first “go market” steps · 2015. 4. 4. · 7 first “go-to-market” steps pradeep anand april...
TRANSCRIPT
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7First “Go-to-Market” Steps
Pradeep AnandApril 2015
[email protected]; +1 281 797 0797; www.seeta.com
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Table of Contents
• Introductions
• Go-to-Market Principles
• Seven First “Go-to-Market” Steps
• Summary
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Pradeep AnandFocus: Successful Commercialization of Technologies in the Oilfield
• Vice-President, Marketing, Landmark Graphics
• Manager, North American Operations, Baker CAC, Baker Hughes
• Marketing/Business Development Manager, LWD/MWD, NL Sperry-Sun
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Pradeep AnandFocus: Successful Commercialization of Technologies in B2B Space
• Vice-President, Marketing, Landmark Graphics
• Manager, North American Operations, Baker CAC, Baker Hughes
• Marketing/Business Development Manager, LWD/MWD, NL Sperry-Sun
• Oil & Gas – AirXChangers, Baker Hughes, Baroid Corporation, Daniel Industries, Dresser Industries, Dresser Oil Tools, Key Energy, Integrated Exploration Systems (Germany), Landmark Graphics, NL Industries, Numar, OFS Portal, Petrabytes, Photon, PGS-Tigress, Praxis, Preng & Associates, SigmaCubed, Sperry-Sun, Object Reservoir (US Venture Partners), Volumetrix
• Engineering/Manufacturing — Aggreko, Astralloy, CompX, Continental Carbon, Excell Minerals, Express Integrated Technologies, Fabsco, Fort Lock, Gundle/SLT Environmental, Harsco Corporation, Harsco Industrial, Harsco Infrastructure, Harsco Metals & Minerals, Harsco Track Technologies, Hendrickson Trailer, IKG Industries, MultiServ, National Cabinet Lock, Nutter Engineering, Ohmstede, OnePoint, Patent Construction Systems, Patterson-Kelley, Reed Minerals, SGB, SteelPhalt, VisionMonitor Aviation Software, Waterloo Furniture Components
• Technology — AMD, Sun Microsystems, Wipro Syntel, Wipro, Metasolv, NobleTek, Avalon Imaging, Scicom, Silicus, Laversab, Facet, Zresearch
• Other — Kanaly Trust, Fort Bend Independent School District, American Sleep; Willy, Nanayakkara, Rivera & Goins
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Pradeep AnandFocus: Successful Commercialization of Technologies in B2B Space; Mentor/Train/Teach
• Vice-President, Marketing, Landmark Graphics
• Manager, North American Operations, Baker CAC, Baker Hughes
• Marketing/Business Development Manager, LWD/MWD, NL Sperry-Sun
• Oil & Gas – AirXChangers, Baker Hughes, Baroid Corporation, Daniel Industries, Dresser Industries, Dresser Oil Tools, Key Energy, Integrated Exploration Systems (Germany), Landmark Graphics, NL Industries, Numar, OFS Portal, Petrabytes, Photon, PGS-Tigress, Praxis, Preng & Associates, SigmaCubed, Sperry-Sun, Object Reservoir (US Venture Partners), Volumetrix
• Engineering/Manufacturing — Aggreko, Astralloy, CompX, Continental Carbon, Excell Minerals, Express Integrated Technologies, Fabsco, Fort Lock, Gundle/SLT Environmental, Harsco Corporation, Harsco Industrial, Harsco Infrastructure, Harsco Metals & Minerals, Harsco Track Technologies, Hendrickson Trailer, IKG Industries, MultiServ, National Cabinet Lock, Nutter Engineering, Ohmstede, OnePoint, Patent Construction Systems, Patterson-Kelley, Reed Minerals, SGB, SteelPhalt, VisionMonitor Aviation Software, Waterloo Furniture Components
• Technology — AMD, Sun Microsystems, Wipro Syntel, Wipro, Metasolv, NobleTek, Avalon Imaging, Scicom, Silicus, Laversab, Facet, Zresearch
• Other — Kanaly Trust, Fort Bend Independent School District, American Sleep; Willy, Nanayakkara, Rivera & Goins
• Adjunct Faculty, Rice University’s MBA Program: Teach “Marketing in the Energy Industry”; Commercializing Technologies in the Oil & Gas Industry
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Pradeep AnandFocus: Successful Commercialization of Technologies in B2B Space; Mentor/Train/Teach
• Vice-President, Marketing, Landmark Graphics
• Manager, North American Operations, Baker CAC, Baker Hughes
• Marketing/Business Development Manager, LWD/MWD, NL Sperry-Sun
• Oil & Gas – AirXChangers, Baker Hughes, Baroid Corporation, Daniel Industries, Dresser Industries, Dresser Oil Tools, Key Energy, Integrated Exploration Systems (Germany), Landmark Graphics, NL Industries, Numar, OFS Portal, Petrabytes, Photon, PGS-Tigress, Praxis, Preng & Associates, SigmaCubed, Sperry-Sun, Object Reservoir (US Venture Partners), Volumetrix
• Engineering/Manufacturing — Aggreko, Astralloy, CompX, Continental Carbon, Excell Minerals, Express Integrated Technologies, Fabsco, Fort Lock, Gundle/SLT Environmental, Harsco Corporation, Harsco Industrial, Harsco Infrastructure, Harsco Metals & Minerals, Harsco Track Technologies, Hendrickson Trailer, IKG Industries, MultiServ, National Cabinet Lock, Nutter Engineering, Ohmstede, OnePoint, Patent Construction Systems, Patterson-Kelley, Reed Minerals, SGB, SteelPhalt, VisionMonitor Aviation Software, Waterloo Furniture Components
• Technology — AMD, Sun Microsystems, Wipro Syntel, Wipro, Metasolv, NobleTek, Avalon Imaging, Scicom, Silicus, Laversab, Facet, Zresearch
