NEVER DECIDE MARKETING MIX BEFORE YOU "POSITION" THE PRODUCT

Suppose you are the marketing honcho of a passenger car company and you begin to conceive of the marketing mix for a new car that you have in mind. You will probably use the "4Ps" model and write down on a piece of paper these .. Product, Price, Place and Promotion. You seem to have started well and systematically but beginning is only a part of the effort; let us see what you do next.

You start with the 1st P : Product. There are many things to be defined when you define a car but let us take only one part - but a major part : the engine. Your R&D informs you that they can offer you a choice of 3 engines : 1000cc, 1400cc and 2000cc. Now it does not seem to be so simple any more because each choice adds value as well as costs. 2000cc engine is technically the best because it will give heart thumping acceleration and an ability to easily overtake even on expressways. But then the engine will be costly and will push up the price of the car. 

You will have the same very problem for every element of the marketing mix : you will not be able to look at one element of the marketing mix and take a decision in isolation of other components. That is the reason for my saying that you should "position" your product / service first and only afterwards begin arriving at the marketing mix.  

The positioning template has 7 components. 

When you answer these 7 questions; you can begin work on marketing mix.

1. Who - and what application - does the product plan to serve : Who are the Target Customers ? They are the protagonists of the positioning story. Always tell the story in their paradigm and their language.
2. What is the payoff they are looking for : by using the product or service what are they trying to do at an emotional level : what do they want to fix? or avoid? or achieve? What provides tension relief? 
3. How ready are the customers to accept what we plan to offer: How many of them have an active mission to purchase : budget, organization, criteria?
4. What are the needs, which are unfulfilled and which really matter? What matters to target customers? Which of these are over serviced and which are under serviced? are we selling a solution or a component ?
5. Who are you competing against ? Who are our competitors and at what stage of buyer behavior they actively compete against us? who is the villain ?
6. What is our source of growth ? Will we primarily focusing on the need or a given competition ? or both ? what sort of fight : are we maker developers or market fighters?
7. What is the product / story we offer ? This should be stated in customer language? what it our weapon ?
8. How is it better than whom we are competing with ? what is our differentiation? how is our weapon better than that of the villain's?

12 ways to find buyers. 6 ways to qualify them.

FINDING BUYERS ( PROSPECTS )

Finding prospects is key to successful selling. Here are 12 ways to get the required leads.

