Products don’t sell themselves

Suppose you had to invest your life savings in one of two companies. Both companies are in the same business and sell to the same prospect.

The first company’s philosophy is; ‘we’ll make or product so good that it will sell itself’. They focus intensely on engineering and product development but they don’t spend enough time developing their sales and marketing efforts. Their product is clearly the best and always wins industry awards. But, they struggle on the sales and marketing front.

The second company’s philosophy is; ‘people buy people’. Their primary focus is on sales, marketing and developing strong customer relationships. Their product does the job but it’s not winning any awards like the first company’s product.

Without any more information than what I’ve given you, which company would you invest in?

I know if it’s my money, it’s going to the company who focuses on sales and marketing.

As much as we’d like to think the companies with the best products always wins, it’s not often the case. Nine times out of ten, its sales and marketing that put the industry leaders ahead of their competition, NOT their products.

I’m not trying to say that a good product isn’t important. But, what I’m saying is that having the “best” product is no guarantee of success.

There are plenty of examples of failed companies who’ve had great products they couldn’t sell. And, many of these companies wound up getting acquired by their more sales savvy competitors. So, in the end, the companies with the best sales and marketing also wound up with the best products.

So, the next time you think improving your product is the key to outselling your competition, think twice. Products don’t “sell themselves”, people do. Focus on sales and marketing and you just might be able to buy your competitors to get a better product.