Sales & Marketing Summit Presentation 10.06.09

October 6, 2009

Presented by:

Gold Sponsors Diamond Sponsor Silver Sponsor

How to be Red Hot in a Cool Market Don Hutson Chairman & CEO, U.S. Learning Building Relationships in a 2.0 World Austin Baker President, Eserv Benefits Incorporating Digital Media into your Traditional PR Campaign Amy Howell Principal, Howell Marketing Strategies Selling in Tough Times Dr. George Deitz Assistant Professor, Marketing & Supply Chain Management The University of Memphis Panel Q & A Dotty Summerfield Chair, Small Business Council President, Summerfield Associates Inc.

Don Hutson U.S. Learning How to be Red Hot in a Cool Market

To Contact Don Hutson Don@DonHutson.com www.DonHutson.com

Motivation Makes the Difference Definition…. “The pull of anticipation and the push of discipline” Thoreau

The Loyalty Ladder C______________ A______________ C______________ C______________ P______________ S______________

The Value - Price Perspective V P

Behavioral Style Grid Less Responsive More Assertive Less Assertive ANALYTICAL DRIVER (FACTS) (TASKS) AMIABLE EXPRESSIVE (RELATIONSHIPS) (DREAMS) More Responsive

The Adaptability Continuum Low High “Me-Oriented” “You-Oriented” (Preoccupied (Concerned about with own agenda of others) agenda)

The Chinese Bridge

Creating Alliances The Foundation: Goal-Congruence

Team Member Performance Matrix Burden Resource (-) Team Member Contribution (+)

Goals "There are no unrealistic goals, only unrealistic time frames.” Jerry Bresser

Change “People change when the pain not to change exceeds the pain to change.”

Coaching “Getting your people to develop the Habit of doing the things which must be done to Succeed.”

Attitude Defined Definition…. The demeanor and spirit we choose to adopt and display from a given stimulus

Commodity Products without discernable differences one from another which are available from multiple sources

The “Undesirable Model” Trust Stress Conversion Rate Sales Cycle

The “Desirable Model” Trust Stress Conversion Rate Sales Cycle

The Evolution of Selling 5 Stages: 1. The Product Pitch 2. The Hard Sell 3. Relationship Selling 4. Needs-Analysis Selling 5. Symbiotic Selling

CSI (Customer Satisfaction Index)

Authorship… is when you give another person the respectful right to be heard. Their opportunity to influence outcomes will greatly enhance their buy-in and eagerness to gain the desired results

Innovation “Optimism is the fuel that fires innovative thinking.” Mike Vance

Collective Intellect Remember that all of us is smarter than one of us

Value Defined… (Webster): A fair Return or equivalent in Goods, Services or money for something exchanged

Optimism, Belief, Cutting Edge Skill Sets, Determination, High Innovative Solutions, Energy & Work Ethic Effective Strategies Propulsion Training ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ UP GOOD Gravity Habits Negativity, Lack of Complacency, Commitment, Using Old Skills, Low Energy Tired Solutions

Austin Baker EServ Benefits Building Relationships in a 2.0 World

Building Relationships in a 2.0 World Presented by Austin Baker President EServ, LLC. www.eservbenefits.com Benefits . Enrollment . HR Consulting

Today’s Topics What parts of our 2.0 world are holding you back from making better relationships? What tools are you using to better manage your relationships? How can you create deeper more engaging relationships? What types of relationships should you have that will help you grow?

What parts of our 2.0 world are holding you back from making better relationships? Facts- Better Web Technology that helps us to connect to more people. More information readily available about the people we know More interactions from more people than we had before More ways to connect to people than we had before

What parts of our 2.0 world are holding you back from making better relationships? Sociologist- Dalton Conley- Elsewhere USA (2009) Fewer and fewer boundaries in the world of the middle- to upper-class professional. The walls between them all are increasingly blurring or falling altogether. investment v. consumption private sphere v. public space price v. value home v. office leisure v. work boss v. employee

Facts- Dalton Conley- in Elsewhere USA (2009) Our relationships are changing due to several factors - Fast Pace of Today’s Business Environment - Technology that we have available - Rise of “Intravidualism” - "an ethic of managing the myriad data streams, impulses, and even consciousnesses that we experience in our heads as we navigate multiple worlds“ - Emergence of “Weisure” - “Increasing tendency to work during leisure time, thanks to advances in portable personal technology”

