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Start Publishing: 08-24-2016
To Grow Revenue, Develop New Offerings

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Grow Your Revenue By Launching New Products and Services 

By Gerhard Vierthaler & Paul DiModica

Selling and marketing products & professional services in the best of times means developing value that prospects believe, finding prospects that will buy, negotiating deals that clients will pay for, and managing competitors... before they manage you. 
 
This whole process can become cumbersome and tedious. One way to bypass this elongated sales progression is by crafting and launching new products and professional services that generate unchallenged new business opportunities in your geographic selling area.

Chan Kim, one of the authors in the great book "Blue Ocean Strategy," discusses how most companies build their businesses based on making small, inconsequential changes in their offerings as compared to their competitors and force themselves into a recurring commodity position that is difficult to expand from.

Let's look at this from a different angle -- your firm sells staff aug, project management, ERP applications, office design services, engineering, construction equipment, advertising, etc. Great, so what makes your firm different? I know -- your service and support are better than your competitors and you are committed to your client's satisfaction.  
I get it... but isn't that what your competitors say too?
 
Everyone can't be the best! So why even allow yourself to be pulled into this competitive position?

One way to grow your business geometrically with less competitive pressure is by developing new products and services that have limited competitors but creates new marketing and selling paradigms.

7 Guidelines to Consider When Crafting New Offerings
  1. Use Market Gap Analysis in addition to market research to identify buyer opportunities that may be available. Market gaps identify where demand is greater than supply; market research just confirms established and known sales and marketing distribution models.
     
  2. Before you create new offerings, pick a targeted price point and gross margin goal per sale that you need in order for this opportunity to work (i.e., $75,000; 50% margins; etc.).
     
  3. When developing your new offerings, set up detailed benchmark parameters on how many regional or national competitors are acceptable in that new market before you consider it a potential market gap (i.e., no more than 2 national competitors, no more than 3 regional competitors, etc.).
     
  4. GEO map the number of unit sales that may be possible within your targeted marketing and selling zone. Entering a market with 50 opportunities is totally different than entering a market with 5,000.
     
  5. When creating new offerings, spend a lot of time thinking about the packaging of the offering so it allows the buyer to quickly understand its value without much marketing education.
     
  6. To maximize the success of your offering launch, build marketing communication tools before you launch that minimizes selling expense, shortens sales cycle length and reduces prospect education curves.
     
  7. Often, the easiest way firms choose to launch new products or services is by partnering with a national/local company, manufacturers or new suppliers they meet at trade shows. Many times that doesn't work out well. This is by no means innovative thinking. It's just a regurgitation of what others do. Instead, reevaluate your company's core strengths and weaknesses as well as your growth objectives and then seek out a market where demand is greater than supply and create a new offering.
Remember, just because you like the product or professional service you sell or have developed, it doesn't mean there are buyers.  If you want to increase your firm's top line revenues, reduce your dependency on your current markets (especially in this economy) and minimize your market competitors... consider developing new offerings based on research, never gut feelings.
 
It's not what you sell -- It's what buyers buy!


Gerhard Vierthaler
Value Strategy Group
907.222.2703

 
As CEO of the Value Strategy Group, Gerhard Vierthaler works with clients worldwide in complex B2B selling environments, helping organizations focus on pain management, value creation and customer outcomes to maximize growth. 

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