Distribution. (Notes from EDC)

-What is Distribution

Distribution refers to everything it takes to sell a product. It entails all that happens in between from when a product is built, to when it’s sold.

• Customers will not come because you build it, you need to make them see that they actually need it through persuasion.
• Sales is everywhere we look. Don’t be tempted to underrate it, ever. The most common cause of failure of a product or company is usually as a result of poor sales. Not exactly a bad product.
• Most common form of distribution that resonates with everybody is Advertising. Note, Advertising doesn’t exist to make you buy a product right away, it exist to embed a subtle impressions in us that will drive sales later. For example, if you’re not an MTN subscriber but you’ve been seeing MTN advert that says “everywhere you go” growing up in Lagos, when you have to travel to your village, let’s say Oyo, you may suddenly remember ‘oh, this place I’m going to, MTN might be the only available network provider in that area because…everywhere you go! That might then lead you to buy an MTN line. (You May be disappointed in this country sha🙃)
• Always remember Sales is Hidden. This is because nobody wants to be reminded when they’re being sold. Everybody likes to believe they do what they do out of their own will.
• Hence, most companies have a sweet name for their salesmen, those that Sell Advertising — Digital Marketers; those that Sell Customers work — Business development; those that Sell Companies — Investment Bankers; those that Sell themselves — Politicians!
• Remember, the best product doesn’t always win. Also true is that a product that sells itself is the grail of engineering, but how many exist?
• If you’ve invented something “NEW” and you haven’t invent an effective way to sell it, you have a BAD product. No matter how good it is.
• Don’t forget, Sales is Hidden but it’s Existential.

How do you Sell a Product ?

“Superior sales and distribution itself can create a monopoly, even with no product differentiation”

-The higher the price of your product, the more you have to spend to make a sale, the more it makes sense to spend it. If you’re selling a product that cost a million dollar per unit, spaceX for example, you’ll be spending more in facilitating meetings that’ll eventually lead up to making a sale of that product.

• Complex Sales — this involves products that cost a million dollar and above, it usually involves government and big multinationals. Sales like this has to be personally handled by the CEO. Nobody will commit that much money to an errand boy. However, sales like this takes time to make. You’ll probably be making one or two in a year. After sales follow up services must also be a priority for ultimate client satisfaction, this will ensure recommendations to other possible future clients. Furthermore, one must be ready to play the politics in making deals like this work. Since it usually involves governments, you can’t shy away from the politicking.
• Personal Sales — this involves creating a system that powers the sales team. The CEO don’t have to be personally involved in the day to day sales.
• Personal Sales work best if a small group of users are targeted first, then gradually expanding to a bigger group. Facebook started at Harvard, then all universities, then the world.
• Marketing — Sometimes, when trying to sell a product like detergent in an already saturated space of competitions, primary target should be large retail outlets and grocery chains, where one can ensure one detergent sale made to those buyers may will equally mean about a 100,000 unit sales.
• As a startup, Don’t waste money competing with multinationals in ad space like TV commercials, bill boards and all. One, it’s a broad method of marketing. A million impressions may not necessarily guarantee conversions. Also, they have much more money to waste on that end.. basically drown you out. Instead, chisel away at their core weaknesses.
• Finally, the Most Important, Selling your products to Non customers. Who are the non customers,…
• . _ Employees — Let your work environment be so great everyone wants to join/work for you. Andela and google did that well enough.
• . _Investors — Sell what you do so well that dozens of them will keep knocking your door to get in.
• . _Media — Remember, what prospective employees or product users finds when they google you/your product will be critical to the success of your company.

Final Final, this quote

EVERYBODY SELLS;

Nerds might wish that distribution could be ignored and salesmen banished to another planet. All of us want to believe that we make up our own minds, that sales doesn’t work on us. But it’s not true. Everybody has a product to sell — no matter whether you’re an employee, a founder, or an investor. It’s true even if your company consists of just you and your computer. Look around. If you don’t see any salespeople, you’re the salesperson.

Peter Thiel.

Credits to Peter Thiel’s Zero to One book.