We are past the midpoint of 2024, and a couple of our big commercial AV industry trade shows are now behind us. As usual, exhibitors highlighted all their latest and greatest in hopes of adding their products to integrators’ list of solutions to problems and challenges they face. That is, of course, the end game: They want integrators to see, specify and buy their products.
In the past, exhibitors enticed integrators with products that were disruptive and that significantly raised the bar for AV technology. I labeled these major advancements and announcements the Ooh, shiny! trade show effect. The shows still have some of the Ooh, shiny! effect on attendees. But just stop for a minute and ask yourself the last time you saw something truly disruptive.
The fact is that our industry is mature, technologically speaking — AI aside. We live in the age of parity and incrementalism…an age of evolutionary improvements. The shows are business theater at their best. You do see a plethora of great displays, mounts, signal-distribution products and audio products, but under careful scrutiny (and marketing attempts aside), they tend to look and act alike. For manufacturers, today’s challenge is how to differentiate themselves from the competition. For integrators, the challenge is to seek out the tangible differentiation that will most benefit them.
Don’t Drink Your Own Kool-Aid
Manufacturers must avoid drinking their own Kool-Aid and pass on the “We are better” syndrome. They need to understand — not just know of — the competition. Then, they must decide how they can be seen as different in the integration community’s eyes. It is the integrator’s perception that is — or should be — the manufacturer’s reality. Here’s a hint: This is not typically driven by a product or specification. Look deeper. A good place to start is to understand buying motivation.
Understanding and addressing buying motivations is an ongoing challenge, and it has moving targets. As Bob Nesbitt, a behavioral subject matter expert, used to tell me, “These are head-and-heart decisions, and one size does not fit all.” Behavioral scientists tell us that buying motivations are complex and overlapping, and these can be confusing and even contradictory to the casual observer.
Experts do, however, seem to agree on some categories that we need to consider in the quest for differentiation:
- Situational motives are driven by specific occasions. Buyers purchase due to immediate needs, special events, seasonal factors, etc.
- Rational motives are based on logical considerations. Buyers are influenced by logical aspects, such as features, functionality, price, quality and utility.
- Emotional motives are based on feelings and desires. Buyers are influenced by emotions, such as comfort, pleasure and excitement.
- Psychological motives are based on psychological needs, such as security, risk reduction and convenience. They buy services that deliver reliability, ease of use and safety.
- Social motives are driven by status, recognition and acceptance. Buyers might buy things to adhere to social norms or to show an affiliation with a brand or a group of people.
Five Elements an Integrator Looks At
In an age of commoditization and parity, why do integrators choose to buy from one company over another? Research reveals the “5Ps” that an integrator looks at: product, price, program, process and people. The Cliff’s Notes version is that product, price and program fall under the state of parity that we identified earlier. These all “float and seek their own levels” in the market, but they tend to look alike to the buyer. Research shows that they are ultimately not the reason most people buy. Instead, integrators buy from a manufacturer because of process and people. In short, integrators buy from companies that make it easy to do business with them, and whose people they like.
Integrators buy due to a combination of motivating factors, and they tend to look at the so-called “5Ps” as a guide in making buying decisions. To be considered competitive, the common denominator (i.e., the price of entry) is good products, competitive pricing and appealing programs. This is parity — not differentiation. To seal the deal, manufacturers must create an ideal customer profile, understand that customer and their motivations, and focus on being easy to work with, while also assigning people who the integrator likes to work with.
As Neil Rackham, of SPIN Selling fame, tells us, “People don’t buy from those who know their products, but from those who understand their problems.” That is how you differentiate — namely, by providing added value beyond the product you sell.
Alan C. Brawn, CTS, DSCE, DSDE, DSNE, DCME, DSSP, ISF-C, is principal of Brawn Consulting.