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Sales and-marketing

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  • 1. Successful Sales and Marketing Strategies Tim Hoerr Serra Ventures, LLC, Dennis Beard Don Elmore Mac MacGregor Management Development Group 3/30/10 1
  • 2. Agenda   Introduction: Dennis Beard   Sales & marketing from a business development perspective: Tim Hoerr   Marketing: Getting your message heard: Don Elmore   Sales channels alternatives: Mac MacGregor Serra Ventures, LLC, Management Development Group 3/30/10 2
  • 3. How Can A Corporate Partner Assist Your Start-up? Contract research engagement with your company for mutual benefit of the parties Co-contracting on federal government grants Sales/distribution channels for your product Corporate venture capital for financing your company Serra Ventures, LLC, Management Development Group 3/30/10 3
  • 4. Initial Steps in the Process of Corporate Partnering   Determine how a corporate partner can best assist your company   Identify corporate partners in your industry/market space:   Trade shows   Conferences   Referrals   Market research Serra Ventures, LLC, Management Development Group 3/30/10 4
  • 5. Initial Steps in the Process of Corporate Partnering, cont.   Reach out to the right people at the corporate partner   Business development officer   Chief technology/scientific officer   A “known point of contact” (former UIUC student, former colleague, etc.) Serra Ventures, LLC, Management Development Group 3/30/10 5
  • 6. Points to Consider in the Corporate Partnering Process “Keep the end in mind”: Developing a win-win agreement. Corporate partners are typically slow-moving, bureaucratic organizations. Be patient! Offer shorter term concessions for longer term gains. Develop multiple points of contact with the organization. Be mindful of Intellectual Property issues. Serra Ventures, LLC, Management Development Group 3/30/10 6
  • 7. Marketing Basics   Research and analyze Competition Industry Characteristics and trends Serra Ventures, LLC, SWOT Analysis Window of Opportunity Management Development Group 3/30/10 7
  • 8. Marketing Basics, cont.   Apply technical expertise to develop solutions needed in the marketplace   Don’t rely on strength of product alone   Avoid having to educate market   Market-driven vs. engineering-driven Serra Ventures, LLC, Management Development Group 3/30/10 8
  • 9. Who Is Your Customer?   Customer and end user are not always the same   Customer has purchasing authority; end user has need.   Location   Geographic   Industry/market type (horizontal, vertical, government, or private sector)   Characterizing customer and location affects many sales and marketing decisions Serra Ventures, LLC, Management Development Group 3/30/10 9
  • 10. How Do You Reach Your Customer?   Delivery of message and product share many similarities   Education and training needed   Best delivery method Serra Ventures, LLC, Management Development Group 3/30/10 10
  • 11. How Do You Reach Your Customer ?, cont.   Determine the best media based on customer characteristics: Print Broadcast Web Social Media Support, Training Trade Shows Serra Ventures, LLC, Management Development Group 3/30/10 11
  • 12. Trade Shows   Will your customers and/or end users be there? Look at these indicators:   Exhibitor lists   Session topics   Addresses and special presentations   Should you exhibit, present, or just attend? Pros and cons, ROI. Serra Ventures, LLC, Management Development Group 3/30/10 12
  • 13. Sales Channel Selection and Management: Developing the Most Effective Sales Channel   Market entry considerations:   Markets served (industries, sectors, geography?)   What is your competitive advantage?   Your market differentiator?   How do your competitors approach the market?   What resources will it take?   Support requirements   Cost vs. value   How do customers want to deal with you? Serra Ventures, LLC, Management Development Group 3/30/10 13
  • 14. Where Are Your Customers/Prospects? Market diversity presents both CHALLENGES AND OPPORTUNITIES Serra Ventures, LLC, Management Development Group 3/30/10 14
