executive program in sales management final
TRANSCRIPT
Executive Program in Sales ManagementMARKETING
Nick’s Bio - Highlights Career:
ComputerLand Canada◦ 8 Years in Sales and Sales Management◦ Director of Marketing
Softchoice Corporation◦ VP of Sales◦ VP of Marketing◦ SVP of HR◦ SVP of Business Development
CultureByBrand
Personal:
Volunteering◦ Led teams to Ghana, Rwanda, Bali,
Sri Lanka, Kenya, Uganda and Guatemala
◦ Board Member for The Strongest Oak
Fitness◦ Master’s Swim Club member for 22
years◦ Club President
Married with one daughter
AgendaMonday:
1. Accelerating sales force performance (in the Age of Social Media)2. The Crucial Connection between your Brand and your Company Culture3. Integrated Planning: Marketing, Sales and Customer
Friday:4. Fundamentals of Market Segmentation5. Developing and Implementing Sales and Customer Plans6. Conducting Effective Forecast Reviews7. Frameworks and tools to develop segment and customer-level value
propositions
Shared Values
Two ways to drive company financials:
Decrease Costs
Increase Revenue
LeverageRevenue
Expenses
Productivity
Understand Customer
Needs
Create ValueDeliver
Manage
What Challenges are you Facing Today?Internally and Externally
Groups
Group 1 Group 2 Group 3 Group 4 Group 5Mike Martin Don Macfarlane Robert Greene Shaun Keogh Waylon SharpMurray Hunter Ricky Dowell Mark Karsseboom Lawrence Levinson Flavio FerreiraRob Lee Judy Williams Praveen Muruganandan Tim Hunt John BentonMarco Mathieu Doug Fox Lee Harney Rudy Mancini Michael Hachey
Joel Burton
PriceCustomer Service
Product KnowledgeSupplying Information
Selling a ProductCommunicating Value
RelationshipsSelling
Presenting
ValueCustomer Collaboration
Customer Industry KnowledgeProviding Insight
Delivering Business outcomesLinking Challenges to solutions
Connection to Communities of InterestServing
Engaging
The Old Way-------The Continuum--------The New Way
Accelerating Sales PerformanceIN THE AGE OF SOCIAL MEDIA
Accelerating Sales Performance
Option 1:
Work HarderBe More AggressiveWork more HoursSkip Lunch
Option 2:
Work SmarterRight Place – Right TimeSystematic ApproachCreate Leverage
Sales People
Marketing- Broad Appeal- Making the Phones Ring- Warming up the market
Sales- Where a knowledgeable
person makes the greatest impact
Does Cold Calling work these days?
Do You Feel Like This?
Sales
Marketing
Audit What are the 6 elements of marketing
Where are you strong? Weak?
What are the gaps
Something like the strategy canvas……
Plot ratings
What are the issues
The Funnel
Everyone
Suspects
Prospects
Customers!
The Old Way
How Social Media Changes Everything
Finding Information
Chevy Volt
Advertising
Email Direct Mail
Cold Calling
Traditional Marketing
Content Marketing Attracts
In the future there will only be Content Marketing
- Seth Godin
What do you have to say?
What is your company’s Unique perspective?
Why should prospective clients have an interest is what you think?
What are the real issues in your industry?
Whose thought leadership do you follow?
What help can you offer beyond what is obviously good for your company?
Groups
Group 1 Group 2 Group 3 Group 4 Group 5Flavio Ferreira Rudy Mancini Praveen Muruganandan Don Macfarlane Mike MartinJudy Williams Shaun Keogh Joel Burton Lawrence Levinson Ricky DowellWaylon Sharp Michael Hachey Rob Lee Tim Hunt Mike KarsseboomMarco Mathieu Robert Greene John Benton Murray Hunter Doug Fox
Lee Harney
Intersection
The Marketing to Sales Funnel
Awareness
Consideration
Hit Rate
Traditional Marketing Content Marketing
PUSHMktg Interrupts
Sales Cold Calls
Sales Discovery & Advocating
Marketing Offers Sales
Closes
PULLProvide Value
that Spreads
Warm Lead Transfer from Marketing to
Sales
Marketing Offers Sales Closes
Social Media
X $6k Annual GP = $1.3M GP
New Customer Acquisition Funnel (Example)
Identified
MQL (Mktg Qualified Lead)
SAL (Sales Accepted Lead)
SQL (Sales Qualified Lead)
New Customer Sale Close 216
Unique Views15%
Conversion %Sales Stage Volume
30%
80%
60%
20%
50,000
7,500
2,250
18001080
The Role of MarketingDepartment Understand Customer
Needs Create Customer Value Deliver Customer Value Manage Customer Value
Marketing
Conduct formal marketing research
Monitor Communities
Understand Customer Pains
Customer visits
Market segmentation matrix
Competitive analysis
Measure, segment customer and product
attractiveness
Develop Marketing Plan
Develop Segment Specific value propositions
Pricing strategy and tactics
Write Blogs
Create Content (Buyer’s Guides, White-Papers)
Train Sales People on strategy, tactics,
products, etc.
