Wednesday, April 16, 2008

Un-used sales team..

The greatest marketing strategy is not all about advertising. It’s true the customer will want to buy the product he sees and knows about and advertising plays a role there, but as we learn more about consumer behavior we realize even the best advertisements do not convert into a sale.

In a country like India where owning a particular ‘brand’ is still a luxury afforded by only 10-15% of consumers, what makes a consumer buy a particular product is still unanswered to large extent. In this article I want to talk about an unused marketing team which every company has and which can help you sell your product in ways better than any advertisement campaign you plan. I am talking about the retailers. The retailers are your best salesman. They are at the end of your product supply chain and hold a distinct advantage as they are the ones dealing directly to your customers. They have a unique advantage over any of your marketing teams as they are the ones who finally sell your product. These are your best friends and will serve you good in business if you take their proper care.

I remember when I was a kid helping dad with his business; my job was to sell watches. I would say 8 in every 10 customers came in to buy a watch and 2 came in to buy a particular brand of a watch. And out of all the brands I had with me, for those 8, I decided what I want to sell based on what will be my margin. I am not saying I was always able to convince but the potential I had to make that sale was used by some companies better than others. The first 2 got sold for their advertisement, for the brand, but from the rest 8 who just wanted watches, I could sell to 4 the brand which took proper care of me. A 2% increased margin and the company had me fighting for their product. And margins were just one of the ways of their appreciation they gave me to fight their case.

It will still take time for the retail industry to give us the malls and the power (sometimes forced) to choose what we buy. But in majority of Indian households it is still the grocery store owner who decides what brand of toothpaste and soap that is used. I agree it is not applicable for all products but you can’t undermine the potential he has in convincing the customer buy a particular car, a particular washing machine, a particular soap, toothpaste, watch and so on.
So the next time you review the salary structure of your sales team or budgeting for your marketing strategies, do include a thought about this unused sales force and how much you want them to be on your side.

1 comment:

Sketcher said...

You have been tagged!
Read : http://mysideofdfence.blogspot.com/2009/03/ah-so-it-had-to-be-snap-from-my.html