Question

Topic: Strategy

How To Market A Price Sensitive,commoditised Prod.

Posted by Anonymous on 6/1/2009 at 4:06 AM ET 125 Points
We have an industrial product, sold directly to end users. Our quality, processes, are proven. The market has 2 segments, 1st with low prices, average quality, no brand image. 2nd with high prices, good quality, very strong brand name. As such we belong to the 2nd category, but the brand is not so strong, as our competitors are like strong brands like sony, etc.. How do we sell our product to the 2ns category users and also convert people from 1st category to 2nd category, as that's where we can get a market share. Our target market share is 10-15%.
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RESPONSES

  • Posted by Frank Hurtte on 6/1/2009 at 9:15 AM Member
    I believe this is a question that is complex offered in a space that is limited. But, I will attempt to start the discussion.
    1) To build marketshare, I suggest building marketshare in small silos of the market in general. For instance, if you manufactured liquid flow measuring device, you might select the silo of food related liquids. You would build a strong marketshare than find another to take over.
    2) To move from price only to high quality, you must build a value statement. Your prospects need to understand why they would pay more for your product.
  • Posted by CarolBlaha on 6/1/2009 at 3:44 PM Member
    Remember that people buy from people-- and much of selling is relationships. People don't buy the biggest, or the cheapest. They buy from those they trust.

    Invest in great reps with great reputations. I maintain a manufacturer representative agency in a close to commodity product. My manufacturers not the cheapest or the largest-- by a long shot. They do little (most none) advertising. It is my sole job to get the word out.

    I do nothing out of the ordinary, nor do all their reps across the country. 90% of sales is just showing up. I can't tell you how many jobs I have won cause the competing reps never came to the plate.

    I also have a great support team back at the factory and they make a reliable product. Every so often we fall on our face-- but when we do, we stick with the customer to get some kind of resolution. It may not be what they want to hear, but even then, we stick with them (not stick it to them!)

    And there is enough business for all of us.

    Sell Well and Prosper tm
  • Posted by Linda Whitehead on 6/1/2009 at 8:55 PM Member
    Is it possible for you to service a particular niche within the higher end of the market? Since it is very difficult for you to compete head-on with brands such as Sony, is it possible for you to find a segment of the market that is not being well serviced by the other competitors, and go after that? I would think that your main opportunity is to determine (or create) your USP, and go after that in a big way. If you can determine or establish a key competitive advantage(s) that resonates with a particular niche, you can transcend pricing concerns. You will have the opportunity to convert people from the first category to the second if you have a true value proposition that really differentiates you from the rest.

    Good Luck
    Linda Whitehead
    ZUZ Marketing
  • Posted by matthewmnex on 6/2/2009 at 9:47 PM Accepted
    Dear Ravi,

    I think you answered your own question 'sold directly to end users'

    And thanks to Carol once again for sharing her experience.

    Carol hit it on the head Ravi.

    This is a 'sales' question, not a marketing question.

    Just make sure that your reps are top class, make sure that they have excellent product knowledge both of your products and of your competitors products.

    Make sure they are 'listening' to the buyers more than they are 'talking' to the buyers.

    But more importantly, make sure they do more calls than anyone else's reps :)).

    That is how you grab share.

    Sony reps will be lazy, trying to make 3 huge orders with the big buyers. That is where your team will win getting 30 small orders from small and medium buyers.

    Good luck.

    Matthew
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