Posted in Marketing and Strategy Terms, Total Reads: 782
Definition: Cold Market
"Cold market" refers to a sales person's future or prospective customers. The opposite of cold market is warm market. In sales and direct marketing, warm market is said to be marketing to people you know like friends/ relatives/referrals or existing customers. The target/potential customers are unfamiliar with you/your company.
Customer relationship is very important in a market. When we have some relationship with the customer like family, relatives or friend, then it is easier for us to pitch in for the product. The credibility, responsibility and security will be there when we sell to these known people.
But with new people we have to start building trust by small steps. We have to put in more effort and time for the relationship to form. With the increasing social media, we have get contacts and can network with a lot of people which will help salesmen in making the warm market into a cold one.
A company always company should mix warm and cold market gradually so that the relationship is built between the salesman and the customer. This will help the salesmen in understanding the customer needs and catering to them according to it. This will also help the company in aligning the positioning strategy along customer insights.