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zondag 31 maart 2013

Total Cost of Ownership Closing Technique

Total Cost of Ownership Closing Technique

Don’t talk about price but talk about the total cost of ownership like service, replacement, quality and so on.
Then compare this cost against that of competitors.
It is often good to scale this price to annual, monthly or weekly cost, where the overall cost may appear scarily high.

Other systems may seem cheaper, but when you take into account installation, maintenance and the lifetime of the product, this system is about half the price!

Because we are so confident about the reliability of our product, we charge only half the price of our competitors. That means the monthly cost is far less.

If you buy a competing product you'll be replacing it in two years. Our product will last you twice that.

People often focus on the immediate price and miss the longer term cost that may be incurred. The Total Cost of Ownership Closing Technique works by comparing costs over time rather than up-front payments. If possible, this can be put into effect with staged payments.
Of course you do need a more reliable product if you are going to offer lower service costs. It also helps to have evidence of superior quality.

zaterdag 30 maart 2013

Sales Closing Techniques: The No Hassle Technique

No Hassle Closing Technique

You must make completing the deal so absolutely easy for him that any thought that might put him off is not there.
Fill in all forms for the customer, do all the paperwork.
Include delivery, installation, setup etc.

I've filled in all the paperwork and all you need is to sign here.
It will be delivered Tuesday and fully installed by qualified people.

The No Hassle Closing Technique works by being so simple and easy for the other that any anticipated difficulty or hassle that may be holding him back is blown away.
It also encourages him to return the favour as an exchange for your help with the completion.

Closing a Deal: Quality Closing Technique

Quality Closing Technique

Highlight quality over other factors, above all price.
Talk about how other people will be impressed by the quality of the product.
Talk about how quality products last longer, wear less, require less maintenance, etc.
'Sell Quality, not Price'

For a one-off payment you get non-stop quality.
The quality of this shows really who you are.
This will last for ever.
Once you try this, you will never want another brand.
This  product is far more reliable.

The Quality Closing Technique works by appealing either to the other person's vanity or to their sense of longer-term value. For vanity, you are associating their identity with 'quality'. For value, you are reframing price across time.

Sales Closing Techniques: Give and Take

Closing the deal: give and take closing technique

Offer the customer something attractive, then retract the offer, taking it away.
Then make him work to get it back. You might find he's desperate enough to pay full price.

Here's what you were looking for. Oh, hang on, it's already been reserved for someone else. Well, if you want to pay cash now, maybe I could order a replacement in time for the other customer.

Ladies and gentlemen, would you pay 20 for this potato peeler? Of course you would and many have, but I'm not going to let you have it. Not yet. Now I'm going to add this utility knife and this apple corer, both worth 15 each and only ask 25 for the whole lot. Now I've only a few left, who's going to take them? Thank you madam! Yes sir, one's for you...

How it works

When a person sees something desirable, they start to psychologically close on it. Even paying attention creates a weak sense of ownership. When you take the product away, you affect the person's need for a sense of control with the result that they will likely fight back, figuratively trying to take back what is 'theirs'.
The scarcity principle says that people want what is scarce, and the more scarce it is, the more they want it.

zondag 10 maart 2013

Unique Selling Proposition

Unique Selling Proposition (USP)

Before you can begin to sell your product or service to anyone else, you have to sell yourself on it. This is especially important when your product or service is similar to those around you. Very few businesses are one of a kind. Just look around you: How many clothing retailers, hardware stores, air conditioning installers and electricians are truly unique?

The key to effective selling in this situation is what advertising and marketing professionals call a "unique selling proposition" (USP). Unless you can pinpoint what makes your business unique in a world of homogeneous competitors, you cannot target your sales efforts successfully.

Pinpointing your USP requires some hard soul-searching and creativity. One way to start is to analyze how other companies use their USPs to their advantage. This requires careful analysis of other companies' ads and marketing messages. If you analyze what they say they sell, not just their product or service characteristics, you can learn a great deal about how companies distinguish themselves from competitors.

For example, the late Charles Revson, founder of Revlon, always used to say he sold hope, not makeup. Some airlines sell friendly service, while others sell on-time service. Neiman Marcus sells luxury, while Wal-Mart sells bargains.

Each of these is an example of a company that has found a USP "peg" on which to hang its marketing strategy. A business can peg its USP on product characteristics, price structure, placement strategy (location and distribution) or promotional strategy. These are what marketers call the "four P's" of marketing. They are manipulated to give a business a market position that sets it apart from the competition.

