The 9 Most-Deadly Sins in Sales & Marketing -- and how to avoid them
The 9 Most-Deadly Sins in Sales & Marketing -- and how to avoid them
A. Handtools are a case in point:
* There are about 75.0 Mil. people who buy hand tools each year
* 50.0 Mil. are what are called "Light DIYers (Light Do-It-Yourselfers) They're the ones with a screwdriver & pliers kept in a kitchen drawer.
* This 2/3 of the market accounts for only 1/5 of all hand-tool sales -- not very heavy buyers; not very good prospects
The 9 MostDeadly Sins in Sales Marketing and how to avoid them - To learn more about this author, visit Neil Mahoney's Website.
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1. An ItalianMathematician (Pareto) first demonstrated the 20/80 concept that is so important in market segmentation to day. While it isn't a hard and fast rule, it nonetheless is remarkably accurate predicter of how business invariably stratifies -- whether you're sizing markets, or sizing segments within markets:
A. Handtools are a case in point:
* There are about 75.0 Mil. people who buy hand tools each year
* 50.0 Mil. are what are called "Light DIYers (Light Do-It-Yourselfers) They're the ones with a screwdriver & pliers kept in a kitchen drawer.
* This 2/3 of the market accounts for only 1/5 of all hand-tool sales -- not very heavy buyers; not very good prospects
* Serious DIYers, on the other hand, are much better customers: They are about 30% of the market & account for 29% of the sales.
* Best of all are the the Pros, the professional contractors, who are less than 5% of the customer base but account for over half of all the sales
B. Different Markets & Market Segments have strikingly different wants & needs, however.
* Light DIYers want low prices, and they primarily get their tools from local variety stores and hardware stores
* Serious DIYers mimic their professional counterparts, the Pros, and buy what the Pros buy, but buy mostly from Home Improvement Centers
* The Pros, the real heavy users, want top quality -- not just for quality's sake -- but because they push the tools to the limit
* The tools the Pros use have to be tough. Their tools translate into Productivity -- into profitabiliy.
* They primarlily buy from Contractor Supply Houses
Section B of this explanation clearly demonstrates the second part of this First Deadly Sin -- How want & needs differ dramatically from segment to segment.
What ever you product, after identifying the most-lucrative markets and segments your company can successfully serve, thoroughly analyze your situation to determine the want & needs of your key prospects -- the prospects who would consider that your products might suit their needs.
You must also recognize that all sales channels are not the same. Different channels see different product categories as more or less important to their profitablility, based on the clientele they serve:
* Back to the Light and Serious DIYers:
* They primarily buy from Hardware Stores, Variety Stores, and Home Improvement Centers
* These stores hang most of the tools "on the wall" and expect them to sell themselves.
* If they don't sell, they're removed from the wall or relegated to the back of the store
* The tools that the Pros buy, on the other hand, are relatively expensive and represent a substantial percent of the store's business
* These tools are usually prominently displayed, and the salespeople can represent the products knowledgeably and well
* Don't kid yourself and try to position your products in categories that are above your grade.
* Black & Decker tried that and ultimately had to introduce a whole new line -- DeWalt
So far this discussion has focused on hand tools, but most products will experience the same situation in Product Positioning. If you want to play in the majors, you must have the quality and durablility to compete. If you don't there are other ways to market your products, but be sure you choose your prospects wisely, and match your distribution to their buying habits.
Here are a few other other caveats to consider:
* Don't confuse things by trying to enter too many markets or segments -- three or four are usually plenty.
* Look at each & every market segment, not just the general market category, or those areas you already serve
* Look at segments that are closely related to yours, or where their ancillary actions create a ned for your product
* Business Relocation is one example: When a office relocates, it needs Movers, Network Installers, Office Equipment, Decorators, etc.
* Dealers & Distributors are an important segment, and like salespeople, they must be motivated to sell your line
* Remember, Dealers & Distributors have many lines to sell
* They can greatly augment your sales force, but their loyalty is not solely toward you
* Lastly, "Don't try to be all things to all people."
* The Laffer Curve clearly shows that there's a midpoint where sales & profits become optimized.