• Other — Kanaly Trust, Fort Bend Independent School District, American Sleep; Willy, Nanayakkara, Rivera & Goins
• Adjunct Faculty, Rice University’s MBA Program: Teach “Marketing in the Energy Industry”; Commercializing Technologies in the Oil & Gas Industry
• Engineer (IIT Bombay) + MBA (University of Houston)6
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Purpose of a Business
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Deliver Value to Customers
Realize Value for Stakeholders
• Revenue Addition• Cost Reduction• Improve Return on Capital
Benefits
Value
Products Services
Pricing Effectiveness
Price on Valueand
What the Market can Bear
Get & Keep Right Customers
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Purpose of a Business
9© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Deliver Value to Customers
Realize Value for Stakeholders
• Revenue Addition• Cost Reduction• Improve Return on Capital
Benefits
Value
Products Services
Pricing Effectiveness
Price on Valueand
What the Market can Bear
Get & Keep Right Customers
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Purpose of a Business: Create Value Spiral
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Go-to-Market Process
11
Shoot!Aim!
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Go-to-Market Process
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Competition
Customers
Company
Climate
Where are we?
Four Cs
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Go-to-Market Process
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Competition
Customers
Company
Climate
Strategy&
Tactics
Where are we? Where can/should go?
Four Cs
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Go-to-Market Process
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Competition
Customers
Company
Climate
Strategy&
Tactics
Where are we? Where can/should go? How do we get there?
Four Cs
Five Gearsof
Growth Engine
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Go-to-Market Process
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Where are we? Where can/should go? How do we get there?
Competition
Customers
Company
Climate
Strategy&
Tactics
Four Cs
Five Gearsof
Growth Engine
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7 First “Go-to-Market” Steps
Without sacrificing your future value
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Seven First “Go-to-Market” Steps
1. Where’s the money?• With your customers• With your competition
2. Why do customers buy from you or your competition?
• A unique, trusted source who delivers value
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3.Take Advantage
of Market Activity
4. Improve
Pricing Effectiveness
7. Introduce
New Products
6. Enter
New Markets
5. Increase
Market Share
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Step 1. Answer the Question:Where’s the Money?
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Where’s the money?With the RIGHT customers
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Competition
Customers
Company
Climate
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Where’s the money? With the RIGHT customers
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Yes Perhaps N0
Need
Budget
Intent
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$
NEED
Where’s the money? With the RIGHT customers
Customers /
Product/Service=>
Necessity Nice to
have
Postponable Expendable
Budget-N/Intent-N
Budget-P/Intent-P
Budget-Y/Intent-P
Budget-Y/Intent-Y
Focus
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Where’s the money?With the RIGHT customers
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Where’s the money?With the RIGHT customers
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Need
Intent
Budget
Ideal
Customer
High
High
High
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Where’s the money? With your competition
•Types of competition• Direct• Indirect
• Substitution
• Adjacencies
•Waste• Suppliers• Customers
•Each is an opportunity
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Competition
Customers
Company
Climate
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Customer Segmentation
• Important for:• Selecting right target customers• Focusing resources• Reducing waste• Increasing probability of success• Accurate product positioning• Accelerate “Speed to Market”
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Sizing Markets:
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SOM=Serviceable Obtainable Market. Portion of SAM that you can capture
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Market Size Calculation
•Precise accuracy of a market assessment difficult• Methods of arriving at market size are generally
subjective• Rarely derived from statistically valid samples• Triangulate to the right answer with multiple sources
•Speed versus Accuracy• Small versus Large investment• Preliminary scan of generic segments versus smaller sub-
segments
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Step 2. Answer the question: Why do customers buy from you or your competition?
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Why do customers buy from you?