Buying Keywords for search
Accompany sales on periodic sales calls
Manage Events, Webinars and Seminars
Seed Content
Customer Satisfaction measurement and
reporting
Customer listening (twitter, etc.)
Marketing Automation (Mailing Lists, campaign
lists)
Sales ReviewsSegment, customer, product mix review
Brand and Culture Alignment
Website Processes
Manage Segments for Profitability
The Role of SalesDepartment Understand Customer
Needs Create Customer Value Deliver Customer Value Manage Customer Value
Sales
Sales Calls
Develop specialized knowledge of
customer’s industry and business
Join Industry forums or LinkedIn Groups
Go where they are sharing info or looking
for solutions online
Develop Sales Plans
Develop Key Account Plans
Develop customer specific value propositions
Collaborate with Marketing re: new ideas
Customer Value Proposition delivery
Establishing service level agreements
Forward, Like or Post valuable content
Invitations to webinars, seminars
Participate in Customer Sat measurement
Be the voice of the Customer to product
management
Conduct Sales Reviews with Marketing
Get Paid for Value being delivered to customer
Manage Customer relationships for long
term profitability
Marketing and Sales United
Marketing Activities
Content
Promotion
EventsSales Engagement
Sales Training
• ‘Like’ content• Email & Promote• Team Contests• Win Funds
• Webinars• Local Events
• Email • Social Media• Search Marketing
(Google Adwords)• Digital Advertising
• Sales Meetings• Regular Training• Certifications
• Blogs• eBooks • Web• Print
Branding“A PROMISE CONSISTENTLY KEPT”
Who do you trust?
Build Culture & Brand Alignment
Values Behaviours
Culture Brand
Me
We
Internal External
What Brands do you Love?
Why?
Culture is the Elusive Link
Company A Company B
Emotions Rule our Choices
Branding Model (Example from Level5 Strategy Group – BrandMapTM )
Personality/Emotional Attributes of Your Brand
Your Brand Identify 3 words that describe your brand
Find a partner – share your 3 words
Review your partner’s company (Anything you can find on the web)◦ What are the consistencies?◦ What are the inconsistencies?
Desired Culture Values
Espoused Values What are your Company’s Espoused Values? Are they real for you?
How do you represent them on a Sales Call?
Do you refer to them in presentations?
Culture
What is your role in building a strong Culture?
CultureA Promise
ConsistentlyKept
Brand
What Are Our Basic Needs and Growth Needs
Evol
ution
of P
erso
nal C
onsc
ious
ness
Satisfying your physiological needs for security;staying alive and keeping your body healthy.
Satisfying your emotional need for belonging, protection and connection.
Satisfying your emotional need to be recognized for your skills, talents or qualities.
Satisfying your need for autonomy, freedom, independence and adventure.
Satisfying your need for authenticity and finding meaning and purpose in your life.
Satisfying your need to actualize your purpose by influencing or impacting the world around you.
Satisfying your need to leave a legacy—to have led a life of significance that will be remembered.
Growth Needs
Basic Needs
At any given moment in time, our values are a reflection of our unmet basic needs, and the growth needs associated with the stage of psychological development we have reached.
