Management Focus 30 Made in PA Spring 2012
Cross sell existing customers. It is much easier to sell existing customers something else than it is to locate and sell new customers anything. Think about it! What products or services currently in
your line can address this issue to sell existing customers new products?
Target highly probable OEM or user segments where you currently have lower penetration, i.e., lower “share of wallet” participation. “You won’t know until you ask.” Often there is low-hanging
fruit in business segments outside your core business. Direct focused selling activity on those prioritized businesses with a value proposition as a trial offer. It is time to expand breadth of sales coverage beyond your core segments and to sell ex- isting customers more of the same product.
Recraft your service strategy. In the tough times that we are facing, companies should reevaluate any rigid policies/requirements, e.g., minimal or- der sized, warranty policy, delivery requirements,
distributor stock refurbishing, etc., to become more lenient, flexible and accommodating in core segments or with key customers. Focusing on becoming known as “easy to do busi- ness with” will pay dividends.
Reevaluate New Product Development (NPD) Initiatives. We assume that you have an opera- tive NPD system. Therefore, favoring shorter term line extensions, product modifications,
etc., even de-marketing initiatives to reduce the SKU population over financing longer term NPD activity will have an immediate impact on profitability.
Digital marketing describes the pro- cess of business development utilizing an electronic channel to reach custom- ers. Many authorities that I have talked
with claim that a day is coming for B-to-B manufacturers when perhaps as high as 15-18 percent of sales will come through digital marketing. Therefore, Brand Building will rely less on print media, catalogues, direct mail, etc. in favor of e-commerce. When will you begin to use this channel and de- velop your digital marketing capability?
Consider Business Diversification. Creating new products for new untested potential cus- tomer segments is challenging indeed. How- ever, because of the obvious risks involved, it
should never be written off as an unwise move. It depends on the nature of the opportunity. Entering new markets with a new product line could be explored.
Consider Tactical Acquisitions. A tactical business acquisition of a competitor can be a significant path of strategy development to elevate the combined ventures beyond
what individually they each might have attained.
Where do we go from here? Your author defines marketing as “providing focus for predictable business growth.” Focus and predictability, as dimensions of that definition, require choices. Regardless of the choice, always put your customer first and remind your business culture to never forget their importance. It is about serving customers with a “value prop- osition” that your people and culture are proud to endorse.
We trust that this article has challenged you to make choices on where and how to position your business to win. This is the essence of strategy. Creating a value proposition utilizing a combination of the above actions can help differentiate your business from others and, thereby, ac- celerate growth.4
For more information contact Dan at: firstname.lastname@example.org www.crossroadsdgltd.com
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