Capital Equipment Consulting

Assessing our Assessing our customers and customers and

their requirementstheir requirements

Critical success factors Perceptual and valueCritical success factors Perceptual and valueBenefits sought by customer

Weight Wgtd score us

Best Comp

Us Final Value Justification of feature

Operator ease of use 15 105 90 135 Operator ease converts at 1 min/hr saving enables the operator to handle 2% more samples a day = £20/day = £4500/year

Compatibility with existing

15 105 90 105 £10,000 saving from not having to develop a new calibration

Service 20 140 120 160 Agreed service will keep machine within +/-3%. Each additional 1% drift will cost £10,000/year

Delivery Speed 10 50 60 50 Delivery delay of 1 week costs £2000 to have samples done outside

Total of features % of ours

60 4001.11

360 1.0

450 1.25

Means that features account for 60% of the decision so comp 1 and 2 can stand a 15 and 7% price differential

Perceptual Price differential justifiable from ours

40 155

140 180 To help justify this we must develop quantifiable value justification that the customer accepts as his analysis

Value Price difference 10 Features that develop a cost difference that can be quantified like power consumption

Value adjusted price difference

40 155 150 180 Price allowing for both perceptual and value benefits.

NicNicee

NeeNeedd

Assessing the attractiveness of Assessing the attractiveness of applications/key accountsapplications/key accounts

Criteria for assessing customer/application attractiveness

Weight Wgtd score us

Best Comp

Us Final Comments

Size of segment 15 105 90 135

Competitive intensity of segment

15 105 90 105

% Gross Margins attainable in segment

20 140 120 160

Our market share in segment

10 50 60 50

Growth rate of segment

40 155

140 180

Total 555 500 630

Two considerations for key Two considerations for key accounts/applicationsaccounts/applications

Star Customer

s/ applicatio

n

Development

Customers/ application

Developed

Customers/

application

Regular Customers/ application

High Relative business strength Low

Hig

h C

usto

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Attra

ctive

ness L

ow

1000.00

1500.00

2000.00

2500.00

3000.00

3500.00

4000.00

0 200 400 600 800 1000 1200

Marketing Effort Level (X)

Sal

es

-10000.00

-5000.00

0.00

5000.00

10000.00

Pro

fit

a

b

c

d

Freeze

Show input data

Show Best fit

Zoom X Range

Sales Parameters

Profit Parameters

r

s

t

Show Profit

Profit = ( r - s )* Sales - tXSales = b + (a - b) * d + X

c X

c

Scroll Current Sales function parameters Scroll Profit function parametersView Graph Data

4500

1500

2.2

164349

4500

1500

2.2

164349

1

0.4

0.15

Developing sales response curves in the key Developing sales response curves in the key account, optimising against others and account, optimising against others and

valuing.valuing.

William MarstonWilliam Marston1929 Decision Making Styles 1929 Decision Making Styles

DISCADISCA

Dominance (D) 20%

Gordon Brown/George W

BushTime

Influence (I) 25%Clinton/Obama?

Being Heard

Conscientious (C) 10%

George H W BushBeing Right

Steadiness (S) 35%

Me John MajorBeing Liked

A Acedemic 10%

Tony Blair? Being interested

Abrupt Telephone Manner Friendly Guarded (task) Open (people)

Asse

rtive T

ele

ph

on

e

Man

ner P

assive

E

xtro

vert

Intro

vert

Competitive Negotiating Style Co-Operative

D Dominance Assertive/Task D Dominance Assertive/Task 19% Gordon Brown - Time19% Gordon Brown - Time

Constantly questioning the status quo

Brazenly Outspoken Fearlessly confident Assertive and demanding Determined and driven Visionary

D Dominance 19% - Gordon D Dominance 19% - Gordon BrownBrown??

Description assertive/task

Response - time

Constantly questioning the status quoBrazenly outspokenFearlessly ConfidentAssertive and demandingDetermined and drivenVisionary

Above all establish your credibilityHold your ground, but find the middle groundKeep your emotions – and your ego in checkGo to the source of credibilityDon’t be too detailedBe prepared, be brief and be gone

I Influence Assertive/People I Influence Assertive/People Obama/Clinton 25% - being Obama/Clinton 25% - being

heardheard Enthusiastic Imaginers – blue sky

thinkers Innovative risk takers Pro-active and decisive Responsible and accountable Interactive Bottom Liners

I Influence 25% ?I Influence 25% ?Obama/Clinton – being heardObama/Clinton – being heard