Marketing PlanningTHE KEY TO SALES EXECUTION
Meaningful Vision
• Revenue Growth• SGA as % or
RevenueKPI • Cost of Customer Acquisition
• Business MixKPI• Sales % of Plan• Growth Rate• Sales Comp as % of
Revenue KPI
• Customer Retention
• Customer Satisfaction
KPI
Planning
Strategic Plan
Marketing Plan Sales Plan Customer
Plan
VisionOverall Business View
3-5 Year HorizonFinancial GoalsCompany StructureLeverageInvestment
Market-Centric- 1 Year HorizonWhat Segments?What Offers?What Competition?DifferentiationMarketing Spend
Execution-Centric- 1 Year HorizonTerritoriesCoverageSales CompBusiness MixBiz plan for each market
Customer-Based- Quarterly or AnnuallyCustomer Value PropositionGrowth GoalsObjectives
Planning Dynamics – B2B
1. High Volume Transactions – Each has a Small $ value◦ Target Prospects are unknown
2. Moderate volume of Transactions with Moderate $ Value◦ Roles of people who are target prospects
3. Low Volume of Transactions – Each has a High $ value◦ Target Prospects can be named
Marketing PlanSales PlanCustomer Plan
Marketing Plan Elements
Section 1: Market Analysis
Section 2: Situation Analysis
Section 3: Marketing Strategy
Section 4: Implementation
Section 5: Financial Summary - Outcomes
Section 1: Market Analysis
Macro Environment
Economy
Legal
Technology
Market Analysis
Industry
Competitors
Market Trends
Market Size and Share
Customer
Buying Decision
Demographics
Problems
Internal
Vision
Co. Culture
Resources
Section 2: Situation Analysis
Situation
Opportunities
Threats
Strengths
Weaknesses
Key Issues
Critical Success Factors
Section 3: Marketing Strategy
What are we Selling?
• Products• Services• Mix and Lifecycle• Portfolio Analysis
Who do we sell it
to?
• By Product• By Segment• By Geography• By Channel
Value Proposition
• Pricing Strategy• Margin Objectives• Angel Customers• Demon Customers
How do we Sell it?
• Sales Force• Social Media Plan• Website • Advertising
Section 4: Implementation
People
• Hiring• Training• Incentives
Process
• Changes in Workflow
• Approvals• In-Process
Measures
Systems
• Systems Requirements
• Reporting
Contingencies • What-if Scenarios
Section 5: Financial Summary
Desired Outcomes
• Measurements• Timing
Assumptions • Explicitly stated
Numbers
• Revenue and Margin• Costs• By Segment/Geo
/Product Line
P&L• Profit(Loss) Impact• Balance Sheet
Planning Benefits Creating Alignment
Locking in on Strategy
Clearly defining roles and responsibilities
Agreement on Objectives, key measures and desired outcomes
Making the goals (numbers) add up
SegmentationIDENTIFY MEANINGFUL GROUPS OF CUSTOMERS
1. Understand Customer
Needs
2. Group Customers
3. What are the Most Attractive
Groups?
4. Develop Value
Propositions for Target
Groups
5. Develop Go To Market Strategies
Segmentation Principles
Businesses Need to beProfitable
Different customers
have different value drivers
Who do you
choose to serve?
Understanding Customer Needs
What are you looking for?
How have you grouped your customers today?
How do you know that what they are asking for is a “market”?◦ What is an attractive group?
Geography
Demographics (age, gender, etc)
Buying Patterns
Size of Customer
Value of Customer
Industry
Benefits
Customer Needs
Interests
Values
Attitudes
Behaviour
Segmentation Matrix
Market Segments
Customer Segments
Segmentation Matrix (Example)
Premium Performance Value
Professional • Willing to pay top dollar for top quality and features
• Risk averse
• May consider price premium if features are relevant
• Is price conscious but will not accept low quality
• Accepts fewer features
Hobbyist • Willing to pay top dollar
• Willing to pay more if there is a reason
• Wants competitive pricing
Casual User • Will pay for the cool factor
• Product quality and reliability are drivers
• Price is a big factor in what to buy
Mar
ket S
egm
ents
Customer Segments
Customer Value Propositions
Premium Performance Value
Professional • Top of the line Pro Full Frame SLR Cameras with top of the line lenses
• Service Plan
• Not top of the line but next level down
• Product One generation old
• Refurbished lenses?• Service: pay as you go
Hobbyist • Top of the line Compact System w/ interchangeable lenses
• Instructional classes
• Top of the line with one good general purpose lens
• The best combination of features and a great price – a bundle
Casual User • Compact Pocket Camera with all the Bells and Whistles (Wifi)
• Good Product – good warranty – good price
• Basic Camera for occasional use
Mar
ket S
egm
ents
Customer Segments
Segmentation Demands Data
Premium Performance Value
Professional • Number of Customers• Revenue• Growth• Profitability• Market Share
• Number of Customers• Revenue• Growth• Profitability• Market Share
• Number of Customers• Revenue• Growth• Profitability• Market Share
Hobbyist • Number of Customers• Revenue• Growth• Profitability• Market Share
• Number of Customers• Revenue• Growth• Profitability• Market Share
• Number of Customers• Revenue• Growth• Profitability• Market Share
Casual User • Number of Customers• Revenue• Growth• Profitability• Market Share
• Number of Customers• Revenue• Growth• Profitability• Market Share
• Number of Customers• Revenue• Growth• Profitability• Market Share
Mar
ket S
egm
ents
Customer Segments
Group Work - Segmentation
What are the variables in your industry?◦ What are the driving needs?
