Sales. Differential Strategy. Processes
Sell identical products that sells competition is a very difficult task that usually ends in a ruinous price war in most cases for competitors who are not prepared. Indeed, the products are equal does not mean that the processes used to manufacture, distribute and sell are the same.
There are products which by definition are the same such as printed circuit connectors according to DIN 41612. The standard itself makes very few loopholes to differentiate products. Even for experts is often difficult to distinguish the products manufactured by different companies competing in the market.
How can they survive? You'd think that the price war would end soon with companies or at least making these connectors. The facts are not entirely well.
First the market with its rules determine that supply meets demand. Clearly and evident through the process many companies, those less prepared, have fallen by the wayside. They have either closed or have stopped producing this type of connectors.
Second companies prepare their Differential Strategies by adjusting the processes maximizing cost savings. In the production process technology plays a very important role. The connectors according to DIN 41612 have their contacts covered by a thin layer of gold (silver in the lower category) to ensure good contact between the pins male and female and also to meet a certain number of connections and disconnections as standard determines.
The operation to determine the gold plating of the pins requires technology and outstanding accuracy. Any excess of the gold layer imply an over cost that would put the company in uncompetitive position. Think the reader that million of pins are manufactured for these series of connectors. Any deviation less in the gold plating would leave the product outside the norm and therefore outside the market.
Thus we see how technology in the production process of the real case is a differential fact that determines the competitiveness of an enterprise even in standardized products under strict regulations.
Apart from the production process companies with products called standardized or commodities are looking for Differential Strategies for the rest of the processes that make up the value chain.
The distribution strategy is an important part where companies try to save in order to become more competitive. Logistics, for example, could be own or may be external. There is a tendency to outsource more and more services for storage, picking, packing and shipping. Similarly it is usually to work with qualified distributors to bring more products closed to customers, especially in commodity products where service or delivery time is one of the most important distinguishing features.
The selling process is where we want to put more emphasis to determine a Differential Strategy that makes us different and more competitive than other companies. Sales Management shall seek from Marketing all those differentials facts about the products. Likewise it will do the same with Operations to find differentiating factors in the suppliers strategy (purchases), production, logistics and distribution, quality policy and after - sales service. With all facts collected the Catalogue of Differencies will be produced completing it later with all the differential fact in sales.
In sales we can differentiate ourselves by commitment, attitude and ability of our people in front of the customer. But especially with a Differential Strategy that has as Global Frame the Result and empowers people without the need for special training courses searching for radical changes in people. #TheSellingMachine. Sales Steering by Result Framing.
