Winning on Purpose

Little Johny knew he'd risked all and become 'king of the beach'
Little Johny knew he’d risked all and become ‘king of the beach’

Do you know what you need to do in order to win?

On purpose?

I don’t mean what feeling you need to have, or what attitude you’d like to adopt, what the latest book has told you to do, or what the latest technological marvel is that you need in order to ‘make it’.

Maybe there is some other chicanery that might convince you that you are doing something useful for yourself or your business, when actually, things couldn’t be further from the case.

 

In my experience, the number one reason a businesses fails is lack of focus.

Thats right, not lack of hard work, or lack of funding (though this is a major issue in itself) or lack of sales or lack of many other things that might in themselves be problems. Lack of focus.

Or more precisely, being so busy you don’t do the things you need to do in order to succeed.

Sometimes you know what those things are, but don’t want to do them. Because they are hard to do, complicated or take a long time. Sometimes something much more interesting comes up that you’d rather spend your valuable time on.

You spend time on ‘make work’. Chatting to ‘contacts’, networking because it feels like selling (it’s not) driving around the place to meetings you must be at, even though nothing ever comes of them.

All this while you put off doing the things you know you need to be doing. Like cold calling, or writing that proposal, or following up on that bad debt. You know, all those messy, awkward, difficult things.

Or maybe like a lot of people you are too busy!

Too busy to do the things you need to do in order to make a difference to your business. Whether its yours or the one you are working for.

Too busy to take a moment to plan the next week, month or quarter. Too busy to look up to see what problems you are about to hit square on. Too busy to deliver on the things you’ve already promised you’d deliver.

Or maybe you are too busy to be able to spot the next opportunity when it presents itself.

Worse, sometimes you don’t know what it is you need to do in order to win. Thats when you have a real problem.

In that case, you just work harder and harder and spend more and more time stressing about winning, when you in fact have no clue what success looks like, or indeed how to get it.

You need to have a laser like focus on what it takes to succeed. What you need to do to win. How much you need to sell, or who you need to see, or what problems you need to deal with.

And then deal with them.

Don’t put it off. There isn’t any other work that’s more important than the work you do to ensure you win.

Do things on purpose.

Rather than letting things happen to you, make things happen for you!

Don’t allow the distractions to drag you away from doing the things you know you need to do in order to make things go well for you. Don’t put off till tomorrow what you can do today.

Do the things you want to avoid early in the day, get them done, feel that achievement, and go on to enjoy the rest of your day, making sure you are doing other things that lead to success. Make sure you are not allowing lack of focus to edge in, and steal away valuable time and resource.

And if you really don’t know what it takes to win, you’d better learn, fast.

 

All Sales Problems are Management Problems

Face it, you should be selling more.

You’d like to make more money, you’d like to increase your market share, you’d like to get one over on the competition. You need to increase cash flow!

But your commercial director is telling you times are tough. Rates are under pressure, and the competition is doing crazy stuff to win business.

Your sales manager tells you that the team are working so hard they are wearing themselves out! They are struggling to find new leads, and once engaged in the sales process everything takes longer then ever to progress.

Or maybe you are your own seller? You do everything in your ‘one person band’ including product deliver, finances, accounts and everything else, and there is never enough time to devote to finding the next client or even to properly look after the ones you already rely on.

Selling is hard, times are tough, people harder to get hold of these days, buying is automated, margins are being squeezed, your suppliers are driving increasingly hard bargains, you’re no good at negotiating, you never know how to introduce yourself, the competition do such a good job, recruiting good people is really hard, you don’t pay enough to attract the right talent, marketing don’t supply the right leads, your website is rubbish, your CRM system is antiquated, your sales collateral is out of date, your inbound strategy is flawed, your pricing isn’t competitive, your product set is below par, you don’t have enough awareness in the market place… The list goes on.

All or some or none of these things maybe be true. But thats not the point.

