lead to win bootcamp - day 2

Lead to WinSlide 1Slide 1

Welcome to Lead to Win Wednesday, October 26, 2011


Day 2

Stephen Davies (Third Core Venture Partners)

Opportunity Development – Making & Managing Sales

Natalie Raffoul(Clancy P.C. + Brion Raffoul)

Business aspects of patents and intellectual property

David Hudson(Carleton)

Customer & partner value propositions

Tony Bailetti (Carleton)

Day 2 takeaway messages

Lead to WinSlide 3

Lead to Win

“Opportunity Development – Making & Managing Sales”

Stephen Davies Third Core Venture Expansion Partners

Lead to WinSlide 4Slide 4Slide 4

Agenda

• Overview• Sales drivers• Sales execution strategy• Customer types• Sales funnel• Map funnel information to cash flows• Summary / Tasks Post Phase 2


Overview

• Upon completion,– You will know about

• Sales Execution Strategy• What a sales funnel is• Linking sales to cash flows

– You will know how to• Categorize and prioritize customers• Build a realistic funnel for your organization


Overview

• What this course is– Understanding the drivers of sales– How to setup and manage sales

• What this course is NOT– How to sell– How to market

• Terminology that is assumed– Inside/outside sales– Distribution channel– Direct/indirect sales– Others

Slide 6


Overview

Slide 7


Sales Drivers – Technology Adoption

Slide 8

Based on a graphic by Pnautilus (http://en.wikipedia.org/wiki/File:DiffusionOfInnovation.png), published under a CC BY-SA 3.0 license.

http://en.wikipedia.org/wiki/File:DiffusionOfInnovation.png


Sales Drivers – Technology disruption

Source: Wikipedia


Sales Drivers – Blue Ocean

http://blog.delaranja.com/wii-a-blue-ocean-strategy/

http://blog.delaranja.com/wii-a-blue-ocean-strategy/


Sales Drivers – The Long Tail

Slide 11

Movie rental stores

Online distribution (e.g. Netflix)

Number of products


Sales Drivers – Want vs. Need


What is a feature? What is a benefit?

We sell the benefits of a product or service not the product or service itself

If a feature does not give a benefit to the end user then the feature is useless

Sales Drivers – Features & Benefits


Sales Execution Strategy

Barriers to Sales• There is a lack of available sales talent and sales

leadership talent• There is a distinct lack of clarity and consistency among

investors.• Startup operations are focused on feature development,

not on scaling sales.

Slide 14



Developing a strategy• Who are the most influential customers in the target market?• What are the poignant business issues that they face?• What are the tactical problems that are created?• How might the value proposition address these problems and what

impact would it have?• How motivated might they be to buy, given the value proposition?• Who would they consider the competition to be?• How would the customers perceive the difference between the startup

and its competition?• What would they be prepared to pay?• How and for what would they pay?• Who would they tell?

Slide 15



A working document that contains1. A clearly defined and tested product value proposition relating to the

early and late majority customers in the market.2. Tested price points for the product including quantity discounts.3. Adaptive pricing options along the adoption lifecycle.4. Clear competitor differentiation.5. A set of sales collateral built on the above points and supported by

testimonials from pilot projects.6. A clear target profile of the early and late majority customers to aid in

the tactical implementation of the product sales.7. Timelines for product release based on a realistic product development

strategy.8. A clearly defined plan for ongoing customer service.

Slide 16



Implementation• The efficiency and appropriateness of the manner in which the

prospect is accessed and engaged. The more complex the process and the more senior the decision makers, the more likely a traditional field sales model is appropriate

• The price of the product and its strategic impact on customers’ businesses. The lower the price and strategic impact, the more likely that the use of telephone sales professionals or resellers is appropriate.

• The scale of the market and the depth of relationships required to provide further context. The larger the market and the lighter the touch, the more likely that web-based lead generation and nurturing tools are required to automate and scale the approach used.

Slide 17



Supporting an execution strategy:• Market and domain experience is important but can easily be

overrated. A big rolodex is much less important than most people assume.

• Recruit for demonstrable competency and capability. Both of these attributes are predictors of successful execution. Behavioural interviewing can assist in predicting probable future behaviours.

• Take the time to role play. Ask candidates to walk through a selling conversation for their current company or product. Do they ask lots of questions or do they start pitching straight away? For sales leaders, can they elevate beyond sales theory and actually sketch out a sales execution strategy for the business?

Slide 18


Characteristic Comments• “A” Customers

– ‘Bring me a proposal I can sign.’

• “B” Customers– ‘I like the product, but I need to do more research before I can

decide.’

• “C” Customers– ‘Yes, we have that problem, but I don’t know what to do about it.

We get by. How does your product relate to our situation?’

• “D” Customers– ‘We have no problems like that in our organization.’

Slide 19

Customer Types


Communication• Close “A” customers. Get them to buy your product.• Convince “B” customers: Provide them with additional

information to make a decision, and reinforce your company as the best choice (share of mind)

• Coach “C” and “D” customers and use public presence as a means to gain credibility with them—and access to them.

