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Jan 5, 2012

4 Paradigms in organizing "Go To Market"

I see people appointing dealers and wondering why they don't sell. I see people trying to sell through industrial exhibitions and wondering why they come back empty handed. It is very important for marketers to understand that there are 4 different paradigms. 

  1. Gathering paradigm is used when customers "come to market" in predictable ways. The customers are clear about what they want and where they can get it. In most B2C  products and certain fast moving B2B products,  shops / outlets / showrooms / locations already exist and are a proof that the goods and services they offer already has preexisting level of inquiry or demand. In such cases the marketing companies go-to-market using such existing channels. Their attempt is to "drive more traffic" to such shops and to motivate the shops to "convert this traffic" to their products. The sales management paradigm here is channel management.
  2. Tender / RFP filling paradigm is used when, instead of the marketers gathering customers, the customers try to gather vendors. The sales management paradigm here is responding to tenders and Request for proposals.   
  3. Hunting paradigm is used when very few customers "come to market" on their own.  Even if they do, they do not seem to have any predictable pattern. This happens when the customers know their needs but do not know what the solutions are, who sells them, and what is the right product / service / solution, and how to specify, buy, install and use it. The appropriate sales management paradigm here in the "sales funnel".  The central issue is to how isolate prospects from suspects, to drop cold prospects by qualifying them as early as possible and focus on hot prospects.  
  4. The paradigm of strategic selling (Business Development) is very different from all the three paradigms above because the potential customer does not know he needs your product / service / solution; leave alone having budget or intention to buy it. Obviously such a customer does not come to market on his own. Strategic selling requires for you to first establish your credibility as an expert and to get the customer to open up and talk about his needs and pains. In strategic selling you dont start selling your product. You help the customer uncover his need and pain areas and then advice him correctly what is the right for him EVEN IF IT DOES NOT SELL YOUR PRODUCT. The strategic selling requires not only a high level of expertise in the area  of the need and product but also an access to the senior executives of the target company (C level) who are capable of creating budgets for buying the product and taking decisions to purchase. This type of selling also needs people who have credibility and personality which the target companies respect.  

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