‘He that is good for making excuses is seldom good for anything else’ (Benjamin Franklin)

Either you manage the sales team or the sales team manage you. Either you mange your sales process, or the sales process manages you.

All sales problems are management problems.

Hire, train, and retain the best people in the market. Have a sales philosophy. Something that will stand up to the most demanding scrutiny. Have a plan – what you need to do in order to win – and make sure your sales people (or you yourself) stick to the plan.

Its that simple. And that difficult.

I can guarantee, that unless you are literally the ONLY player in your market, someone is taking cash off your table, by out promoting you and out selling you.

What are you going to do about it?

(With thanks as ever to my mentor in all things Dave Gifford)

How to get more customers

I’ve had an email from a lovely lady called Christine who offers a very modern service. With more people working remotely and not wanting to get tied up in bricks and mortar offices, her ‘Virtual Assistant‘ services sound like a dream come true for busy executives.

But like any new business Christine needs to attract customers. And not only attract customers, but attract them on a consistent basis. This sort of thing can often be feast or famine…

Its a well trodden road for new businesses. People start up a new business, and full of the first flush of enthusiasm spend money on getting set up and getting ready to go, only to stand back a week or a month later and wonder where their revenue is going to come from. They maybe do a bit of networking, or send out an e.shot, or maybe even use Facebook and Twitter.

A few customers, come along, and often, because they are small businesses, and by definition don’t have much in the way of resource, the attention turns to dealing with the customers they’ve won. Which results in the flow of new business getting choked off. Which means in a few days, weeks or months, they are back at square one.

Winning, and consistently winning new business is the hardest part of the job for even big business – just look at Tesco – so there is no reason why it should be easy for small businesses.

I think ‘in bound sales’ is a very attractive method to try, seemingly easier to do than ‘out bound’, but in my opinion, nothing is more effective than getting out there and talking to your customers, and learning what they really need.

But whichever way you favour, the trick is to think about customer acquisition differently. This is the magic ingredient if you like.

Instead of thinking of yourself as a virtual assistant, as in the case of my friend Christine, or a flower shop, or a drum tutor, or whatever it is your business is, you need to think of yourself as ‘Vice President in Charge of New Business Generation!’

There are two types of business, as my mentor Dave Gifford would say, new business and repeat business – and one doesn’t come without the other. There are many ways to arrange sales for your organisation. You could adopt an approach of being highly differentiated, such as Christine, or maybe an exclusive art dealer. This means you will deal with relatively few, but high value customers.

Or you can take a leaf out of the discount retailers handbook and trade on price. That means being the absolute cheapest you can be, which means you have to be the cost leader to win as well. Often a position open to only the biggest businesses.

But irrespective of which approach, you still need to find new customers.

I’ve often seen new businesses set up and position themselves on the high end / differentiated end of the market, only to panic when the customers don’t start to flow in.

Mistakenly thinking this is because they are too expensive, they often drop their prices in desperation. They may well be too expensive, but this in itself isn’t the reason they aren’t attracting customers. And all they have done is eat into their margins. So as well as struggling to sell anything, they are now finding it increasingly difficult to turn a profit.

The easiest way to position something is through price. People generally think expensive things are good quality and high value, and cheap things are poor quality and low value. So pricing high quality things at a low price often confuses the customer. Worse, people know there is no such thing as a ‘free lunch’. So they simply don’t believe the claims of the business that sells top quality stuff at low low prices. Making it even harder to sell  – a vicious circle!

It’s better to stick to your price, one that demonstrates good value, and allows you to turn a profit (which most people don’t object to either strangely enough) and concentrate on bringing in the customers.

Put another way, simply dropping prices is not enough. And sometimes its even counter productive.

Selling is easy.

There, I said it! Selling is easy!

You just need to know what the customer wants, and how much they want to pay for it, and then sell them that.

The trick is talking to enough customers.

Whether that’s ‘Face to Face’ as a good old fashioned sales rep, on the telephone as a sales canvasser, or through a high tech website based content marketing operation, using the latest social media marketing techniques.

