Sales and Marketing Club St. Petersburg

Aims

To improve sales performance through a better understanding of its relationship to strategy

Provide the opportunity to think about business and exchange ideas with colleagues

SalesPerformance

Targeting

Innovation

Information

People

Management

Positioning

ClientNeeds

Promotional

Vision/Mission

Product/service

Processes

Business Strategy

Sales Performance

Strategic Context

How do we create value?

How do we make money?

Key Issues

Stakeholders

Clients

Shareholders

Fellow Employees

External Partners

We create value for all stakeholders by solving problems for them now & in the future

Creating Value

Strategic Direction

Vision “A car for every purse and purpose”

Alfred P. Sloan GM

Mission“To improve the quality life by enabling peopleTo do more, feel better, live longer”

Glaxo Smith Kline

Focus & Guidance

for everyone

ADAPT Macro

PE

L

T S

E

INFLUENCE Operating C

ompetitive

position

Mar

kets

&

C

lient

s

Value networks

Offering, Capability&

Performance

CONTROL Internal

Current position&

Future developments

Business Environments Don’t forgetthe key players

PoliticalEconomicSocialTechnologicalLegislativeEnvironmental

The Business Environment

Creates opportunities

Changes current clients needs

Those who count know, those who don’t know, don’t count

Competing for the Future

To succeed we must see product and market

opportunities not seen by others

What forces are already at work that will change this industry?

Macro Operational Internal

Case Study – Dell’s Dilemma

Key Issues for Future Growth

Segmenting & targetingCustomer identity & value

Creating value for clients - differentiationBeating the competition

Positioning/BrandingEngaging the client

All based on effective information and analysis

Segmentation and Targeting

We exploit target markets to achieve our sales objectives

Key Questions

What are your target markets ?

Why are they attractive?

What strengths do you need to exploit them?

Target Markets/Clients

Why Segment?

Identify sales opportunities(those able and willing to buy)

Define products and services

Allocate sales & marketing effort effectively.

Tailor the offering and sales approach to client needs

Focus

What markets/segments are there?

All pc buyersSize160 million units pa, av. growth 15%

All pc buyers in the UKSize 6.0 m units pa

Growth 10%

All pc buyers For home use

Size 2.5 m. units paGrowth 12%

All pc buyersFor workplace useSize 3.5 units pa

Growth 7%

GamesSize 1.5m paGrowth 15%

Home workingSize1.0m paGrowth 7%

FinancialServices2.0m paGrowth

8%

Distribution1.5m pa

Growth 5%

Recruitment0.5m pa

Growth 4%

GlobalMarket

Organisational size& sector

Customer base

Use of technology

Public/private sector

Geographic/location

Benefit sought

Price sensitivity

Why do they vary?

Typical Segment Profiles

Large

Medium

Small

Shipping

Telecoms Distribution Manufacturing

IBM - Industry Solution Units based on major industrial sectors

Sector

Size

Recruitment Entertainment

Health care administrators

Physicians

Cost conscious

Medical thought leaders

Each segment requires a distinctive marketing programme

Astra/Merck

Typical Attractiveness Criteria Size Growth

Profitability

Stability Competition

 

Which ones do we target?

Can we compete?

Typical Company Strengths Brand Service levels Price competitiveness

Product/service mix Ability to innovate

Quality

MarketAttractiveness

High

Low

Company StrengthLow High

Exploit Invest

Ignore Harvest

Conclusions

Product/Service 1

Product/ Service 2 Product/ Service 3

Product/Service 4

TargetMarket 1

TargetMarket 2

TargetMarket 3

TargetMarket 4

t/o10.0np 0.2

t/o 3.0np 0.3

t/o 8.0np 0.5

t/o 7.0np 0.8

t/o 2.0np 0.2

t/o 10.0np 0.2

t/o 11.0np 0.8

t/o 9.0np 1.0

t/o 17.0np 1.0

t/o 3.0np 0.3

t/o 10.0np 0.7

t/o 30.0np 2.0

What shall we sell to who?P

roduct contribution to target

Market contribution to target

Client Value Creation

Clients don’t buy products and services

they buy solutions

“In the factory we make cosmetics,in the store we sell hope”

