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Thursday, November 1, 2012

“VALUE-BASED” MARKETING TECHNIQUES FOR SMALL BUSINESS





INTRODUCTION:

Previous posts and the marketing section of the book available as a free download at this site have offered guidance on the mechanics of marketing to the federal government (Chapters 14-25).

This article will explore an area some consider a bit more sophisticated in terms of marketing techniques - “Value-Based” Marketing. It occurs when you become uniquely aware of what motivates specific personnel internal to a customer company, a buyer or a prospective teaming partner to make favorable decisions regarding your product or services. 

COMPONENTS:

Value-based marketing does not relate to client perception of your product or service value; rather, it relates to your understanding of the client and using that knowledge to motivate that client to buy.  It includes answering the following 5 strategic questions:

1.  Who is your client? (personal traits and proclivities)

2.  Where  is your client located in the organization and what role and authority does he or she hold?

3.  What  are the driving factors that will motivate the client to make a buying decision in your favor?

4.  How to best lead the individual client to the conclusion you wish them to make in buying your product or service?

5.  Why is your product or service the best to further the client's personal value system and motives?

METHOD:

Combine the details of your product or service with some transition suggestions regarding how a client can make the leap from where they are now to where you can take them without totally disrupting how they operate at time now.  

Understand that to sell the services and the product you are offering you must provide a bridge for those who do not have your vision of the end game. 

It is a simple fact of life that your sales techniques must provide practical suggestions in getting your client off a blank sheet of paper as to how your concept could be brought internally to their organization.  That can only occur if you are sharp enough and aware enough of their existing processes and systems, status, plans, budgets and funding to offer them a path to follow.  This type of market research is a tough order but you will not sell effectively without it.  

Sometimes clients will not disclose personal values and organization value systems until you are engaged with them and at that time you must be sympathetic to transition issues, think on your feet and evolve a way to get to your sales objective; not just insist that they change dramatically to accommodate your concept. 

Ask the client questions about what you know or have found their needs to be. Then take them to where your presentation has solutions for them; engage them on a solutions frequency and make your concept of the future theirs. A key will be your ability to make the client want to own your product or service in their environment and your assistance to make them as individuals look good for acquiring what you sell to increase their visibility and productivity in the organization. 

Consider the values of the client your are engaging and threaten or further his or her value system.  To do so, find out what they value first.  It may not be what you value - or what you believe they should value;  but you are stuck with those values and the value system backing them up. In many cases they are political, self-serving and disappointing but you cannot ignore them.  You must manage them.  You must threaten or further those value systems to get your customer to act.  Furthering client values is a positive view of the future, enhancing what the client already has.   Threatening client values is making the client feel he or she cannot undertake the future effectively without buying from you.

SUMMARY:

I once had the privilege of experiencing a professor who conducted a course on managing people for 3 days to our management group.

For those 3 days the instructor did not allow us to use the word, "Problem". His message was that there are no such things as problems - just situations that threaten or further peoples' (or the corporate culture values).

Through a series of exercises, mock situations late into the night, critical negotiation teams and value determination exercises he demonstrated that his theory was absolutely correct and that if one determines the values involved in a challenging situation, then develops solutions that threaten or further them, one will motivate people to take action.

Value-based marketing effectively threatens or furthers your client's value system as a strategic element in your marketing program, motivating them to act  in your favor. 







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