Factors that determine how much specialisation is needed
There are four factors involved in determining how specialised a strategy needs to be are;
How important the product is?
How necessary it is?
How technical it is?
How frequently it is purchased?
Now, let me explain the four factors.
How important the product is?
When a product is important, people are more concerned about making the right choice. If you are buying insurance, a cabin at the lake, or a new snowmobile, you are making an important purchase, and you will want to take your time deciding what to buy.
A purchase doesn't have to be expensive to be important. Many many golfers buy golf clubs form w golf pro at their local golf shop. Often, these clubs are more expensive than they would be at a golf store. But to some golfers, a golf club is an important purchase, and they want the extra confidence they get from buying a club recommended by a pro.
When you sell to companies, often the important elements of the sale is not your product, it is what the customer is trying to do. Often the company is with look at a purchase in terms of what could go wrong.
How necessary is the purchase?
People know they need auto insurance. Auto insurance agencies just need to keep their names visible so that people will call them when they need to buy. That is nonspecialized purchase. Other purchases, like life insurance, may not be necessary and require a more intensive distribution strategy, such as sending sales representatives out to people's homes in other to meet new clients.
If you sell to companies, the reverse is true. If a company's is not likely to change without a very strong reason.
How technical is the purchase?
When I purchased my first PC laptop, I read consumer reports, looked at magazine and newspaper articles, and went to a store that had a large product selection. I went to all this trouble because the products were new to me, I thought they were complicated, and I wanted to be sure I purchased a good product. Today when I buy these products, I just go where prices are low. The products are no longer technical to me.
How frequent is the purchase?
The more often you make a purchase, the more your learn about the product and the less specialisation you need. When customers purchase infrequently, they need the support of distribution specialisation.
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