By Pat Hinds
When you are new to blogging it can be challenging to create a theme to the blog; however, over time you start to see a pattern to it. What I am trying to do is post two new blogs every week; one that relates to my opinion on the oil & gas industry, and the second on strategic vertical and account selling. To help offer more sense of this, I will make reference to earlier blogs to help the reader better understand my position.
In this blog I want to establish the value of market penetration, but market penetration is not effective without doing the work on establishing a vertical fingerprint (see: Strategic Vertical Selling: Using a Vertical Fingerprint) and the market opportunity (see: Strategic Selling: Defining the Market Opportunity Gap). The vertical fingerprint and market opportunity establish the top end of the strategic vertical and its customers. Market penetration is the process of evaluating your sales as they relate to the market opportunity. It is important that you do this for each strategic customer and each product that you want to sell that customer.
As an example, I will use the cell phone industry:
· Identify the vertical fingerprint (conventional vs. unconventional oil & gas) and what cellular products they use (cell phones, smart phones, laptops).
· Identify the market opportunity: how many employees have phones, what is the product percentage, and what is the operating cost.
· Using total amount of employees I can establish a total market opportunity per account.
· Evaluating each product category as it relates to the products you have sold to an account; with this, you now can determine the level of market penetration.
Market penetration is the fundamental principle of strategic account selling, allowing you to set goals and tactics for account penetration versus managing on short term opportunities. Strategic vertical and account selling is committing to a long term view of an account. You can take this approach if you can calculate your return on investment; this can be achieved by establishing the vertical fingerprint, market opportunity, and market penetration.
Topics: Sales Consulting