Using a structured approach to problem solving, always ask yourself:
WHO?
WHAT?
WHEN?
WHERE?
As a case in point, a manufacturer is struggling to grow sales in a particular market. You have been asked to look at the problem and make suggestions. Applying the 4 questions above to analyse the problem, the situation looks as under:
1. WHO is the manufacturer selling to? (helps to define the customer base – high, middle and low – understand the market segmentation)
2. WHAT is the competition doing? (Implicit in this question is what does the manufacturer sell and what does the competition sell?)
3. WHEN are the periods of highest and lowest sales? (gives an idea about cyclic nature of the product/industry or effects of promotions/festivals etc.)
4. WHERE does the manufacturer produce? WHERE does the manufacturer sell his products?
(Try to understand the distribution model and costs of production and transport)
- routes to market
- geographical coverage
- macroeconomic factors affecting production costs
There are typically 8 objections that come up during a sales scenario. I am going to tell you about a technique which is the mother of all objection handling methods. It is a 4-step process summarized below as:
1. Listen
2. Question
3. Handle
4. Confirm
A useful memory peg to help remember it is to think of hearing door bell ring. You ask "Who's there?". When you hear "Its me, Jim", you reach out for the door handle and open the door. You then confirm visually that it is indeed Jim.
As any good sales person will tell you, being a good listener is the most important trait that you can bring to the sales process. Listening to the customer voice his concerns and objections is crucial for you to pose your questions in a manner that demonstrate real concern for his problems. Asking the right questions to get to the root of the issues will help you get a better understanding.
If now you say "If I made sure that your concerns regarding price, quality, delivery, etc. are addressed, will you be in a position to take this further?", what you have done is actually handled his concerns while also asking for a confirmation that there is something to go on.
Listening, Empathizing, Asking and Proposing (LEAP) - another way to look at the above process. I would love to hear your comments and feedback on this.
I recently had the opportunity to attend a Marketing class by David Arnold at the London Business School. It was an enlightening experience and certainly threw up new insights for me from the world of marketing management. While the fundamentals of 4Ps (Product, Promotion, Place, Pricing) and 4Cs (Company, Customers, Competitors, Channels) still hold true, some new thought is gaining ground. In a book "Will & Vision: How Latecomers Grow to Dominate Markets" by Tellis and Golder, the First Mover disadvantage is more common than pioneer advantage.
Apparently, the businesses that have moved in first to capture a market have seen themselves being overtaken by the band of followers. The approach suggested is that if you have to move first in the market, it might be wiser to attack the mass market as it will provide a return. Case in point being Apple iPod. For businesses focussed on a profitable niche, the only future lies in becoming a trophy in someone's cupboard. Plenty of examples abound and Ferrari-Fiat relation is a perfect example of this. For any entrepreneur or growing business, you should focus on the ability to offer your product/services to a wider market if you are the first one in the market.
If you are interested in reading the book, it is available from Amazon..
http://www.amazon.com/Will-Vision-Latecomers-Dominate-Markets/dp/007137549X
This article stokes the debate about goals and incentives. Something which is endemic to Corporate America and has driven the consumer/gold rush over the decades. Short term focus at the cost of long term growth and vision. To read more, click here..http://knowledge.wharton.upenn.edu/article.cfm?articleid=2162
Posts
