
This book illustrates how to develop a market. Markets go through stages and each stage of the market requires a different selling strategy. When the first small computers came out it was visionaries who bought them because their function was very limited. I remember before Bill Gates created software they were a box with blinking lights. The competition was the existing technology. People don't need new device as they have been getting along without it. The first customers of a new technology are the few forward thinking people who can see the opportunity. To sell to them you need "a closer". Closing is when the sale becomes a fact. Achieving this requires the customer to feel desire for the product or fear of loosing the product. Closers excel at this, however they can be unethical as they are strictly motivated by the sale. As the market grew, it expanded to include the progressive customer who
saw the value but wanted to buy the whole solution and needed technical
help. At this point, "sales wizards" are vital to offer a solution. They hold the customers hand and make the technology work for the customer. The military now practices "system buying". A company at this point in the markets expansion needs to make a choice whether to become a technology company and advance the technology while keeping its sales staff of "closers" and "wizards" or whether to follow the market and sell a standardized product to knowledgeable users. No company can be all things to all customers. He doesn't buy
Tushman's "
The Ambidextrous Organization". A company must choose the customers for whom it can deliver the most value. Advancing the technology can lead to companies that are very profitable but not huge. Then, if a company goes after the market, it must choose weather to dominate a market niche or go after the mass market. To sell to a growing market takes "relationship builders". Think the old IBM. Finally, To sell to a global mature market one needs not great sales people but a great sales system managed by a "sales captain". Sales will be by kids such as those in Best Buy or The Apple Store. In a mature market improvements will be evolutionary because standards need to be maintained. At this point a customers two main reason for not buying are price and hassle. Therefore your strategy is to lower price and make things easier for the customer. To manage staff the captain makes games and contests out of who does the best with the most challenging customers. This may be the best marketing book you haven't read.
In summary
Technology
|
birth
|
fast growth
|
incremental growth
|
maturity
|
Customers
|
gateswingers
|
progressive
|
relationship
|
the
world
|
Sales people
|
closer
|
wizard
|
relationship builder
|
captain
and crew
|
Strategy
|
build the dream
|
use knowledge to create custom solutions
|
be your customers strongest ally
|
make
it easy to buy and price it low
|
Selling
approach
|
high - energy evangelical enthusiasm
|
professional smooth
|
warm friendly long term relation
|
helpful courteous
efficient
|
Service
|
refund if a problem
|
total support
|
advocate for your
customer
|
consistent quality and low
prices
|
The Nine steps of selling
Marketing
1 Marketing communications - building an image to induce attention
2 Generating leads - contacting people who might become customers
3 Qualifying Prospects - finding people with the means to buy from you
Sales
4 Presentation - the sales persons pitch
5 Resolving objections - remove the barriers to the sale
6 Closing the sale - persuading customers to say yes
Service
7 Execution and Service - managing to keep the customer satisfied now and later
8 Building relationships - personal contacts that take place after the sale
9 Repeat business - the pot of gold
This book was an update of his book, "The Quadrant Solution". Jeff Cox also co wrote "The Goal". We went to a start-up conference two weeks ago and the lawyer said the biggest legal mistake new entrepreneurs make is not signing with their middle initial. The next was not clarifying who owns what. The point is do everything in writing and make it legal as demonstrated by this story in
Jeff Cox Blog .
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