Marketers and salesmen are daily faced with the jigsaw puzzle
of how to help their organizations woe potential customers to pay attention and
after make favorable purchasing decisions.
From full page Ads on dailies and magazines to massive
discounts, one wonders if these companies remain with any monies and time to
invest in production lines and service departments. In the political terrain
however, the game seems more focused on one thing, 'discounts'.
The first week of campaigns has seen presidential candidates
notably Yoweri Museveni of National Resistance Movement and his longtime
opponent Kizza Besigye of the Forum for Democratic Change shift the contest from the battle of crowds which the
latter seemingly won already to a war of hefty promises.
Mr Museveni while in Lango promised that once re-elected, his
government will start providing free sanitary pads to adolescent school girls.
Dr. Besigye on the other hand while campaigning in Kamuli, Busoga promised that his government
would provide ten iron sheets to every family currently sleeping in a grass
thatched house.
Many more promises were made by Mr Amama Mbabazi of Go-forward who said he would remove direct taxes, Museveni said he would increase NAADS budget by 400% to shillings 1 trillion per year and Besigye pledged teachers a salary of 1 million shillings and 3.5 million for doctors.
Many more promises were made by Mr Amama Mbabazi of Go-forward who said he would remove direct taxes, Museveni said he would increase NAADS budget by 400% to shillings 1 trillion per year and Besigye pledged teachers a salary of 1 million shillings and 3.5 million for doctors.
As voters await the bulky promises to mature, those of us in
business can pick a few lessons about doing business in highly competitive
markets (like politics), notably one where competitor’s offers are made in the open or
published and improve on our chances of business success, here are three.
1. Understand your particular clientele segments
One common weakness with most failed marketing campaigns is
the attempt to generalize people and address them in such large groups: grouping campus girls, young corporate and
their mothers as one and making a general offer with the hope that they will
all respond in a positive way for example, is an indefinite act in futility.
At a stop in Kireka, Kampala on 4th October, Dr
Besigye promised to return power to the people. On the same afternoon president
Museveni held a televised press conference in which he castigated his opponents
on major national issues including inability to fight corruption and lack of
patriotism. Both men were communicating to the urban middle class that either
live in Kampala or have access to television.
The promise of sanitary pads that the president made was in
Lango (northern Uganda) where people are struggling to restore their lives
after the 20 year old kony war while the promise of free iron sheets was made
by Besigye in Busoga, another part of the country well documented for having some
of the most poor of Ugandans.
Had any of the men made such promises in Kampala, they would
have not been taken seriously because the urban voter’s understanding of
freebies is quite different.
If we are to win in highly competitive markets, we should be
able to classify our clientele into smaller segments and extend
tailor-made-offers for each segment. Some clients’ understanding of cheap is
poor quality so giving a discount might not work in appeasing them. Things like
quick delivery, guarantees and warrantees then come in handy.
2. Understand your competitor’s offer
As the famous saying goes, “In way no plan can be made
independent of the enemy”. Out of naivety or sometimes a lack of choice,
marketing and sales people tend to bring up blind offers and as you would
expect, they lose out flat.
My experience with business especially in the service sector
is that someone can always give a better offer and the one that can give a
better offer is the guy best armed with up-to-date information about the competitors’’
offer. Sometimes a good offer using known standard market offers can also help
in positioning oneself to beat the competition by offering just slightly more.
Had mr Museveni known that Besigye intended to promise
teachers a salary of 1 million and iron sheets, he would have definitely
pledged more than sanitary pads, pencils and text books.
If we are to succeed in competitive bidding and environments
generally, we ought to be aware of details about the other competitors such as;
product quality, price, price flexibility, delivery time, delivery record,
payment terms and yes, their overall capacity to deliver. The only thing worse
than lacking the correct information is a over-assumption: do your research
well.
3. Promise what you can afford
For either simplistic, populist or selfish reasons companies
that have aborted operations in Uganda in recent years such as Warid and Orange
telecom both made offers they just couldn’t afford. Best known for being the
king of data (internet), orange telecom is reported to have made year-in
year-out net losses totaling to 500 billion shillings in the 5 years it was
operational in Uganda. Warid telecom on the other hand started price wars and
won them all gaining big numbers of subscribers until a time when it couldn’t
bear the load; the result it succumbed and got married to Bhati Airtel.
The probable reason Mr. Museveni is hesitant on promising
teachers good pay raises is because his government does not have the plans for
or required sources of money to fulfill such promises. Being the one in office,
should he make such ambitious offers, teachers would give him a chance and
before long, things would fall apart when he fails to deliver.
It is better to turn down a job than to take it and fail to
deliver, it is like burning the bridge.
In a nutshell business owners, developers, marketers and
salespeople should be sure to study and understand every segment of their
target clientele, understand their competitors’ plans and offers before
designing their own offers and finally no one should promise what he or she
cannot afford.
Twitter:
@StephenObeli
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