Summary of "Jak sprzedawać na konkurencyjnym rynku? (NSM 269)"
Summary of "Jak sprzedawać na konkurencyjnym rynku? (NSM 269)"
This episode of the Modern Sales and Marketing podcast, hosted by Szymon Negacz, focuses on strategies for selling effectively in highly competitive (red ocean) markets, where price competition is fierce and differentiation is difficult. Drawing from years of experience helping B2B companies build and optimize sales processes, Szymon provides a comprehensive framework and practical tips to design sales processes that align with customer buying behaviors and market realities.
Main Financial Strategies, Market Analyses, and Business Trends:
- Competitive Market Dynamics: Many companies compete primarily on price, leading to saturated markets where customers shop around extensively, compare offers mainly on price and a few hard criteria, and often prioritize minimizing personal risk over optimal product choice.
- Customer Behavior in Competitive Markets:
Customers typically:
- Conduct independent research via Google, LinkedIn, and peer recommendations.
- Create shortlists of suppliers (usually 3-5) to compare.
- Request preliminary offers and evaluate suppliers by responsiveness and credibility signals.
- Involve multiple stakeholders (finance, IT, compliance) in decisions, complicating the process.
- Seek references and break down offers to negotiate.
- Prefer safe, low-risk options even if not the cheapest or best product.
- Salesperson and Supplier Scenarios:
Szymon identifies 15 typical supplier market scenarios based on price positioning, product uniqueness, brand strength, and service quality, including:
- More expensive with a strong value proposition.
- More expensive with a product identical to competitors (most difficult).
- Mid-price with good value proposition.
- Below average price with slightly weaker or better products.
- New market entrants focusing on trust and responsiveness.
- Strong brand players emphasizing safety and stability.
- Suppliers with niche specializations or superior service/collaboration.
- Innovative products requiring market education.
- Key Market Trend: The importance of aligning sales processes with how customers actually buy, including educating customers on how to make better purchasing decisions, especially in chaotic and price-driven markets.
Step-by-Step Methodology to Build a Sales Process in Competitive Markets:
- Map the Customer’s Buying Process:
- Understand and generalize how your typical customer buys, including their decision milestones and criteria (price, risk, brand, availability).
- Identify “purchasing victories” or milestones that mark progress in the buying journey.
- Translate Purchasing Victories into Sales Milestones: Design your sales process to mirror these milestones with mandatory and optional sales activities tailored to different customer behaviors and stages.
- Adapt the Sales Narrative to Your Market Scenario: Customize the sales approach based on your position (e.g., premium brand, new entrant, niche specialist). Avoid a one-size-fits-all process; different personas and market segments require distinct sales processes and possibly separate sales teams.
- Educate the Customer on How to Buy: Help customers understand what criteria matter and how to compare offers properly, reducing chaotic or price-only decisions.
- Engage All Key Decision-Makers Early: Identify and involve all stakeholders (finance, IT, operations, CEO) as early as possible to tailor offers and build trust.
- Provide Evidence to Reduce Customer Risk: Use case studies, demos, pilots, references, testimonials, and clear implementation processes. Employ expert salespeople to build credibility and calm customer fears.
- Focus on Business Value, Not Just Product Features: Demonstrate measurable business outcomes and ROI rather than just product specs.
- Collect and Analyze Sales Data Continuously: Use CRM tools to measure stage effectiveness, process duration, deal size, and lead flow to identify improvements.
- Always Define Clear Next Steps: End every meeting with assigned tasks and deadlines to avoid communication breakdowns and “ghosting.”
- Treat the Sales Process as a Living Organism: Continuously update and refine the process as market conditions, competitors, and customer expectations evolve.
- Prioritize Time and Accuracy: Respond quickly and accurately to customer inquiries and requests to avoid losing deals over trivial mistakes.
Specific Tips for Different Market Scenarios (Summary):
- More Expensive with Value Proposition: Focus on demonstrating ROI and risk reduction.
- More Expensive with Same Product: Consider business model changes or differentiate service.
- Mid-Price with Good Value: Emphasize balance of price and value, positioning as a safe middle option.
- Below Average Price with Slightly Weaker Product: Be transparent about compromises and focus on volume and speed.
- Below Average Price with Better Product: Highlight superior product and build trust with warranties, demos, etc.
Category
Business and Finance