You are
a Unique, Trusted source
who delivers
Value
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Why do customers buy from you?
30© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Value
Unique
Trust
You!
Yes
High
High
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Be Unique
• It’s a Battle for Distinctive Mindshare
•Be Different in Important Ways
•Design your image and value so that your targeted segment’s customers understand what your company stand for with respect to your competition
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Be Unique: Differentiate or Die
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Be Unique:Competitive Product Positioning
For the: (Target Segment)
Who Needs:
Firm/Product is a: (Category)
That provides: (List of compelling reasons to buy)
Unlike competition (Name), the company/product, also provides:
– List of key differentiators
•Features
•Benefits
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Value: Defining Value
Value=Benefits – Cost
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$Cost Reduction
Revenue/Margin Increase
Return on Capital Improvement
$
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Be Unique in Important WaysCompetitive Positioning + Value
For the: (Target Segment)
Who Needs:
Firm/Product is a: (Category)
That provides: (List of compelling reasons to buy)
Unlike competition (Name), the company/product, also provides:
– List of key differentiators
•Features
•Benefits
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Value
Cost Reduction
Margin Increase
ROC Improvements
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Why do customers buy from you?Trust
• Buyer’Personal Factors• Risk Tolerance• Level of Adjustment• Relative Power
• Situational Factors• Security• Number of Similarities• Alignment of Interests• Benevolent Concern• Capability• Predictability & Integrity• Level of Communication
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Why do customers buy from you?
You must be
a Unique, Trusted source
who delivers
Value
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Your First Customers
• Someone who knows you or an “unbiased source” who can recommend you• A known entity is far superior to
an unknown or less-known one
• Reduces alternatives
• Knows that you can deliver Distinctive Value
• Trusts you
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Building on First Customers
• There are always Alternatives and competitors to you
• Focus on showing Value to the organization• Expertise • Process• Case Studies/Successes
• Focus on Trustworthiness• Clients• References
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Step 3. Take Advantage of Market Activity
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Take advantage of market activity
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3. Take Advantage
of Market Activity
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Step 3: Take advantage of market activity
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Competition
Customers
Company
Climate
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Take advantage of market activity
•Every business has drivers that contribute to its growth• It is the tide that raises all boats• Your boat and your competitors’ boats
•Macro activity does not convey the whole picture• Both Sperry-Sun and Landmark Graphics were born
during recessionary times in the upstream oil—NBI/VUT• Many early computing companies such as Wang, DEC
disappeared during the greatest growth period in the industry—NBI/VUT
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Step 4. Improve Pricing Effectiveness
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Step 4: Improve pricing effectiveness
45© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
3. Take Advantage
of Market Activity
4. Improve
Pricing Effectiveness
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Improve pricing effectiveness
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Competition
Customers
Company
Climate
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Step 4: Why improve pricing effectiveness?
•There’s not much room left for improving profitability with operational cost controls
• It is the fastest most effective way to increase profits• 1% increase in price=8% increase in operating profit at an
average S&P 1500 company• 50% better than a 1% drop in variable costs• 300% better than a 1% increase in volume
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1.0% -1.0% 1.0%
Base Line Price Cost to Serve Volume
Units 100 100 100 101
Price $1,000 $1,010 $1,000 $1,000
Revenue $100,000 $101,000 $100,000 $101,000
Cost to Serve/Unit $600 $600 $594 $600
Costs to Serve $60,000 $60,000 $59,400 $60,600
SG&A Costs $5,000 $5,000 $5,000 $5,000
Gross Margin $35,000 $36,000 $35,600 $35,400
GM% 35.0% 35.6% 35.6% 35.0%
Realized Benefit $1,000 $600 $400
Benefit % of Base Line Revenue: 1.0% 0.6% 0.4%
© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Step 4: Why Focus on Pricing?Effective Way to Increase Profits
Increasing price drives as great a
benefit as cutting costs
and increasing volume
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OptimumSale
Price
PoorNegotiations
CompetitiveAdvantages
Value toCustomer
CompetitivePricing
Poor Knowledge
FinalSelling Price
XX
Consequence: Profit Leaks
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Profit Leak
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797 50
Make aReasonable Profit
Pricing Sweet Spot
Value-based Market-based
Cost Plus
Process: The Pricing Pyramid
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Step 2: Defining Value
Value=Benefits – Cost
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$Cost Reduction
Revenue/Margin Increase
Return on Capital Improvement
$
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
From Step 2: Be Unique in Important WaysCompetitive Positioning + Value
For the: (Target Segment)
Who Needs:
Firm/Product is a: (Category)
That provides: (List of compelling reasons to buy)
Unlike competition (Name), the company/product, also provides:
