Saturday, June 2, 2007

Jim Holden: Power Base Selling


Since its introduction in 1990, the Power Base Selling methodology has been one of the most effective and popular sales tools. Unlike e.g. Miller Heiman sales strategies,Power Base Selling is largely focused on how to beat the competition. Competition is at the heart of the Power Base Selling model. In the book many analogies with warefare are described.

As important is the attention to internal politics of the buyer organisation. It is key for the sales professional to get to know the informal, political organisation structure of the buying organisation, which is called the Power Base, and to ally with and take advantage of the political agendas of the key players to help forward the solutions offered and beating the competition. At the center of the Power Base is the Fox, the ultimate influencing factor.

A range of strategies are described to confront competitors:

1. Direct Strategy based on superior products, company selling or installed products
2. Indirect Strategy based on altering the buying criteria
3. Divisional Strategy to salvage part of the business
4. Containment Strategy to postpone the decision to increase chances

But Power Base Selling is about more than just strategy. It also provides tactics to keep competitors at a distance e.g. by securing an order won by advertsing it and covering it with the Fox. Simarly, by setting up "traps" early in the sales process competitors will not be allowed to fight back eiher on price, via contacting superiors or by talking negatively about competitors.

The book concludes with 13 criteria to determine whether a sales opportunity is worth fighting for and what the chances of success are. Access to upper management, understanding the decision-making process, compatibility of philosophy and political alignment are key to winning.

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