Talking to more people = more sales. Period.

Asking more people to buy from you = more sales. Period.

It’s a fact that most sales operations fail, not because they are too expensive, or the product isn’t good enough, or the marketing let them down. It wasn’t because the economy was busted, or that credit was hard to get. It wasn’t because the sales person wasn’t a good enough negotiator.

It was because they didn’t see enough people.

There isn’t a single sales problem that can’t be solved by seeing more people. The very first thing you should do when concerned about the strategies you employ to win business, is try to get a sense of whether you are doing enough. Or doing whatever it is consistently enough?

It’s not your website (unless it physically cant get traffic to it) its not the product, its not the price. Its not the promotional materials. Its not the location. Its not any of those things! Its just that you aren’t talking to enough people.

The point is that most people would rather mess around with their website, or the marketing mix, or tweak the advertising rather than do more canvassing, or make more calls, or see more people, or whatever else it takes to win. The chances are, you know how to win business already.

It takes time, and it’s messy, and that’s why you don’t do more of it.

Clearly you have to have all these other bits right. You have to have a differentiated product, and you have to understand your market. You have to understand how pricing works and how it can reflect on your  product or your  brand, and you have to know when to discount and when not to etc.

But ultimately, to get more customers, you need to make more calls.

And that’s the bottom line.

 

 

 

 

 

How to ask for BIG money!

british_money_185257
Big Money

One of the biggest weaknesses I see in sales people, whether they are new to the job or dyed in the wool veterans, is a problem when asking for ‘big’ money.

The stutter on the price, or the hesitation is bad enough. But I’ve even heard sales people tell a prospect to ‘sit down’ because the price is coming and it’s clearly going to knock them off their feet! Or worse,  they start to go there with discounts before the price just asked for has even sunk in…

The one idea to get your head around is the link between price and value.

The issue is that if we think there is a problem with the price, or we think that the thing we are selling is expensive – it means we don’t value it. And that’s clearly problematic for the person we are asking to buy.

Business is a battle for the mind

The fastest way to position a product is through price. You don’t need expensive advertising campaigns or loads of PR. You don’t need website links or social media chatter.

Basically, if something is ‘expensive’ I perceive it to be good. 

If something is cheap, I perceive it to be not so good.

All things are relative, and your perception of reality IS your reality.

If I am considering cars for instance, I intuitively understand the ‘premium’ pricing of a Lamborghini or a Ferrari sets it apart from the day to day ‘run abouts’ of a Ford or a Fiat.

Interestingly, many of the cars in today’s marketplace are actually owned and made by the same people. So for instance, Ferrari is owned by Fiat. Volkswagen owns Bugatti. At one time Ford owned Jaguar and so on.

In reality, the difference in these products is very slight. They all take us from A to B. They all do it with four wheels and an internal combustion engine. They all run on air filled tyres and have some kind of exterior shell to protect us from the elements.

The only REAL difference in any of them is the price! And its the price that helps us understand the value the sellers are trying to convince us these products deliver.

Everything else is just buyer justification. Once we have decided we want to buy something everything else from the packaging to the warrantee is designed to justify the purchase to ourselves.

Ever thought about insurance?

Even the briefest investigation into our once  a year purchase must lead to the conclusion that its a huge gamble to buy insurance? The actual chances of something going wrong, heaven forbid, are really small – which is why the insurance companies are able to make so much money!

We bet against ourselves having problems with our cars, or houses or holidays or health, and for the vast majority of people nothing ever happens. And the insurance company keeps the money.

We justify it by asking ourselves ‘what if’?

I justify buying new golf clubs by telling myself they will make me a better golfer. I justify buying new clothes by telling myself I need look good to feel good. And so on.

And inexorably tied into our feelings of want and need are the prices of things. When we buy something that we want to make us feel good, a new car or a computer or a piece of jewelry – we intuitively understand that more is more. The higher the price, the higher the perceived value.

