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Market Power: Who do I sell to?
Here is a range
of questions that you need to discuss with your group:
You will need
to look at the outlets that you wish to sell to.
Where is your
competition? Who do they sell to?
1. Do you want to
sell to chain stores or other small businesses?
Usually it is
either one or the other so that they have a point of difference.
You will need to decide which one you want to sell to and
guarantee that they will get your product.
To help you
decide this question you need to examine the policies of each,
particularly the large chain stores. For example, you will need
to investigate:
a. Who pays for
damages to your product?
b. What sort of
rebate would you expect?
c. When will
you get paid? (Does 7 days payment time really mean that?)
d. Will the chain store expect a discount if they pay you within
a certain time?
e. Will the
chain store expect a discount if they sell a certain amount of
your product?
f. Will the
chain stores or the small business outlets expect exclusivity?
(that is will they want to be the only ones that sell your
product)
2. Will you
sell to Regional Australia? All of Australia? Internationally?
To understand
this question, you will need to think about your business plan
and how quickly you want your business to grow.
a. Who are the
contacts that you or your business mentor has that will help you
selling? Are they in Regional NSW?
b. Will you
provide a sample of your product?
c. Will you
provide a brochure of your product?
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Activity: The "30
second" Elevator Marketing Pitch
In this
activity, you are to imagine that you are in an elevator
with someone who would be able to give you as much money
as you need to market your product.
They
ask you "So what does your company do?"
You
have 30 seconds to describe your company and its
product!
Write
down your description and present it to the class.
"As the
legend goes... you're riding an elevator, as the doors
open in walks the investor/partner/employee of your
dreams; you have the time it takes to get from the
ground floor to the 10th floor to sell your winning
business idea. That's the basic premise behind the
Elevator Pitch.
Five Hints and Tips for Making a Successful Elevator
Pitch.
The elevator pitch is the most important 30 seconds you
will ever have to get your point across. The challenge
for someone delivering such a pitch is communicating a
lot of information within a short period of time in a
logical and most importantly, compelling way.
1. Create a short, one line description, or tag line, of
what your start-up does and how it does it.
This one line should not exceed more than 10 - 12 words
if possible. This is your tag line: short, crisp and
catchy. Its purpose is not to fully encompass every
aspect of your entire production but rather to tell the
listener just enough to allow them to determine whether
or not they want to hear more.
2. Do not waste your time justifying your space.
While having a few figures such as current dollar-size
of the market plus forecast growth rates may be
necessary in some cases, they are usually not necessary.
3. Follow this basic format and address these three
questions in every Elevator Pitch: a. Why is it worth
doing? b. How are you going to do it? c. Why are you
going to win?
a. Why is it worth doing? This means: What is the
opportunity? What is the problem you are looking to
solve? Will customers pay money for you to make this
problem go away?
b. How are you going to do it? This means: How will you
implement your product/service? How will you populate
your target market? How will you sign-up your customers
and partners? How will you do all this before your
competitors do? How will you get customers to pay you
money?
c. Why are you going to win? This means: Does your
product grant you a decisive, substantial and
sustainable advantage over your competition?
4. Tell the listener a bit about yourself.
5. Never, ever, ever say that you have no competition.
(Source: ANZA Technology)
More
information:
The Art of the Elevator Pitch
Examples of an Elevator Pitch in
What makes an effective elevator pitch?
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While you are
thinking about Marketing you will also need to know your price
and costs. Go to the next
activity....
 
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