– List of key differentiators
•Features
•Benefits
52
Value
Cost Reduction
Margin Increase
ROC Improvements
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PositiveDifferentiation
Value
Our NegativeDifferentiation
Value-$
Our Added Value to the Alternative
+$
Cost of Alternatives/Competition
$
HeadroomReference
Value
Competitive Value Price
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Competitive Value Price: The Picture
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Created by a solid, logical, reasonable and simple methodology based on “price on what the market can bear and on customer value”
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Pricing Process: Examples
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Country Competitive Price Headroom Headroom(Local Currency) (Local Currency) %
Belgium 30,000 13,433 45%
Czech Republic 700,000 218,500 31%
Czech Republic 700,000 301,000 43%
France 50,000 88,554 177%
Germany 900,000 740,000 82%
Netherlands 90,000 70,297 78%
Poland 50,000 10,000 20%
Poland 520,000 354,400 68%
Slovania 35,000 14,464 41%
UK 50,000 81,302 163%
UK 22,500 21,102 94%
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Step 5: Increase market share
57© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
3. Take Advantage
of Market Activity
4. Improve
Pricing Effectiveness
5. Increase
Market Share
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Step 5: Increase market share
58© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Competition
Customers
Company
Climate
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Company Strategy Drivers
59
Southwest Airlines
SchwabIkea
Ryan Air Dell
Innovation
Systems Lock-In
Full Service/Total Customer Solution
OperationalEfficiency Microsoft
Utilities
United Airlines
IBMSonyGoogle
Apple
SLBHAL
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© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Borrow from Step 2:Competitive Positioning + Value
For the: (Target Segment)
Who Needs:
Firm/Product is a: (Category)
That provides: (List of compelling reasons to buy)
Unlike competition (Name), the company/product, also provides:
– List of key differentiators
•Features
•Benefits
60
Value
Cost Reduction
Margin Increase
ROC Improvements
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Increase Market ShareFrom Mindshare to Marketshare
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Salespeople
Sales Support
Seminars
Trade Shows
Direct Mail
Advertising
Internet
PR
Awareness Interest Trial Purchase Repurchase
$/C
usto
mer
High
Low
Lock-InValue Pricing
Value Selling
Dem
and C
reation A
ltern
atives
Customer Sales Cycle
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Increase Market ShareSelling Value Across Sales Cycle
62© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Salespeople
Sales Support
Seminars
Trade Shows
Direct Mail
Advertising
Internet
PR
Awareness Interest Trial Purchase Repurchase
$/C
usto
mer
High
Low
Lock-InValue Pricing
Value Selling
Dem
and C
reation A
ltern
atives
Customer Sales Cycle
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Sales Funnel
• Prospect
• Inquiry
• Lead • Types: Curious, Beginning
of Process, Active Evaluation, Close to Buying Decision• Lead Qualification:• Need• Budget• Authority• Timing
• Proposal/Quote
• First Purchase
• Repeat Customer
• Past Customer
• Lead generation is the key to sales success
• Benchmark the sales funnel
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Step 6 & Step 7: New Products & New Markets
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Step 6/7: Enter New Markets + Introduce New Products
First Steps1. Take existing products to
adjacent markets2. Create enhanced products for
existing markets
Secondary Steps3. Existing products to new markets4. New products to existing
markets5. Take enhanced products to
adjacent markets
Tertiary steps6. New Products to Adjacent
Markets7. Enhanced Products to New
Markets8. New Products to New Markets
65© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Products
Mark
ets
Existing Enhanced New
Exis
tin
g A
dja
ce
nt N
ew
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Steps 6/7: Change Customers Habits
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Customers Pick first
customers who are closer to death valley
Others don’t have reasons to change habits
Competition Don’t wake up 800
pound gorillas from their slumber
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Pick Davids, Not Goliaths
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From Small Steps to a Giant Leap
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From Small Steps to a Giant Leap
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Goal is to End Here
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7 First “Go-to-Market” Steps
Without sacrificing your future value
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Purpose of a Business
71© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
Deliver Value to Customers
Realize Value for Stakeholders
• Revenue Addition• Cost Reduction• Improve Return on Capital
Benefits
Value
Products Services
Pricing Effectiveness
Price on Valueand
What the Market can Bear
Get & Keep Right Customers
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Go-to-Market Process
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Where are we? Where can/should go? How do we get there?
Competition
Customers
Company
Climate
Strategy&
Tactics
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Seven First “Go-to-Market” Steps
1. Where’s the money?• With your customers• With your competition
2. Why do customers buy from you or your competition?
• A unique, trusted source who delivers value
73© Pradeep Anand; [email protected]; www.seeta.com; +1 281 797 0797
3.Take Advantage
of Market Activity
4. Improve
Pricing Effectiveness
7. Introduce
New Products
6. Enter
New Markets
5. Increase
Market Share
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Thank you!
7First “Go-to-Market” Steps
Pradeep AnandApril 2015
[email protected]; +1 281 797 0797; www.seeta.com