On the other hand, if we have to buy something we need for other than purely hedonistic reasons, like insurance, we want to get it as cheaply as we can. We don’t value it in the same way, but we convince ourselves we need it, so we want to drive the cost down as much as we can.

Is it like that for your product? Are you selling something luxurious like fast cars? Where the high price is actually an aid to your ability to sell? Or are you selling something like business services or marketing? The value of which is much harder to ascertain?

What you have to grasp is that according to the value sets we have all grown up with, the more expensive something is, the more we automatically perceive it to have value (generally speaking).

Actually under pricing yourself or your product or stumbling over the price / cost implies that you think its expensive. This so fundamentally undermines your efforts its not true. If you want to paint a picture of a highly valuable product, you need to do little else other than price it highly, and then come over as completely confident in that price.

You know that feeling that the sales people are weighing and measuring you when you walk into the Porsche garage? That’s exactly what happens! The prices there are really helping the sales people. If you can’t afford them you shouldn’t be there.

If you have to ask the price, you're in the wrong place!
If you have to ask the price, you’re in the wrong place!

If you can, then you are a bona fide prospect. In fact the psychology of the purchase is that you get a lot out of the fact that most people cant afford that car. That’s probably why you are buying it in the first place!

How much?! 

Ultimately, the reason you cant ask for the big money, or your stumble over the price is because you think that the product you are selling is ‘expensive’. In other words it isn’t valuable enough.

You don’t have faith in the thing you are selling in the first place. Therefore your chances of actually convincing the prospect of value are very slim indeed.

Go back to basics. Why are you selling what you are selling? How does it benefit the customer?

Look for success stories you can share with your clients to ‘back up’ your claims and the pricing structure that is attached to your product.

Speak to some of the more experienced people on the sales team. What do they think of the price? How do they ‘justify’ it to themselves? Never mind the clients!

Programme yourself to believe, and you will believe.

“Buyers only buy when buyers believe” (Dave Gifford). And you have to make them think that you believe, in order for them to believe.

And if you cant convince them?

Fake it until you make it.

All the world is a stage, and all the sales people players!
All the world is a stage, and all the sales people players!

Sales is about performance. Telling stories and turning the dial up on your language and approach so that you can convince the client you mean what you say is pure performance.

Asking for the cash is no different. Just do it. Practice saying it. Practice saying it until you can do it without that psychological stumble or the reflexive offer of a discount before the client has even asked for one!

The subconscious isn’t discerning. If you tell it something often enough you start to believe it! Ask for the cash with enough conviction for long enough and before long you’ll believe every word you say.

Otherwise, maybe you shouldn’t be selling it in the first place?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Your Digital Footprint Is Killing Your Job Prospects, Or Worse…

Footprints in the snow
Footprints in the snow (Photo credit: The Field Museum Library)

A friend of mine spoke to me last week about a terrible situation he had found himself in. Without going into detail, and to protect his identity, he was being unfairly attacked online for an issue he had been involved in and was unable to do much to put it right. He was deeply concerned about what impact this would have on his reputation – Understandably.

As an employer of more than 10 years’ experience in hiring sales people, journalists and administration staff, as well as managers and senior managers. Here’s the thing: These days prospective employers search for intelligence on a prospective employee via examination of their digital footprint.

In my case, if I am hiring someone directly, I always ‘Google’ them.

#ISRU11 - We ALL leave a digital footprint
#ISRU11 – We ALL leave a digital footprint (Photo credit: OllieBray)

I search for a LinkedIn profile as a minimum. Twitter is always a good source of insight. You might also come across a Facebook account, or even on occasion, a ‘news story’. All this is delivered by the Google search engine, which supplies all this info and more without the need for an account or having to search the actual social networks themselves.

It’s sometimes the case that the prospective employee might own other digital real estate such as a blog or Tumblr account, all good sources of information about the person you are thinking of hiring, and all readily available in the public domain. While there are ways to ‘protect’ your digital profile, I would estimate that the vast majority of people are online with no security measures to prevent such voyeurism.

