Feb 1, 2010 | Branding, Marketing, Sales
Most products have a range of alternatives that the buyer can purchase and use in relative certainty that it will deliver pretty much as promised.
Consumers when in a supermarket have a basket of products in a category they buy, usually with a first and second choice, and sometimes a third choice. On any trip to the supermarket, the purchase decision is made at POS based on a whole range of factors, of which price is only one.
Our task as FMCG brand marketers is to find the means to reduce the importance of price in the purchase decision, in an environment where the supermarket is hell bent on convincing us that price is the only factor that matters, and they have all the power of the channel at their disposal.
The power of data mining techniques that have evolved in the last decade is stunning, but they do not remove the basic dilemma for FMCG marketers, who must find the balance between price, stock velocity, retail margin, and brand building that has to be funded from their margins and long term returns, and which carries substantial risk.
Only building a brand that consumers have as their first choice in the basket of acceptable choices, where price sensitivity is less than the category norm will offer longevity, the rest just contributes to retailer profitability at the expense of the supplier margin.
Dec 14, 2009 | Sales
Part of a small current assignment is looking for a simple ERP system for a SME client, now too big to rely on spreadsheets and simple accounting packages.
Automatically, I went to the web, looking for user groups of similar software, and it got me thinking.
The web is the first place we look for something, from a complicated bit of technology, to a phone number, and this has come about so fast we do not think about it.
The standard early stages of the B2B marketing processes have been replaced by peer contact facilitated by the web, research is done on line, no longer relying on the vendor to do anything more than fill in the gaps, and provide a price.
For some time, I have been on the e-mailing list of an ERP vendor, I just never bothered to click the “off” button, to de-register, but I cannot remember their name now I need their product, or similar, just like old fashioned advertising, until you need it the ad is totally forgettable most of the time.
It seems theB2B game now is to create leads that have been motivated in some way before you get to them, and the sales role is being truncated into the closure, implementation and follow up stages.
Dec 10, 2009 | Management, Sales
You would not build a house without a plan, so why would you set out to manage your major customers without some sort of plan.
For most businesses, their key customer base is the core of their commercial sustainability, so it is worth investing a few resources to ensure you are able to deliver an optimum experience to them when dealing with you.
Engaging the customer in your planning sessions for their business is sometimes a counter-intuitive, but very worthwhile activity, after all, who knows them better, what they need, how they see the future, the internal hurdles they face, than one of their key employees?
Nov 22, 2009 | Demand chains, Management, Operations, Sales
If you want a prediction, go to the lady in the tent at the local fair.
If you want a forecast, talk to those who have an intimate knowledge of the drivers of the outcomes you are seeking to forecast.
Good forecasting is an iterative process, the more you do, the better you get, so long as you understand why the forecast is (almost) never right on each occasion it is done. Continuous improvement techniques are the core functions of good forecasting.
Forecasts are also improved when you leave aside some of the algorithms that manipulate the past into a forecast, and look instead at the drivers of demand, sometimes a qualitative input, to get a better picture of the sales that may come along. If you are selling ice-blocks, it is useful to look out the window to see how hot it may be, and factor that into forecasts, not just rely on sales over the last few weeks.
Oct 25, 2009 | Management, Sales
Generating and qualifying leads is a key function that rarely receives the attention it deserve, and is rarely measured for effectiveness other than looking at sales results.
Like any process, if it can be measured against performance standards, improvements can be made, and in these interesting times, enhancing the productivity of the lead generation and qualification process can only lead to greatly enhanced outcomes.
Most leads emerge as knowledge that a firm is “in the market” that is, they already buy something that you could supply, from somebody else, but if that is all you have, price is the only lever.
Before trying to sell them on your price, set out to understand why they buy, what problem does the product/service offer, how does it make their life easier? Once you know that, the selling becomes a different process, and price is less of a factor.
A sales lead is only of real value when you know why they buy, so why not set about building information on the conversion rates y0u get with differeing levels of knowledge about the “why”, ie, measure the effectivenes of the lead at the first point where you ask for the order, and relate that to how much you know about the “Why”.
Oct 23, 2009 | Demand chains, Management, Operations, Sales, Small business
Demand chains are a representation of the drivers of “flow” through a supply chain, a concept familiar to those engaged in “lean” initiatives, when the motivator to the flow is demand rather than an ability to produce for inventory or against a forecast of sales.
Category management is a process of welding the drivers of demand, the consumer preferences and behavior to the supply of their preferred products, whilst maximizing the returns to the retailer, and others in the chain, as well as delighting the customer.
Few who claim to engage in category management would see the explicit link, as they are typically engrossed in the numbers, but it is there nevertheless, and the successful exponents recognise the link, and leverage the numbers for the sake of the outcome of the entire chain, not just for one link who happens to hold the power.
