Selling to Different Markets
This next video that I'm gonna share with you, this is about a really important facet of developing your sales. There are three different types of markets that anything is sold in, and your job as a sales person or a business owner is to know what market you're selling in. If you don’t, then you're probably going to sell incorrectly.
Those three markets are:
A competitive market is where the only indicator is price. A box of nails is a dollar here, but 80 cents there, you're just gonna buy the 80 cents one. There’s no reason to buy the dollar one. Boxes of nails are boxes of nails. That's competitive.
Intermediate markets are the stretch. It’s like coffee: maybe you’ll pay $6.50 for a coffee; another place you may pay $5. Hairdressers: you’re happy to pay a little bit more but you’re not gonna go bananas, you know. That’s an intermediate market; there’s more wiggle room.
And the tertiary market, the third market that I want to talk to you guys about, is a value-orientated market. Now a value market is where price is almost irrelevant. For example, first-class travel, luxury vehicles, luxury watches, even cologne in some contexts. People are focusing on the item itself and the intrinsic value of what it is.
So when you look at these markets, you have to sell to how the market wants to buy. Value markets value and they are based on significance, how important it makes them feel, and exclusivity, the fact that not many other people can have it. I nearly bought a watch that I definitely shouldn’t have bought because it would just tell me the time for a lot of money, because it was a watch that not everyone will know what type of watch it is, but the people who need to know what type of watch it is will.
In intermediate markets, you have to find the balance between exclusivity and affordability. So this is about creating an economy of logic and emotion; value markets are all emotion. Intermediate markets are about getting a balance between logic (it's a good idea, it’s a good price) and emotion ("I am important enough" or "This is an important enough purchase for me").
And competitive markets are straight logic. You just show them as many different ways that you're saving them money and that you're cheaper than the competition and a better buy, they'll buy. I trust that helps.