how to increase the sale using prof palekar's mvg model
DESCRIPTION
Simple formula applicable to most businesses and situations for formulating strategy to increase the saleTRANSCRIPT
To judge how much will you sell and how to increase the sale
This presentation is only about conception of a strategy. It is not about irs execution ( customer acquisition and fulfilment).
It is also not about its foundation ( situation assessment). See the next slide for a complete picture.
Prof S K Palekar’s “MVG” Formula
Marketing Strategy has 3 legs : MVG
You will sell more if 1. Your MARKET (set of chosen
customers) is • large • ready to buy.
2. Your VALUE PROPOSITION for the chosen customers is better than what they are getting now.
3. Your way of GO-TO-MARKET enables you to easily identify, approach and convince most of your market.
Best Case
Marketing Strategy has 3 legs : MVG
You will sell less if 1. Your MARKET (set of chosen
customers) is • niche / small • unready to buy.
2. Your VALUE PROPOSITION for the chosen market is same / worse than what the customers are getting now.
3. You cannot easily identify, approach and convince most of your chosen customers
Worst Case
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Exercise : Assess Your Strategy – A Assess Your “Chosen Market”
For the geographical area you are considering
How many are existing customers : which players are selling to them ? Player 1 Player 2 Etc…
How many are potential customers : Based on how many people could buy the type of products you have because they need them but are not buying currently because they do not have Knowledge Budget Access
If you want to sell to existing customers, which existing player you want to target specifically ?
If you want to create new customers, which problem you want to solve primarily? • Knowledge ( Through communication ) • Budget ( Thru affordability or communication) • Access ( Through reach )
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Exercise : Assess Your Strategy – B Assess Your “Value Proposition”
For the chosen “market” (customers) ask yourself Make a list of what matters to such “chosen customers”? What are
their main expectations? On each of these major expectations how do “chosen customers”
rank their existing options ? For each option and for each expectation What are the areas of
dissatisfaction and high satisfaction? Now you will be ready to “Position” the product by answering
Who are my target customers ? And target applications ? What do they currently do when the need for application arises ? What is our offer to them ? How is our offer better than what they are doing now?
The better the quality of your answers to these 4 questions the better will your value proposition be
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Exercise : Assess Your Strategy – C Assess Your “Go-To-Market” Strategy
For the chosen “market” (customers) and the chosen “Value Proposition” ask yourself
Do we have a well defined and proven “operational ways” to identify, approach, persuade and transact with the chosen customers?
The “Go-To-Market” capabilities needed are Defining and recognizing who are the prospects Locating and contacting them at relatively low cost Engage their attention and communicating with them To overcome objections and persuade and take the order To conduct transactions and get paid To maintain relationship and give service To replace, up-sell, cross-sell, generate referrals
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More on assessment of Go-To-Market Strategy
If you are hunting for the customers, use “sales funnel” Prospecting Contacting Presenting Closing Transacting.
If customers are hunting for you : use “distribution approach” 1 tier, 2 tier, 3 tier.
Evaluate how ready are your chosen customers? Urgency ? ( active and felt pain ) ( need to achieve, avoid, fix ) Authority / Budget / Task exists ? ( it means purchase is planned ) Risk Problem : unknown, undefined, tentatively defined, firmly defined Solution : unknown, searching, choice, satisfied, habit
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Will it be easy or tough to Go-To-Market for the chosen customers?
Situation Easy Spectrum Tough Customer Search Activity Strong Nil Need Visibility On Surface Latent, invisible Planned and deliberate decision Impulse, Individual Deliberate, Group Decision Making Unit Person, Family B2B, B2G, B2I Criterion Trial & Error OK First-time-right Ticket Size / Risk Low High Access / Attention High Low Customer Confidence High Low /Tentative Expectations expressed as Spec Outcome / Solution What is sold Std / Product Custom / Service Inventory Made to stock Made to order Purchase cycle short Long
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Thank You
I hope that, by now, You will have had a far better idea
About how to formulate a strategy to increase your sale !