Lead To Win Bootcamp - Day 2


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Lead To Win and Lead To Win for Women is a free business bootcamp for entrepreneurs that want to start or grow a business in the Ottawa, Gatineau area.

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Lead To Win Bootcamp - Day 2

  1. 1. Welcome to Lead to Win Wednesday, October 26, 2011Slide 1 Lead to Win
  2. 2. Day 2 Stephen Davies Opportunity Development – (Third Core Venture Partners) Making & Managing Sales Natalie Raffoul Business aspects of patents (Clancy P.C. + Brion Raffoul) and intellectual property David Hudson Customer & partner value (Carleton) propositions Tony Bailetti Day 2 takeaway messages (Carleton)Slide 2 Lead to Win
  3. 3. Lead to Win “Opportunity Development – Making & Managing Sales” Stephen Davies Third Core Venture Expansion PartnersSlide 3 Lead to Win
  4. 4. Agenda • Overview • Sales drivers • Sales execution strategy • Customer types • Sales funnel • Map funnel information to cash flows • Summary / Tasks Post Phase 2Slide 4 Lead to Win
  5. 5. Overview • Upon completion, – You will know about • Sales Execution Strategy • What a sales funnel is • Linking sales to cash flows – You will know how to • Categorize and prioritize customers • Build a realistic funnel for your organizationSlide 5 Lead to Win
  6. 6. Overview • What this course is – Understanding the drivers of sales – How to setup and manage sales • What this course is NOT – How to sell – How to market • Terminology that is assumed – Inside/outside sales – Distribution channel – Direct/indirect sales – OthersSlide 6 Lead to Win
  7. 7. OverviewSlide 7 Lead to Win
  8. 8. Sales Drivers – Technology Adoption Based on a graphic by Pnautilus (http://en.wikipedia.org/wiki/File:DiffusionOfInnovation.png), published under a CC BY-SA 3.0 license.Slide 8 Lead to Win
  9. 9. Sales Drivers – Technology disruptionSource: WikipediaSlide 9 Lead to Win
  10. 10. Sales Drivers – Blue OceanSlide 10 http://blog.delaranja.com/wii-a-blue-ocean-strategy/ Lead to Win
  11. 11. Sales Drivers – The Long Tail Movie rental stores Online distribution (e.g. Netflix) Number of productsSlide 11 Lead to Win
  12. 12. Sales Drivers – Want vs. NeedSlide 12 Lead to Win
  13. 13. Sales Drivers – Features & Benefits What is a feature? What is a benefit? We sell the benefits of a product or service not the product or service itself If a feature does not give a benefit to the end user then the feature is uselessSlide 13 Lead to Win
  14. 14. Sales Execution Strategy Barriers to Sales • There is a lack of available sales talent and sales leadership talent • There is a distinct lack of clarity and consistency among investors. • Startup operations are focused on feature development, not on scaling sales.Slide 14 Lead to Win
  15. 15. Sales Execution Strategy Developing a strategy • Who are the most influential customers in the target market? • What are the poignant business issues that they face? • What are the tactical problems that are created? • How might the value proposition address these problems and what impact would it have? • How motivated might they be to buy, given the value proposition? • Who would they consider the competition to be? • How would the customers perceive the difference between the startup and its competition? • What would they be prepared to pay? • How and for what would they pay? • Who would they tell?Slide 15 Lead to Win
  16. 16. Sales Execution Strategy A working document that contains 1. A clearly defined and tested product value proposition relating to the early and late majority customers in the market. 2. Tested price points for the product including quantity discounts. 3. Adaptive pricing options along the adoption lifecycle. 4. Clear competitor differentiation. 5. A set of sales collateral built on the above points and supported by testimonials from pilot projects. 6. A clear target profile of the early and late majority customers to aid in the tactical implementation of the product sales. 7. Timelines for product release based on a realistic product development strategy. 8. A clearly defined plan for ongoing customer service.Slide 16 Lead to Win
  17. 17. Sales Execution Strategy Implementation • The efficiency and appropriateness of the manner in which the prospect is accessed and engaged. The more complex the process and the more senior the decision makers, the more likely a traditional field sales model is appropriate • The price of the product and its strategic impact on customers’ businesses. The lower the price and strategic impact, the more likely that the use of telephone sales professionals or resellers is appropriate. • The scale of the market and the depth of relationships required to provide further context. The larger the market and the lighter the touch, the more likely that web-based lead generation and nurturing tools are required to automate and scale the approach used.Slide 17 Lead to Win
