Question

Topic: Strategy

Mixing New And Old Products In Promo?

Posted by wendys on 5/18/2010 at 1:10 PM ET 250 Points
We're launching a new product next month with an internal spiff. There has been a suggestion that we promote the new product along with a corresponding current product. Is this a sound idea, or is it better to focus on only the new product?
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  • Posted by CarolBlaha on 5/18/2010 at 2:02 PM Accepted
    I assume your team is already incenticized to sell existing product? What is the goal, immediate sales or just introduction? I'd consider running the spiff with a blitz, which will give activity goals as well as performance (sales) goals. To answer your question, I'd run it alone.

    For example, sale trainer Bill Truex creator of the Blitz Call program worked with a large supplier of grocery product. They had new products and were instructed to call on all their customers in the next 5 days-- for him it would be 60 calls a day to achieve this-- in person, not by phone. He focused on just the new products, and a 45 second presentation-- and sold more than the rest of the sales force combined in his state. (I don't sell this program-- but I refer to it often when I coach sales people-- and use it myself).

    Point is, be lazar sharp if you want immediate sales in your new product. After the blitz, they'll have follow up calls and will be selling all your products.
  • Posted on 5/18/2010 at 4:30 PM Moderator
    Carol, as usual, is right on the money. Focus just on the new product and make sure the program is time-limited so the old products are not ignored for a prolonged period.

    If you include existing products, all you do is dilute the focus on the product being launched.

    Focus, focus, focus.
  • Posted by CarolBlaha on 5/18/2010 at 4:50 PM Member
    To elaborate cause I know you have to make your case.

    A spiff by itself doesn't create urgency. So the salesperson goes about his/her day and squeezes in a new product presentation. And remember that your salespeople may not be 100% sold on the saleability of this new product -- and that bias will come thru. Now hold me accountable to doing one thing and one thing only for a blitz-- different story. While I believe sales are your eyes and ears of the market-- sometimes their job is to just implement policy and sell not what they like, what you want them to sell.

    I am sure you have day to day biz that will come thru as staff is "blitzing". But as Goodman says, keep it on a short time frame and make sure staff knows the message is urgent.



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