Descrip Descrip assertive/peopleassertive/people

Response being Response being heardheard

Enthusiastic imaginers

Innovative risk takers

Pro-active and decisive

Responsible and accountable

Bottom-Liners Interactive

Give the headlines first

Stay grounded no matter what

Address risks up front

Follow through, follow through, Follow through

Let them sell themselves on it first

S Steadiness Passive/People S Steadiness Passive/People 36% - Me John Major Being 36% - Me John Major Being

Liked Liked Devoted to the tried and trusted Averse to the new Empathetic Deft people handlers Difficult to identify

S Steadiness 36% Michael S Steadiness 36% Michael Howard/John MajorHoward/John Major

Descrip people Descrip people passivepassive

Response being likedResponse being liked

Devoted to the tried and trustedAverse to the newConscientious corporate citizensDeft people handlersEmpatheticDifficult to identify

When in doubt, assumeSupply proof, proof and more proof.Stress people benefitsLink the new to the oldDon’t dive straight into work – have some chatMake sure they agree before moving on Be consultative

C Conscientiousness C Conscientiousness Passive/Task 9%Passive/Task 9%

George W Bush – Getting it George W Bush – Getting it RightRight Fiercely self reliant

Absolute and Resolute Meticulous Unyielding Perfectionists

C Conscientious 9% - George W C Conscientious 9% - George W Bush?Bush?

DescriptionDescription ResponseResponse

Driven by fear of being wrongProactiveFiercely self reliantAbsolute and resoluteMeticulousUnyielding perfectionists

Enable action but don’t force itFly below the radarBuild AlliancesDraw your line and hold to it

A Academic 11% Tony Blair A Academic 11% Tony Blair Being InterestedBeing Interested

Intellectually fluid Balanced Information driven Methodical and process oriented

A Acedemic 11%A Acedemic 11%Tony BlairTony Blair? Being Interested? Being Interested

Description - Balanced

Response Being Interested

Methodical and process orientedInformation drivenQuantitative and preciseRelentlessly thoroughGuarded and cautiousBalancedIntellectually fluid

Tell your story chronologicallyInvolve the thinker in your processBe exhaustive but patientAllow and encourage others to join the thinking

Identify Your Style and Your Bosses Identify Your Style and Your Bosses Style – What do each of them want Style – What do each of them want

and therefore what should your first and therefore what should your first words be to each?words be to each?

Identify Your Style and Your Bosses Identify Your Style and Your Bosses Style – What do each of them want Style – What do each of them want

and therefore what should your first and therefore what should your first words be to each?words be to each?

What Do They Want What they want to hear

D They want to know what and how long you want

I need 20 minutes to get your decision on this

I They want the stage How was your ski-ing trip

S They want to be liked How are you

C They want to decide for themselves after exploring

I would like to ask your opinion on how to deal with a problem we are having with..

A They want to be interested

I would like to discuss with you a problem we are having

What do we say to them?

How do customers respond to our How do customers respond to our selling stylesselling styles

Selling Style D I S C A

D Direct and pushy L D D D

I Friendly and persuasive

L L D L

S Personable D L L L

C Thorough knowledgeable

D D L D

A Explorative D L L D L

We have to be able to adapt or match our team with theirs

In General Concentrate on In General Concentrate on Dominance, Influence and Dominance, Influence and

Steadiness– 79%Steadiness– 79%

First establish credibility and provide proof that you know what you are doing – dominance and steadiness.

Next provide an overview – influence Go through in detail – might hook

the academic Summary of what I just told you.

Capital Equipment Consulting

Assessing Our Assessing Our CustomersCustomers

Decision Making Decision Making RolesRoles

Industrial SellingIndustrial Selling

Economic decision Economic decision makermaker

Usually only 1Can say yes or noCan find a budget or take it awayDifferent for each sale – strategic, first time, rebuy

User User decision decision makermaker

Can be manyCan say yes or no

GatekeepeGatekeeperr

Can say no but not normally yes

Friend or foeYour sponsor

Influencers, Silver foxes The oily rags

Project Sponsors

Role in customer’s decision Role in customer’s decision making teammaking team

Assessing our Customers Assessing our Customers Decision Making Mood to your Decision Making Mood to your

ProposalProposalOn a roll – open to persuasion if you match one of their opportunities

Fire-fighting – open to persuasion if you match one of their threats. Trouble before growth!

Level Pegging – has not

recognised need

Head in the Clouds – no

needs

How can we change Level How can we change Level PeggingPegging

Persuade them trouble or growth is coming

Use pressure from a superior to show level pegging is not sufficient

Wait till things change – especially with head in the clouds.