Slide 20

Customer Types


Customer Types and Technology Strategy• Technology disruptions encounter “C” and “D” customers

– Longer sales cycles– More subject matter expertise marketing– Evangelical sales model

• Technology increments encounter “A” and “B” customers– Shorter or immediate sales– More product level marketing– Direct sales model

Slide 21

Customer Types


What is a sales process

Slide 22

Sales Funnel

Source: Wikipedia


How does it work• We take a generic, or organization specific list of stages

and assign probabilities to each stage.• The probability represents the likelihood that the customer

will move to the next stage of the pipe• New Opportunity (5%)• Initial Communication (10%)• Fact Finding (25%)• Develop Solution (40%)• Propose Solution (60%)• Solution Evaluation (75%)• Negotiation (85%)• Contracts (95%)• Closed won (100%)

Slide 23

Sales Funnel


Sales Funnel

Slide 24

Funnel Stage Confidence of Winning 10%

100%

Day 1

Day 183

20%

45%

60%

80%

90%

Day 22

Day 44

Day 94

Day 160

Day 180

Lead Yield 30 “Raw”

1 Won


Sales Funnel

Third Core starts off with the following assumptions:• 640 quality calls yield • 80 conversations which result in • 16 leads • 4 of which become prospects• 2 of which become qualified• 1 one of which leads to a deal!

Slide 25


Sales Funnel

Sales funnel qualification• Budget. Does the prospect have access to sufficient funds to

make this purchase? Can this be validated?• Authority. Does the “buyer” have the authority to make a

purchase decision? Can this be validated?• Need. Is there a compelling business need for the product or

solution? What is the specific value to the customer? Can it be verified that the need for a solution is meaningful to the customer?

• Timescale. Has the timescale been established during which the need must be addressed? What are the specific steps and timings of the buying process?

Slide 26


Doing it in practice• For simple funnels use excel• If you have a larger number of customers good idea to get

a CRM system, for example:

Slide 27

Sales Funnel


Doing it in practice example 1 (from provided template)

Slide 28

Sales Funnel

Totals/Average 47% $300,000 $142,500 06‐Feb‐10 177

Company Opportunity name Funnel stageStage

probabilityContract value

Funnel value

Est Close Date

Days to close

Steve co Product A New Opportunity 5% $10,000 $500 01‐Jun‐10 291 Bob co Product A and B Initial Communication 10% $50,000 $5,000 15‐Apr‐10 244 ABD Product B Fact Finding 25% $40,000 $10,000 01‐Dec‐09 109 DEF Product A Develop Solution 40% $30,000 $12,000 13‐Feb‐10 183 GHI Product C Propose Solution 60% $50,000 $30,000 15‐Jan‐10 154 Blockbuster Product A, B and C Solution Evaluation 75% $30,000 $22,500 24‐Feb‐10 194 PWGSC Product C Negotiation 85% $40,000 $34,000 04‐Nov‐09 82 CIBC Product C Contract 95% $10,000 $9,500 01‐Sep‐09 18 Lead to Win Product A Propose Solution 60% $30,000 $18,000 01‐Mar‐10 199 Redwood Product B Initial Communication 10% $10,000 $1,000 01‐Jun‐10 291


What is a sales funnel• A tool that help you assess using different metrics how

healthy and balanced your future sales are. It will tell you:– At what stage a customer is in the sales process– What value of opportunity is associated with a customer– How long customers are taking to move down the pipe– Gross figure on how many customers are at what stage– Project $$ revenue forecasts for your cash flow statements

Slide 29

Sales Funnel


Map the funnel to cash flows

Cash flow estimate:

Slide 30

Cash injection into cashflow is:(closing date + credit terms)

at a value of(deal size * funnel stage probability)



Slide 31

With no credit terms

Company Opportunity nameFunnel value

Est Close Date Sep‐09 Oct‐09 Nov‐09 Dec‐09 Jan‐10 Feb‐10 Mar‐10 Apr‐10 May‐10 Jun‐10

Steve co Product A $500 01‐Feb‐10 500$ Bob co Product A and B $5,000 15‐Apr‐10 5,000$ ABD Product B $10,000 01‐Dec‐09 10,000$ DEF Product A $12,000 13‐Feb‐10 12,000$ GHI Product C $30,000 15‐Jan‐10 30,000$ Blockbuster Product A, B and C $22,500 24‐Feb‐10 22,500$ PWGSC Product C $34,000 04‐Nov‐09 34,000$ CIBC Product C $9,500 01‐Sep‐09 9,500$ Lead to Win Product A $18,000 01‐Mar‐10 18,000$ Redwood Product B $1,000 01‐Jun‐10 1,000$

Totals $142,500 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000 $0 $1,000



Slide 32

With 60 day credit terms

Company Opportunity nameFunnel value

Est Close Date Sep‐09 Oct‐09 Nov‐09 Dec‐09 Jan‐10 Feb‐10 Mar‐10 Apr‐10 May‐10 Jun‐10

