Market Maker - How To Document

Dear readers,

On 18.07.2008 I was a lecturer at the annual meeting of marketing directors at Asbis Enterprises. This is one of the largest distributors of high-tech products worldwide. The theme of my lecture was "Sales of project-oriented high-tech products”. In particular I concentrated attention to method for selling the external disk arrays from Promise Technologies, Inc in emerging markets with unconscious need for whole family of products. Below you will get most of the lecture - only confidential values concerning sales and a corporate secret are hidden.

Asbis logically leads to a preferred partnership with many dealers, because of rich product catalog and very high level expertise of product managers. Distribution business of Asbis can be divided into two main areas - fast turnover goods and those which require a complex sale of specific products with concurrent expertise (goods for projects). External storages by Promise definitely are from the second direction. They may be sold only with the active professional and practical knowledge about their qualities, functions and features. The presence of Asbis product managers in Bulgaria can not compensate for the lack of knowledge in large part of dealers. You get vicious circle - the customers did not buy a solution even if it would have solved the issue of their problems because they do not know about it. On the other hand dealers do not want to get further knowledge, because there is insufficient demand and investment in the knowledge has value of ROI, which get into orbit around zero. Small customers without experienced IT staff and consultants would understand the benefits of the acquisition of storage solution somewhere in the future. Yes, they will become our clients, may be, but not now for sure. There is a small part dealers who have the necessary knowledge and practical experience, but they work with major customers (for Bulgaria - the scale is quite different from European), companies – type "Western company – Bulgaria” Ltd. (usually a branch of a foreign company) or great client of our market - the state administration. This is logical because the volume of work, competition and the dynamics that forced these companies and state administration to find way out of problems with bigger disk arrays and they have already done.
I would not busy you with passive sales in highly competitive markets. Let us pay attention to the active sales in a segment of potential customers, which unrealized their needs and opportunities for growth.

The big question is: Should we wait for small customers to reach the same conclusions themselves?
You know the right answer!

Our task is to create a market. Developed economies may have realized a need for a product or complete solution, but in developing markets we meet lack of the experience and the successful stories - at least not critical mass.
The European Commission announced a new plan to reduce bureaucratic and other obstacles to small and medium businesses, stressing their key role in the EU economy. The initiative to facilitate business for small companies will be supported with the Law on small business. In the EU has around 23 million SMBs (by definition - companies with fewer than 250 employees), compared with only 41 000 large companies. Compared to Bulgaria - more than 95% of companies have less than 250 employees. Small businesses provide most jobs in the EU, especially in important industries such as textile, construction and furniture, and they are regarded as crucial to economic success. To give a chance to exhibit the full potential for growth of small and medium-sized companies and feed their innovative capacity, the Commission will re-focus attention on the needs of SMB in the EU in terms of policy measures. The Act on small business in Europe (Small Business Act - SBA) represents a set of political principles, accompanied by a set of ambitious action by the EU and its member states.
The role of European interference
Small and medium-sized companies are facing many problems, which almost are similar: huge administrative obstacles and difficulties in finding funding and a shortage of qualified personnel. Obstacle to entrepreneurship in Europe is the lack of understanding of the important role of small enterprises and their problems. We can solve part of them. Just on the fly to our way of growth.

Sponsorship

Businesses will have easier access to financing and will be given a second chance if they fail. Accordingly, the European Investment Bank plans to diversify its instruments in support of small businesses. For example, CISCO already do it in Bulgaria. They already work with local banks for preferential loans to purchase and implement their products. Is there a problem for us to do the same?

Code of best practices in auctions

Procurement represent about 16% of Gross Domestic Product of the EU, but small and medium enterprises face difficulties when applying at auctions. A new code of best practices in procurement will facilitate small and medium enterprises in their access to tender. He will have to ensure solution of the problems that small business meeting related to the volume of contracts, access to information, financial requirements, the administrative burden of participation in tenders.

International exchange of experience

New entrepreneurs become more and more. They will be able to gain experience and vision through spend some time and the accumulation of practice in a small or medium enterprise in another country. Erasmus for small entrepreneurs "is a program that will help them improve and refine their skills and will contribute to the creation of networks of relationships between small and medium-sized companies in Europe”. We live in information era. We can achieve this electronically, with less resource.