PersonaREAL EXAMPLES THAT FIT YOUR SEGMENTATION
Shaun B.IT Manager, ABC & Partners
Existing Account | 35 Seats | Canada
Key demographics:- Single, 33 years old
- Middle class Vancouverite- University graduate
Key psychographics:- Hates wait
- Prefers websites over people- Early technology adopter
- Driven by price and promos
Key marketing insight:- Price & availability trumps value-add
message
Emer
ging B
usines
s
( Sub
-50
PCs )Shaun works at ABC & Partners, a fast-paced entertainment law firm in the lower mainland of Vancouver. Because he’s the only IT employee in the office, he often wears many different hats – one day, he’s the primary IT decision maker. Some days, he’s tech support. But one thing is constant – he’s always the IT purchaser.
Shaun has his favorite sites for IT – bestbuy.ca for the one-off retail purchases, and XYZ.com for more sophisticated IT products like servers and software licenses. It’s not uncommon for Shaun to use Google to search for product too. His cousin works at Microsoft, and suggested he give Softchoice a try for his IT needs.
Off the bat, he wasn’t impressed that he had to wait for a buying account. When he received his confirmation email the next day, he visited his new customer portal page.
For the past month or so, Shaun has been using softchoice.com for some of his IT needs. He really liked how peppy the search results were – Shaun is notoriously impatient, and has often left websites (and not returned) if it took longer to load a page than he thought it should.
One of the things Shaun found lacking was a central location for *real* deals and offers - he looked at the promotions section, but wasn’t impressed – it looked like static content.
Sean spends more time online than off – he views most online ads as clutter, but does look at (and sometimes clicks) sponsored links in search engines and sites like linkedin.com.
Unique user goals:- Locate sweet deals ASAP- Self-service tools- Email/txt notifications
Marketing opportunities:- Focus on price point & push run-rate- Notification system for best offers- Feed ego (small biz like to think of themselves as big biz)- Create EB destination point- Viral/WoM
www
scc.com
@scc
@www
g
Key customer touch points:
Sharon C.Lead Purchaser, DDX , INC
Existing BA | 650 Seats | North America
Key demographics:- Married, 37 years old
- Middle class working mother- University graduate
Key psychographics:- Prefers people over websites
- Views technology as a means to an end-- Worried about budget- Driven by saving time
Key marketing insight:-Find them a better way and they’ll stay
Smal
l-Mid
-size
d Busi
ness
( 50-
999
PCs )Sharon has been in the IT industry for nearly 15 years, but has always viewed technology as a means to an end. Sharon leads the team that is responsible for procuring IT product for her entire organization. DDX, INC is a leading North American provider of window fashions. On average, Sharon and her team place 15 orders a week, mostly off their standards list.
A people-person through and through, Sharon has a solid relationship with her Softchoice account team. She rarely used the old softchoice.com – she didn’t mind how it looked, but she could never find what she needed, and ended up calling her ISAM Billie for pretty much everything.
Because her orders are typically off a standards list, Billie has politely been encouraging Sharon to move most of her ordering online.
As a result of her past experience with the website, she was wary to try the new softchoice.com. Billie encouraged her to join a web demo to learn about what the new site has to offer.
Sharon took the tour, and although she agreed to try the site out for the next few weeks, she continued to call Billie for most of her purchasing needs. Sharon did try using Active Quotes with Billie, and enjoyed the simplicity of the tool.
Sharon takes great pride in her relationship with Softchoice. She recently saw an ad in Computer World, and cut it out to hang in her cubicle because her outbound rep was featured. She subscribes to a number of industry trade publications, and sometimes subscribes to IT company newsletters to keep abreast of market trends.