Steve co Product A $500 01‐Feb‐10 500$ Bob co Product A and B $5,000 15‐Apr‐10 5,000$ ABD Product B $10,000 01‐Dec‐09 10,000$ DEF Product A $12,000 13‐Feb‐10 12,000$ GHI Product C $30,000 15‐Jan‐10 30,000$ Blockbuster Product A, B and C $22,500 24‐Feb‐10 22,500$ PWGSC Product C $34,000 04‐Nov‐09 34,000$ CIBC Product C $9,500 01‐Sep‐09 9,500$ Lead to Win Product A $18,000 01‐Mar‐10 18,000$ Redwood Product B $1,000 01‐Jun‐10

Totals $142,500 $0 $0 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000


Using Exercise #1 – Worksheet1. List 10-20 potential customers and identify customer type

(A,B,C or D) for – Leads– Qualified Prospects– Already engaged

2. Define Funnel Stages and according percentage values.

3. Populate the rest of worksheet for all fields

Slide 33

Exercise #1 – Building Sales Funnel


Exercise #1 - Worksheet

CustomerName

CustomerCharacteristics Product Funnel Stage

Stage Probabitlity(%)

ContractValue

($)

FunnelValue

(Stage Prob * Contract Value)

EstimatedClose

(month/year)

123456789

1011121314151617181920

A: ready to buy New Opportunity 5%B: need more research Initial Communication 10%C: have problem, but get by Fact Finding 25%D: no problem Develop Solution 40%

Propose Solution 50%Evaluate Solution 75%

Negociation 80%Contract 90%

Close 100%

1 2

3


Using Exercise #2 – Worksheet 1. Transcribe Funnel Value and Closing date information filled

in Exercise #1 Worksheet into Exercise #2 worksheet2. For each customer entry, enter the Funnel value into the

appropriate closing date column3. Calculate totals for each months4. Identify your typical credit terms: ___ days5. Change closing date months to reflect credit terms6. Analyze cash flow requirements

Slide 35

Exercise #2 – Sales Funnel Cash Flow


Exercise #2 - Worksheet

Slide 36

FunnelValue

(Stage Prob * Contract Value)

EstimatedClose

(month/year)Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10

123456789

1011121314151617181920

Totals

12

3


In summary

• Focus on required product features that are meaningful to the early and late majority, not on features that only excite early adopters and technology enthusiasts.

• Structure the company operations to enable quick and rapid scaling to support the sales team.

• Develop a sales execution strategy that matches a value proposition to the early majority.

• Roll out the sales execution strategy using real metrics and a funnel that is appropriate to your particular market.

• Recruit effectively (as described above) to maximize the revenue potential and minimize the cost of sale.

• Utilize effective technology to support the sales execution process.• Engage only in marketing activities that directly generate qualified

leads.

Slide 37

Lead to WinSlide 38

Participants Open Discussion

Lead to WinSlide 39

Post Phase 2 Tasks


Task 1 to complete for your business1. Identify appropriate market segment to release technology into2. Review list generated during Exercise #1 and add more target

customers3. Blue ocean helps you differentiate from your competition, even if

you are not disruptive – perform analysis4. This will enable you articulate key differentiators to your target

customers5. Start phoning. For each call categorize the customer6. Identify and implement your own strategies for moving up the

chain7. Only return (initially) to the highest ranked customers for ongoing

business developmentSlide 40

Follow up tasks


Task 2 -Doing it in practice - extend the exampleSimple additions that are valuable are (in no particular order):1. Funnel value by month – vital for cash flow forecasting2. Average number of days per funnel stage (too see where your

“blockages” are)3. Estimated vs actual close4. % dropouts at each stage of the pipeline (closed lost)5. Keep track of the contract value as it changes (initial estimate –

final) to see how accurate your estimating is

Slide 41

Follow up tasks

Lead to WinSlide 42

Lead to Win

““Business Aspects of Intellectual PropertyBusiness Aspects of Intellectual Property””

Natalie Raffoul, P.Eng. (Electrical), J.D. Registered Patent Agent, Lawyer


Disclaimer

• This presentation provides general information regarding some basic principles of intellectual property law. It does not constitute legal advice and should not be relied upon as such.

• If you have a particular question for which legal advice is required, please seek independent legal counsel.

• I am a lawyer, but I am not your lawyer.


Overview

• What is intellectual property?• Protection and Filing Strategies:

– Patents– Trade-marks– Copyright– Industrial Designs

Lead to WinSlide 45

What is Intellectual Property

• Intellectual Property (IP) refers to creations of the mind: – inventions, literary and artistic works, and symbols, names,

images, and designs used in commerce

• Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assets

Lead to WinSlide 46

What is Intellectual Property

• IP is divided into 2 categories:

– Industrial property: inventions (patents), trade-marks, industrial designs, geographic indications of source; and

– Copyright: which includes literary and artistic works

Lead to WinSlide 47

Types of Intellectual Property

• Patents: inventions

• Trade-marks: brands

• Copyrights: expressive works

• Designs: aesthetic features

• Trade Secrets: confidential info

• Domain Names: www.guinness.com

• Integrated Circuit Topography Act

• Plant Breeders’ Rights

http://www.guinness.com/

Lead to WinSlide 48

PATENTS

What does a patent get you?

