The Death of Personal Marketing ?

I read the article - you can make any kind of statement with any kind of point to it that's going to have some truth to it. Some are better written or more truthful than others but that doesn't matter much.

I make a living in network marketing also called multi level marketing also called direct sales. I sell nutritional products directly to consumers and I sell the business directly to people also.

I don't know about any other kind of personal marketing - I only know that I sell directly and market personally and for what I do there's a market. It's a very challenging business I'm in and peresonal attention is a big part of it.

The best of the best to everyone.

MitchM

As Sharon Drew Morgan routinely points out, most people will try to solve a problem on their own before they seek outside help. This is another reason why some people don't want to work with a salesperson (outside help) if they don't have to.

With more and more information on almost any subject becoming readily available and recent advances in technology which facilitate the purchase process it is true that many people who otherwise would have sought outside help will attempt to solve their problems on their own.

These are the people who believe they know what they want/need and will shop around for the provider with the deal (not necessarily the cheapest price) they like the most.

Does this mean the death of sales, the salesperson or personal marketing? Does this mean salespeople will be replaced with experts?

No.

I already know how to mow my grass but I pay a landscaping company to do it for me. I could have learned from the Internet how to paint my house but I paid a professional to do it for me because I wanted professional results. In both of these examples I did not seek out a perceived expert. Instead I looked for a provider whom I thought would do a good job and who would give me a good deal.

AZBroker makes a good point - a glut of information signifies a glut of information - people still seek what they want and when they find or are found by that person who has it they get what they want.

MitchM

AZBroker,

For the examples you cite, I agree. Most people don't look for experts for getting their lawn mowed or to paint their house. Unfortunately, not only are those simplistic examples, they are also are not the realm of most professional salespeople.

In the realm of financial services, real estate transactions, sophisticated IT applications, and many others people are looking for experts--or the best price if they already know their needs and wants and the solution.

There will probably be little change in the typical areas of the retail store clerk or the typical skilled laborer. But even with the examples you gave there is some application of the expert vs do-it-yourself movement. Change your examples to a complete landscape and the homeowner wants an expert--or they go to Office Depot, purchase a landscaping program, design their own, and then head to Home Depot to buy the merchandise--and then maybe get their lawn guy to do the labor. Or if they are looking at a faux leather wall, they want an expert, or they head to Lowes and buy the kit and do it themselves. If they have to settle for less than an expert, they may as well do it themselves.

I realize that for many the idea that the landscape is changing is uncomfortable and hard to grasp. The changes we've seen in purchasing behavior have only really been moving for a very few short years, yet it has already had a tremendous impact in many industries.

And even your real estate industry is seeing commodization taking place which is inevitable since every Realtor sells the same product. NAR and the state associations are fighting desperately to keep it from happening and have been fairly successful to date through a combination of legislative maneuvering and peer pressure, but it will happen eventually. Does that mean that every Realtor will simply be relegated to selling discounted commissions? No, just the majority will. There will be some who stand above the rest and will command higher commissions because of their reputation and image.

Originally Posted by pmccord In the realm of financial services, real estate transactions, sophisticated IT applications, and many others people are looking for experts--or the best price if they already know their needs and wants and the solution.

In my experience with real estate, the majority of people who utilize the services of a real estate agent rarely seek out "Experts". Instead, when the decision is made to use the services of a professional real estate agent (outside help) to buy or sell a home the decision of who to use is most often influenced by referrals, word of mouth and/or other forms of marketing (Internet, Signs, etc.). When a homeowner chooses to use the services of a professional landscaping company (outside help) for complete landscaping I would expect a similar selection process. In many sales scenarios once a short list of candidates has been determined I would expect the prospective client to shop the candidates for the deal (not necessarily the cheapest price) they like the most.

I agree. The question is in the future who is going to be on the short list?