What parts of our 2.0 world are holding you back from making better relationships? Problems Less “Quality” Interactions We are never quite all here 9-5 has turned into 24-7 Relationships are wider not deeper

What parts of our 2.0 world are holding you back from making better relationships? Texting While Driving- (TWD)- Outlawed Texting under the Table Texting While Talking- (TUT)- Not- Outlawed (TWT)- Not Outlawed

What tools are you using to better manage your relationships? Problem Solution Less “Quality” Interactions Ask better Questions & Actively Listen to Answers

What tools are you using to better manage your relationships? Questions

What tools are you using to better manage your relationships? Questions Get Back to Reality

What tools are you using to better manage your relationships? Questions Let’s all stop being the “weatherman” How about these questions How did you get started in your business? What do you like most about it? What type of business makes a great referral? If you could have a superpower what would it be an why?

What tools are you using to better manage your relationships? Active Listening is a lost art

What tools are you using to better manage your relationships? Actively Listen to the Answers Try repeating the Words you are hearing- in your head, especially helps with names Stow your “Crackberry” Don’t “facebook” when your face-to-face When was the last time you were actively listened to?

What tools are you using to better manage your relationships? Problem Solution We are never quite all here Being Present Campaign

What tools are you using to better manage your relationships? Being Present Campaign Chris Crouch- GO system

What tools are you using to better manage your relationships? Being Present Campaign Narrow & control your Cell Phone Basket “inputs” for better for Meetings organization & sanity Consider whether you Turn off vibrate/ring really need portable email function for messages

What tools are you using to better manage your relationships? Problem Solution Relationships are wider not deeper Bring Balance to your Strategic Relationships

What tools are you using to better manage your relationships? The easiest kind of relationship for me is with 10,000 people. The hardest is with one. -Joan Baez

What tools are you using to better manage your relationships? Manage Strategic Relationships with Key Contacts Tim Page Caroline Lisa Gene Gina Linda Gary

What tools are you using to better manage your relationships? Categorically Manage Strategic Relationships HR Marketing C- Level Training Executives Accounting Procurement Finance Sales

What tools are you using to better manage your relationships? Manage Strategic Relationships with Many Channels Face 2 Twitter Face Linkedin Networking events Customer Facebook Events wordpress Seminars

How can you create deeper more engaging relationships? We still all have the same basic needs Love & be Loved Significant Contribute Valued Admired Understood Paid

How can you create deeper more engaging relationships? The number of mediums in which we communicate and share experiences have just grown

How can you create deeper more engaging relationships? Make a list of the traits in which you seek in a relationship Authentic Thankful “People don’t care how much you Growing know until they know how much Accountable you care” Present Open -John Maxwell

How can you create deeper more engaging relationships as a business leader? Authenticity Dimensions of Authentic Leadership •Pursuing Purpose with Passion •Practicing Solid Values •Leading With Heart •Establishing Connected Relationships •Demonstrating Self Discipline

How can you create deeper more engaging relationships? Thanksgiving • Sets a Positive Intent • Comfortable in “Your Own” • Attracts Other People who are Thankful • Daily Dose Makes for The Perfect Start to a Great Day

What types of relationships should you have that will help you grow? Our most cherished relationships are those that help us grow Mentorship

Back to the basics in Relationship Building Be Present- Don’t let technology get in the way Ask Profound Questions & Actively Listen to the Answers Balance your merging worlds Fundamentals of Relationships Have not Changed Be Authentic & Thankful Consider a “Growing Relationship” by Mentoring

Building Relationships in a 2.0 World “I've learned that people will forget what you said, people will forget what you did, but people will never forget how you made them feel.” – Maya Angelou

Amy Howell Howell Marketing Strategies Inc. Incorporating Digital Media into your Traditional PR Campaign

Incorporating Digital Media into Your Traditional PR & Marketing Campaign Amy Howell Howell Marketing Strategies, LLC

A VERY CRITICAL REASON Reasons Management Uses Social media •Read what customers are saying about company •Monitor a competitor’s use of social media •See what current employees may be sharing •Check the backgrounds of a prospective employee

The World Wide Web 10 Years Ago

We Are Building Online Communities

In These Communities Are Influencers

STATISTICS The Numbers Don’t Lie Not just for the kids anymore… • Facebook: use among 55+ set increased 25% from July 4 to August 4, 2009 • As of August 4, 40.2% of Facebook users were 35+

STATISTICS The Numbers Don’t Lie • Spring 2009 – Twitter growing at rate of 1,382% • Twitter gains 250,000 – 500,000 users each month

