CONSUMER ANALYSIS (An Important Part of Developing a Sound Marketing Strategy)

All marketing plans should begin with a look at the all-important consumer and his or her needs. It is important to identify segments or groups with similar needs so that marketing efforts can be directly targeted at them. Several important questions must be asked to find this market:

·        What is the need?

·        Who is buying and who is using the product?

·        What is the buying process?

·        Is what I am selling a high or low involvement product?

·        How can I segment the market?

A. What is the need your product addresses?

This question may seem unnecessary but answering it may help you uncover a potential market for you product that was previously overlooked. That is why it is important to answer this question before your thoughts are fixed in the conventional way of thinking i.e. it help you to first think outside the box.

B. Who is buying, who is using?

Buyers most times are different from the users e.g. women make the majority of purchases of men’s underwear and socks, in our environment men make the majority of automobile purchases for their wives, mothers make majority of purchases for their under 10yr old children e.t.c.

Determining the buyer as well as the user provides the essential initial insights to create a marketing plan that would be directed appropriately.

C. What is the buying process?

The buying process includes all steps that a person takes leading to a purchase. It is also called adoption process and problem solving process by some. Understanding the buying process is critical because it will lead to the possible routes to reach the buyers. For any product the buying process can include one or all of the following steps:

Awareness -> Information search -> Evaluate Alternatives -> Purchase ---> Evaluate

E.g. in the instance of soap purchase

Awareness (Smell body) -> Information search (What should I use -> Soap) -> Evaluate alternatives (Ask for advice -> make trip to store -> Read labels) -> Purchase (Buy lux soap) -> Evaluate (Smell body for odor -> Buy Lux soap next time).

Awareness – at some point a person will realize a need which may be triggered by advertising to meet needs such as acceptance, love e.t.c. The question you should ask yourself at this point is how do my consumers become aware of my product?

Information Search – sounds good let me find out more from a variety of sources e.g. sales people, specialty magazines, family, friends and local experts. As a marketing manager you want your target market to get as much favorable information as possible about your product, when and where buyers make their buying decisions.

Evaluate Alternatives – Which is best for me? Placing positive information where you buyers a likely to look is one key to marketing success. At this stage of the buying process the marketing manager would like to identify the influencers of his targets buying behaviour. Distribution is also crucial at this stage. If a product is not readily available a comparable substitute may be chosen just for convenience or immediacy of need.

Purchase Decision – Even though the decision to buy could be yes, in certain instances the first purchase is only a trial. As this is likely to be a first time purchase, offering a money back guarantee might be what would tip the consumer over to purchase your product as he sees there is no risk involved.

Evaluate – also known as post purchase behaviour. Did I make a mistake is the big question. This is also a very crucial step for the marketer as the evaluation of the product by the consumer would determine if he is going to make a repeat purchase which is the main aim of your entire marketing plan i.e. to get a consumer to try your product and keep using. For this reason it is essential that your product does all it says it is going to do.

D. Is the product a high or a low involvement product?

If the consumer feels a high level of risk in buying your product then it is considered as a HIGH INVOLVEMENT PRODUCT on the other hand if a consumer does not feel a high level of risk in buying your product it is considered as a LOW INVOLVEMENT PRODUCT.

There are several reasons for high involvement purchase decisions (e.g. the purchase of cars, professional services, electronics e.t.c.)

·        The need for the products benefit

·        The need for psychological reward e.g. status

·        They are usually higher priced and at times difficult to compare as determining the differences between alternatives makes high involvement purchases difficult especially if the buyer is not an expert.

When it comes to low involvement products purchasing decisions are not difficult because minimum level of acceptable performance is required e.g. a pack of chewing gum, it really doesn’t matter which you choose and if you do not like it, it does not bother you as the cost of trial is low.

