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Articles
Positioning for the Professional
Salesperson
by Bob Gibson
Of all the factors we discuss during our consulting and training
sessions with clients, it's possible positioning is the most important.
I love positioning because it's the essence of building value -and
increasing profit.
Every market
is divided into three distinct market levels. These fit on what
I call the "Positioning Pyramid." At the
low end of every market you'll find the "A equals B" position.
If you're
selling something that looks the same, weighs the same, operates
the same, tastes the same, carries the same service...if everything
about what you bring to the market is exactly the same as your
competitor-- if A equals B in every respect –the
customer absolutely has to base their buying decision on Price!
You'll notice
on our graphic, we have a $ sign out to the right. That's because
at the "A equals B" level of the market,
price is everything. This is the "commodity" level of
the market, and it's not a good place to be. If you, your products
or services, or your company are perceived at this level, you have
no power, no leverage, and will need every trick in the book just
to maintain even low profit margins.
Let's look
at the next level. At this level of the market, the perception
is that "A
is greater than B."
It could be that you offer better quality. You may be faster in
response time. People like the looks of it, the shape, size, speed,
great service -- for whatever reason; A is perceived as being greater
than B.
At this
level of the market, price is still a factor, but not the only
factor. Value has entered the picture. The decision to do business
is based upon "perception of value ." You'll
notice in our graphic, the $ sign is smaller and Value has dominance.
Smart salespeople
and sales managers are very skillful at moving themselves, their
product and services and their companies out of the A=B category
into the A>B category in the minds of their
customers.
Business markets tend to mature over time. As a result, many salespeople
view themselves as selling something that's becoming just another
commodity. That's not true! Salespeople worldwide who understand
and can communicate positioning are not perceived at the commodity
level by their customers. They not only sell quantity; they sell
with good margins.
Look for a marriage of business process -- something no one has
thought of to increase value in a way that isn't easily copied
by the competition. Or, if it can be copied by the competition,
they're going to be a day late and a dollar short.
| Here's an interesting side note: When you're confronting price,
cost justifications just don't work anymore. The days of poor mouthing
and whining about your costs and your troubles are over. Buyers
don't want to hear it. In today's economy, there's got to be a
value in the equation, especially with large accounts. Creating
value just makes more sense to people. It's a pull instead of a
push. It accomplishes the same outcome, but with a completely different
feeling. |
So at the
lower level of positioning, we have "A equals B." In
the middle level, we have "A is greater than B." At the
very top level of positioning we have "Sole Source."
Sole Source
is born at that moment when, in the mind of a customer, you provide
something they simply can't obtain anywhere else. Most companies
do a good job of providing a sales force with the tools to move
them from A=B to A>B, but that last step, to the sole
source level, has to come from you!
It can be a result of personal rapport, or reputation, or of the
trust that comes from knowing that even if there is a problem,
a top professional will be on the situation with the best solution
immediately.
Your challenge
as a salesperson is to build value -- and it's better if you
build it before you get to the table. Build value by constantly
enhancing your position -- working your way up the pyramid. Remember,
if you go into a negotiation at the "A
equals B" position and can't rise above it, you have to sell
on price, and your entire sales career will be fighting the commodity
box.
In future articles we’ll elaborate on exactly HOW to
create that positioning in the mind of a customer, but for now,
remember this: If you can position yourself at the "A > B" level,
you're in an excellent position to boost margins and delight customers.
And maybe, if you're bright and persistent, you'll get to a Sole
Source level. If you go into a negotiation in the sole source position
-- sales are good, margins are good, and Life is Good!
Bob Gibson is a negotiation strategist and the president
of San Francisco-based Negotiation Resources
He may be reached at 800-572-8005.
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