Unique user goals:- On-demand help- Strong order & reporting tools
Marketing opportunities:- Try-and-buy incentives- Webinars- Ads within transactional emails- Create brand advocate- Viral/WoM
.com
@scc
@www
Key customer touch points:
Matthew H.Senior IT Manager, Delta Enterprises
Existing BA | 2,250 Seats | North America
Key demographics:- Married, 41 years old
- Middle class Suburbanite- University graduate
Key psychographics:- Appreciates simplicity
- Sensitive to the realities of IT- Has multiple vendors
Key marketing insight:-Prove that Softchoice is right for my
business
Enterp
rise
( 100
0+ P
Cs )Matthew has been with Delta Enterprises for nearly 10 years, and last year was promoted to Senior IT Manager. Delta in an internationally known manufacturer of networking equipment, and has a presence across North America. As a result of his promotion, Matthew now has a much greater influence on how Delta procures IT products, and from whom.
Because of the over 50 locations Delta has across North America, Mathew has worked hard to design and implement a procurement system that has workflow and approvals. Among other benefits, this gives his remote team a central source for ordering and reporting on the day-to-day IT resources they need. Anything over $5,000 requires Mathew’s approval, and anything over $15,000 needs senior management’s approval.
Delta recently renewed their Microsoft EA, and chose Softchoice to facilitate the renewal. Mathew in particular was impressed with the knowledge of the Softchoice team as it relates to navigating the complex world of software licensing. Until recently, Delta has used Dell for hardware and on-site service support. Over lunch one day with his Outbound rep Jamie, Mathew mentioned they were looking at a large technology refresh next year. Jamie encouraged Mathew to look at HP or Lenovo as options as well. Mathew asked Jamie if softchoice.com could connect with his procurement system. Jamie wasn’t sure, but promised to follow up with him later that day with an answer.
When he got back to the office, Mathew decided to visit softchoice.com on his own to see if he could answer his own question about workflow integration. Matthew couldn’t find any information on workflow integration at all, and wondered if Softchoice would be able to handle his hardware needs after all…
Unique user goals:- Custom workflow integration- Control over website UI
Marketing opportunities:- Clear articulations of our capabilities- Value-add services and solutions- Create Enterprise destination point
scc.com
@.com
@www
Key customer touch points:
Start Simple – Manufacturing Example
Phase I Phase II Phase III
Academic
K-12Library Lab
School Automation
Higher EdUniversities
Vocational Colleges
Corporate
EnterpriseFinancial Services
Oil and Gas
Mid-MarketConsulting
Retail
Segmentation Mistakes Picking the Largest Segment
Failing to identify and invest in emerging segments
Developing Segmentation schemes that are not actionable or the same actions as another segment
Market Disruptions change segments◦ Are Cell phones changing the point and shoot camera market?
More Segmentation Mistakes
Segmenting by product and not by market
Using the same segmentation scheme as you competitors◦ Your offerings will be more alike and harder to justify price differences
Relying on the easiest demographics
Products being the only segmentation
What is easiest from a sales perspective driving segments
Getting too complex – sales organization cannot execute
Customer Profitability Are all your customers equally valuable to your company?
Do you have Angel Customers? and Demon Customers?
Market Segmentation Efficiency is the driver
Without Segmentation:
- you are treating all customers the same
- wasting resources
- trying to be all things to all people
- not giving your sales force any direction
Sales and Customer Plans
So FarWe Know what we Value
We have identified that a Unique Perspective is required
We Know what our Brand is about
We have an overall Marketing Plan
We have Segmented our Customers and know who we want to pursue
So what is a Sales Plan? Looks similar to a Marketing Plan
Marketing language translated into◦ Sales Opportunities◦ Sales Objectives◦ Sales Resources required
Do you have an 80/20 Reality?- 80% of your revenue or profit comes from 20% of your customers
Practical Planning(Back of the Napkin)
1. What will my current customers buy this coming year? Any Annuity?◦ Revenue◦ Profit◦ Products◦ Services What does that add up to?
2. What is my Quota for the coming year?
3. What is the GAP I have to fill?
Fill the Gap (spreadsheet) What is our track record for adding new customers in a year?
What is each new customer worth?
Should I plan for customer attrition?
What new products do we have to sell?
Where can we sell new products to existing customers?
Do I have uncovered territories (segments) that I need additional coverage for? What Quota will I assign?
