Early sales of new technology products: a framework for comparing the sales cycle of competing start-up and large supplier firms

Abstract

The objective of this paper is to examine the theory and describe a methodology to compare the early sales of innovative technology products made by two samples: technology-based start-ups and large companies. The categories examined for the samples comparison include target buyer characteristics (size, type of business, distance from buyer and years in operation), first meeting with the buyer firm (method of introduction, department and power level of initiator), the buyer's perspective of the product offer (importance and value), the buyers involvement in product development, the relationship strength developed between the buyer and the seller firms, the buyer's purchase decision-making process and the resulting degree of buyer loyalty. Based on these factors, the author proposes hypotheses to reduce the early sales cycle duration and increase the buyer's loyalty. The intent is to offer a method for providing insights into the early buyer's view of the new product's sale cycles. Sellers currently facing the task of developing early sales for their new product could then adjust their investing, partnering, hiring, outsourcing and designing policies based on the results gathered from successful predecessors.