The marketer’s magic is at work when he or she transforms a previously low involvement product into a high involvement one e.g. transforming athletic shoes which were once just functional to become a status symbol for young people. These are some ways in which this can be accomplished:

1.    Link the product to a high involvement issue e.g. no cholesterol cooking oil to a wives fear of a husband’s heart attack.

2.    Use involving advertising to create a value expressive message linking your product to social status.

3.    Introduce important characteristics to product i.e. tinkering with an old product by adding distinguishing features e.g. childproof caps on household cleaning liquids

D. Do I intend to segment my market? Why? How?

The question “who is our consumer?” is central to the marketing task. If you think you have something that is for everyone, then a mass marketing strategy is appropriate. If not you must choose a segment for the following functions:

• To identify segments large enough to serve profitably

• To identify segments that can efficiently be reached by marketing efforts

• To help develop marketing programs

When you have a segment in mind you can effectively aim and efficiently execute your marketing activities to yield the most sales and profits without which you risk wasting marketing naira on disinterested people. There are 4 major segment consumer markets

1. Geographic – which are segments according to location

2. Demographic -

Ø  Age: Different generations have different wants and needs

Ø  Sex: different sexes have different uses and buying patterns

Ø  Income: the ability to purchase

Ø  Marital status: Family needs

Ø  Family life cycle: are they starting out (new couples), or empty nesters (elderly).

Ø  Education/Occupation: an indication of the sophistication of the consumer

Ø  Ethnicity, Religion and Race: Particular tastes and preferences

3. Psychographic

Ø  Lifestyles – Activities, interest and opinions

Ø  Personality – Conservative, risk taking, status seeking e.t.c. (people may have different hot buttons that advertising can trigger.)

4. Behavioral

Ø  Usage – Amount of use, manner of use, benefits sought

Ø  Purchase occasion – Gift, vacation, seasonal e.t.c.

Ø  Brand loyalty – Loyalty to one product indicates receptiveness to others

Ø  Responsiveness to price and promotion – some groups respond to special marketing efforts more than others.

In order to adequately assess your chosen segment they have to be:

·        Measurable – quantify its size

·        Accessibility – Can you reach the segment through advertising, sales force or distributors

·        Substantiality – is the segment large enough to bother with?

·        Profitability – are there enough profits to make targeting it worthwhile

·        Compatibility with competition – are your competitors interested in this segment? Are competitors currently investigating it or is it not worth their trouble.

·        Effectiveness – Does your company have the capabilities to adequately service this segment?

·        Defend ability – can you defend yourself against competitors attack?

An example is twenty five to fifty four years old, college educated, professional or business executive employment childless households with incomes greater than N200, 000 per month.

Conclusion

The consumer analysis is a very important part of the marketing plan as seen and we stand the chance of wasting a lot of time, energy and money if we overlook this part of the process.

HOW TO ATTRACT CUSTOMERS LIKE A MAGNET by Dr. Ebi Ofrey (excerpts from the book a perfect business)

INTRODUCTION

In a business nothing happens till someone buys something. The most important function of every business is to create and keep customers. It is that simple and that difficult.

Practically all business failures are caused by a lack of customers. If you have enough customers, you can do almost everything else wrong and still make profit, but if you don’t have enough customers, you can do everything else right and go broke.

The biggest initial and ongoing problem for most businesses is how to win and keep customers to make a healthy profit without knocking on doors and spending a fortune on marketing. The above problem can be solved by a process called MAGNETIC MARKETING.

To be a magnetic marketer all you need is the right mindset, a little common sense, and an understanding of why people buy and the knowledge of a few simple techniques that anyone can apply to grow their business. They have been divided into six basic parts

1. Get the magnetic marketing mind set
2. Scan your market for opportunities
3. Create visibility
4. Use networks and referrals to build your business
5. Close the sale when customers come to you
6. Service, Service, Service


1) GET THE MAGNETIC MARKETING MIND SET

There are two widely held marketing myths that get the novice/new business owners in trouble. Recognizing and correcting them at the outset will save you a lot of time, money and frustration.