1. Get Referrals from existing client who is satisfied with you. But a satisfied client may not be able to judge who among his friends may be ready to buy your product or service.  A better way is to ask if he belongs to any professional organization, social clubs, community association etc. If the client is in an office building with other offices, ask if he knows anyone else in the building. Since most of us surround ourselves with individuals who have similar interests, needs, preferences and pastimes, when you ask referrals this way, your client only has to give you the names and not make any judgments. The best time to ask for referrals is immediately after the sale is made. At this point the customer’s enthusiasm, satisfaction and confidence in you is at the highest point. Because referrals are so important in selling, staying in contact with old clients is essential. Call them from time to time to see how they are doing; stop in to see them occasionally; send them birthday or seasonal greeting card and let them know you always remember them.
2. Network  and tap your own center of influence and ask your friends, relatives, neighbors, associates … and get from them the names of the potential buyers for your product or services.
3. Trade Leads with other salespeople who sell in the same market as you do.
4. Lists are readily available through local chamber of commerce, newspapers, professional organizations, trade associations, export promotion bureau, social clubs etc.
5. Trade Directories and Yellow Pages allow access to specific industry or specific professions
6. Prospecting by Telephone can be an effective tool in seeking and reaching prospects but be aware of how you sound and the words you use. A prospect cannot see you and your product or your brochures. You must sound enthusiastic and paint a clear picture of opportunity. You must set time each day when you will make your calls. The important thing is to get the name of the right person for you to contact as well as the secretary’s name. When calling back, it is sometimes helpful to get through to the person you want to speak to by having the secretary’s name. For example, ‘ Hello Sara, is Mr. Ali in?’ This gives the impression that you know the secretary as well as Mr. Ali. In some cases, even though she does not recognize your voice, she will put through, not admitting that she forgot who you are. This might give you an edge in getting to Mr. Ali.
7. Canvassing is used when you are finished with a sales call and you are in an office building with time before your next scheduled appointment. Walk into other offices that you think can use what you are selling and introduce yourself. You might get an opportunity to speak with a prospect. At least, you can find out who the prospect is, leave your business card and let him know that you will follow up with a telephone call.
8. Direct Mail. Send letters or samples with a note attached stating that you will be calling for an appointment. People often hand write a personal letter on plain paper without a letterhead because the prospect has to read the first few lines to find out who you are. If you are smart in your approach, you will get him to read the entire letter. To be successful, you must follow-up your direct mail campaign with a phone call. This will increase your chances of getting an appointment and will serve as a vital part of your prospect qualification process. Remember direct mail should be used to supplement your prospecting methods and not be used as a stand alone method to gain new leads.
9. Special promotions. A good place to get prospects is at trade shows and exhibitions. These are usually industry-sponsored and potential prospects attend them. They give best opportunities to follow-up the prospects you meet, face- to-face at the show. Consumer shows are different. These are not usually industry-sponsored and are usually open to the public. They can be auto shows, home- improvement shows, book fair etc. However, if you are selling a product or service that is consumer-oriented, these shows will be the best place to meet prospects. They draw a lot of people and where there are people, there are prospects. Pick the ones that will benefit you best.
10. Newspapers articles  give information about people and their companies. They report on who has been hired, promoted and who is moving into the area. They also run employment ads that might mean the company is expanding.
11. Old customers. Most product and services have a life cycle and it is your job to determine when your prospect will be in the market again. If you sell products with a predictable life cycle such as automobiles or air travel, you can build up an active client base and periodically you have another group of prospects. If the product or service you sell has a long life cycle or is one-time sale, you can become the client’s sole supplier by keeping in touch with him. When other people ask him where they can get a particular item or service, it will be you he remembers. If there have been any improvements on the product or service, inform your customers. You might get them to upgrade. They are already qualified buyers and it is human nature to want the newest and the best, especially if the new product can save them money and time.
12. Testimonials can benefit many promotional activities including the use of brochures, direct mail, ads, press releases. A testimonial is a statement by a satisfied client appreciating you and your services. A typical testimonial might state: “Thanks for the excellent job you did on our sales training program. It was creatively executed and after just one month, we have realized an 18% increase in sales across the board. I thank you, my sales people and our president thanks you.” Some people believe that the best testimonial is one that has not been solicited. This occurs when a satisfied client writes a letter thanking you for a job well done, with no prompting on your part.

QUALIFYING THE BUYERS (PROSPECTS)

  

 

Who? has the most obvious need for your products or services? Who has the money to buy your products or services immediately? Who has the most urgent need to buy your products?  Who has influence on the prospects you are able to identify?
 

Where? Where do your ideal prospects live, work, socialize, worship or play? Where can you find useful mailing lists of people who fit your ideal prospect profile? Where can you find directories from which you can form your own lists? Where could you go to contact new prospects?
 

Why? This helps you set up priorities so as not to waste your time in qualifying prospects. Why would the prospect be likely to buy your product or service? Why would the prospect resist buying your product or service? Why might this time be good (or bad) to approach the prospect? Why would this person be likely to set up an appointment with you?
 

What? These questions, if properly used can boost your qualifying average. What will the prospect find most beneficial about your product or service? What information could you present, or what questions could you ask would most likely get the prospect to talk about his needs? What more do you need to know about the prospect? What information should you gather about the prospect before you meet with him? What is the single biggest problem the prospect has?
 

When? This question is about timing. When is the best time to contact a prospect ? When is the most productive time from the prospect’s viewpoint? When is the prospect most likely to give you the time you need? When should you contact the prospect again if your first efforts were not successful?
 

How? You will not be able to ask many meaningful “How?” questions if you have not fully explored the other five. How can you be sure that you are doing a good enough job of follow-up prospecting? (Look at the Who? questions again.) How can you use your prospecting time more productively? (The “Where?” questions can help you here.). How can you sharpen your prospecting and qualifying skills? (Hint: Search for creative ways to put your products and services to good use. Look at the “Why?” questions.) How can you best approach your prospects? (“Think about the “What?” questions – What will they want to hear?) How can you make more time for meaningful prospecting and qualifying the leads you generate? (The “When?” questions will give you a good indication of effective time management.)