X $6k Annual GP = $1.3M GP
Remember this?New Customer Acquisition Funnel (Example)
Identified
MQL (Mktg Qualified Lead)
SAL (Sales Accepted Lead)
SQL (Sales Qualified Lead)
New Customer Sale Close 216
Unique Views15%
Conversion %Sales Stage Volume
30%
80%
60%
20%
50,000
7,500
2,250
18001080
Integrated Planning
Key Customers
•Account Plan•Account Plan•Account Plan•Etc.
The Rest
•Territory A•Territory B•Etc.
Segment A
•Key Customer•Key Customer•Etc.•The Rest
Segment B
•Key Customer•Key Customer•Etc.•The Rest
80% 20%
Option 1 Option 2
80%
20%
Key Customer/Account Plan
What is your Strategic position in the account?◦ Why do you win? (Strengths)◦ What could happen that could cause you to lose? (Threats)◦ What competitors are gaining strength in the account? (Weaknesses)◦ What big problems does the customer have that you would like to be solving?
(Opportunities)◦ Where can you make money in this account? (Differentiation)◦ Where are your relationships? What are they based on?
If your company went bankrupt tomorrow what would the customer have to do to keep going?
What do you plan to grow your relationship?◦ Revenue
◦ Products◦ Services
Territory Plans (rep=territory)
What Quota will I assign?
What is a basic expectation of revenue from that set of customers?
What growth does this identify?
What activities will need to happen to:◦ Drive new business?◦ Drive growth in existing accounts?
◦ Selling stuff we have not sold in the past
What Use is the Sales Plan? 2
014 M
arke
ting P
lan
201
4 S
ale
s Pla
n
Consp
iracy
Theorie
s
Bucke
t List
Forecast Reviews1. If the planning process made sense than a commitment to the Goal
is mutual
2. The Territory Plan or Account Plan makes the Objectives for the year very clear
3. The Forecast review is as much about the actions and steps as it is about the $ Forecast. If the rep is not taking the steps can you reasonably expect the results to follow?
◦ Sales Management is about keeping reps on track with the right activities or adjusting based on new information
◦ Every Sales Call therefore has an objective relative to the monthly forecast discussion and the annual Sales Plan
Sales ManagementFORECAST REVIEWS – MONTHLY PLANNING
October ForecastCustomer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 30% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
B-Town Inc. Brampton Expansion
50% $ 9,000 - -
GrowTown International Services
70% - $19,000 -
Tower Vendor of Record 75% - - $15,000
Run Rate $11,000 $11,000 $11,000
Forecast $32,000 $49,500 $126,000
Probability is mapped to Sales Stage that is relevant to your company
November ForecastCustomer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 40% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
GrowTown Vendor of Record 75% - $10,000 $10,000
Google Creative Building 20% $55,000 - -
City of Dallas Property Project 90% $17,000 - -
Run Rate $11,000 $11,000 $11,000
Forecast $95,000 $40,500 $121,000
CompareO
ctob
erN
ovem
ber
November Action LogAction Who Owner/Help By When Purpose
Meet ABC Co. Project Lead Me – take SME
Nov 10 Figure out why this project is stuck
Send Invites All Customers
Me Nov 3 New Product Launch
Post thought leadership Buyer’s Guide - LinkedIn
Me Nov 7 Support Awareness
December ForecastStarts with Review of NovemberCustomer Opportunity Probability 30 Days 60 Days 90 Days
ABC Co. HR Project 40% $12,000 $19,500 -
Jones Bros. Dist. Refresh 90% - - $100,000
GrowTown Vendor of Record 75% - $10,000 $10,000
Google Creative Building 20% $55,000 - -
City of Dallas Property Project 90% $17,000 - -
Run Rate $11,000 $11,000 $11,000
Forecast $95,000 $40,500 $121,000
Nov
embe
r
Sales Management See your job as:
“Getting People Done Through Work”
Not
“Getting Work Done Through People”
Frameworks for Value Props
Price vs. Cost Ever heard this?
◦ Q: Why did we lose? A: Our Price was too high.
Is anybody really a price-only buyer?
How a Sales Rep sees it:
Price
How a Customer Sees it:Total Cost of Ownership
Price
- Upgrade or Replacement
- Switching Costs- Ease of Purchase
- Paperwork and Processing/- Website
-Storage Space- Interest
- Shrinkage and Obsolescence- Depreciation
- Training
- Internal Handling- Labour Costs
- Disposal- Recycling
TCO = Acquisition Costs+ Possession Costs+ Usage Costs+ Disposal Costs
What Value does your company bring that you are not getting
paid for?