The problems of the Bulgarian market are the following:

Small businesses are indeed small - 26% of workers in Bulgaria employees working in micro-enterprises employing up to 9 people, and even 22% - in small enterprises employing 10 to 49 people. Need more information about how using information technology to enhance its efficiency. Rarely speak of problems because managers are often not aware of them as problems. Awareness of the potential hazards and suggestions for their settlement is expected to come to their client by direct contact - dealer, maintenance or consultant. For a good result must pass through the strategic planning for the development of customer business. Only with IT, business will become bigger and more profitable. Changes in business model are often phenomenon, because of competition. Daily example is inertness at business to use classic methods of submitting orders via phone, fax, less frequently in e-mail and very few companies in the online website. Serious problem is the quality of management in Bulgaria. All of you know that the most difficult part of management is the management of change. Of course there is a problem with change on the part of clients. Most of them recently had peer to peer network with several computers and the change in the way of work provokes opposition from the employees.

Is business ready to invest in high technology?

Yes, but only on condition that management is properly understood the benefits, TCO and ROI. Of course there are benefits, but it is important to take into account the point of the advantages and disadvantages in hybrid or alternative solutions. After analysis of current state and forecasting in the medium term can easily be persuaded managers in the decision to purchase. Problem of IT training in Bulgaria is also serious. Our customers rarely have the staffs on site that have passed a course in computer literacy. In IT companies teaching certification programs is not a mass priority, for lack of demand and willingness to pay more of a specialist holding certificates for successfully passed exams.
This picture logically leads to lack of knowledge about high-tech products by the vast majority of dealers. Practical training is also low because of low sales volume or the absence thereof. The other negative effect is that small customers of the smaller dealers can not obtain information about high-tech solutions.
The classical marketing solutions to reach potential customers are unsufficiently effective to poor awareness. Advertising in electronic media is often directed at targeted technical users who appreciate the advantages, but rarely have the opportunity to transmit this information in understandable form to management. The news are hidden form of advertising and PR, but they are suitable for mass products, which can be purchased separately from the technical expertise - etc. BoxMoving direction.
Lacking in media analyses of the benefits in implementing external storages, concrete examples, right time, which is justified to invest and successful implementations. This is naturally heavy material, but media pursue news to be read in one breath, which is not technically complex (there will be a greater audience).

What is the solution?

The latest revolution in marketing - Internet, e-mail, blogs and forums. Today, users can comment on products, prices, ads and traders free. This may do so as friends and family, and someone unknown in the global network. One dissatisfied customer may cause chain reaction of negative comments that may seriously to harm the reputation of the product - the company respectively. For good products with good suppor – free, uncensored communication can give us with the maximum market share. "From the mouth of mouth" - this is proven to be the most effective advertising, but in the past slow distribution was deficiency. Today we have a global market, global media - disadvantage was eliminated.
Many producers published in their’s websites information on "Successful implementations," but my clients want to read stories about the local market. They want to recognize themselves in these stories. Successful stories are welcome, but for companies operating in their city, even their competitors or partners. We can think globally, but it is necessary to do marketing locally. Blogs are a useful source of information. Tips for business or sharing solutions of the technical problem makes the product understandable, with clear lines. The decision to purchase remains a manager. We must help managers to reach the moment of decision supplied at the same time with many details for this solution.

The conclusion:

Asbis must create authentic and genuine aggregator of blogs. Should attract dealers, consultants, independent experts - bloggers to write inside, as they only provide guidance on how to post entry to upload video and create hyperlinks.
The focus of the site should be on all products, given the enormous thirst for reviews of various products and news on the Web. This all should be combined with author’s positions with the environment, achieved effects, etc.
The blog aggregator on website will succeed only if people write in their own style, without censorship and corporate interference. We will become witness of product’s natural selection from dynamic market. We will sell best products and we will work with informed customers.
Take a look around – In a global market .It’s not a dream. It’s happening now.

Let’s make market!