Hiring people is an expensive process and mistakes are costly.

The time invested into screening candidates much less interviewing is hugely costly for today’s multi-tasking business person. Clues to a prospective employees suitability can be very important and no doubt have impact on whether a business would take that person on.

The sort of information that can be gleaned from even a cursory examination of social media for instance are the sorts of activities a person might enjoy in their down times, the circle of friends they enjoy and even the sorts of organisations and brands they might have allegiance too.

Any or all of which might help a business decide whether to employ someone or not.

There are usually multiple candidates for most positions, and often with similar qualifications and experience. I have no doubt that ‘intelligence’ gathered in this way would have an impact on an employer’s view of the prospective employees suitability for the position in question. Decisions in situations where there is little else to differentiate would no doubt be resolved in this way.

Even in cases where the information dug up is not true, or when a party maybe the victim of trolls or bullying which is precisely the case with my friend. 

If I were to find behaviour or views or opinions that the person in question might have expressed to be contrary to the company’s or potentially damaging to the company, then at the very least I would feel duty bound to explore these issues with the candidate. In extreme cases, maybe where their appears to be evidence of a conviction or other serious matter, it’s likely that the intelligence gained would put an end to the candidates chances.

And it’s likely that the candidate wouldn’t even get the chance to argue the issue. Its more likely they would just get the standard ‘no thanks’ letter. 

It’s especially important that children and students and other young people are made aware that this goes on in today’s job market, and even has potential for further more critical impact on their lives. It’s not necessarily about the carefully crafted blog that someone might have put together to show case their creativity. Rather it’s the unguarded banter between good friends, taken out of context, that could put you at risk.

Digital Footprint Wisdom
Digital Footprint Wisdom (Photo credit: ransomtech)

A salutary lesson for anyone looking for a job in today’s market.

Perhaps more worrying, and as was the case for my friend, is the prospect of a concerted campaign mounted by a malicious third-party, for whatever reason, that results in a ‘smearing’ of a person’s otherwise good name. We have all heard of terrible stories of ‘cyber bullying’ as its sometimes called, where completely fictitious claims and accusations are leveled at the weakest among us. Those that aren’t able to defend themselves as is usually the case with these odious ‘trolls’.

At best it has resulted in heart-break and terrible privations for the families involved, at worst, the most awful of tragedies.

I believe that the digital footprint, and particularly its misappropriation, is one of the most serious of issues facing our children, young people and those people looking for work in today’s market place. There are measures that can be taken to protect your security. It’s imperative you find out what they are and implement them.

It is also possible to run programmes that trawl the online archives for mentions of you online that can then be ‘cleaned up’ allowing for some modicum of control.

However, and desperately worryingly, these measures are not well-known. I believe they, as well as other measures should be taught to our children as part of their work experience and learning at school at the very least.

It’s a desperately sad situation and I hope it never happens to you. If you know someone it happens to they should be supported as much as you are able.

What do you think? Is this as big an issue as I think? Am I overstating it? Do employers today still go on the personal meeting and gut feel of yesteryear?

Do you know of any of the ‘apps’ or programmes I’ve mentioned that are worth investigating?

Let me know in the comments.

Enhanced by Zemanta

Stop Complaining!

Moment of the Park, Debrecen
Lifes too short! Moment of the Park, Debrecen (Photo credit: Wikipedia)

Seriously, stop it.

It really annoys me (Irony alert!)

We all seem to have fallen into the trap of believing complaining is in some way a god given right. On top of that we also immediately expect some sort of major recompense for our perceived injury. It’s almost like people are afraid they’ll miss out if they don’t complain!

The trouble is, complaining all the time leads to more complaining.

Everything from bad service in a shop, to your employers failure to spot your brilliance. Even some poor soul and their personal tribulations seem to be fair game. And it seems half of what we complain about has nothing to do with us.

Complaining about someone else’s kids running riot? Butt out. Not your problem. You have no idea what that child, or the parent is going through.