Myth no 1 BECAUSE I LOVE IT, IT WILL SELL - the problem with this kind of thinking is that you are assuming your customers have the same wants, needs, tastes, and view of the world as you do. YOU DON’T GET RICH SELLING WHAT YOU LOVE, YOU GET RICH SELLING CUSTOMERS WHAT THEY WANT.

Myth no 2 IF I DO THE BEST JOB, THE CUSTOMERS WILL COME - In the marketplace there is no best work. There is only the perception of what is the best. What you perceive as the best work, someone else may perceive as average, or poor work. What one customer thinks is a great value is a waste of money to another. The success of a business is determined by the number of its customers and how much they spend. And that’s determined by what they think, feel and believe about the business PERIOD. When it comes to marketing, how you perceive your business is irrelevant. HOW CUSTOMERS PERCEIVE YOUR BUSINESS IS EVERYTHING.

To adopt the magnetic marketing mind set, forget about your own view of the world. Put aside your ego, your prejudices and your opinions and look at the world through your customers eyes.

Key questions to be answered
• Who are your customers?
• What do they want?
• What is the value to them?
• How can you provide it?

2) SCAN YOUR MARKET FOR OPPORTUNITIES

What do my customers want most and how can I provide it? Find a need and fill it.

The key to making money is to satisfy unmet wants in the market place. Your first priority is to find out what your customers want most. Then focus on using your passions and strengths to satisfy those wants. When customers want what you are selling earning money becomes incredibly easy. You don’t have to spend a lot of time, money and effort hyping what you sell. You just have to position yourself in the market so customers know who you are, what you offer, and how to reach you. The result is they come to you.

The biggest payoffs come when you’re the first business to spot an unmet want and fill it. This is true for two reasons. First, you have a monopoly until competitors discover it. Second, being the first business to offer a new product or service positions you as the preeminent market leader.

WHERE’S THE PAIN: find out what is bugging your customers and potential customers. Where there is perceived pain, there is a sense of urgency about solving the problem. A problem is the difference between what the customer has and what he wants. So ask the customer WHAT DO YOU HAVE? And WHAT DO YOU WANT?

3) CREATE VISIBILITY

In addition to selling what customers wants, you need to get their attention and convince them that you have what they want and that you are the best person to buy it from. To do that you have to become visible. People can’t buy from you till then know you exist.

WHAT DO YOU WANT TO BE KNOWN FOR: every business lives and dies by its reputation, and a good reputation doesn’t happen by accident. It starts with deciding how you want others to perceive your business and working hard to communicate it.

UNIQUE SALES PROPOSITION (USP) : you need a USP for one simple reason. No matter what you sell, the odds are overwhelming that a lot of other people are selling it or something very similar too. Your job is to come up with a strategy to convince them that you are unique memorable and a better value than the rest. Begin as usual by looking at your business through the customers eyes by answering the following questions

• What motives are their buying decisions based on ?
• What do they value most when they buy from a business like yours ?
• What can you do for them better than anyone else can?
• What benefits are they really buying from you ? (Hope, peace of mind, lowest price, self-esteem, e.t.c.)

NB : you are your business’s most important advertisement, Decide how you want to be perceived and send that message.

WHOM DO YOU WANT TO RECEIVE YOUR MESSAGE: what groups of people have the money, the greatest need, and the inclination to buy what I am selling? In short, you need to target your message to a specific market and create visibility in that market. The goal is to create and keep customers.

PROMOTE THYSELF :
There are inexpensive ways to create visibility. There are free ways to create visibility. And you can literarily be paid to increase your visibility. Here are five specific ways but just one is of importance to us right now

Volunteer to speak at luncheons and meetings that potential customers are likely to attend. Professional associations, service organizations (such as rotary, lion’s e.t.c.) or business networking functions are all ways looking for people willing to speak on topics of interest to their members. Tell your audience how you can solve their problems. It’s another way to create visibility at no cost.