For example, in the future in the real estate industry, once the commodization process has fully kicked in and the standard listing commission is in the area of 1 to 1 1/2, maybe 2%, the selection process will be the same--with the exception of a few high profile Realtors who will still be getting substantially more than that. The question isn't whether or not Realtors will get business, it's which side of the commission fence one will be on. Who will be making money and who will be fighting for the leftovers. Now, NAR and the state associations will fight to hold this off as long as possible, but eventually, it will happen. When? Don't know as the real estate industry has a very powerful lobby. But eventually they'll lose the battle with banks, the discount brokers will become more accepted (maybe hated, but accepted) and expand, and commissions will start to decline substantially. Even then, the FISBO segment of the market will continue to grow due to the help of the various FISBO marketing companies. Today the average agent and the high profile agent both can list a home at about the same commission rate. The average agent may give a slight discout, may not. The high profile agent probably won't unless it is a very high dollar listing. In the future, the average agent will be scrimping for a 1 or 1 1/2% commission, selling price, while the high profile agent is substantially higher in their commission structure, still much closer to their current commission structure. The high profile agent who has built their image and reputation as an expert will be able to hold their ground much better than the others. Because their are a better agent? No. Because they are known and recognized as a leader in their industry.

Other industries are experiencing the same dilemma.

This isn't going to happen tomorrow, but I suspect we'll be seeing a substantial change in the market place within 5 years. It won't be in full fruition by 2012, but noticeable more advanced than today in many industries.

Commoditization is countered through differentiation. Is "perceived expert" a differentiation strategy? Yes. Is it the only differentiation strategy? No.

Precisely the point. Differentation. In today's selling environment and in the future enviornment one must have a differentation strategy. And my point is that those being used today are dying. They were designed for and evolved out of very different market conditions than what are currently developing.

Now, unfortunately we won't know for several years if I'm right or not. I'f I'm right, as I believe all the indicators point in that direction, those who haven't prepared will find themselves out in the cold. I'f I'm wrong--well, that won't be known for some time to come, but even if I'm wrong and many have taken the opportunity to establish their public reputation, all they've done is make more money than they would have.

Companies are preparing for this monumental shift but unfortunately salespeople aren't.

Originally Posted by pmccord The problem isn't with the channel--it is with the consumer--many, and a growing number all the time, don't want to deal with salespeople. They'd rather do it themselves based on the information they gather from sources they trust.

Wouldn't you agree that if the consumer sees the value in using a intermediary they will, no matter what the industry, and that this value can be communicated through personal marketing?

Originally Posted by Mikey Wouldn't you agree that if the consumer sees the value in using a intermediary they will, no matter what the industry, and that this value can be communicated through personal marketing?

Today, still, yes. In the future. No, not as a stand alone marketing method. The point is people are 1) growing very tired of the non-stop marketing; 2) don't believe salespeople are honest in the sense of giving objective information and advice (makes no difference whether their belief is factual or not, we have to deal with their beliefs as they are, not as we wish they were); and 3) they don't need a salesperson any more. They want expert advice and guidance, not sales. They view expert guidance as being objective, and sales by its very nature isn't.

With the proliferation of highly targeted expert advice, more and more people are demanding that the people they deal with be experts. Marketing doesn't establish expertise, it establishes only that the salesperson exists, which is no longer good enough. The problem with marketing is not only that people are tired of it, but everyone looks the same. They can't pick the expert from the crowd because everyone claims to be an expert; everyone claims to be unique; everyone claims to be the best. And they know that if everyone is, then no one is.

This, of course, could become an issue with those who work to create the image and reputation of an expert. The advantage is that few will do it--it's too hard, too much work, too difficult, takes too long. They have to learn a new set of skills and the skills they currently have are working at least well enough that they don't want or feel they need to change.

The executives I speak with recognize the change and are trying to figure out how to either diminish the issue or take advantage of it. Some, of course, are deciding their solution is to get rid of sales and cater to the do-it-yourself buyer. Others are trying to have it both ways as they figure out their future strategy. And, still others, are sitting, contemplating their direction.

It's a problem companies are addressing or trying to figure out how they are going to address. Unfortunately, few salespeople are looking that far ahead.

Now, will there still be a small segment that won't care either way? Of course. Unfortunately, these will more than likely be consumers who are very price sensitive. Those aren't the consumers that will be providing salespeople with the incomes they desire.