Broad based demand vs. tiering: which to choose?


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Revenue and sales volume should determine your marketing strategy

Should your business target broad based demand or focus on a tiered marketing structure? In other words, should you put all your eggs in one basket or have a finger in every pie!

The answer requires a careful analysis of the demand for your product/service and the role each market segment plays in your revenue. As a service provider, for example, where does a larger share of your revenue come from – the general public (the broadest category), enterprise (the next largest) or strategic accounts (the smallest group)?

It is true that unless yours is a very niche market, you can’t ignore any group. This means that your sales and marketing efforts should be tier-based. Simply put… time, effort and resources are allocated based on revenue share and sales volume.

Remember, the bigger the base, the larger the number of resources required, higher the competition, more fickle the customer (because of the choices available), and a smaller market share. The smallest group on the other hand may yield a large percentage of your revenue as well as offset the cost of your modest broad-based efforts. Your marketing strategy, sales targets and incentives should reflect your overall business objectives.

What are your thoughts on broad based demand vs. a tiered approach to marketing? Leave a comment below.

Republished with author's permission from original post.

Louis Foong
Louis Foong is the founder and CEO of The ALEA Group Inc., one of North America's most innovative B2B demand generation specialists. With more than three decades of experience in the field, Louis is a thought leader on trends, best practices and issues concerning marketing and lead generation. Louis' astute sense of marketing and sales along with a clear vision of the evolving lead generation landscape has proved beneficial to numerous organizations, both small and large.


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