One additional low cost tip : when you speak, leave a trail of tangibles. Pass out at least one piece of printed information that the members of the audience can take with them and that includes the name of your business and how to contact you.


4) USE NETWORKS AND REFERRALS TO BUILD YOUR BUSINESS.

Would you prefer to choose a service/product on the basis of their advertising or by getting recommendations from people you trust. The answer is obvious. When it comes to winning and keeping customer, the magic word is TRUST.

Once people know you, like your work and trust you, they readily come back and will gladly recommend you to other. Business is and always will be people and relationships. Your most powerful sales force is an army of satisfied customers. Absolutely nothing sells you better than a customer telling others how wonderful your products, services and you are. AND THEY PAY YOU.

TIPS IN NETWORKING AND GETTING REFERALS

MAKE THEM AN OFFER THEY CANT REFUSE :Find people who can benefit from what you sell and who have influence among your potential customers. If you know them contact them directly if not go through someone. Once you have been introduced, offer them a free sample of your work or a healthy discount in return for writing a testimonial letter or statement for you and encouraging those he/she wields influence over to purchase what you are selling.

Some of your clients may have trouble writing a good testimonial or not know where to begin. In that case, write a few good working models for them to adapt as they write their own. Show them letters others have written.

REWARD THOSE WHO SEND BUSINESS YOUR WAY

MUTLIPLY YOUR MARKETING EFFORT BY OUTSOURCING IT : Marketing can be outsourced to those who will advertise, sell and distribute your products or services in exchange for a piece of the action. The key is to find a company/individual with marketing muscle and expertise to sell what you produce and then convince them to partner with you is a win/win for both of your businesses.

Whether you produce a product,, a service, or both, there are sure to be other people around able to market it and make if far more profitable than if you try to go it alone. Seeking them out and selling them on marketing what you produce might be your biggest and best sale of all.

5) CLOSE THE SALE WHEN THEY COME TO YOU :

If you are selling what people want, and they know about it, they’re going to contact you to find out more. When that happens the following questions need to be answered in a relatively short period

1) Are you selling what they want to buy ?
2) Can they afford it ?
3) Are you speaking to the decision maker ?

Don’t just assume you have what they want, take some time to describe
your product or service. Then ask some questions : how did you find out
about me? What is there situation now ? What would they like it to be? NB :
if you feel what you sell isn’t right for them tell them so because happy
customers tell 3 or 4 people, but dissatisfied customers tell 8 to 12 people,
and they tell even more. Nothing would make or break you faster than word of mouth.

Find out if they are the ones who will make the buying decision. Otherwise you risk wasting a lot of time and energy. Ask at the outset : Are you the buyer or will others be involved in making the final buying decisions. If someone else makes the decision, explain the basic benefits and tactically ask to speak to the decision maker.


FIND THE HOT BUTTON :
PEOPLE BY WITH THEIR EMOTIONS AND JUSTIFY WITH LOGIC. We like to think our buying choices are logical and rational but as with other choices in life, we don’t choose what we need, we choose what we want and then use logic to justify our choices.

For example people spend billions every year on diet books, exercise videos e.t.c. though there is a logical reason for buying these products i.e. a more productive healthier life, people usually buy for the emotional reason which is that trim bodies look much sexier and that is what the ads capitalize on. They buy the promise of sex appeal and justify the purchase by telling themselves what they are really buying is good health.

Similarly no matter what you sell, there will probably be an emotional benefits that motivates a given customer to buy from you. It might be your personality, your low price, your convenient location, your reputation for personal service, the recommendation of satisfied customers, or any one of a number of other things.

As you ask questions and present the benefits of buying what you sell, watch very carefully for any emotional responses. ONCE YOU FIND THE HOT BUTTON, CONCENTRATE ON STRESSING THAT PARTICULAR BENEFIT.