VALUE The Numbers Don’t Lie • Sept. 2009 – Twitter valued at $1 Billion after recent round of funding • Sept. 30 2009 – In just 2 years Twitter has raised $155M in venture capital including $135M this year alone • Twitter ranks No. 3 in history for raising capital, topped by HomeAway and PayPal (owned by ebay)

DO Practical Tips for Business • Use complete profile; Add a photo • Connect with PEOPLE – Humans #1, Brands #2 • “Rockin Good Content” • Don’t just Broadcast: Interact • SHARE • Manage TIME • LISTEN (Search) & FOLLOW

SEARCH • Your Name • Your Competition • Your Company • Like-Minded People • Your Product • Complimentary People

DO NOT examples • All About ‘ME’ communication • SPAM • Un-follow, de-friend • Waste TIME • Unhealthy, Negative, “SNARKY” communication • Useless Info. (drinking coffee) • Anything You don’t want in the News

P.O.S.T Before Getting Started Determine: • People (Who are you targeting?) • Objectives (What are your objectives?) • Strategy (How will you meet Objectives?) • Technology (What will you use/ where will you become active in the space?)

LISTEN to the Consumers How do my target consumers make decisions? • Are they Brand Reputation driven? (Brand Experience, TV/Radio) • Do they respond to promotion? (Direct) • Do they use detailed information to make decisions? (Search; Print) • Do they rely on others to reinforce a decision? (Social) • Does their behavior change over time?

BE HONEST What is my Brand Position ? • Am I the category leader or a follower? • Do category users know my Brand and recognize it’s Advantages? • Are my clients advocates or detractors for my Brand? • Does your Brand’s reputation put you on Offense or Defense?

CREATE Communications Strategy •Who do you want to influence? •What do they currently think, feel and do? •What do we want them to think, feel and do? •What is the single most inspiring thing for them to believe? •Why should they believe it?

INVEST Determine How to Invest • Where are your customers? • What channels are they utilizing? • What is their level of commitment to digital marketing? • Does a new channel (social media) help improve ROI?

How can it BENEFIT you? • Influence Brand Reputation – 39% use valued as very effective •Increase Brand Awareness – 37% use valued as very effective • Improve Search Engine Rankings – 38% of use values as very effective •Increase Website Traffic – 33% of use valued as very effective •SEO uses social media to improve rankings/ drive traffic

EMPOWER •Give Employees the choice to participate •The more, the merrier •Clarify corporate vs. personal participation •Define guiding principals of engagement •To learn •To contribute •Comply with business conduct policies

NEGATIVE Comments •Large companies more likely to monitor commentary •Small & Medium companies (less than 500) more likely to respond with public rebuttals •Responding can draw more attention to the comment

NEGATIVE Comments RULES: 1.Listen 2.Monitor 3.Respond 4.Don’t Respond

Whatever You Do, Make Sure You MEASURE

How to MEASURE:

UNDERSTAND ALL ASPECTS OF YOUR METRICS

Tell Your STORY…or someone else WILL • Twitter, Facebook, You-Tube are NEWS • Real Time News • PR is 24/7 and “VIRAL” • Digital is Mobile (iPhones) • Media IS tuned in • Journalism now includes social media (Twitter classes)

REAL example: Twitter & Airlines

“United Smashes Guitars” • Posted July 6, 2009 • 5,653,134 Views • 22,436 Comments

PR STRATEGY • Quick, Nimble, Savvy • Verification & Accuracy • Use SM to get CORRECT information out • Control Message, Can’t Control Spread • Transparency + Honesty = TRUST • LEVERAGE all Good Publicity • Internal & External Messages are SAME

REAL examples: Twitter & Fast Food • Pizza Hut hired “TwinTern” • Domino’s utilized Twitter for reputation management – after damaging YouTube video

REAL examples: Twitter & Time Warner • Major Mistake: Starting but not utilizing

REAL examples: Twitter & Comcast Cares

REAL examples: Twitter & FedEx

CHALLENGES Social Media “Push Back” • Lack of Understanding • Lack of Resources • ROI: Return on Investment OR Risk Of Ignorance • Peers not using… YET • Think it is for younger people • Think Twitter, etc. is silly

Social Media POLICY • Database of over 80 social media policies: http://socialmediagovernance.com/policies.php • “10 Must Haves for Your Social Media Policy” on Mashable.com by: Sharlyn Lauby • http://mashable.com/2009/06/02/socialmedia-policy-musts/

GET STARTED • Search & Research • Commit ($$, time) • Understand objectives • Clear expectations • Top management support… or forget it • Get policy • Start small – think BIG

QUESTIONS • Why use social media? • Do I need social media? • How can I benefit? • What is company doing? • What are customers doing? • Who is going to execute social media plan?

