Levels of New Market Development

A. Passive

Passive here means broad spectrum media ads which stimulate the front runners - who are the gasoline for the engine of the movement of any new product from "new" market development until it becomes a commodity. These are the TV or newspaper ads that stimulate enough people to act. This stimulus/response takes a little selling, but, is a lot easier than direct sales, and is a little harder than merchandising commodities.

B. Active

This is direct sales. Direct sales means that you called (or mailed to) them directly and went for a "yes" or "no" without them being predisposed in the first place. Direct sales is the most difficult to achieve, but is also the most rewarding when successfully accomplished. Because price is not an object.

For example: Media ads for new windows - Once there is an inquiry, a professional sales person is sent to "close" a sale. This is a skilled and highly paid professional. But even harder and more high-paying is the non-response selling of a new product or service. Getting an appointment on a new product (generating leads) is a chore in itself.

Secondly, sales of perceived value are lower in close rates than media response leads, but the control of the number of responses and sales is much greater. You are not dependent upon as many exterior conditions being favorable (seasons, inflation, etc.).

Mail order also falls into this last category. To be "good" at marketing any one of the above levels does not necessarily mean much with the other categories. Do you have inexpensive "passive" promotions? If you are selling an unknown product or service, are you describing what "problem" you are going to solve, or, how you are going to enhance their life from the status quo?