OVERCOMING OBJECTIONS

Most people who are interested in buying aren’t going to buy right away . They will probably raise objections with the hope that you’ll ease their concerns and persuade them to buy.

Don’t let objections throw you. They’re a statement of interest. If you\re going to make sales, you have to handle objections. Here are some strategies for doing just that :

1. The best time to handle an objection is before the customer raises it. As you sell your products or service, you will hear the same objections being raised by many different customers. Those are the objections you want to head off at the pass.
But you won’t be able to predict or handle all objections up front. So here are two other tactics for overcoming them.

2. Listen, agree and empathize with customers objections. If you argue with them, you’ll just lose them and the sale. Nod your head in agreement and tell them you understand how they feel. Your goal is to achieve a oneness with the customer that lets him know you’re on his side and want to do what is best for him. If he believes that, you’ll make the sale.
3. Eliminate the objection. If a customer says I CAN”T AFFORD IT, you counter if we come up with a payment schedule to fit your budget, would you be willing to buy?, if he says YOUR PRICE IS TO HIGH, you counter with If I show you how it’s worth far more to you than the price you’ll pay would you be willing to buy? If the answer is yes, build value by telling him about all the benefits of the product or service and what it would to for him.

NB: CUSTOMERS WANT TO BE CONVINCED THAT WHAT THEY’RE BUYING IS WORTH MORE TO THEM THAN THE MONEY IT COSTS.

MAKE IT EASY TO BUY AND ASK FOR THE ORDER.

Once the customers want to buy, a whole new set of problems and fears starts to bother them.
• What if your products don’t work?
• What if they aren’t happy with it?
• What if their spouse, business partner e.t.c. doesn’t like it?
• They need time to think over it

Your job is now to reassure them and take the fear out of the buying decision. ALWAYS OFFER A MONEY BACK GUARANTEE and you’ll close more sales.

If they are afraid it might not work for them, tell them you have numerous satisfied customers who had the same initial concerns and are glad they went ahead ( as evidenced by the testimonials). If they want to think about it remind them of the money back guarantee and give them an incentive for buying today. Throw in something extra or give a discount for acting now.

Finally you must ask for the business. You don’t need tricks or clever lines to manipulate a customer, ask politely for the order e.g. would you like to try it?, I know you are going to like it, can we start filling the form? Try it you have everything to gain and nothing to lose. You are going to get some refusals of course but don’t take them personally or let them immobilize you from asking other for their business. Also ask customers who don’t buy if you can check with them at a later date to see if they might be interested, and ask if
They know anyone who might be interested.



6) SERVICE, SERVICE, SERVICE

The surest, fastest and least expensive way to build your business is to take very special care of your customers, it costs approximately one-fifth as much to keep a customer as it does to get a new one. The small cash is in closing sales and the large cash is in keeping customers. And the way to keep customers gets back to those three magic words SERVICE, SERVICE, SERVICE.

NB: it is extremely tough to change a negative image in the customer’s mind.
Keep in mind the following key points.

1) Reliability is paramount: Do what you say you are going to do. Do it when you say you would do it, do it right the first time and get it done on time.
2) Responsiveness is crucial: If you want to lose customers, ignore them.
3) Make them glad to hear from you: people like to buy from people they like.
4) Look, listen and ask for feedback: don’t just assume your customers are ecstatically happy about the job you are doing. Find out by getting candid feedback.
5) Under promise and over deliver: The key to a great reputation is to exceed their expectations. Pleasantly surprise them. Throw in something extra; charge less than the initial quotation price.

ADAPTING MARKETING STRATEGIES TO THE VARIOUS STAGES OF A PRODUCT IN THE PRODUCT LIFE CYCLE USING A BOOK REVIEW ON SELLING THE WHEEL

It is a fiction book about adapting to the evolutionary changes in the market and creating sales strategies that work with reality to the market at any given time. The story is about a guy called max who invented the wheel back in ancient times but had a problem selling it.