Try some support instead? An understanding smile or shrug of the shoulders might help lots.

Whinging about some drunk on the bus, or in the street? Yes, maybe its early to be inebriated, but are they doing any direct harm to you and yours? Are they going to have any impact on your day at all? No?

How about having to deal with whatever it was that has impacted them to the point they feel it necessary to get drunk in the first place? Homelessness? Abuse? Poverty? Mental illness?

Nah.. Me either.

I’m not saying you should reach out, I just mean keep your nose out, and have a bit of respect. We are talking about fellow humans here. No matter the state they are in.

And my favourite compliant? The one you make in work about your career. About how it’s not fair. Or you were over looked. Or someone has it in for you. Or you just don’t get the breaks.

Or if you’re in sales like me, how the deck always seems to be stacked against you.

It’s not your fault the economy is shot right? No reason why the calls you make to the same old people over and over again shouldn’t nett you as much revenue as that hotshot new girl who never seems to be in the office and is always breaking the rules.

You know, the girl who is the favourite of the sales manager?

Don’t get me wrong. I love a bit of complaining sometimes. Over serious stuff. Like arguing over my child’s access to education. Or the way a huge corporate deals with me or my family. And I’m really good at it too. I work in the media, and you don’t want to mess with me baby…

But its important to stop yourself sometimes, and ask: who’s ‘fault’ is this really?

Is anyone actually at fault? Or is it just the universe having its regular laugh at our expense? Is it someone else’s problems that have conspired to spill over into our sphere of awareness.

Most importantly, whats the outcome of the complaining going to be? What is it going to achieve? Is it going to change anything? Or is it just going to heat up the atmosphere further, and worse, indoctrinate you into believing your can’t achieve whatever it is you have set out to achieve.

Because that’s the biggest problem here. Abdication of responsibility. If its someone else’s fault, there is nothing I could have done about it.

Missed out on a promotion? Not my fault, he was a real creep and its all about who you know..

Didn’t close the deal? Well the client didn’t call me back, and then she went on holiday…

Before you know it, you’ve programmed yourself to get shafted on a daily basis.

You begin to accept that bad things happen (which they undoubtedly do) and you can’t actually do anything about it. Or at least that its someones else’s responsibility to do something about it.

Not true.

This is the whole point: it’s what you do about it that counts. Its how you react to the problem that defines you.

The following terms have sort of worn out a bit and may be aren’t so fashionable as they were a while back, but I still try to live by them.

‘Don’t bring me problems, bring me solutions!’

If someone comes to me and asks if they can press the trigger on their plan to over come an identified issue, its rare I will refuse them. And how do you think the organisation will then regard that person? The do-er, not the complainer?

‘If you aren’t part of the solution, you’re part of the problem!’

You’re either on the team or you’re not. You’re either going to help, or hinder, to support or tear down. We don’t need poison in our organisation. If you don’t like it fine! There are no bars on the windows.

Have some personal accountability.

Take responsibility for YOUR actions, and start to think about how to over come, not who to complain to.

Life is sometimes full of many real and major tragedies. The people who deal with these are invisible to us yet should be inspirational. The grieving who go back to work, the injured who keep getting up and going again, the bereft ‘winning small’ every day to keep themselves going.

The reality is we have nothing to complain about. We who are endlessly lucky. We are whole and hale and healthy.

Take the chance you have, don’t wait for someone to invite you. And don’t complain about the fact you don’t have the chance, try and do something about it.

Stop complaining, be grateful and take action – don’t let things happen TO you. Make them happen FOR you.

Enhanced by Zemanta

How to win (seriously)

The Sunderland 1937 FA Cup-winning team with t...
Winners: The Sunderland 1937 FA Cup-winning team with the trophy. (Photo credit: Wikipedia)

Actually, this post isn’t about winning in sport – its about winning in business.

I got a great question on the blog the other day from a lady called Julie asking about the marketing for her male hairdressing and grooming business. She was trying loads of ‘things’ and was worried that her business wasn’t picking up.

