CHAPTER 3

KNOWING YOUR COMPANY AND YOUR COMPETITOR

“To outperform your competitor, know your company’s strength and your
competitor’s weaknesses.” –Philip Kotler

Learning Competencies:

1. To understand the significance of company knowledge in selling; 2. To

identify the different company’s information that the salesman must know; 3.

To learn the importance of benchmarking with the competitor.

The salesperson should know everything about the company he or she is

connected. The most common thing that a prospect is interested is about the company’s
reputation where he will make an investment or purchase a product.

IMPORTANCE OF COMPANY KNOWLEDGE

COMPANY INFORMATION THAT A SALESMAN SHOULD KNOW

1. ​History of the company;

2. ​Company’s business area;
3. ​Management and financial aspect;
4. ​Competitive position;
5. ​Production process;
6. ​Research and development;
7. ​Service and distribution policies.
History of the company. ​The salesperson should have the knowledge of the
conception and earlier years of his company. It enables you to converse intelligently
with old buyers who have dealings with your company before. The salesperson’s
familiarity of the history of the company will build a positive image in the mind of the
prospect. It is important to note who your founders are, and how your company able to
surpass obstacles in terms of investments and the likes.

Company’s business area. ​The prospect is always inclined to know where he or

she can transact business or make a follow-up. The salesperson should provide the
client with the list of their branches, address, contact number, and the specific person to
talk to.

​ his aspect is very important. The existence

Management and Financial aspect. T
and stability of the company lies on the people who managed the company wisely. The
financial aspect determines the financial stability and liquidity of the business. The
salesman should have a deep knowledge and understanding on this matter to persuade
the client to entrust the business with them. The founder of the business and its
recognized investor is important to know, the financial strength and capacity of the
company should be emphasized in here.

Competitive position. ​Despite the challenging market competition, the salesman

must be able to address the competitive position of his company. He might stress out
the good reputation, their rank in the industry and how do they get there. Competitive
salespeople and different investment the company has into can be also cited.

Production process. ​As we have discussed earlier, in case of price objection

occur, the salesman may justify it through the production method employed by the
company. The raw materials, the people involved, and the scrutiny of the process will
make justice to a high price objection.

​ he transition of product from old into its new form

Research and development. T
is very important to customer. How it was conceptualized, what triggers it are the
questions that needs to be answered properly by the salesman. Latest development in
other product line should be known by the salesman. Keeping the client informed and
updated build confidence and a chance to keep business with your company.

Service and distribution policies. ​The game of the business is service. The
salesman must be able to convey the service facilities they offer such as installation,
delivery and many others.

Distribution policies should be disclosed. The delivery time, delivery charges,

discounts and promotion must be discussed. Avoid overpromise but under deliver
product. Enlighten the customer about your service facilities in case of delivery problem.

IMPORTANCE OF KNOWING YOUR COMPETITOR

1. You can learn from their mistakes

In today’s digital world, corporations and small businesses aren’t able to hide
behind constructed brand identities like they could before. It’s amazing what information
you can find online about virtually any company that exists.

By doing a little mining online, you are bound to dig up some mistakes that your
competitors have made. Social media is an easy place to search to see what people are
saying about your competitors. When you find mistakes or things that didn’t seem to
work very well for your competition, take note of it. Work to avoid making the same
mistakes you see your competitors making.

2. You can model what works for them

As you research your competitor also look for what’s working really well for them.
It’s very important that you model what is working for your competitor and do not copy
your competition directly. You want to look for strategies they are putting in place and
overall marketing efforts they are making to give you ideas on how you can make your
company better.

It’s important to note that just because your competition is doing something new
that appears to be working, there is a good chance that they have not tested it either.
Be careful and always use your best judgement.

3. They reveal opportunities in the marketplace

Looking at each of your competitors, you should be able to determine what

segment of the marketplace they are targeting and what type of customers or clients
they are looking to attract. Through reasonable deduction, you can find new
opportunities and tap those gapped market for your product or service.

Focusing your skills, talents, and abilities on a specific area of the marketplace
that’s not being served by your competitors is a formula for success. However, in some
cases there may be specific reasons why certain demographics aren’t being served.
There may not be a market there, always conduct test based on credible facts and data.

BENCHMARKING WITH THE COMPETITOR

1. Identify their competitive advantage

Are they faster, more affordable, better than you are? What about their approach
can you use and improve, turning their advantage into your advantage as well? You are
not going to intrude on their tactics. But you can certainly adapt what they are doing to
benefit your company.

2. How are they marketing?

Where is their focus? Who is their typical client? How do they follow up with
potential customers to convert them into actual ones? In short, what are they doing?
3. What about their sources and product expenses?

Are they getting resources at less cost? Are their products and services better?
Do they have better payment scheme than you do? Are their suppliers and consultants
better?

4. What about their people?

Are their employees superior to yours? Why? Is it training? The hiring process?
How they are supervised? Motivated? Compensated? Is the competition doing
interesting things with its benefit programs or how it promotes? What is it doing right that
you could do as well?

5. How is their image compared with yours?

This refers to the company image that comes up when someone thinks of your
company and theirs. Are there places where the competition's image is significantly
better than yours? What can you learn from that fact? What can you do about it to build
up your company's image?

6. What about customer retention?

Do they seem to have customers for life? What is it about the way they do
business that stimulates this kind of loyalty.