It describes four basic sales strategies that guide the sale of a product or service during the different phases of evolution of a market from invention of the product till the product becomes a popular commodity.

It also shows the importance of good business advice from appropriate authorities as there is a character in the book referred to as the oracle which can be described as the modern day business advisor or fate foundation equivalent. He is responsible for the six bedrock questions that need to be answered in order to adequately market your product or service at each stage of market evolution. He also guides max through the various stages of evolution.

When attempting to sell any product six bedrock questions need to be answered

1) Who are our customers?

2) Who are our competitors?

3) Why do customers want what we are selling?

4) What would make them prefer to buy from us?

5) Why might they prefer to buy from our competitors?

6) What added values does our salesperson have to offer to make a sale?

The book is divided into four parts describing the four sales strategies and how they answer the above question with regard to the wheel. Depending on the product or service you produce the answers to these bedrock questions can be adapted to your situation. These four stages will be described with relation to the wheel as the product to be marketed.

PART 1- MARKET INTRODUCTION (THE WHEEL REVOLUTION)

This is the stage where a product or service is first invented or discovered. In this stage the product or service is new to the potential customers so has to be introduced to them and they have to be informed on how it would be of benefit to them. In this stage what is required for sale is a closer. This is a sales technique that sells not only a solution to a problem but an opportunity for a better tomorrow.

The answers to the bedrock questions at this stage with regards to the invention of the wheel:

1) Who are our customers?

Those who need to move big, heavy stuff faster, easier and cheaper.

2) Who are our competitors?

Everyone who sells established methods of moving heavy loads (for example elephant and camel dealers, sledge makers).

3) Why do customers want what we are selling?

They are looking for the big performance gain promised by new technology.

The wheel offers the opportunity to do things that could not be done before.

4) What would make them prefer to buy from us?

 We are the only wheel providers.

5) Why might they prefer to buy from our competitors?

Competitors offer proven, affordable methods.

Customers don’t understand our new technology.

6) What added values does our salesperson have to offer to make a sale?

Has to demonstrate the power and practicality of the technology.

Build the vision of the wheels potential for the customer.

Provide the emotional energy to close the sale

PART 2 - MARKET INTEREST (THE WHEEL ADVANCES)

In this stage the market is beginning to show interest in the wheel and so more people are becoming interested. These new breed of customers don’t just want to be sold the wheel but want additional services e.g. installation of the wheels on their wagons, maintenance, training of personnel to use the wheel and an in house specialist.

At this stage the best approach to sales is to adopt the wizard strategy. The wizard is the modern day consultant of specialist in an area. After the sale of the product to the customer the wizard supervises all the necessary additional services.

The answer to the bedrock questions at this stage are as follows:

1) Who are our customers?

New users who need expert assistance from the seller often before and after the sale on an extended basis to deal with the complexities of technology and the purchase transaction.

Specific customers include not only the financial decision makers but also the line mangers and users who have influence over the sale.

2) Who are our competitors?

Established technology (camels, sledges, e.t.c.), but also competitors offering their own configuration of our technology.

3) Why do customers want what we are selling?

They want a performance gain, but they also want the technology to come from a seller who provides extended assurances of the desired results and personal attention to solving any problems associated with the technology performance

4) What would make them prefer to buy from us?

We offer the best solution and back it with the best support and service.

5) Why might they prefer to buy from our competitors?

Established competitors offer proven, low tech solutions.

New competitors claim to offer superior results.

6) What added values does our salesperson have to offer to make a sale?

A special blend of technical savvy so that the wizard can provide an expert solution customized to the buyers individual needs, and “people skill” to be a team player managing a number of different relationships.

PART 3 - MARKET AWARENESS (EVERYBODY WANTS WHEELS)

In this stage of evolution of the market the market is more aware of the product and service. At this point it is widely used and there are variants of the product/service in the market. The product is still being used by semi-big time players and is not yet affordable to the common man.

