Know-How Exchange : Strategy

Depends on your offering, how valuable it might be to your target groups.
Also within the segments I can imagine that some might value it more than others.
Most probably it will not be enough to segment your customers into two groups only as there can be significant differences in the way they perceive your offers within each segment.

Rgds

Adam

Yes and No. In sales, unless the company has called you they do not know they need your product. Timing can quickly turn a sale (big or small). Good salespeople know how to create need and urgency-- to make that timing. Your salespeople are the pulse of the company, they should know their territory-- what competitors are doing, who is growing and what is a fit to your opportunity.

Once you create need and urgency, the sales cycle isn't really any longer. One of my largest sales-- it took a year to get a face to face. Once they finally saw the match-- they were on me "how fast can you do this".

Myself, I love sales where you sell them once and get multiple opportunities. OEM's are those kind of deals. Its a lot of work getting a program that works for them. But once that is done, its maintenance.

Hope that helps, Carol
Sell Well and Prosper tm

On average (If there is such a thing!) it takes more effort and a longer time to crack a major account in a large organisation than a small account in a large organisation or a small account in a small organisation.

There is an exception which is expressed by Parkinson’s Law as written by Cyril Northcote Parkinson in his book of the same name. That is where a proposition is so far beyond the capabilities of understanding of those who have to take a decision, that they virtually rubber stamp it. His example, from 1950’s Britain was that it was easier to sell the idea of building a nuclear power station to a local authority (Because no one knew what the hell it was) than it was to sell the idea of erecting a new bus shelter.

It could be said that “big” ERP and CRM solutions fitted this category in the late 1990’s as few prospective purchasers really understood what they were being sold. As a consequence, few systems lived up to their imagined expectations and it has taken us 6 years in the CRM world to rid ourselves of the taint.

Major OEM’s and Key Accounts have many levels of decision making which must be satisfied, and satisfied in the right order. There is the point of entry to the organisation, who will probably not be the decision maker. Then there is the need to convince the users of the benefits, lest they feel that an inappropriate solution is being foisted upon them. Next comes the managers who will be expected to run the users. Finally the financial arguments must be taken up with the CFO or their department and the final case presented, backed by the agreement of all who are below him in the chain of command, to the CEO or decision maker. That lot takes time and meticulous attention to detail, because if you goof up on any point, you lose the whole sale.

Smaller sales and smaller companies often require the same consummate sales-skills and attention to detail, but the decision tree is inevitably shorter, and if your sales technique is any good, you will have an early indication as to whether the sale is a go / no-go on the basis of Interest, Application, Desire and Budget.

Hope that this helps

Steve Alker
Unimax Solutions

Hi Poonam,

just try to identify the % of success in both (small and large); then multiply it with the no. of potential customers in both type and then multiply it with average revenue you earn from each of those type. probably you will be able to get a clear picture about which lead generates you more business.

//raihan

Part of the answer may depend on the sales tools and travel budget you have available.

For example, years ago, when folks would say, "I can sell the small companies, I just can't seem to sell the big ones" - I would say, "Let me see your company brochure". In almost all cases, they did not have a professionally designed and printed brochure, just a PDF. Years ago, it was important to have a professionally designed and printed brochure if you wanted to sell to big companies.

Has the situation changed? Here is a recent question I asked which you may find helpful...
https://www.marketingprofs.com/ea/qst_question.asp?qstID=16597

Carol mentioned the importance of face to face meetings, and described a situation where it took a year of effort to get a meeting. Do you have the budget to travel to meet with folk, in hopes of discovering qualified opportunities? Do you have the patience to pursue these accounts for many months? Do you have the tools (web site, product literature, sales letters) to present a professional image? If not, you may find it difficult for your company to get the attention of big companies (although the specific qualifications of your key people may get some attention...)

Large companies have more of your competitors calling on them, but they also can have more frequent opportunities. They may have larger opportunities, but also more formal procurement and budget related requirements, and more resources in-house.

Another key issue will be the attitude of the firm towards outsourcing, particularly overseas outsourcing. In my experience in the US, larger companies are more open to overseas outsourcing than small companies - managers and gatekeepers in small companies may be worried about losing their jobs, and the jobs of their friends and coworkers. But, there are also more small companies than big ones...

If it were me, I'd target both groups. Hope this helps.