  • 15. The Selling Process Has Changed in the Last 5-10 Years   Internet: Vast amounts of information are available   Products   Competitors   Customer expectations   Speed of response   Amount of detail desired   Instant support   Has shrunk the world? Or is it becoming FLAT?   Customer level of sophistication is increasing   The “Hard Sell” is out of vogue Serra Ventures, LLC, Management Development Group 3/30/10 15
  • 16. The “Sales Channel” Perspectives   How does the customer view the channel?   What value does your sales channel bring to the process for you? Serra Ventures, LLC, Management Development Group 3/30/10 16
  • 17. The Customer’s View Three Customer Types Intrinsic Value Customer Serra Ventures, LLC, Extrinsic Value Customer Management Development Group Strategic Value Customer 3/30/10 17
  • 18. Intrinsic Value Customer   The value is intrinsic to the product, not the method of delivery   They focus on cost   Product is usually a commodity   They see little or no value in an external sales channel   Examples:   Mass merchandiser   Grocery chains   Part suppliers. Serra Ventures, LLC, Management Development Group 3/30/10 18
  • 19. Extrinsic Value Customers   Focus on the benefits of the product   Put a premium on advice and help   The value of the product is how it is used-solutions and applications   They expect the sales channel to understand their needs   They rely upon the supplier for knowledge of how the product applies to their needs   They see value in the right kind of sales channel Serra Ventures, LLC, Management Development Group 3/30/10 19
  • 20. Strategic Value Customers   They want to leverage suppliers’ core competencies   It becomes a tightly knit relationship -- playing on each other’s strengths   Your product + theirs = the value proposition to their customer   The sales channel can add value:         Finding and qualifying them Understanding their needs Bringing the parties together Maintaining the relationship Serra Ventures, LLC, Management Development Group 3/30/10 20
  • 21. Market Entry Alternatives   Licensing   Lowest investment   Rapid market entry   Least revenue   Loss of control   Legal considerations   Strategic alliances – with synergistic companies   Leverage their channels   “Instant sales channel”   Sell Directly   Company owned sales office(s)   Manufacturer’s reps   Distributors Serra Ventures, LLC, Management Development Group 3/30/10 21
  • 22. Consumer Marketing Channels 0 - Level 1 - Level 2 - Level 3 - Level Manufacturer Manufacturer Manufacturer Manufacturer Wholesaler Wholesaler Jobber Catalog Catalog Retailer Retailer Retailer Consumer Consumer Consumer Consumer Serra Ventures, LLC, Management Development Group 3/30/10 22
  • 23. Consumer Marketing Channels 0 - Level 1 - Level 2 - Level Manufacturer Manufacturer Manufacturer Manufacturer Wholesaler Wholesaler 3 - Level Jobber Retailer Consumer Serra Ventures, LLC, Retailer Retailer Consumer Consumer Consumer Management Development Group 3/30/10 23
  • 24. Industrial Marketing Channels 0 - Level 1 - Level 2 - Level Manufacturer Manufacturer Manufacturer Manufacturer’s Representative 3 - Level Manufacturer Direct Sales Industrial Distributors Manufacturer’s Representative Industrial Customer Serra Ventures, LLC, Industrial Customer Industrial Customer Management Development Group Industrial Customer 3/30/10 24
  • 25. Industrial Marketing Channels 0 - Level 1 - Level 2 - Level Manufacturer Manufacturer Manufacturer Manufacturer’s Representative 3 - Level Manufacturer Direct Sales Industrial Distributors Industrial Customer Serra Ventures, LLC, Industrial Customer Industrial Customer Management Development Group Industrial Customer 3/30/10 25
  • 26. A look at each channel   1. Direct (Company Employee)         Field sales (End-User or OEM) Multi-industry end user sales Single industry concentration National Account sales person   2. Independent Sales Reps   3. Telemarketing   Your own or should you contract it out? Serra Ventures, LLC, Management Development Group 3/30/10 26