I hear this a lot!

“I tried this idea, I tried that idea, I tried Radio, I tried Press, I did TV – none of it worked!”

Well, Im not sure how advertising and marketing ever got to be a multi billion pound industry in this country when it so clearly doesn’t work!

So whats going on?

For one thing, I think its easy to make this stuff complicated. And its not, its really simple.

Think of business, your business, what you sell as a piece in a pie.

Assuming you sell something and other people sell it too, depending on how developed and popular your product or service is, you’ll have a big pie or a small pie.

Then all thats important is whether you have a big slice of the pie or a small slice of the pie.

Make sense?

We are obviously talking about the size of your market and your specific market share.

OS market share - Janurary 2010
OS market share – Janurary 2010 (Photo credit: Wikipedia)

I find it really helps to think of the business in this way.

So say you sell cars (or anything else) and in your specific area you sell 5 per week. And they guy down the road sells 10, and someone else sells 5 also. Then in your little market place, the market for cars is 20 cars per week.

And you have a 25% market share.

Still with me?

So this is how to win, when thinking of your business like this. First of all, do you know what size your market is? And your place in it?

I believe not knowing the answer this these sorts of questions leads to the confusion I spoke about.

Without measuring these things, and your relative place in the market, its very very difficult to understand whether your marketing and advertising is working or not.

If you don’t measure these things, how do you know if you are having a good week or a bad week even?

After a few years trading, you’ll know relative to yourself – but that doesn’t necessarily mean very much at all?

Fortunately there is an easy way to look at it, assuming you follow the ‘pie’ analogy.

three simple rules in fact!

  1. There is only ONE WAY to grow your business, and that is the grow your Market Share
  2. There is only ONE WAY to grow Market Share, and this is to take it off someone else
  3. There is only ONE WAY to take Market Share off someone, and thats to OUT PROMOTE your competition.

Business goes where it is invited.

And thats it. Its as simple as that.

Now incidentally, at this point, if you are “Mr. 10 cars per week” you may feel there is no way to grow the total market of 20 cars per week. Perhaps there is just not enough people in the market to buy any more than that.

At this point you may well think about selling something else, a smaller car, or a van (product development) or you may think think about building a premises somewhere else where there aren’t so many cars sold (market development)

Both are valuable strategies but are usually most useful for the market leaders.

Just keep that simple thought in your mind at all times. Assuming others sell what you sell, then you are part of a market place for your product or service. So you can always grwo that share at teh expense of someone esle.

But only if you out promote them.

Ways to out promote are to be cheaper, to be better, to be faster.

To be cheaper you need to be the cost leader, to be better or faster you’ll need investment in R and D and customer services, your premises, logistics etc.

An other, often easier way is to advertise.

Here is another rule for you in business

Share of Mind = Share of Market

The more people think of you and your business when they think of your product or service, the more business you’ll do.

Also

Share of voice = Share of Mind

The more you advertise, and the greater the amount of advertising you can command (Share of Voice) the greater the share of Mind.

Therefore:

Share of voice = Share of Mind = Share of Business

The businesses that shout the loudest – the ones that invite more people to do business with them, are the ones that win.

And that really is it. Its as simple as that.

Obviously, I am using simple terms here, and general concepts. But try and apply it to your world and see that it makes sense for you too!

One final thing.

In a recession, what happens to the market? It shrinks thats what.

And in a shrinking market, standing still means you are shrinking too.

At this point its essential that you start to take market share off your competition, just to stand still.

In a recession, the last thing you need to do is to cut back on your marketing and advertising.
Which is why you’ll always see McDonald advertise at tough times like these.

As Ray Kroc the founder of McDonald’s once (apparently) said

“If your competitor is drowning, stick a hose in his mouth”

So what do you guys think? Let me know in the comments below!

(With thanks for the inspiration for this post to Dave ‘Giff’ Gifford)

Oh, heres some bonus Ray Kroc wisdom too 🙂

Enhanced by Zemanta