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Approach the Minors and not the Majors 2 January, 2007

Posted by varoom in Selling.

If you have a world beating technology and are about to enter the market it’s sometimes better not to approach the biggest, or most dominant player, in the market at first. You can often get a more receptive response to your new offerings from the number 3 or number 4 in the market. These players are often looking out for a new product that will give them the edge over the market leaders and maybe market gain shares.

So with some good market research about the main players you can judge which of the players could benefit from your technology and in which product strategy. These players may ask for some kind of exclusivity, which you could consider for a short term, provided the financial returns are large enough from the restricted customer base.

Of course in the fullness of time you would approach the market leader with a deal that would allow them to defend their market against competitors using your technology. Also offering them a custom variation, more suited to their market needs, will give them differentiation.

When selling to the “Minors” the marketing strategy has to be one of enabling an attack on their largest competitors with something for which they have no response. Catch the giant sleeping as it were. As in many markets much of the financial advantage to market entry comes early on before the competition catches up and prices drop. This will appeal to lower ranking market players.

Later when selling to the “Majors” the marketing strategy is the reverse, you offer a defensive strategy, allowing the customer to catch up with a new market trend and not to lose out on much of the business potential. But always mix in a bit of differentiation to make it seem less obvious.

Greville Commins



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