• Grant of limited monopoly for an invention by government

• Enables owner to prevent others from making, using, importing or selling the claimed invention for a limited time

Lead to WinSlide 49

Patent Basics

• “invention” means any new and useful art, process, machine, manufacture or composition of matter (s. 2 Patent Act)

• Examples: mechanical equipment, computer hardware, software, packaging materials, processes for making products, pharmaceuticals, vaccines etc.

Lead to WinSlide 50

Patent Basics

• Patentability Requirements:

– Subject Matter– Novelty– Non-Obviousness– Utility

Lead to WinSlide 51

Parts of Patent Application

• Specification– Description of problem and prior art– Description of invention and implementation– Drawings are an important tool for understanding the invention

(US requirement)

• Claims– Defines what is protected

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Overview of Patent Process

• Prior art search• File application• Publication• Examination• Prosecution

– Arguments– Claim amendments

• Patent Grant and Annuities

Lead to WinSlide 53

Importance of Dates

• First-to-file systems

– First to file patent application to an invention prevents others from patenting that invention

– NEWS: US has a passed the America Invents Act => now first- to-file in the US with some exceptions

Lead to WinSlide 54

Importance of Dates

• Priority System– Convention priority benefits of earlier date

(months) 0

CA

US

12JP

EPO

Other

Lead to WinSlide 55

Where should I file?

• In which countries are your main competitors?

• In which country are products in your industry usually manufactured or where are your services being sold/used?

• Where is a potential licensee?

• What is the worldwide market for the licensee?

Lead to WinSlide 56

Different Jurisdictions

National Patent Offices◦

Patent issues: e.g., Canada, US, China

EPO (European Patent Office)◦

Covers most of Western Europe◦

EP patent issued but must be validated in various countries

PCT (Patent Cooperation Treaty)◦

Patent application deferral strategy: can delay filing in multiple countries/regions

Lead to WinSlide 57

US Patent and Trademark Office

PROS:• Provides coverage for a large market• Most inventions are patentable • Relatively easy to get a patent

– Claim scope may be affected

• Allows provisional applications• One (1) year grace period for published inventions

Lead to WinSlide 58

US Patent and Trademark Office

CONS:• Case law keeps changing

• Because of changing case law, different rules may be applied to different patents/applications

• Notorious for delays in prosecution• Prior art searching may not be as thorough• Can get expensive if prosecution is prolonged

Lead to WinSlide 59

Canada

• Relatively cheap to file and prosecute applications• Easy to get a patent –Patent Prosecution Highway

(PPH) with US, JP, DK, KO, etc.• Cheaper to litigate than US• One (1) year grace period• Rounds off coverage for North America

Lead to WinSlide 60

European Patent Office

PROS:• Provides coverage for most of Europe• Prior art searching is good• Short prosecution time frame

Lead to WinSlide 61

European Patent Office

CONS:• Expensive to file and prosecute applications• Difficult and expensive to get a patent if you do not

follow Examiner’s lead• No grace period (absolute novelty)

Lead to WinSlide 62

Chinese Patent Office (SIPO)

• Relatively cheap to file and prosecute applications, even with additional translation costs

• Fastest growing consumer market• No grace period (absolute novelty)

Lead to WinSlide 63

Patent Cooperation Treaty (PCT)

• Mid-range in cost• Provides preliminary prior art search and written

opinion on patentability• NO world patent

• However, national/regional examining authorities will not always follow PCT examination results

• News: PCT-PPH Agreement with CIPO

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Filing Strategy Considerations

• Offensive reasons– Infringement is highly likely

• Defensive reasons– Cross-licensing opportunities

• Funding purposes – VCs, angel investors, gov’t funding– Ex: start-up in OT that’s gone bankrupt, but their patent portfolio

is still alive because there is a good technology there

Lead to WinSlide 65

Cost of Patenting vs. Coverage

• Initial Application Costs– Drafting costs for patent application

◦

Depends on complexity of invention ◦

Provisional application - $2.5k to $4k◦

Full application - $4k to $8k ◦

Written for filing in all jurisdictions

Lead to WinSlide 66

Cost of Patenting vs. Coverage

Balance cost vs. advantage/coverage for the application

◦

US application – approx. $2k to fileCovers large potential market

◦

CA application– approx. $1.5k to file◦

Cheap and covers off North America◦

EPO application – approx. $9k to file◦

Covers off most of Europe

◦

PCT application – approx. $5k to file ◦

Delays costs

Lead to WinSlide 67

Pitfalls and Suggestions

• Filing a cheap/poorly drafted application can increase prosecution costs later…

• Badly drafted applications CAN destroy your rights– Improper coverage of invention by bad claim drafting– Missing details may make application useless

• If unsure of patentability of invention, consider a patentability search and opinion