Pick your PASSION • Blog Blog Blog • Twitter • Facebook • Youtube • Others: –LinkedIn, MySpace, ning, etc.

BUILD your (tribe) • Build your fans • Build community • Build internally • Reach your customers • Invite customers, follow, fan • Post customer friendly information – Ex. South of Beale

EXAMPLE

TOOLS & APPS • Get an iPhone • Use only helpful apps • Don’t overload • Create consistent messages • Link relevant content • Always repsond • Promote Twitter on Facebook & Facebook on Twitter

Add, Follow & Fan • Add Follow and Fan to Signature Line • E-blast to join social network • Strategy and posting • Re-post, RT-ing • Twitter and Facebook etiquette

PR - Storytelling • Companies tell story through social media • Breaking news and Twitter • Re-post link, share news • Let media know social media strategy • Watch what you say (policy)

CRISIS PR • Airlines • Food • Consumer B to C • Social media allows • Monitor • Respond • Real time

FOLLOW & LISTEN A FEW FAVORITES: •smmguide •TrendTracker •SocialNetDaily •GuyKawasaki •SocialMedia2day •mashable •treypennington •SocialNetworkTV •WomenWhoTech

Dr. George Deitz The University of Memphis Selling in Tough Times

“Selling in Tough Times…” A Service-Dominant Logic Dr. George Deitz The University of Memphis Department of Marketing

Lessons from Harvey … The Little Red Book

Ghost of Sales Managers Past • Restless Nights …

FOG-GY Notions … • “Work harder … make more cold • “Focus on sectors that are still calls … follow up on meetings … spending money … like healthcare, follow through with leads.” food services …” – B2B Comm. Svc. Sales Mgr. – Import/Export consultant, entrepreneur • “Don’t expect what you’re doing today to necessarily result in a sale • “If you stop spending money on tomorrow …” promoting your service, you’re – IT Supplier Sales Mgr. dead…someone else who is spending will grab your market • “Stay close to your customers.” share.” – Business insurance exec – Small business owner • “Lower your pricing …” – LTL Trucking Exec.

The Service Dominant Logic of Marketing • The greatest danger in times of turbulence is not the turbulence: it is to act with yesterday’s logic. • 2004 Journal of Marketing article by Vargo & Lusch. – What do you mean … logic? • A “logic” provides the underlying philosophy for organizing and understanding a phenomena. – Pre-theoretical, paradigm level – The lens that provides the perspective

Dueling Logics … GD-Logic SD-Logic – Goods primary unit of – Service primary unit of exchange exchange – Service as a goods – Goods as service differentiator appliances – Operand Resources – Operant resources – Outputs – Processes – Value-in-exchange – Value-in-use – Value is created – Value is created internally externally – Customer as target – Customer as collaborator

Implies … Service-Dominant Selling • Why do buyers buy what they buy? – (P)rice – (P)roduct – (P)rovision of total solution – (P)eople • Why do buyers buy what they buy? – 39% buy based on salesperson effectiveness – 22% buy based on provision of total solution – 21% buy based on product quality – 19% buy based on price

Hints from empirical research … • Loyalty to salesperson versus loyalty to company (Palmatier, Scheer, and Steenkamp 2007) • Salespeople largely determine the level of (perceived) value provided the customer (Jap 2001) • Customers follow salespeople so long as the core offering is comparable (e.g., Beatty et al. 1996) • The salesperson, as opposed to the core offering, is the primary source from which value flows

S-D Selling: A (Partial) Pedigree • Adaptive selling • Relationship selling • Salesperson service behaviors • Consultative selling • Strategic partnering • Salesperson learning

S-D Selling: New Perspective G-D Logic S-D Logic Rationale Role of service Value-added Service dominance Service is exchanged for service service Role of Value Value Creator Value is created externally salesperson Communicator Role of Selling Processes Service Processes Value is created in use processes Customer Customers as Customers as Value is co-created orientation Targets Resources Salesperson Customer Stakeholder Service requirements mandate orientation Orientation Orientation network perspective

