Feedback Form
Home Features Mastermind Forums About Advertise Blog Network Contact Be An Author

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

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.
         
               







The 9 MostDeadly Sins in Sales Marketing and how to avoid them - To learn more about this author, visit Neil Mahoney's Website.

Like this article? Share it with your friends

Article Feedback
 Article Feedback No article feedback found.
  Leave Your Feedback
article feedback

Article Feedback
Dave Kurlan
Dave 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

David Acheson
David 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

Leanne Hoagland-Smith
Are 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

Linda Richardson
Linda 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

John Brennan
John 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

George Ludwig
George 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

Anne Barr
Anne 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

John Power
John 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


To learn more about the Evan Elite Author Program please contact us.

About The Author


Neil Mahoney
(Visit Neil's Website) Neil Mahoney has over 30 years experience in all areas of Sales & Marketing: * Corporate Communications: GENERAL ELECTRIC * National Sales Mgr, VP Marketing: BAUSCH & LOMB * VP Group Publisher: ABC Broadcasting * VP Sales & Marketing: GELTECH CORP * Director Consumer Marketing: LS STARRETT CO. * Owner: MAHONEYMARKETING

Neil Mahoney is a Gold author on EvanCarmichael.com
About The Author

View Author Blog
View Author Blog

View Author Video
View Author Video

Free Downloads


Neil Mahoney's

Complete
List Of
Marketing
Articles

Name
Email
If you enjoyed this article, get Neil Mahoney's Complete List of Marketing Articles For FREE!

More Neil Mahoney
Remedy 1 for product launchesstart ups Part 2
10 remedies for the 1000 pitfalls in Start ups New Product Launches
Martial Arts Marketing
Salespeople misperceive their proper roles by being misled by leads
OverestimatingOversimplifying Branding Efforts
Positioning The core of corporate communications
3 basic steps to finding developing top prospects
Deadly Sin7B Onesizefitsall Sales Pitches
The 9 MostDeadly Sins in Sales Marketing
1Minute Manager Mentality The Root of most evil
Free Downloads


 
 
 


Evan Elite Authors
John Brennan  
Staging Diva  
George Ludwig  
Evan Elite Authors

Become An Author
Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details.
Become An Author

Evan's Latest Video
Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media
Evan's Latest Video

Business Opportunities
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"

How to Start An Online Business

Click Here To Learn More
Business Opportunities



Evan's Newsletter
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
Name:
Email:
Evan`s Newsletter

Free Downloads
Speed Business Networking Icon Speed Business Networking
Leadership Audit For Business Icon Leadership Audit For Business
CAN-Spam Checklist Icon CAN-Spam Checklist
Internet Marketing Secrets Icon Internet Marketing Secrets
Self-Employment Guide Icon Self-Employment Guide
Free Downloads - Complete List

Entrepreneur Tools and Guides
Top 50 Productivity Blogs To Watch In 2009
Top 50 Productivity Blogs
Top Blogs To Watch In 2009
 
Write The Press Release
Write The PR
Press Release Builder
 
Entrepreneur Tools and Guides

SEO For Africa
SEO For Africa
Essohanam Elassoli Adidogomé, Togo,
Essohanam Elassoli
Adidogomé, Togo
SEO For Africa

If I Were A Startup...
Frank Cianciulli, $2.3 to $7.5 Mil in 2 years
Frank Cianciulli
$2.3 to $7.5 Mil in 2 years
Dana Zita, > $2.5 Mil in revenues
Dana Zita
> $2.5 Mil in revenues
If I Were A Startup... - Complete List

Famous Entrepreneurs
Vera Wang, Vera Wang
Vera Wang
Vera Wang
Ralph Lauren, Polo Ralph Lauren
Ralph Lauren
Polo Ralph Lauren
Famous Entrepreneurs - Complete List

Entrepreneur Advice
Guy Kawasaki, The Art of the Start
Guy Kawasaki
The Art of the Start
Timothy Ferriss, 4 Hour Work Week
Timothy Ferriss
4 Hour Work Week
Entrepreneur Advice - Complete List

Popular Articles
(Premium Authors)

     Use Your Email Signature
By John Kilbride
     Tips for Selecting Software for your Small Business
By John Kilbride
     Top Tips for Starting & Running your Article Marketing Campaigns [Part 1 of 2]
By John Kilbride

Have A Suggestion?
Toronto Salsa Classes / Toronto Salsa Lessons Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
Have A Suggestion?

More Evan Carmichael
More Information