Lead to WinSlide 68

Licensing Economics

• IP Licensing can generate significant amounts of revenue– Corporate example

– MOSAID (Ottawa based tech licensing company)» 3Q 2008 revenue of $14 million (all licensing revenue)» By 3Q of 2008, portfolio will have 924 patents applications

worldwide» Projected 2008 licensing revenue is $55 million» Very aggressive licensing and enforcement regime

Lead to WinSlide 69

Patent Licensing

• Why license?– Generate revenue for research – Can off-load patenting costs

• Why file internationally?– More IP to license: different jurisdictions can be different

licenses– Possibility of technology partnerships with international

industry

Lead to WinSlide 70

Licensing Basics

• Finding licensees– Consider marketing invention– Determine key players in the field– Contact and offer technology– Don’t forget non-disclosure agreement (NDA) if required– Broad-based marketing campaign

• Starting point: Standard licensing agreement

Lead to WinSlide 71

License Terms

• Consider the following for license terms:– Milestone payments– Minimum annual royalties– Signing bonus/fee– Reimbursement of costs for initial patenting activity– Continuing costs of patenting to be borne by licensee?– Percentage royalty on sales or flat license fee?– Who pays for and owns future developments?

Lead to WinSlide 72

Royalty Considerations

• What is a “fair” royalty rate?– US universities generally use the “25% Rule”

• Approx. 25% of licensee’s anticipated pre-tax profits– 25% Rule is a good starting point– Royalty depends on circumstances of the license, the

technology, the market, etc.

• “Risk” or discount factors?– Time to market for product?– Revenue generation timeframe?

Lead to WinSlide 73

TRADE-MARKS

• A patent protects the technical aspect of a product, or know-how. Once you've developed a product, how do you market/sell it?

• This is where trade-marks come in

• Trade-marks = allow you to connect with consumers

Lead to WinSlide 74

According to TM law: the key role of a trade-mark is to identify the source of a product or service.

In other words, to distinguish wares and services of one trader from those of another.

Ex.- DOVE mark identifies soap manufactured by Unilever

vs. Johnson & Johnson

Trade-mark Basics

Lead to WinSlide 75

• In reality, trade-marks do more than merely identify the source of a product/service.

• Trade-marks actually SELL goods and services = visual sound bites

• Advertisers spend millions associating TMs with imagery designed to create impulse buying

• eg. COKE brand creates thirst

Trade-mark Basics

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Branding

• A trade-mark/brand can be the key to business success consumer recognition SALES

– MP3s - Diamond Multimedia Rio PMP300 v. iPod®

– Vodka - GRAY GOOSE® v. SMIRNOFF®

– Not only luxury goods - NO NAME®

Lead to WinSlide 77

Objectives

• What are the objectives of a good brand?– delivers a clear message– confirms credibility– connects you with target consumers– motivates consumers to purchase– creates loyalty, trust and GOODWILL in your

products, services and business

Lead to WinSlide 78

Trade-mark Basics

• What is a trade-mark?

– Word: BURTON– Word & Design: NIKE & SWOOSH– Design: PEPSI Circle Logo– Slogan: “I’M LOVIN’ IT”– Device: Pillsbury Doughboy– Shape: shape of COCA-COLA BOTTLE

Lead to WinSlide 79

Trade-mark Basics– sounds (i.e. NBC chimes)– colour (TIFFANY blue)– smell (scent of cut grass on tennis balls)– Holograms, motion marks

• In Canada, the technical limitations of our legislation, prevents the protection of many non-traditional marks, but the law is evolving.

• Non-traditional marks may still be protectable against passing at common law?

Lead to WinSlide 80

Strong Marks

• strongest marks = inherently distinctive– (a) non-descriptive,– (b) coined or invented, and– (c) unique

• Ex: EXXON ®, XEROX ®, KODAK ®

• strong marks - words that bear no relation to the product, industry or field– APPLE ® for computers– RED ROSE® for tea

Lead to WinSlide 81

Weak Marks

• Weak marks: words that have a clear connection with, or are descriptive of the wares and services

• Ex:– ALL BRAN for cereal

Lead to WinSlide 82

Strong Marks

• By selecting a trade-mark that is non-descriptive, unique, and preferably coined, you

– increase the sphere of protection for your trade-mark and

– minimize the risk that your trade-mark will infringe other trade-marks in the marketplace

Lead to WinSlide 83

NOT Registrable

What is NOT registrable as a trade-mark?

– word(s) that are primarily merely the name or surname of an individual who is living

• Ex. SMITH (exception marks that have acquired distinctiveness i.e. “GIORGIO ARMANI”)

– words that are clearly descriptive or deceptively misdescriptive of wares/services or their place of origin

• "FOAMY" for shaving cream• "MEXICAN" for tequila• "SILK WEAR" for clothing that is not made of silk

Lead to WinSlide 84

NOT Registrable

• the name in any language of the wares or services– Spanish JUGO for juice

• anything that is confusing with a prior registered trade- mark

• Prohibited marks (incl. Obscene marks, Official Marks, Flags, Red Cross...)

