• This Blog Is Inactive!

    On of May 8, 2009, I moved my blog over to a new domain: DaveSteinsBlog.ESResearch.com

    I will no longer be posting on this URL. Comments will not be moderated. More information.

  • ESR’s STVG

    Here is ESR's highly acclaimed Sales Training Vendor Guide, Third Edition.

Strategy 18: Become An Expert At Competitive Positioning

Hey, I have a proposition for you.

I had a really bad experience with Dearborn Trade Press (now Kaplan Financial Publishing) with my book, How Winners Sell, Second Edition. It’s no longer in print, although companies seem to be able to find copies somehow when I come in to present at their sales kick-offs and other events.  (I will write about the whole nasty Kaplan situation one day.  In the meantime, anyone considering publishing with Kaplan needs to give me a call.)

I was thinking about putting How Winners Sell up on Amazon’s Kindle. After a long, long effort, I finally got the rights back.  I wrote the Second Edition in 2004, but most of it is still very relevant.

The proposition.  Here is a free chapter.  All I ask is if you get some value from it and are interested in reading the whole book on either the Kindle or an e-Book format, let me know.  I may decide to republish it.


Strategy 18: Become an Expert at Competitive Positioning

I don’t know about you, but I get a big thrill when I watch a high-integrity, seasoned sales pro competitively position his company and offering. It may happen during a presentation or during a sales call as objections are raised by the buyer.

When you think about it competitive positioning begins when you formulate your strategy. From that point onward, your messaging, talking points and objection handling are driven off the same thing—the unique value you can provide to your client.

Here are some examples of how winners I’ve worked with masterfully handle competitive positioning:

Situation 1: Selling Against Goliath

If you sell for a smaller company that competes against the big guys, the age-old story of David and Goliath might come to mind. In this story, the giant, Goliath, was beaten in a fight by the small boy, David. I often see “Goliaths” beaten, but it takes flawless execution of a well-designed plan.

The most important thing of all when selling against a much bigger competitor is to be certain that if you meet or exceed all the prospect’s requirements, that size—for size’s sake—does not matter. That’s an issue of qualification. You may have the best product, innovative service capabilities, committed people, stellar customer satisfaction levels, top product quality, most respected investors or anything else that you consider of value, but if size matters, little else will measure up. And if size does matter, and you can’t convince your prospect fairly quickly that it shouldn’t, you need to get out of there—and quickly on to another opportunity. Know your prospect’s history regarding doing business with smaller companies. It may mean nothing to them, since they do it all the time. On the other hand, you may be the first and may have a long, bumpy road ahead.

What all this means is that there are certain opportunities for which you should not compete, because you can’t win them. Sorry, but that’s a fact.

Now What Do You Do?

You’re going to need to influence your prospect’s decision criteria, so that the perceived value of your competitor’s size as well as other size-related capabilities are diluted, neutralized or, in the best case, seen as a disadvantage. Many salespeople are accustomed to highlighting a competitor’s weaknesses. In the situations where you are competing against a bigger company, you will (professionally and subtly) dilute their strength.

Here is a simple, well-proven example. Let’s say I sell for a smaller professional services firm and I am up against a major player. Based upon preferences and needs of the buyers, I may decide to use the “small-fish-in-a-big-pond” approach.

It goes like this: “Ms. Prospect. There are few people who would not be impressed by my competitor’s size, global reach and financial as well has human resources. I’m sure they proudly reference some very prominent customers. However, you might consider that a project such as yours, although highly critical for you, might very well not have the same level of importance for them and therefore may not generate the ongoing attention within executive levels of their company that their premier customers’ projects would. It’s only natural…”

From that point, you would discuss how you would meet their technical requirements and establish a business relationship going forward, stressing attention that would be paid to the progress by your executives. You’d convince them that your company’s success would depend directly on their success, not the other way around. You’ll be portraying them as big fish in a small pond, with the driving message being how important their business is to you.

If you are effective with this approach, you will have moved down in importance the size and impressiveness of their customer list and up in importance the attention paid to them by your executives as well as your company’s interest in their success.

Here are challenges you might face in a David and Goliath situation and some alternatives to consider: Continue reading