Strategic sales in the life science market (part 1 of 6)
The three big trends: commoditization, saturation and customer-closeness –
and why we need new structures and new mindset in sales
This is a paper in six parts.
First part: Commoditization, saturation and customer-closeness
Commoditization, saturation and customer-closeness are the three most important characteristics of modern life science markets.
This is true for consumables like laboratory plastic ware or pipetting tips and small laboratory instruments like table centrifuges or blotting apparatuses.
In addition, it even applies to larger instruments like chemiluminescence imagers, in vivo imagers or even larger analytical instrumentation like e.g. laboratory robotics.
The result is always the same: Our life as salespeople or sales organizations has already become harder, it is becoming harder and this process is still ongoing.
To reach our quota, we have to work more, we have to invest more effort, we have to meet and to address more customers.
Nevertheless and despite all the power we invest, at the end of the day our profit margins and our commissions will go down.
Of course there are many reasons for that.
The internet and modern information and rating technology which changes the information asymmetry in favor of the customer is one thing.
Alone by this our job of selling was influenced and still is influenced fundamentally.
But there are also more fundamental, more general aspects in our modern sales world that we as sales people and sales organizations face today and even more: tomorrow.
One of those is “saturation”:
In every special market there comes a time, when everyone already has such an instrument or product.
This is called saturation.
In addition, many of our life science markets and market segments are not really growing, some are even declining.
Every year, customers have less money available.
So it is easy to understand of course that as a customer you think twice if you should invest this less money of yours on an instrument just to replace an existing one, which maybe is still working.
This even enhances this saturation effect, because also simple replacement purchases are not done as easily as it used to be some 25 or 20 years ago.
This was part number one. The second part is available right here.
Do you have questions?
Strategic sales in the life science market (part 1 of 6) >>>
The DISC-booklet is free for download as your personal starting point in everything what has to do with the DISC-model.
Copyright © by Dr. Martin Auer, 2017