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Searching

• Once you have identified a potential TM, the next step REGISTRABILITY SEARCH

• Not mandatory but HIGHLY recommended– Will save you time and $$– Will help you identify obstacles to both

registration and use of the mark – Better to know in advance – registration

process is over 18 months!

Lead to WinSlide 86

TM Registration Process

• Trade-mark protection is national in scope therefore you will need to conduct searches and file applications in each jurisdiction where the mark will be used

• Canadian Registration Process in a Nutshell– Filing Formalities Examination Approval Publication

Opposition (if any), Allowance Registration – Canada is now essentially a first to file jurisdiction - DON'T

DELAY– Any number of wares and services - no extra cost BUT choose

carefully b/c will need to prove USE

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Registration

• The Registration Process in a Nutshell

– Registration process = long 18 months, or longer if application is opposed.

– Term of Registration is 15 years (most other jurisdictions, only 10)

– Cost is in range of $2000+ for straight-forward trade-mark prosecution

– Trade-marks may be renewed in perpetuity

Lead to WinSlide 88

Benefits of Registration

What are the benefits of a TM Registration?• “right to the exclusive use of the mark across Canada"

in relation to goods/services specified in registration”• Tangible proof of ownership• Public notice – deters others from adopting/using a

confusing mark• TM Office will reject subsequent applications that are

confusing with registered marks• A trade-mark registration is useful for protecting a

domain name

Lead to WinSlide 89

Unregistered Marks

• Are unregistered marks protected?

– Yes, BUT…– Common Law rights are limited:

• restricted geographically• remedy limited to an action for "passing off"

(cannot sue for infringement, depreciation of goodwill)

• expensive to enforce

Lead to WinSlide 90

• “Passing off” aims to prevent misrepresentation

• MUST prove:• A reputation or goodwill• A misrepresentation by the defendant causing

deception • Damage/Injury to the plaintiff

Lead to WinSlide 91

5 KEY POINTS

1. Canada is a use-based jurisdiction

– USE IT OR LOSE IT: Registrations can be expunged for non-use

– BE CAREFUL as to the date of first use:• If actual use of the mark commences after the

date of first use claimed, the application may be successfully challenged

Lead to WinSlide 92

5 KEY POINTS

2. Avoid Generic Use of TM– "Pass me a Kleenex" = WRONG– "Pass me a Kleenex® tissue" = CORRECT

– a trade-mark should never be used as a noun, in possessive form or plural form - ALWAYS as adjective

– the trade-mark should appear in a manner to stand out from regular text

– Ex: CAPITALIZATION, "quotation marks", italics, bolding, ® symbol

Lead to WinSlide 93

5 KEY POINTS

3. Trade-mark "Marking"

– TM / MC symbols can and should be used on all unregistered trade-marks

– ®/ MD symbol can only be used on a registered trade-mark

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5 KEY POINTS

4. Quebec– doing business in Quebec requires compliance with

their language laws

– can use an English trade-mark in Quebec provided that:

• you use the ®/MD (marque deposee), OR TM/MC (marque de commerce) symbols as notice that you are using the English word(s) as a trade-mark

Lead to WinSlide 95

5 Key Points

5. Trade-mark v. trade name / business name?

• CAUTION: Clients often confuse a business name registration, and a TM registration

• NOT the same thing

Lead to WinSlide 96

Trade-mark v. Trade Name

• A trade (business) name is a name under which an individual or company carries on business– must registered in each province in which company carries on

business– purpose = registry for consumer protection– does not grant positive rights to a trade-name or name

(Ministry shifts onus/risk)– does not function as a trade-mark

Lead to WinSlide 97

COPYRIGHT

• Copyright means

– the sole right to produce or reproduce (i.e., copy) a work (or a substantial part of it) in any form

– Simply put, “copyright” means “the right to copy”

Lead to WinSlide 98

Copyright Basics

• Copyright provides protection for

– Literary, artistic, dramatic or musical works (including computer programs) and

– 3 other areas known as: performances, sound recordings and communication signals

Lead to WinSlide 99

Copyright Works

• literary works: books, pamphlets, poems, other works consisting of text, lyrics without music and computer programs

• dramatic works: films, videos/DVDs, plays, screenplays and scripts

• musical works: compositions that consist of both words and music, or music only

• artistic works: paintings, drawings, maps, photographs, sculptures and architectural works

Lead to WinSlide 100

Other Subject Matter

• performer’s performances: performers such as actors, musicians, dancers and singers have copyrights in their performances

• sound recordings: makers of recordings, such as records, cassettes, and compact discs

• communication signals: broadcasters have copyrights in the communication signals that are broadcast


What you can’t copyright

• titles and short word combinations• ideas: copyright is restricted to the expression in a

fixed manner of an idea, not the idea itself• names or slogans• methods• plots or characters


What you can’t copyright

• factual information: facts, ideas and news are all considered part of the public domain

• although layout, adaptations and translations of factual information are protected by copyright– Ex: magazine article containing factual

information: it is the expression of the information that is protected and not the facts


Automatic protection

• When you create a work or other subject matter protected by copyright, you automatically have copyright protection provided that, at the time of the creation, you – the Creator – were:– a citizen/subject/resident of a Berne Convention country, a

Universal Copyright Convention Country, a Rome Convention Country, or a country that is a member of the WTO


Benefits of Registration

• You don’t have to register to have copyright protection in Canada

• A certificate of registration is evidence in court that the registrant is the copyright owner

• But in some countries, you cannot pursue infringers without registration– Ex: United States


Registration Limitations

• Registration does not guarantee against infringement

• Registration does not guarantee that the legitimacy of ownership or originality in a work will never be questioned


How long do copyrights last?