At this stage the sales strategy required is the builder’s strategy in which the sales person builds a long term relationship with the customer helping him resolve problems not just related to his product but anything else he can do for the customer to keep him satisfied.

The answer to the bedrock questions at this stage are as follows:

1) Who are our customers?

Experienced buyers (those who have bought wheels before and will buy them again and again).

Often, in business-to-business selling, there is an “inside expert”, someone on the customer’s staff designated to handle this purchase because of prior experience with the product (e.g., a purchasing agent , but also a functional manager, such as a data processing manager who specifies which computers to buy). There often are also secondary customers who have influence over the sale, ranging from the company president to the actual users of whatever is being purchased. These are people who can say no to the sale, but can’t authoritatively say yes.

2) Who are our competitors?

Our primary competition is from other companies selling essentially the same product or service, perhaps in slightly different configurations (i.e. imum industries. Rival wheels makers). Eventually, though, we may face competition from companies selling new technology or radical, nonstandard improvements to current technology (some wizard who invents the tire, for instance).

3) Why do customers want what we are selling?

We sell a standard product (or a standard solution to a customer’s problem), but by knowing the customer well, we can adapt features, options, delivery, support, e.t.c. to each customer’s individual needs.

4) What would make them prefer to buy from us?

We have intimate knowledge of the customer’s business and individual’s needs, and we have developed a level of trust between ourselves and the customer that cannot be easily duplicated or disrupted.

5) Why might they prefer to buy from our competitors?

If we screw up, the bond of trust will be broken and they will consider alternatives. Likewise, if they learn of a competitor offering dramatically lower prices for essentially the same goods and services, they might begin to question their loyalty.

6) What added values does our salesperson have to offer to make a sale?

The salesperson must be able to build trusting relationships with key people on the customer’s side. He or she has to be able to manage complexity, keep close watch on details; must be a customer advocate inside the seller’s organization; and must have the clout to disrupt internal routines when necessary to keep the customer happy. Above all, the sales person adds value to a conventional product through personal attentions lavished upon a customer.

PART 4 - MARKET POPULARITY (BILLIONS OF WHEELS)

This is the final stage of market evolution in which everybody can now afford the product and needs no special help in the use of the product or service. There is also an abundance of variants of the product/service available at either same price or lower.

In this stage the sales strategy to adopt is the captain of sales strategy. The essence of this strategy is to make purchasing from you as convenient and hassle free as possible. This is because all the products in the market are essentially the same.

The answer to the bedrock questions at this stage are as follows:

1) Who are our customers?

Experienced buyers with no requirements for major customization of the purchase. In business-to-business selling, they are typically some type of administrators such as a purchasing agent or a clerk of some sort. In a retail market, the customers are typically called “consumers”.

2) Who are our competitors?

Others selling, for all practical purposes, the exact same thing.

3) Why do customers want what we are selling?

It’s the standard, established solution.

4) What would make them prefer to buy from us?

Low price

We’re convenient

Habit

5) Why might they prefer to buy from our competitors?

A bad experience with us, sometimes even a minor one. Or an even lower price. Or better service, greater convenience.

6) What added values does our salesperson have to offer to make a sale?

Our salespeople have to differentiate us from the competition-and add value to the commodity being sold – by offering superior service, yet also they must be efficient in so doing. Have to create a positive experience for each customer, and do so on a consistent basis.

This is a book every entrepreneur must read and the review is by no means exhaustive.

Thanks and I hope with this introduction to the book selling the wheel I have wet your appetite to go and pick up the book and read because no one tells the story better than Jeff Cox himself.

TAKE YOUR LIFE INTO YOUR HANDS – START AND GROW YOUR BUSINESS. 

BLUE OCEAN STRATEGY - THE KEY TO BUSINESS SUCCESS IN THIS AGE

N1000 - BOS TRAINING DVD

After hearing what I have to say you would agree with me that the way business is being at the moment is not sustainable and any interested in owning a sustainable, viable and profitable business would take the next logical step in getting trained in the art and science of application of the blue ocean strategy.