Sometimes a company focuses on one particular "peg," which also drives the strategy in other areas. A classic example is Hanes L'Eggs hosiery. Back in an era when hosiery was sold primarily in department stores, Hanes opened a new distribution channel for hosiery sales. The idea: Since hosiery was a consumer staple, why not sell it where other staples were sold -- in grocery stores?

That placement strategy then drove the company's selection of product packaging (a plastic egg) so the pantyhose did not seem incongruent in the supermarket. And because the product did not have to be pressed and wrapped in tissue and boxes, it could be priced lower than other brands.

Here's how to uncover your USP and use it to power up your sales:

1) Put yourself in your customer's shoes.

Too often, entrepreneurs fall in love with their product or service and forget that it is the customer's needs, not their own, that they must satisfy. Step back from your daily operations and carefully scrutinize what your customers really want. Suppose you own a pizza parlor. Sure, customers come into your pizza place for food. But is food all they want? What could make them come back again and again and ignore your competition? The answer might be quality, convenience, reliability, friendliness, cleanliness, courtesy or customer service.

Remember, price is never the only reason people buy. If your competition is beating you on pricing because they are larger, you have to find another sales feature that addresses the customer's needs and then build your sales and promotional efforts around that feature.

2) Know what motivates your customers' behavior and buying decisions.

Effective marketing requires you to be an amateur psychologist. You need to know what drives and motivates customers. Go beyond the traditional customer demographics, such as age, gender, race, income and geographic location, that most businesses collect to analyze their sales trends. For our pizza shop example, it is not enough to know that 75 percent of your customers are in the 18-to-25 age range. You need to look at their motives for buying pizza -- taste, peer pressure, convenience and so on.

Cosmetics and liquor companies are great examples of industries that know the value of psychologically oriented promotion. People buy these products based on their desires (for pretty women, luxury, glamour and so on), not on their needs.

3) Uncover the real reasons customers buy your product instead of a competitor's.

As your business grows, you'll be able to ask your best source of information: your customers. For example, the pizza entrepreneur could ask them why they like his pizza over others, plus ask them to rate the importance of the features he offers, such as taste, size, ingredients, atmosphere and service. You will be surprised how honest people are when you ask how you can improve your service.

Since your business is just starting out, you won't have a lot of customers to ask yet, so "shop" your competition instead. Many retailers routinely drop into their competitors' stores to see what and how they are selling. If you are really brave, try asking a few of the customers after they leave the premises what they like and dislike about the competitors' products and services.

Once you have gone through this three-step market intelligence process, you need to take the next -- and hardest -- step: clearing your mind of any preconceived ideas about your product or service and being brutally honest. What features of your business jump out at you as something that sets you apart? What can you promote that will make customers want to patronize your business? How can you position your business to highlight your USP?

Do not get discouraged. Successful business ownership is not about having a unique product or service; it's about making your product stand out -- even in a market filled with similar items.

zaterdag 9 maart 2013

Marketing 2.0

Marketing 2.0 is een buzzwoord dat vooral door adviesbedrijven en reclamebureaus gebruikt wordt. De term heeft veel overeenkomst met wat doorgaans relatiemanagement genoemd wordt. Centrale gedachte is dat het in marketing meer om de dialoog met consumenten zou moeten gaan. De toevoeging 2.0 refereert zowel aan de veronderstelde opvolging van de traditionele manier van marketing bedrijven (marketing 1.0) als aan het gebruik van Web 2.0 technologieën, hoewel het gebruik van de term Marketing 2.0 niet strikt afhankelijk van het gebruik van deze webtechnologie lijkt.

Bij deze manier van in contact komen met klanten gaat het niet meer over pushmarketing of zelfs pullmarketing, maar over het aangaan van een dialoog en het opbouwen van een relatie. Dit gaat van samen samenstellen van een product (co-creatie) tot het meedenken over nieuwe producten en dienstverlening.
Voor de organisatie heeft dit het voordeel dat meer klantinformatie wordt verkregen. Dit kan vertaald worden in een beter aanbod, waardoor er onderscheidend vermogen wordt gecreëerd. Nieuwe inzichten kunnen leiden tot een versterking van de relatie met bestaande klanten, een aanbod dat beter aansluit op de behoeften van de klant en het mogelijk maken om gericht met potentiële klanten in contact te komen.

De toepassingen van Web 2.0 kunnen het aangaan van de dialoog faciliteren, maar het vraagt wel om een nieuwe kijk op de toepassing van marketing door een organisatie. In lijn met de terminologie van het web, is dit Marketing 2.0 te noemen. Web 2.0 gaat meer om de techniek, Marketing 2.0 over de cultuur in een organisatie die is doorgevoerd tot in de haarvaten van de organisatie.