Involves doing our marketing one-on-one, on the fly, during the sales process with each customer. Following a specific customer needs assessment, we present our company's offering (the product and the way
the customer experiences us as a vendor partner) as it assists the customer in solving their business problem. The dance we do with the prospect/customer has six stages, as illustrated in figure 3.
Critical relationships necessary in our current reality for this approach are different at each stage of the sales process. The critical relationships from the customer's current reality must be discovered by the salesperson.
Strategic solution elements start with the salesperson's skill in the use of the customer results selling process and tools as used in each of the six sales process styles. A sample of this includes a presentation of the negative implications of allowing the present situation to continue. This should be followed by presentation of specific elements of our solution.
Negative branch is selling something the customer needs that we cannot deliver.
Buyers of products that are engineered to order do not, like the flea market buyer, walk away with their purchase as is. They expect installation, service parts, enhancement options, and supplier research and development in support of their applications. They need to remain competitive in an evolving market. Similarly, the buyer of a continuous stream of transactions, such as product packaging materials or architectural construction supplies, are not interested in "clearing the market" but rather in maintaining the process.
Critical relationships necessary for consideration of this marketing strategy thus center on the longevity of the marketing sales relationship.
Strategic solution elements include supplier/vendor interdepen-dency and commitment in growth partnership arrangements.
Negative branch concerns are reactive knee-jerk customer satisfaction actions or betrayal of expectations in the partnership relationship.
ALTERNATIVE MARKET DIFFERENTIATION
The first TOC marketing approach that was developed. It involves utilizing your current resources to deliver a product to a market completely separate from your current market. The first example was from The Goal, chapter 38, with the French market for Unico. An additional example is Valmont irrigation pipe.
Critical relationship preconditions are shown in figure 4.
Strategic solution elements are founded upon pricing based upon variable/incremental costing rather than standard costing. Common existing resources for both the primary and the alternative market must be used. A commodity market in the mature or declining phase of its life cycle is preferred for the alternative market.
Negative branches include poisoning of the primary market and price war initiation on customer dependency in the alternative market.
The role of marketing and sales managers in a total TOC company is more critical than the role of any other TOC solution implementor. The development of the marketing/sales business critical system should only be subordinated to other business critical systems in the company until we get our company's internal TOC act together. Then the marketing/ sales business critical system must be elevated, consistent with the company's goal, and not merely exploited. At this point the development of the total organization is led by the implementation of TOC in marketing and sales. This is a very complex process in that any company may have a multiplicity of products/services at different points in their life cycle with different competitive and customer current realities. Which of the seven TOC marketing and sales solutions are appropriate for each of these products/services must be determined. The marketing plan is then composed of a mix of differentiation solutions, much as
a symphony is composed and directed utilizing different sections of an orchestra. More importantly, the marketing strategy must be executed effectively by sales personnel. The skills of the sales personnel to utilize customer results selling needs to be developed by an experienced sales manager as an internal coach. That coach must have capabilities similar to a maestro composer for a symphony. TOC Masters calls this level of ability a "master manager."
The seven TOC marketing and sales differentiation tools enable companies to elevate the capacity of their most business critical system. Such a company then is capable of operating proactively in its chosen competitive environments in a way that is profitable for the corporation and personally generative for the individuals within that corporation, and that fulfills satisfying relationship commitments for its customers. When we do this, we can truly say, "Strategic throughput: It's in the marketplace."
For balance of this article, click on the below link:
Need help in bringing this training to your company, may I
suggest that you forward this Web page to your leader. If you do,
we'll send you our Power-Point presentation, "7-Rules for Surviving in an Entirely New Economy."
To open the
"Forward to" form:
To stay current on Lean Management Basics and
Best Practices, subscribe to our weekly MBBP Bulletin... and we'll send you
presentation, "Introduction to Kaizen Based Lean Manufacturing™." All at no cost of course.
personal information will never
be disclosed to any third party.
what one of our 13,000 plus subscribers
wrote about the MBBP Newsletter:
"Great manufacturing articles. Thanks for the insights. I often share portions of your articles
with my staff and they too enjoy them and fine aspects where they can
integrate points into their individual areas of responsibilities. Thanks
Kerry B. Stephenson. President. KALCO
to Basics" Training for anyone ... anywhere ... anytime
6003 Dassia Way, Oceanside, CA 92056
West Coast: 760-945-5596