But first i have a question for you all. And it is who amongst us knows the best way to boil a frog?

It has been said that the best way to boil a frog is slowly because if you put in a pot of boiling water it would immediately jump out but i you put it in a pot of cold water and boil slowly the chances are before the frog realizes what it happening it would be dead because it was comfortable not realizing what was going on around it.

That is the state many businesses find themselves today they are frogs being boiled slowly and have no idea the heat would soon be too much for the business to survive with imminent failure at hand.

It is common knowledge that the key to business success is a situation whereby demand for a product or service far exceeds the supply but in our current business environment the reverse is the case for 3 basic reasons:

1.      Technological Advancement

2.      Increased Globalization

3.      Customer Evolution.

First we would talk about technological advancement.  Accelerated technological advancements have made ordinarily specialized processes simple enough for any tom dick and harry to carry out.  For instance to promote a seminar or product using a brochure or pamphlet in the past would have required the expertise of a printer but now anyone with a computer and a basic knowledge of Microsoft office could come up with a standard brochure in the comfort of his own office.  In such a situation it is obvious that the supply has increased by the demand remains the same.   

Another example is website design which in the past required well trained programmers and web designers but now require no skill at all as anyone using the basic templates available can create a website in less than a day. Here also it is clear that the supply has increased but the demand basically remains the same. This results in competition solely on the basis of price because with increased supply the customer has a lot more choices available to him so the only way to woo them is by slashing prices which is not a sustainable way to run a business as to what extent can prices be slashed.

Secondly we talk about increased Globalization. We hear constantly that the world is a global village and now more interconnected than ever before as such your competition is not necessarily the shop next you but can be the shop in china who produce and sell the same product you do at a cheaper price. It reminds of a cousin in Lagos He is a bank manager and has a phone shop next to him. Off recent he wanted change his phone and instead of going to the shop beside his office decided to buy online. Why? For the simple fact that it was cheaper. So this shop who thinks his competitors are other shops around him and might be comparing his prices to them has no idea that his competitor is somewhere on the internet. This also reinforces the fact that supply has again far outweighed demand ensuring the only competitive factor again remains price.

Thirdly we talk about customer evolution.  In the 1980s the customer mindset was give me what I want, how I want it, or I’ll buy from someone who will not really bothering about the price as long as it was what they wanted they were willing to buy at any price but in this new millennium  their mindset is give me what i want, how i want it, when i want it at the lowest possible price because they know that are a lot of people doing what you do already and if you don’t offer a low price they would go to someone who will. Again the supply far exceeds demand.

The question then is what is the solution? How can you ensure you stand out from the crowd? How can you ensure competition has no effect on your business?

The answer is innovation but not just innovation as you know it innovation in the sense that you come up with a product that simultaneously increases value and reduce cost by a process known as value innovation which is the corner stone of blue ocean strategy which if applied correctly ensures you come up with a product not in existence and the moment hence a reduction in supply and in addition to creating demand which restore the balance of demand exceeding supply which as noted earlier is the key to a sustainable, viable and profitable business.

Finally Blue Ocean Strategy is defined as a planned sequence of events or processes specifically designed to create uncontested markets where you are the only supplier thereby making the competition irrelevant.

To conclude if you are in business already or would like to be in business someday you need to know that with technological advancements, increased globalization and customer evolution to succeed you need to learn and apply Blue Ocean Strategy.

Fortunately i am one of the only people trained in Nigeria in the art and science of blue ocean strategy at the Blue Ocean Region Center in Asia, Malaysia and my DVD trainings are currently available. 

To  get a copy of  my blue ocean dvd training. Click on the buy now button below and follow the required steps. you would receive a downloadable copy. Act now and begin your journey into the blue oceans of uncontested markets

N1000 - BOS TRAINING DVD