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Sharp
Organizational Strategies and Sales Skills are
Required When Selling to the Midmarket
By James A. Browning
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The
midmarket has become an increasingly attractive source
of new revenue for technology vendors. However, understanding
the unique wants and needs of midsize businesses (MSBs)
is critical to effectively targeting products and
pricing, marketing messages and developing channel
strategies in any given technology area. Also realizing
that the midmarket is not homogeneous is crucial to
successfully selling to both lower and upper midsize
enterprises.
Like
all businesses, MSBs seek services and solutions tailored
to their unique needs, and determined by industry,
technology adoption profile, scale, complexity and
so on. A recent Gartner survey of midsize businesses
indicated that demonstrated commitment to addressing
unique requirements and appropriate levels of functionality
were among their highest criteria for evaluating vendors.
IT
vendors targeting the midmarket should pay attention
to the following key issues:
| > |
What
are critical success factors and best practices
for vendor go-to-market strategies in the midmarket?
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| > |
What
are the key user requirements, drivers, inhibitors,
selection criteria and buying behaviors relevant
to MSB technology investment? |
| > |
Which
technologies, business processes and IT services
are key components of MSB-specific solutions?
|
| > |
What
are the market size and forecasts for MSB technology
investments? |
To
succeed in the midmarket, IT vendors need a comprehensive,
well-executed strategy that demonstrates their understanding
and awareness of MSBs unique characteristics. Messaging
and approaches must clearly link proposed IT solutions
to the business objectives and requirements of the
organization. At a minimum, MSB buyers require demonstrable
productivity gains and business value from IT equipment
and services vendors.
IT
vendors will also gain a competitive edge by understanding
how IS departments work in lower and upper MSBs. This
provides important insights into IT consumption characteristics,
spending levels, IS organizational structures, roles
and staffing. Significant IT adoption and buying behavior
differences exist between the segments. To gain an
accurate understanding of MSBs IT wants and needs,
vendors must look at the company’s industry,
geography, maturity and buying profile.
James
A. Browning is Vice President and Research Director
in Gartner Research, where he is part of the Small
and Midsize Business Research organization at Gartner,
Inc. E-mail your midmarket questions to Jim at midmarket@gartner.com.
References
Research
Note
IT Vendors Will Need Focus When Selling to SMBs
in 2003
Publication Date: November 8, 2002
Author: M.Yamamoto Krammer, J. Browning, R. Anderson,
R. Brown
Research Note
SMB IS Department Provides Clues to Vendor Sales
Publication Date: October 29, 2001
Author: Mika Yamamoto Krammer
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