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Comparison of Transactional
Sales
vs.
Complex Business Products and Solutions
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General Industry |
Industry |
Product/Service |
Transactional
(Being Bought) |
Solution
Complex
Consultative
(Being Sold) |
|
Financial |
Insurance |
Low End Term Life
Auto |
X |
|
|
High End Whole,
Universal Life, Luxury Cars, Umbrellas, Commercial P &C, Commercial
Liability, Corporate Health Insurance |
|
X |
|
Stocks
Bonds |
Low-End Transactions |
X |
|
|
Portfolio
Management, Investment Advice |
|
X |
|
Benefits |
Company Benefit
Plans |
|
X |
|
Banking |
Savings, Checking,
CD’s, |
X |
|
|
Commercial Loans,
Lines, High End Mortgages, Private Banking |
|
X |
|
Accounting |
Individual Tax
Returns |
X |
|
|
Corporate Tax
Returns, Audits, Evaluations, Consulting |
|
X |
|
Real Estate |
First Home,
Apartment |
|
X |
|
Luxury Home, Rental
Market |
|
X |
|
Information and
Consulting |
IT
IS
Mgmt
|
Consulting |
|
X |
|
Manufacturing
|
Food |
Grocery Store Items |
X |
|
|
Gourmet custom menu
items |
|
X |
|
Technology |
Desktops, Laptops,
Servers, Cables, Desktop printers, Hand-Helds, PDA’s, off the shelf
software, |
X |
|
|
Systems, Networks,
Configurations, Huge Workhorse Printers, Volume Computer Buyers, custom,
niche or high-end software and web applications |
|
X |
|
Supplies |
One time purchases |
X |
|
|
Contracts with Long
term Commitments |
|
X |
|
OEM |
Off the shelf
catalog parts |
X |
|
|
Custom Design Build
Component |
|
X |
|
Cars |
Entry Level |
X |
|
|
|
Mid and Luxury
Brands |
|
X |
|
Planes |
Commercial Fleets
and Jets |
|
X |
|
|
Private |
|
X |
|
Boats |
Canoes and Kayaks |
X |
|
|
|
Yachts and Sailboats |
|
X |
|
Travel |
Hotel
Hotel |
Rooms |
X |
|
|
Banquets, Functions,
Corporate Events |
|
X |
|
Villas |
|
X |
|
Air |
Seats |
X |
|
|
Group, Corporate
Travel |
|
X |
|
Gas |
All Gas |
X |
|
|
Rental Car |
Regular Car |
X |
|
|
Specialty Cars |
|
X |
|
Cruise |
Cabins |
X |
|
|
|
Group Tours and
Events |
|
X |
|
Distribution |
Equipment |
Capitol Equipment |
|
X |
|
Supplies |
One Time Buy |
X |
|
|
Contract with Long
Term Commitment |
|
X |
|
Components |
Catalog & Off the
Shelf |
X |
|
|
Custom Design Build |
|
X |
|
Service |
One Time |
X |
|
|
Service Contract |
|
X |
|
Telecom |
Phones |
The Phone |
X |
|
|
Business Phone
Systems |
|
X |
|
Cell Phones |
X |
|
|
Voice Mail Systems |
|
X |
|
Satellites,
Microwaves, Pipelines, Backbones, Routers |
|
X |
Companies with products
that are transactional in nature still require salespeople to get the product in
the door the first time, salespeople or account executives to solve problems,
and customer service people to keep the orders coming.
The products may be bought
rather than sold, but that’s been the case in retail stores since I was a little
boy. Gas stations advertising 18.9 cents, 1 cent lower than the station next
store. They didn’t sell, we bought. Before Wal Mart it was WT Grant, Woolworth
and Zayre. The fastener distributor salesperson still had the same screw as 5
other distributors and the buyer knew it. Lowest price was a factor 50 years
ago too. It was already a commodity. The salesperson had to differentiate and
still does – despite the pricing.
Why is it so obvious to us but not to the managers who make these
decisions? Most executives don’t realize the importance of marketing,
advertising, recruiting and sales development as investments that should
be made in disproportion to the sales trend. The worse things get, the
MORE important these activities become. COMPANIES MUST RESIST THE
TEMPTATION TO CUT BACK IN THESE AREAS AND INSTEAD, INVEST HEAVILY IN
AREAS THAT WILL POSITIVELY IMPACT SALES. In addition, companies
must realize how unprepared most salespeople are to sell in this
environment. Their lack of advanced skills and experience require that
you have your existing sales force evaluated in order to determine
whether any of them have the potential to excel under these economic
conditions. If you have salespeople who possess the required foundation
for success, an evaluation will show how you can help them reach their
potential. If you have some people who aren’t up to the task, you can
make changes now, rather than wait until it’s too late.
Training? There will never be a better time. Train, train, train.
Just make sure it’s on the right people and you’re providing the right
help. The right evaluation will guarantee success there.
Advertising and Marketing? For goodness sake, don’t cut back now. You
should be marketing more than ever, especially if your competitors have
cut back. Make sure it’s more targeted and the message is more
effective than “pick us instead of them”. This is your chance to
establish yourself as the perceived leader in the market.
And finally, DON’T PLAN TO FAIL. Plan to grow while everyone
else is tightening their belt. Take sales away from your competitors
while they are busy cutting their expenses. Seize the opportunity
before you are seized.
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