S-D Selling: New Perspective G-D Logic S-D Logic Rationale Competitive Goods-Based Service-based Service is exchanged for orientation service (network versus network) Competitive Product and price Salesperson Operant resources (human- differentiation (network) and knowledge-based) knowledge and preeminent creativity Outsourcing Sales Force-Level Salesperson-Level Service requirements are too emphasis cumbersome for salesperson to bear alone Relational Relationship Relationship Salesperson assumes role of emphasis Selling Brokering network coordinator Resources Manufacturing Salesperson Capacity concerns (stress, emphasis Capacity Capacity burnout, etc.) shift from operand to operant resources

What’s does this mean to me? • Can transitioning to a service- dominant perspective help your sales efforts? – Yes, unless … • Do all my customers want such a approach? • I already believe all this … nothing new here. – Does the way you manage and sell reflect those beliefs? • SD-L leads to … – More innovation in the sales and marketing process. – Better articulated and differentiated value propositions. – Focus on right “things.” – Good times or bad …

SD-Selling  Challenge assumptions • Assumptions about what? – Your firm, your customers, your rivals, the business environment … – What are thing you know to be true? • If they’re not … you’d close your doors. – What are things you think to be true? • What if you’re wrong? – What are commonly held assumptions within your industry? • “Blue Ocean” Strategy (Kim and Mauburgne)

What’s the problem? • The formulation of a problem is often more essential than its solution … to raise new questions, new possibilities, to regard old questions from a new angle, requires creative imagination and marks real advance in science. -- Al Einstein (1938)

Compete on your own terms … • Problem Definition, Measurement and Metrics – Michael Lewis and Moneyball – Wahoo’s Fish Tacos (PBS Small Business School)

SD-L  Improved Value Propositions • Seeking out “win-win” business … • Offerings perceived as unique and more useful. – Innovation and Creative Performance – Drivers of Creative Performance • Domain Relevant Knowledge • Intrinsic Motivation • Creative Thought Processes – Outside the Box

Focus on the “right” things • You can’t be all things to everyone … but • What do you know about your best customers? – How can you use that knowledge to your advantage? • Micro • Macro

SD-L  More Effective and Efficient • If you’re in business long enough … • Schumpeter’s Creative Destruction – Someone’s gonna come out of this a winner … • Opportunity identification • In praise of resource constraints

Example: “Go To Market” Strategy • “SD Selling-type” response to marketplace shifts. • TN based healthcare information services provider. • Key Steps … – Mathematically Define Best Possible Sales Opportunities • Primary and Secondary Data – Determine Internal Value Proposition … • What makes sale of our offering(s) valuable to us? – e.g., recurring revenue, barriers to entry, upselling, profits … – Determine External Value Proposition … • What makes our offering(s) valuable to customers? – Payer mix, HIS system, etc.

GTM Example: “Absolute Dead Center” Tier 1 Prospects (The “Ideal” Customer) Tier 2 Tier 3 Prospects Prospects

GTM Example: Sales Strategy • Different strategies for different types of prospects – Best salespeople focus on selling to best prospects … period. (Tier 1). – Within 50 miles of the top 50 MSAs. – Health systems – Tier 2 & Tier 3 prospects served primarily by inside sales, channels, technologies.

Summing up: SD and the Evolution of the Sales Organization? • Traditional product-oriented sales organizations will evolve: – Enhanced use of technology will reduce some traditional sales functions and even face to face contact. – ‘Tier 1’ type customers will experience significant improvements in the level of customer contact.

Summing Up: SD … changes to sales force management and personal selling? • Implications – Sales roles changing … – Selection, training and recruitment – Knowledge of customers and solutions will be a more visible source of competitive advantage.

Annotated Bibliography – Kim, W.C. & Mauburgne, R. (2004). Blue Ocean Strategy. Boston: HBS Press. – Lewis, Michael (2003). Moneyball. New York: W.W. Norton – Stevens, Howard and Theodore Kinni (2007), Achieve Sales Excellence: The 7 Customer Rules for Becoming the New Sales Professional. Avon, MA: Platinum Press. – Vargo, Stephen and Lusch, Robert (2004). “The Service Dominant Logic of Marketing,” Journal of Marketing, 68(1): 1-17. • FULL PRESENTATION AVAILABLE AT: – https://umdrive.memphis.edu/gdeitz/public/

Sales & Marketing Summit Presentation 10.06.09

0 comments

Notes on slide 1

1 Favorite