• General rule is that copyright lasts for the life of the author, the remainder of the calendar year in which the author dies, and for 50 years following the end of that calendar year– Protection will expire on December 31 of the 50th year

after the author dies– After that, the work becomes part of the public domain

• Some exceptions to the general rule apply


Indicating Copyright

• There is no requirement to mark your work under the Copyright Act

• However, the Universal Copyright Convention provides for marking with the symbol ©, the name of the copyright owner and the year of first publication – Ex: © Jane Doe, 2011

• Some other countries require such marking


“Fair Dealing"

• Under Copyright Act, “Fair Dealing” provisions allow individuals or organizations to use original works without such use being considered an infringement:– Criticism and review– News reporting– Private study or research

• Act also exempts certain categories of users– Ex: non-profit educational institutions


INDUSTRIAL DESIGNS

• Industrial Designs are the visual features of shape, pattern, configuration or ornament (or any combination of these features) applied to a finished manufactured article made by hand, tool or machine

• An industrial design must:– Have features that appeal to the eye– Must be original


Industrial Design Basics

• A unique design for a chair is an example of an industrial design

• A well-designed chair is not just a pleasure to sit on, but also a pleasure to behold

• For most manufactured products, the value depends not only what they do, but how they look


REGISTRATION

• Registration provides an exclusive right to your design for up to 10 years from the date of registration

• Under the Industrial Design Act, you cannot register:– A method of construction– An idea– The materials used in the construction of an article– The function of an article


REGISTRATION

• You can register:– A repeat pattern applied to wallpaper– The shape of a perfume bottle (trade-mark protection also

available if distinguishing guise)– The ornamentation applied to a t-shirt– The visual features of a running shoe


REGISTRATION

• You can’t register:– The way an MP3 player functions– The material of which a protective mask is made– The idea of putting advertising on bus shelters


REGISTRATION

• When to register?– In Canada, there is no time limit for registration as long as the

design has never been published• Never made public or offered for commercial sale or use anywhere

in the world– If your design has been published, you must file a registration

within 12 months of publication


REGISTRATION

• Examination and Search– Application will be examined to ensure that it conforms with the

formalities of the Act– Examiner will also undertake a search of existing industrial

designs to determine whether your design is original– If the design is original and the application conforms to all of the

requirements, a registration will be granted


PRIORITY

• Paris Convention Priority– Similar to patents, applicants can request convention priority for

design applications– Someone who has filed for a design registration in one

Convention country has six (6) months to file an application for the design in another country in order to be given the same rights as if s/he had filed in the second filing country onthe original filing date


In Summary

Slide 117

Patent Fundamentals

• File early, file often – earliest inventions most valuable

• The “threshold” for patentability is lower than you think!

• Software is patentable

• Do not disclose before filing (use NDA if necessary)

• Work with licenced professionals


In summary

Slide 118

Trade-mark Fundamentals

• Go with a strong mark: “inherently distinctive”

• Avoid its generic use

• Register!


In summary

Slide 119

Copyright Fundamentals

• Assert your rights by marking all works with © …

• Software is better protected by patents

Industrial Design Fundamentals• Explore this form of protection if your product is likely

unpatentable


Participants Open Discussion


Customer & Partner Value Propositions

October 26, 2011

David Hudson


Define compelling value propositions for customers and partners

• Upon completion you will know about:– Compelling customer value propositions– Ways to define customer value propositions– Value word equations

• And you will be able to:– Use customer value propositions to communicate an offer’s

superior value and deliver superior business performance – Use value word equations to make value propositions persuasive


What a value proposition is NOT

• All of the following are useful but are not a value proposition in themselves– Product/Technology/Service– Brand– Slogan– Ad/collateral– IPR– Secret sauce

• A value proposition need not be static– May evolve as your market, customers, competitors evolve– Likely to retain core elements


Market offers

• A market offer (offer) defines: – What is purchased – Rights over what is purchased– How it is purchased

• Offers:– Get jobs done for customers– Solve problems– Satisfy needs that customers have– Reduce cost or drive revenue for your customer


Customer value

• Value a company delivers to its customers is referred to as customer value and can be assessed as:Customer value =

Benefits from what is purchased + Benefits from how it is purchased + Emotional benefits – (Financial + Non-financial burdens)

• This is about why a customer purchases instead of what a customer purchases and fundamentally overcomes three issues– Customer does nothing– Customer does what the competition says– Customer does what you say, but not at your price


Partners as force multipliers

• Your other stakeholders may include channels, suppliers, complementors, customers’ customers, ecosystem, etc.

