Supply & Demand: Strike That. Reverse It.
Just like thunder has a clear relationship to lightning, there is also direct a connection between marketing, sales, and basic economics.
Basic economics - the buying and selling exchange done in every culture - can be simplified as “trading.” This concept was easily understood in ancient times, reflected in the local markets of food, spices, and supplies. These days, trading takes on a more complex feel in the context of modern, international markets and economic performance reports.
But here’s the truth: no matter the level of technology or global reach, trading is still a system based on simple supply and demand.
If you look closer and focus on the two main factors that drive economic trading, which has the most power?
The suppliers offering products or services?
The demand, motivating customers to buy?
This question can seem like the proverbial “chicken or the egg” riddle.
One thing is certain: for consumers in America, this system is free and voluntary. Our founding fathers called it “the free market/free enterprise system” where the “market” is free to choose to buy (or not buy) and to accept or reject the price.
While both suppliers and demanders are needed for a symbiotic relationship and healthy trade, I propose that the demand group holds the greatest measure of influence.
Why is this? They are the ones with all the money to spend!
Look closely. What opens the doors to supply? Is it not demand?
If so, then why do most of our marketing and sales plans focus on pushing the supply, but neglect to discover customers’ needs, trigger the demand, and then meet those needs?
“Supply and Demand”? I think these words should be reordered. As a wise man once said, “Strike that. Reverse it.”
“(Understand) Demand and (tailor the) Supply.” I think your best move is to discover (or re-discover) the “Voice of the Customer” thoroughly.
So where do you start? I’d like to suggest you move backward from the customer need so that you create a tailored buying experience for your most value-added contributors to your company’s success.