"Market Pull results in higher marketing and sales ROI than Market Push and makes everyone’s life a lot easier. Ask B2B business owners which they would prefer, and you’re unlikely to find anyone that wouldn’t prefer to have customers lined up at the door asking to buy their products than having to coax them out of the brush to engage." Market Push Market Push is exactly what it sounds like – aggressively pushing and promoting of your product to any and all that will listen. After all, customers can’t buy your products if they don’t know they exist. So, marketing must become obsessed with “getting your name out there”. Right? Well, not really. That obsession makes Market Push programs expensive and
“Not every customer receives the same level of value from your product or service. It makes sense that those who receive the greatest value are more likely to buy it, pay more for it, be happier with it, tell others like themselves about it and return when they need more. So, if you're launching a new product, why not start there?” I love this photo. It precisely captures the reaction of many clients struggling with stalled sales when they first hear the suggestion that a narrower market focus might be the best way to overcome their problem. Their faces, and sometime their mouths, say, “Are you nuts!? We don’t have enough business now, and you want us to
Just as a frontal assault requires 3 to 5 times more resource to succeed, a defend strategy requires 3 to 5 times less resource to succeed. In business, overcoming a defended position is challenging for many reasons; the defender’s customer relationships and channel are already established, their brand name is already known, their customers’ buying processes and contracts are already established and all the support and service mechanics are in place. That’s a lot of bonds for the attacking competitor to break.
“All economic value accruing to your firm has as its source, the customer’s perception that they will receive greater economic, emotional, political or physical value from your product or service, than it costs them economically, emotionally, politically or physically to acquire and use.” jerry Vieira, CMC
The Four Boxes of Product Evolution: The figure illustrates the basic four boxes of product development evolution. Along the horizontal axis we have Explicit and Implicit customer needs and wants. Along the vertical axis we have Conscious and Subconscious customer needs and wants. The intersection of these dimensions creates 4 boxes, or quadrants, each defining the level of basic and/or differential value your new product might provide to customers.
I am always amazed at the cost and relative uselessness, for small to mid-size B2B firms, of formally published market research reports. Certainly, strategic business decisions must not be made in an informational vacuum, but expecting meaningful, actionable information to come from a general market research report, read by dozens, if not hundreds, of competitors, is delusional. So, where should small to midsize B2B firms look for accurate, current, meaningful and actionable data to support their strategic breakthroughs? Few small-to-midsize B2B businesses avail themselves of the hidden army of market researchers already at their disposal. That army comprises any and all of their employees that have regular interaction with customers or, their customers’ markets. That team includes the sales and marketing team, product designers, quality people, customer service, their suppliers and their procurement people. This army is already there and on your payroll. Take the simple steps to mobilize it.
What your company and its products and services mean to their target markets, i.e. the customer experience surrounding your value proposition, must have already been delivered and validated in the marketplace before a brand can be meaningfully established. Customers must experience what they perceive as an unparalleled product or service experience first - and only then will the synaptic connection be made to the brand name and logo.
As an entrepreneurial CEO or owner of a small or start-up company, you probably don’t have the economic safety net to tolerate long term losses or less than adequate speed and growth in the adoption of your new products. You also may not feel you have the time or cash to stop everything, pull the team together, and completely re-visit your base assumptions and offering design. This is where panic sets in. What do you do?
At its purest intent, and to be most effective, a marketing and sales audit should not be to uncover incompetence, to fix blame or to penalize, but rather to discover opportunities to make both marketing and sales more effective. If the motivation of an audit is solely to find a scapegoat or divert blame, the problem is not in the firm’s marketing and sales function, but rather in its culture.
.. It is an appeal to businessmen to adopt an asset and investment optimization discipline and thus create a powerful force for growth, in both good and bad economic times. By asset optimization I mean a process for assuring that every dollar of cash, every employee and every hour of time is aligned and consistently targeted at the best possible opportunity for growth – and if it isn’t, to re-target it. A process for executing that optimization exercise follows and is offered for you to consider.