Make it Personal
What Value can your customer put on what you bring to the party?
Stage of Development Cause of Happiness/Joy What We Value
7 Service Leading a life of selfless service for the good of the community, nation or the planet.
Opportunities to leave a legacy by serving the needs of humanity and building a better world for future generations.
6 Making a difference Actualizing our sense of purpose by collaborating with others to make a difference in the world.
Opportunities to leverage our impact in the world by forming alliances with others who share the same values, and a similar purpose.
5 Internal cohesion Finding a sense of meaning and a purpose in life that is larger than meeting our own needs.
Opportunities to lead a values- and purpose-driven life that is meaningful to us and valuable for others.
4 Transformation Experiencing a sense of freedom, autonomy and responsibility for our lives and the environment in which we live.
Opportunities to use our gifts and talents by being made accountable for challenging projects or processes of significance to ourselves or others.
3 Self-esteem Feeling acknowledged and recognized by those who we respect and our peers.
Opportunities learn, grow and develop our skills and talents with support, feedback and coaching from people we trust.
2 Relationship Feeling accepted, cherished and nurtured by our family, friends and colleagues.
A caring environment, free from conflict and discrimination, where people are loyal to the group, and respect and care about each other.
1 Survival Feeling safe and secure, and being able to meet our physiological needs at home and in the workplace.
A safe environment and pay and benefits that are sufficient to take care of our needs and the needs of our families.
Economic Comparison (Example)
Category DetailsCustomer’s
CostOur Price
Our Competitor
Acquisition Costs Price $ 899.00 $ 899.00 $ 875.00
Purchasing Process $ 4.00 $ - $ 10.00
Order Quality/Returns $ 4.00 $ - $ 5.00
Possession Costs Storage $ 15.00 $ - $ -
Interest $ 2.00 $ - $ -
Quality Control $ - $ -
Insurance $ 3.00 $ - $ -
Shrinkage/Obsolescence/Depreciation
$ 7.00 $ - $ -
Usage Costs Training $ 15.00 $ - $ 10.00
Internal Handling & Labour Costs
$ 2.00 $ - $ -
Product Replacement $ 3.00 $ - $ -
End-of-life Disposal $ 5.00 $ - $ -
Recycling $ 17.00 $ - $ -
Repurchase or Lease Buyout
$ 4.00 $ - $ -
Switching Costs $ - $ - $ 10.00
TOTAL $ 980.00 $ 899.00 $ 910.00
Segmentation Matrix
Premium Performance Value
Professional • Willing to pay top dollar for top quality and features
• Risk averse
• May consider price premium if features are relevant
• Is price conscious but will not accept low quality
Hobbyist • Willing to pay top dollar
• Willing to pay more if there is a reason
• Wants competitive pricing
Casual User • Will pay for the cool factor
• Product quality and reliability are drivers
• Price is a big factor in what to buy
Mar
ket S
egm
ents
Customer Segments
Value Propositions At our company we value ______________________________
This means we ______________________________
We seek to help Customers who ______________________________
Unlike our Competitors we ______________________________
Answering these questions:
Why should someone purchase your offering?
Why should someone purchase your offering instead of your competitors?
What is most worthwhile for someone to keep in mind about your offering?
Summary
© 2 0 1 3 B Y N I C K F O S T E R O N B E H A L F O F S C H U L I C H E X E C U T I V E E D U C A T I O N C E N T R E ( S E E C ) . A L L R I G H T S R E S E R V E D . N O P A R T O F T H I S P U B L I C A T I O N M A Y B E R E P R O D U C E D , S T O R E D I N A R E T R I E V A L S Y S T E M , O R T R A N S M I T T E D I N A N Y F O R M O R B Y A N Y M E A N S , E L E C T R O N I C , M E C H A N I C A L , R E C O R D I N G , P H O T O C O P Y I N G O R O T H E R W I S E , W I T H O U T W R I T T E N P E R M I S S I O N O F T H E C O P Y R I G H T H O L D E R .
In the future there will only be Content Marketing
- Seth Godin
Where are the fish biting?
Marketing’s Questions
What tackle are they using?
Is it more work then the size or value of the fish?
Can we teach people to use the same principles in their own rivers?
Do we have to compete with other fishermen?
Why will we be more successful than anyone else?
Sales Leadership’s Questions
How do we motivate the fishermen?
How many fishermen are the right number?