Charles Revson

People don’t buy drills they buy holes

Creating Value for Clients

Understand client’s value chain

Make it work better

Use partners if necessary

Creating Value for Clients

Procurement

Stock

Supplier search

Work in progress

Finished goods

Sales

Order processing

Billing

Debtor management

Credit check

Finance & insurance

Operating Systems

Credit control service ID/factoring

Operatingsystems

Credit insurancePayment systems

For example

Change client’s perception of valuee.g. solution quality, delivery, customer contact,

Boost level of value expected & put it beyond reach of competitors

Create barriers to entry for potential competitors

Competitive Advantage!!!!

Outcomes?

What problems are you solving for them? What problems could you solve for them?

What benefits are you providing for them?

What benefits could you provide for them?

What will delight them?

Key Questions

Client EngagementPositioning and Branding

Objective

Create a position in the perception of target market buyer that is aligned with their needs but different & more highly valued than that of competitors.

How do you want to be perceived by the target buyers?

Client Engagement - Positioning

Conservative Sporty

Upscale, Classy

Practical, Affordable

Positioning Map

Audi TT

VW Passat

Seat Leon

Skoda Octavia

Audi A8

Virgin Mobile

Target Market Young people with active social lives

PositioningA lifestyle necessity, not a business tool

Position

Advertising strategy

Product/service set

Channel

Employeebehaviour

Sales approach

Pricingstrategy

Making it Work

A unique & enduring set of feelings associated with a particular product or service.

Brands are a critical corporate asset

Brands can be dropped, sold, built, acquired & stretched

Brands

Increased client loyalty & profitability - Microsoft

Business focus – Ecomagination GE

Greater influence in the channel - Tesco

Easier access to new markets - McDonalds

Support for the sales force – IB

= Competitive Advantage

Branding Benefits

A good product/service – it works A distinctive identity which adds value - BMW Challenges the status quo, setting trends - Amazon Best known in class - Intel Associations

Loyalty

Basis of Brand Strength (Equity)

Personal Effectiveness

Aim

To ask each of you to consider some of the elements that make it possible for you to continue to succeed as individuals & take some action based on your conclusions.

Three Types of People

Type1. Are doing what they should be doing

Type 2. Are asking what they should be doing

Type 3. Have trained themselves not to ask

External Elements

You BeliefsPerceptions Feelings Capability

Behaviour

Company

Family

Business environment

Friends

Colleagues

Your Position

I can do what I believe I can do

I can find the evidence to support my beliefs one way or the other

Beliefs

Winner tapes

I’m ok but I can be better

I made a mistake but I'll fix it

There must be a better way

Loser tapes

I’m not as bad as a lot of people

It’s not my fault it’sthe system

We’ve always done things this way

Perception

Feeling ok makes it easier to:

Achieve results

Inspire those around you

Live life to the full

Challenge the status quo

Feeling bad makes you more likely to

Not achieve results

Depress thosearound you

Avoid life

Stay the same

Feelings

Personal Capability

Skills

Knowledge

Experience

Personal Qualities

Diagnosis

Where are you now?How did you get here?

Prognosis

Where are you going as things stand?

Personal Situation Appraisal

Goals work!!!! FACT

People with goals get better results than people without goals

What do you want out of your life? Where do you want to go in your career?

State your personal and professional goals for five years from now

Objectives

What do I believe will influence the future for me over the next five years?

Big picture? Local picture?

Personal circumstances & capability?

State the key influences on your future

The Influences

Identify two things that may preventyou from succeeding and prepare a plan to overcome

these obstacles.

Identify two things that will help you to succeed and prepare a plan that will enable you to

take advantage of them

What must I do tomorrow?

You get what you measure, so be careful what you measure

Monitor your personal outputs/performance

Measure your inputs

Learn the relationship between them for you

Control

Maintain your sense of humour

Burn the past daily, live in this moment

Don't be guilty - either don't do it or enjoy it

Plan your future instead of worrying about it

Commit to high performance & its consequences

Remember

The greatest qualities of all.........

Enthusiasm & Pride