You need a process that you initiate over and over again. Sales requires a strategy, a process, a way to proceed that you can measure and monitor. Sales is something you have to commit to on an ongoing basis. It takes persistence, energy and focus.
Specific strategies, such as identifying product strengths, adjusting pricing, or acquiring another business, have historically been used to get a small enterprise off the ground.
Understanding these strategies, and skillfully implementing them, can help entrepreneurs achieve success. Growth Strategy A growth strategy entails introducing new products or adding new features to existing products.
Sometimes, a small company may be forced to modify or increase its product line to keep up with competitors. Otherwise, customers may start using the new technology of a competitive company.
For example, cell phone companies are constantly adding new features or discovering new technology. Cell phone companies that do not keep up with consumer demand will not stay in business very long. A small company may also adopt a growth strategy by finding a new market for its products.
Sometimes, companies find new markets for their products by accident. For example, a small consumer soap manufacturer may discover through marketing research that industrial workers like its products.
Hence, in addition to selling soap in retail stores, the company could package the soap in larger containers for factory and plant workers.
Product Differentiation Strategy Small companies will often use a product differentiation strategy when they have a competitive advantage, such as superior quality or service. For example, a small manufacturer or air purifiers may set themselves apart from competitors with their superior engineering design.
Obviously, companies use a product differentiation strategy to set themselves apart from key competitors. However, a product differentiation strategy can also help a company build brand loyalty.
Price-Skimming Strategy A price-skimming strategy involves charging high prices for a product, particularly during the introductory phase. A small company will use a price-skimming strategy to quickly recover its production and advertising costs.
However, there must be something special about the product for consumers to pay the exorbitant price. An example would be the introduction of a new technology.
A small company may be the first to introduce a new type of solar panel. Because the company is the only one selling the product, customers that really want the solar panels may pay the higher price.
One disadvantage of a price-skimming is that it tends to attract competition relatively quickly. Enterprising individuals may see the profits the company is reaping and produce their own products, provided they have the technological know-how.
Acquisition Strategy A small company with extra capital may use an acquisition strategy to gain a competitive advantage. An acquisition strategy entails purchasing another company, or one or more of its product lines. For example, a small grocery retailer on the east coast may purchase a comparable grocery chain in the Midwest to expand its operations.Some new agents choose an area with a desirable price range.
When you know how much you need to make per commission check, you can choose a farm area based on average sales price in the area. If you plan to choose a niche market, build your farm around that. Introduce existing products into a new market (build on a strength) Develop an incentive plan for research and development staff who are slow to innovate (correct a weakness) Objectives are needed for each key area the company deems important to success.
Jun 27, · New companies often face unique challenges. Specific strategies, such as identifying product strengths, adjusting pricing, or acquiring another . As the precursor to developing a strategic plan, it is desirable to clearly identify the current status, objectives and strategies of an existing business or the latest thinking in respect of a new venture.
The outcome was they identified the 12 key game-changing clients, all of which they already have some form of relationship with, that they should solely focus on to generate new work and higher.
Marketing > Pricing Strategy. Pricing Strategy. One of the four major elements of the marketing mix is price. Pricing is an important strategic issue because it is related to product positioning.