Product Market Mix Strategy

Salesforce effectiveness

Customers expect providers to help solve their business problems and measure value based on outcomes, not necessarily the lowest price.

Customers have become more experienced with competitive, disciplined bid processes. Buyers can readily gather basic information about products Then, in the vendor selection stage, total cost of ownership and return on investment trump relationships. Purchase decisions that were previously controlled by one manager now involve a web of stakeholders. As a result of these shifts, the day of the pure generalist relationship manager is over.

In turn, these shifts in demand have caused companies to dramatically change what they sell. First, offerings have shifted from single-product to multi-product portfolios, with the products ranging from cutting-edge to mature. Second, product-based sales have been supplemented or replaced by sales of solutions that knit together disparate products or services into an integrated offering. Finally, transactional selling based on knowledge of product features, functionality and cost has become less relevant than consultative selling that?s tailored to the customer?s industry or business situation and must meet a customer?s threshold for return on investment.

Procurement

In an era of faster product cycles, global competition and increased risk of supply chain disruption, corporate leaders need to know how to use procurement?now often called supply management?as a competitive advantage. Purchasing and global sourcing can account for more than 50 percent of overall costs in many industries. Realbity works with clients to make procurement a strategic operation and realize huge bottom-line impact.

By taking a more comprehensive approach to what they buy and how they buy it, companies can reduce cost and free up cash. Full potential savings programs can average 8 to 12 percent of total procurement costs and as much as 40 percent for some categories. Typically, these are sustainable cost savings that can be followed by a further two to three percent cost reduction annually. Furthermore, strategic procurement efforts often result in shorter cycle times and supplier-led product innovations. Despite the increasing recognition of procurement's importance, a recent Realbity survey found a growing gap between what corporate leaders expect and what their supply management teams are able to deliver: Realbity's procurement consultants have worked on dozens of engagements globally especially across all major industries of Food Service and, helping clients create world-class procurement organizations that can reduce their cost base, strengthen their supplier base and make the results stick.