Friday, 17 July 2015

People Pay for Satisfactory Responses to perceived Problems or Opportunities

Different customers and various products together give a complex matrix to deal with by selling people to change and fine-tune their selling behaviour. This is the catch generally being faced by organisations & fail to understand their falling sales. Distinctions in selling behaviour therefore is of paramount importance to understand to succeed in selling.

In a research done by McKinsey on more than 1200 managers who were ‘Purchasing Decision Makers’, a big gap was found in what managers ‘said’ was important , generally it was price and product features and what actually drove their decisions about vendors.

The study clearly identified that the Attitude Scales & Responses thereon do not come out to be positively effecting buying decision. It means, factors like Eco-friendly products, green products although being talked about a lot, but study shows that in reality, such attitude does not influence positively buying decisions.

Another factor which came out of the McKinsey study is that ‘not having adequate product knowledge and contacting customers too frequently by a sales person’ undermines selling. The study clearly come out on that customers look for fewer but more meaningful interactions.

In short, it can be said that ‘People pay for satisfactory responses to perceived problems or opportunities.’ Eg. Theodore Levitt said, people don’t buy 2 inches drill bits but 2 inches hole. Levitt has said that Organisations are infected with ‘Marketing Myopia’ i.e. focussing on product features than benefits. He said that marketing myopia makes organisations fail to understand - Market Scope, Product Substitutes and Customer motivations to buy or not.  He said, customers ‘hire’ products to get their jobs done.

It therefore can be concluded that organisation should have a product or service with benefits, relevant to customer. A clear distinction between features and benefits.

The MARKETING STRATEGY should focus on driving relative importance of FEATURES and BENEFITS.

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