific instruments, supply distributors, target



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Re: Kevin's Case Study #10 - When to become an entrepreneur? - When the bug bite you. A lot of successful entrepreneurs started in their teens or at school. Selling sweets to fellow students or lemonade to firends in the neighbourhood.
Re: This is Marketing Warfare! - Hey GT, I guess this was from a while back, and it'll test your memory a bit but could you possibly elaborate on Unique Selling Proposition? Can you give us some examples of good USPs?
Blog pinging - Thanks Martin - yes, I do ping and it has been very effective. I'm currently on the first page of Google for Mastermind Group and on the second page for Selling to Small Business.
Business magazines - Fast Company is pretty good if you're into technology although it can be very on the edge. Entrepreneur has become one giant advertisement and I cancelled my subscription. Selling Power also has some useful content if you're looking at improving your sales skills / presentations.
New Guy Here - Automobile Industry - Hi Everyone, My name is Ray and I work as a sales trainer in the automobile industry. I have just completed a new training curriculum for automobile salespeople in the industry. It is called The Baby Steps of Selling Automobiles. I am beginning my marketing efforts through press releases and seminar formats. I joined the community due to my continued desire to work independently creating my own happiness and growth. Thank you for having me and I look forward to more correspondence in the future.


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