identifying best routes to market
DESCRIPTION
Presented by Andrew McGee from the Alba innovation centre and encompasses the slides from the Alba Innovation centres event centered on identifying the best routes to market for a technology product.TRANSCRIPT
Identifying the Best Routes to Market for your Technology Business
Presented by Andrew McGeeCommercialisation Adviser
Thursday October 3rd 2013 at the Alba Innovation Centre; Livingston, Scotland
Identifying the Best Routes to Market for your Technology Business © 2013
2
Agenda
• Routes to market
• Analysing these markets
• Right ways to approach these markets
• The ‘Hidden Sales Cycle’
• The ‘Buyer’s Journey’
• Planning for success
http://youtu.be/M29wyyk2RkI
“The Future of Technology is Defined by Change”
“but, the Destiny of a Company is Defined by Commitment”
Routes to Market
Market research for business planning…
Market information
Market segmentation
Market trends
SWOT analysis
Routes to Market
Competitor research for business planning…
Competitor Array
Profiling
Media Scanning
New Opportunities
What to consider before you choose…Consider how & where your customers shopPlus, Keep in mind budgets and your ability to manage a chosen route…
1. Direct • Good for complex products• Good for making personal contact with an important customer• More expensive; time consuming & riskier
2. Wholesale • Good for selling lower value items and shifting a lot quickly• Lower profit margins and some complication
3. Importer • Easiest route for retail product sector• Least control over branding
Routes to Market
4. Contract Manufacturing / Solution Partner• Complimentary product • Localise the solution; relationship with end user• White labelling• IP protection
5. Reseller / Distributor Partner • UK & International markets• Already have relationships with clients• Engaged in complimentary solutions; preferably not competitive• Independent consultants / distributors
6. Strategic Partner• Multi-national consultancy practices / system integrators• Searching for innovative solutions • Demonstrate to their clients they have finger on the pulse
Routes to Market
7. Distance• Much cheaper than most other routes• But harder to build trust in product and business• Good for repeat orders and products that don't need demonstration
8. Online • Saves on costs and keeps business open 24/7• May reach a wider audience• Difficulties establishing trust and drawing in traffic• Get a reliable and straightforward website• SEO engagement
Combination of Channels• Can give a greater chance of reaching audience• Helps develop sales strategy• Challenge managing multiple channels
Routes to Market
Analysing These Markets
Objective is to
Choose the best route to market for your business
The potential for the client to find you
Create a means of maximising sales and profits
Analysing These Markets
Consider the following…
• Think through the eyes of your buyer and,
• Trusted reseller with a relationship with end customer
• Your own personal strength, weaknesses AND
bandwidth
• Need to continually qualify opportunities in or out
Analysing These Markets
Consider the following…
• Support needed from different resources
• Conducting a SWOT analysis
• Avoid being dragged from pillar to post
• Prioritisation is key
• Broad shoulders to say NO and walk away
90% of marketing collateral is wasted & does not engage buyers
Identifying the Best Routes to Market for your Technology Business © 2013
Did You Know…
Courtesy of andomise
The Hidden Sales Cycle
• Smartphones, tablets, social media and the Internet
• The way people buy is changing HAS CHANGED
• Buyers have more information than ever before
• Guiding their discovery & evaluation is key
• From social networks, to suppliers’ websites & independent
content
• Unprecedented era of transparency between buyers & sellers
The Hidden Sales Cycle
• Prospects entering the formal sales cycle are more informed
• “ THE HIDDEN” sales cycle has emerged
• Buyers are well into selection process before they become
visible to suppliers
The Hidden Sales Cycle
To Compete… • Suppliers must adapt to manage these hidden sales cycles
• Identify ready, qualified buyers is simply not enough
• Suppliers must out-educate the competition to gain mind share
• Suppliers must shape the prospects’ vision early whilst,
• Demanding mastery of new capabilities & new channels
The Hidden Sales Cycle
To Compete… • Necessitating a content-driven approach
• Delivering the right content to
the right prospect
at the right time AND
in the right place
This is the challenge…the solution is not simple but, its not going away!