The next installation of "The 9 Most-Deadly Sins in Sales & Marketing" will feature Sin #2 -- "Failure to fully utilize related buying influences." There's more to this subject than most people think.
* Best of all are the the Pros, the professional contractors, who are less than 5% of the customer base but account for over half of all the sales
B. Different Markets & Market Segments have strikingly different wants & needs, however.
* Light DIYers want low prices, and they primarily get their tools from local variety stores and hardware stores
* Serious DIYers mimic their professional counterparts, the Pros, and buy what the Pros buy, but buy mostly from Home Improvement Centers
* The Pros, the real heavy users, want top quality -- not just for quality's sake -- but because they push the tools to the limit
* The tools the Pros use have to be tough. Their tools translate into Productivity -- into profitabiliy.
* They primarlily buy from Contractor Supply Houses
Section B of this explanation clearly demonstrates the second part of this First Deadly Sin -- How want & needs differ dramatically from segment to segment.
What ever you product, after identifying the most-lucrative markets and segments your company can successfully serve, thoroughly analyze your situation to determine the want & needs of your key prospects -- the prospects who would consider that your products might suit their needs.
You must also recognize that all sales channels are not the same. Different channels see different product categories as more or less important to their profitablility, based on the clientele they serve:
* Back to the Light and Serious DIYers:
* They primarily buy from Hardware Stores, Variety Stores, and Home Improvement Centers
* These stores hang most of the tools "on the wall" and expect them to sell themselves.
* If they don't sell, they're removed from the wall or relegated to the back of the store
* The tools that the Pros buy, on the other hand, are relatively expensive and represent a substantial percent of the store's business
* These tools are usually prominently displayed, and the salespeople can represent the products knowledgeably and well
* Don't kid yourself and try to position your products in categories that are above your grade.
* Black & Decker tried that and ultimately had to introduce a whole new line -- DeWalt
So far this discussion has focused on hand tools, but most products will experience the same situation in Product Positioning. If you want to play in the majors, you must have the quality and durablility to compete. If you don't there are other ways to market your products, but be sure you choose your prospects wisely, and match your distribution to their buying habits.
Here are a few other other caveats to consider:
* Don't confuse things by trying to enter too many markets or segments -- three or four are usually plenty.
* Look at each & every market segment, not just the general market category, or those areas you already serve
* Look at segments that are closely related to yours, or where their ancillary actions create a ned for your product
* Business Relocation is one example: When a office relocates, it needs Movers, Network Installers, Office Equipment, Decorators, etc.
* Dealers & Distributors are an important segment, and like salespeople, they must be motivated to sell your line
* Remember, Dealers & Distributors have many lines to sell
* They can greatly augment your sales force, but their loyalty is not solely toward you
* Lastly, "Don't try to be all things to all people."
* The Laffer Curve clearly shows that there's a midpoint where sales & profits become optimized.
The next installation of "The 9 Most-Deadly Sins in Sales & Marketing" will feature Sin #2 -- "Failure to fully utilize related buying influences." There's more to this subject than most people think.
The 9 MostDeadly Sins in Sales Marketing and how to avoid them - To learn more about this author, visit Neil Mahoney's Website.
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Leanne Hoagland-SmithAre your sales where you want them to be? Will you be one of the few who achieves sales or business success or one of the many who have failed to change? Are you tired of being told you are like everyone else? Then you may find my first book on sales of interest. Be the Red Jacket in the Sea of Gray Suits, The Keys to Unlocking Sales available at Amazon or at http://www.processspecialist.com/red-jacket.htm. This book is a reflection of my no-nonsense approach to improving sales to overall business results. If you are truly committed to making sustainable changes, then I can help you secure a positive return on your investment because I focus on executable solutions not telling you the problems you already know you have. From training to corporate (group) coaching to executive one on one coaching, my approach is to assess, create awareness, build a goal driven action plan and then execute. The bottom line question is "Not do you or your employees know it, but do you or they want to do it?" Please call for a free strategy session at 219.759.5601. - Visit Leanne Hoagland-Smith's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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