• Value propositions for key stakeholders need to be as compelling as customer value propositions– E.g., a company that has a channel partner as part of its go

to market strategy will need to deliver both compelling customer value and compelling channel partner value

• Partners, suppliers, ecosystem all make choices too!– Likely competing for attention, position, priority, mindshare

• Partner relationship may not be financial, so equation may deal primarily with emotional benefits


Partner value

• Partner value = Net financial + emotional benefit – Non-financial burdens + Collaboration benefit – Collaboration burden

• Ecosystem collaboration benefits:– Market entry barrier reduction– Access to customers– Operations cost reduction– Elimination of regional limitations– Makes niche markets viable– Leverages international disparities– Makes scarce skills abundant– Community/asset reuse


Challenges

• Term “customer value proposition” is used widely, but no agreement as to what it is

• Unsure as to what makes one compelling• Loose talk, not backed up by evidence• Value that is intuitive but not quantified or not

uniquely owned• We often talk more than we listen• We often try to put too many points on the table• Customers do not believe suppliers’ assertions


Strategy – deliberate, not accidental

• Deliver superior value relative to competitors which is measurable and sustainable

• Make all-in company responsible for defining compelling customer value propositions

• Define customer value propositions of “resonating focus” type

• Use customer value propositions to:– Communicate your offer’s superior value– Deliver superior business performance

• Use value word equations to make customer value propositions persuasive

• Use process and tools to demonstrate value


All benefits

All Benefits Favorable Points of Difference

Resonating Focus

Consists of: All benefits customers receive from an offer

All favorable points of difference a market offer has relative to next best alternative

Few points of difference whose improvement will deliver the greatest value to customer

Answers customer question:

Why should our firm buy your offer?

Why should our firm buy your offer instead of your competitor’s?

What is most worthwhile for our firm to keep in mind about your offer?

Requires: Knowledge of our own market offer

Knowledge of our own market offer and next best alternative

Knowledge of how our own market offer delivers superior value to customers compared with next best alternative


Favorable points of difference


Resonating Focus












Resonating focus


Resonating Focus












Resonating focus

• Also meaning, concise and to the point• At most two or three key points

– Like a good essay, a good argument

• There are likely many benefits to your product or service but you must establish which are critical to the purchase decision

• Concentrate on those points


Most of us

• Need to discover these with our customers and partners– But we don’t always listen because we’re busy talking!

• Every pitch is a learning experience• If you have the benefit, ensure one person from your

team is actively listening– Asking questions– Probing for why– Restating and getting confirmation

• Resist the temptation: “They didn’t get it”


Value elements

Point of difference

Element that makes supplier’s offer either superior or inferior to next best alternative

Point to distance yourself from all other offers

Point of parity

Element with essentially same performance or functionality as those of next best alternative

Point to take off the table

Point of contention

Element about which the supplier and its customers disagree regarding how its functionality or performance compares with those of next best alternative

Point to counter (often these are the competitor’s points of difference)

Find significant – order of magnitude – points of difference for which customers are willing to pay


Make value propositions compelling

Fits: Fits with customers’ and channel partners’ needs to grow and/or make pain go away

Value for all roles:

Satisfies requirements and power relationships of who really buys: (i) economic buyer; (ii) user; (iii) gatekeeper; and (iv) advocate

Superior: Better than those of competition (order of magnitude)

Demonstrable: Based on tangible points of difference that can be quantified in monetary terms

Substantiated: Claims supported by evidence collected with customers and channel partners

Sustainable: Sustainable for a long time


Use value word equations to bring sharp focus on value

• Focus on points of difference• Equation that concretely demonstrates customer

value proposition using words with which customers are familiar

• Power reduction cost savings = [kW spent x number of operating hours per year x $ per kW hour x number of years system solution in operation] Competitor

- [kW spent x number of operating hours per year x $ per kW hour x number of years system solution in operation] My Business Unit


Demonstrate value

Pre-sale talk• Promoters’ endorsements• Published comparisons and

rankings• Case histories• Value calculators• Data collected in customers’

premises• Benefit guarantees

Post sale evidence• With customer define what will

be tracked, track, and document results

• Evidence of post sale impact is highly valuable intellectual property• Collect data from customer sites and develop relationships while doing so• Reference accounts and data for quantified points of difference


Moment of truth

• Define the compelling value proposition for your business– Identify your (a) Customer and (b) Partner Value Props

• Write them down• Be brutal: at most 2-3 points each

– Present your value prop back to the group here. • 5 minutes MAX


References

• Anderson, J.C., Narus, J.A. & Van Rossum, W. (2006) Customer value propositions in business markets. Harvard Business Review.


Day 2 takeaways

October 26, 2011

Tony Bailetti


Day 2 takeaways

lead to win bootcamp - day 2

Business

product sales

drivers of sales

scaling sales

sales theory

strategy lead

sales leadership talent

set of sales collateral

sales drivers blue oceanslide