• “HIDDEN” sales cycle presents some fundamental challenges
• Managing & monitoring the 1st stage of the sales process from a
distance
• Assuring the right message can reach the right person on their
preferred device at any time
• This is the seismic, tectonic, shift to…
Inbound Marketing & Marketing Automation
The Hidden Sales Cycle
Phase 1 Hidden• Demand generation, prospecting & qualification• Prospects use own online networks AND,• Peer networks to qualify potential suppliers
Phase 2 Partially Hidden• Qualification & needs analysis• Prospect makes contact with pre-conceived ideas about
options to solve problems
Phase 3 Value Creation & Stakeholder Management• Sales person; trusted advisor & problem solver• Confident enough to push prospects out of their comfort
zone to…Create & Deliver Value
The Hidden Sales CycleBroken Down
Phase 4 Propose Solutions, Negotiate & Close
• Successful closure reinforces strategic trust
Phase 5 Case Study & Testimonial
• Capture 360˚ feedback
• Compare initial ‘pains’ to what was delivered & what the
client actually achieved
• Continual learning exercise plus,
• Creating referral opportunity and RTB
The Hidden Sales CycleBroken Down
• Uninterested & unaware that they have a problem TO,
• Acknowledging that they do indeed have a problem AND,
• That problem is causing the organisation real “pain” TO,
• Establishing a defined need TO,
• Researching options for that solution TO,
• Selecting a single option TO,
• Receiving value from the selected solution & solving the problem
‘Buyer’s Journey’ Progressesas Follows…
Key to Unlocking Interest in your Firm’s Offering is to…
• What problems are causing the most pain to their operations?
• Without real business “pain” there is little or no real buying action
• Speak to a group of typical buyers
• Conduct a survey; channel partners & sales team
• Write problems in the language of the buyer
• Not your jargon or language of products or solutions
• Be as specific as possible
Understand what Problems Plague these Buyers?
With a Clear Set of Buyer Problems:Next goal is to honestly assess your firm’s ability to solve these buyer’s problems
The Sweet Spot for your Marketing: Finding the overlap of a serious problem the buyer is facing & a strong capability your firm possesses
For Example: “My staff turnover in the last 6 months is increasing”
“I don’t believe I can achieve my product quality targets”
Rather than “I need to buy a training package to educate my staff”
Key to Unlocking Interest in your Firm’s Offering
Inbound Marketing Output
Need to create a buyer-based strategy that defines:
• Who most has this problem i.e. target audience
• What best solves this problem i.e. full product or solution
• Who best uncovers those who have this problem i.e. channel to market
• Who else solves this problem i.e. competition
Armed with these answers you are well positioned to move forward
Key to Unlocking Interest in your Firm’s Offering
http://youtu.be/DtFsmVl2RwM
Is Social Media a Fad?
…a good example of how fast the market is moving
25
“1 minute of video is worth 1.8 million words” – Forrester (April 2010)
90% of all web traffic will be video – YouTube prediction
26
Speeding up …
• Average time from Search to Purchase on a desktop device is 30 Days
• Average time from Search to Purchase on a mobile phone is 1 hour
27
Social Media is Counter-Intuitive
Space defined by media
owner
Brand in control
One way / delivering a
message
Repeating the message
Focused on the brand
Entertaining
Company created content
Communications Media
Space defined by consumer
Buyer in control
Two way / part of a conversation
Adapting the message / beta
Focused on the buyer / adding
value
Influencing, involving
User created content / co-creation
Social Media
28
Some Social Media Facts...
600 million active users to 1 Billion (4th Oct 2012)
(Average user has 130 friends, 50% login daily)
300 million users (1.6 billion searches per day)
50 million users worldwide to 135 million(2 million company pages, 6M+ members in UK)
Planning for Success
In Summary
• Market & competitor research
• Understand your ideal customer
• Reach out to your target audience
• Position your product for buyers to self-qualify
• Clearly probe to understand your clients specific need / pain
• Measure results & ROI
• Qualification-Qualification-Qualification is key to success
Goal is to increase sales; achieve a sustainable competitive advantage & Making a Profit!
+44 (0)7905 326 144
+44 (0)1506 592 100
innovationcentre.org
albainnovationcentre.com
@mcgeeandrew
mcgeeandrew
@albainnovation
Brought to you by & in partnership with …
Please take the opportunity to Connect or, Follow…
Delivered by…
Identifying the Best Routes to Market for your Technology Business © 2013