  • 27. A look at each channel, cont.   4. Company owned catalog sales   5. Direct response advertising   6. OEM (Original Equipment Manufacturer)   7. Value Added Reseller (VAR)   8. Distributor: National, Regional, International, Specialty   9. Retail Store   Company-owned or Mass Merchandisers?   10. Internet, e-Commerce, Social Networking Serra Ventures, LLC, Management Development Group 3/30/10 27
  • 28. Sales Channel Definitions   Direct - employed by manufacturer   Sells only one line of products   Multiple Line Sales (Mfgr’s Rep)           Sells many lines (usually 10 - 15) Independent business person Usually limited geography Paid 30 days after mfg. gets paid sometimes takes possession   (stocking rep) Serra Ventures, LLC, Management Development Group 3/30/10 28
  • 29. Social Networking: “The latest web marketing craze”   Definition: “focuses on building and reflecting of social networks or social relations among people, e.g., those who share interests and/or activities”   Most social network services are web based:   Facebook, Bebo and Twitter widely used worldwide; MySpace, and LinkedIn being the most widely used in North America. Serra Ventures, LLC, Management Development Group 3/30/10 29
  • 30. Evaluating The Major Alternatives: Value-Adds Versus Costs of Different Channels High Value-add of Sale Sales Force Value Add Partners Catalog Direct Sales Channels Distributors Retail Stores Telemarketing Internet Low “Indirect” Channels Direct Marketing Channels Low Serra Ventures, LLC, Cost Per Transaction Management Development Group 3/30/10 30 “Marketing Management “ - Kotler
  • 31. Detailed Considerations to the Market Entry Process   Market Analysis       Size Demographics – Where? How many? Market window   Competitive Analysis   External Forces Analysis     Regulations Duties   Budgeting   Expectations         How rapidly do you want to enter and grow? Regional, Nationwide, Worldwide? Volume Timing Serra Ventures, LLC, Management Development Group 3/30/10 31
  • 32. Strategy Considerations, cont.   Geographic Coverage           Travel cost and time Are your markets concentrated? Where best to establish offices? Cultural differences? Language barriers, lit. translation?   Number of people at start up?   People availability   Skills   Trustworthiness Serra Ventures, LLC, Management Development Group 3/30/10 32
  • 33. Strategy Considerations, cont.   Product Characteristics               Documentation? Training (Sales/Service/Customer)? Technical content? Pre- and Post- Sales support required Innovative (patents – uniqueness) Does product lend itself to distribution? Commodity? Serra Ventures, LLC, Management Development Group 3/30/10 33
  • 34. Strategy Considerations, cont.   Competition           Brand name recognition? Missionary work required? Pricing? Which sales channel used? Strengths/Weaknesses?   Trade Press – who will handle? You or international agency individual? Serra Ventures, LLC, Management Development Group 3/30/10 34
  • 35. Strategy Considerations Financial   Recruitment •  Ownership/Equity?   Travel •  Transfer pricing   Training •  Duties/Shipping   Office & equipment   Salaries/Commissions   Legal & Accounting •  Payback period? •  Trade Shows •  Literature Format -   Web Server's Change   Adverstising Serra Ventures, LLC, Management Development Group 3/30/10 35
  • 36. Strategy Considerations: Administrative   Time difference (with you)   Domestic and International   Support – here – there?   Management decisions at what level?   Language barrier?   Export paperwork   Commission accounting   Rates of exchange   Language barriers Serra Ventures, LLC, Management Development Group 3/30/10 36
  • 37. The Channel Is Still Important In All Of These Scenarios   Selling is about relationships.   At the end of the day, technology may be remote, but service (relationships) is still local.   The sales channel plays a huge role in the delivery of that service. Serra Ventures, LLC, Management Development Group 3/30/10 37
  • 38. Contact Information   Tim Hoerr   tim@serraventures.com   Dennis Beard   dennis@serraventures.com   Don Elmore   don.elmore@gmail.com   Mac Macgregor   mac@argus-systems.com Serra Ventures, LLC, Management Development Group 3/30/10 38