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Today's Marketplace, What Really Drives It? By Jim Masson I want to explore with you what drives today's marketplace. If you just shouted out a conditioned response from economics 101, I will bet you might have said "supply and demand". But wait a minute, is that statement really accurate?
I'm not an educated economist but, I will suggest the statement, as we hear it is, the at the very least, somewhat flawed.
I fully understand the supply and demand are related, however it it would seem to me that demand actually precedes supply as suggested by the other cliche we have all heard, "necessity is the mother of all inventions".
Many companies try to drive the market with oversupply and lower prices. This may be an effective strategy in the short term but companies that employ this approach over the long haul are flirting with disaster. Need proof? Have a look at the big three North American automakers.
They have followed this model for at least the last twenty five years. What have they accomplished? They have lost a good chunk of their market share ad they have lost billions of dollars. Hmmm, that's an interesting strategy. It does not motivate me to go out and buy shares in one of them. What about you?
It is my opinion that the needs and the desires of the customer are the basic drivers of the marketplace. How can I be so sure? Here are three very compelling reasons.
1- The customer decides whether there is a need. 2- The customer decides if and when to make a purchase. 3- The customer has the Money! Not an insignificant thing. Customer money drives the market. What a concept. What more does a business owner or a salesperson need to know?
By now you may be asking, "why does it matter what drives the market?". The answer is incredibly simple but it is often overlooked in sales organizations. If you understand and accept this principle, your sales efforts will always focus on working to fill the customer's needs and wants. When you succeed, the customer will buy and your need to get paid will be met.
If you don't understand and accept this principle, you will almost certainly be driven to look after your supplier's needs first, usually at the expense of your customer. Which makes the most sense as a long term strategy?
In today's marketplace, the average jaded customer has little expectation that businesses and salespeople will look after anyone's needs but their own. Because of this perception, business owners and managers who train their salespeople to function at mastery experience and incredible edge on their competition.
Here is an undeniable fact whether you are a business owner, a manager, a salesperson or clerical or support staff, 'the customer is always the one who pays you'. It doesn't matter who signs the checks. If there are no customers, sooner or later there will be no paychecks and no company. I'll say it again. The customer always provides the money to pay you. Never put anyone's needs before the customer's needs.
The other side of the market, the supply and demand side, is where industry tries to drive the marketplace through innovation and invention. Two things can happen in the process of bringing a product or service to market.
It’s really quite fascinating to recognize this. Someone can invent or produce something then try to determine
whether there is a market for the product. This approach probably explains the thousands upon thousands of prototypes of inventions or first production runs of products that are sitting in warehouses unsold or in liquidation stores offered at 15 cent on the dollar.
The other approach is where some type of neutral and unbiased market research uncovers a need in the market place for a product or service to solve a particular customer problem. Once the problem is identified, the suitable product, service or idea is developed as the solution for the problem and then is offered in the marketplace. Sometimes the product is entirely new and innovative. Sometimes it’s simply an improvement on an existing solution.
Which approach do you feel will be more effective? If you were being asked to back one approach or the other with your personal money, where would you likely be?
Jim Masson is the author of "Getting Paid is Good!! Timeless Essentials of Professional Selling ... and More.We offer complete, powerful and very affordable computer based Mastery sales training for individuals at www.salestraininghere.com. Please drop by and discover the comprehensive nature of this training which crosses over into daily living as well. You can see course details and lesson summaries. Our training will add to your effectiveness and personal enjoyment of life. We offer a risk-free guarantee and a great free program.You are also invited to discover www.gettingpaidisgood.com/ which is a free resource center website for those looking to develop ways to get paid more and more often as well as providing links to self improvement specialists. Picking up extra income may be a lot easier than you might think. Don't wait. Please visit us now.
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