  18. 18. Sales Execution Strategy Supporting an execution strategy: • Market and domain experience is important but can easily be overrated. A big rolodex is much less important than most people assume. • Recruit for demonstrable competency and capability. Both of these attributes are predictors of successful execution. Behavioural interviewing can assist in predicting probable future behaviours. • Take the time to role play. Ask candidates to walk through a selling conversation for their current company or product. Do they ask lots of questions or do they start pitching straight away? For sales leaders, can they elevate beyond sales theory and actually sketch out a sales execution strategy for the business?Slide 18 Lead to Win
  19. 19. Customer Types Characteristic Comments • “A” Customers – ‘Bring me a proposal I can sign.’ • “B” Customers – ‘I like the product, but I need to do more research before I can decide.’ • “C” Customers – ‘Yes, we have that problem, but I don’t know what to do about it. We get by. How does your product relate to our situation?’ • “D” Customers – ‘We have no problems like that in our organization.’Slide 19 Lead to Win
  20. 20. Customer Types Communication • Close “A” customers. Get them to buy your product. • Convince “B” customers: Provide them with additional information to make a decision, and reinforce your company as the best choice (share of mind) • Coach “C” and “D” customers and use public presence as a means to gain credibility with them—and access to them.Slide 20 Lead to Win
  21. 21. Customer Types Customer Types and Technology Strategy • Technology disruptions encounter “C” and “D” customers – Longer sales cycles – More subject matter expertise marketing – Evangelical sales model • Technology increments encounter “A” and “B” customers – Shorter or immediate sales – More product level marketing – Direct sales modelSlide 21 Lead to Win
  22. 22. Sales Funnel What is a sales processSource: WikipediaSlide 22 Lead to Win
  23. 23. Sales Funnel How does it work • We take a generic, or organization specific list of stages and assign probabilities to each stage. • The probability represents the likelihood that the customer will move to the next stage of the pipe • New Opportunity (5%) • Initial Communication (10%) • Fact Finding (25%) • Develop Solution (40%) • Propose Solution (60%) • Solution Evaluation (75%) • Negotiation (85%) • Contracts (95%) • Closed won (100%)Slide 23 Lead to Win
  24. 24. Sales Funnel Lead Yield Funnel Stage 30 “Raw” Confidence of Day 1 Winning 10% 20% Day 22 45% Day 44 60% Day 94 80% Day 160 90% Day 180 1 Won 100% Day 183Slide 24 Lead to Win
  25. 25. Sales Funnel Third Core starts off with the following assumptions: • 640 quality calls yield • 80 conversations which result in • 16 leads • 4 of which become prospects • 2 of which become qualified • 1 one of which leads to a deal!Slide 25 Lead to Win
  26. 26. Sales Funnel Sales funnel qualification • Budget. Does the prospect have access to sufficient funds to make this purchase? Can this be validated? • Authority. Does the “buyer” have the authority to make a purchase decision? Can this be validated? • Need. Is there a compelling business need for the product or solution? What is the specific value to the customer? Can it be verified that the need for a solution is meaningful to the customer? • Timescale. Has the timescale been established during which the need must be addressed? What are the specific steps and timings of the buying process?Slide 26 Lead to Win
  27. 27. Sales Funnel Doing it in practice • For simple funnels use excel • If you have a larger number of customers good idea to get a CRM system, for example:Slide 27 Lead to Win
  28. 28. Sales Funnel Doing it in practice example 1 (from provided template) Totals/Average 47% $300,000 $142,500 06‐Feb‐10        177 Stage  Contract  Funnel  Est Close  Days to  Company Opportunity name Funnel stage probability value value Date closeSteve co Product A New Opportunity 5% $10,000 $500 01‐Jun‐10       291Bob co Product A and B Initial Communication 10% $50,000 $5,000 15‐Apr‐10       244ABD Product B Fact Finding 25% $40,000 $10,000 01‐Dec‐09       109DEF Product A Develop Solution 40% $30,000 $12,000 13‐Feb‐10       183GHI Product C Propose Solution 60% $50,000 $30,000 15‐Jan‐10       154Blockbuster Product A, B and C Solution Evaluation 75% $30,000 $22,500 24‐Feb‐10       194PWGSC Product C Negotiation 85% $40,000 $34,000 04‐Nov‐09         82CIBC Product C Contract 95% $10,000 $9,500 01‐Sep‐09         18Lead to Win Product A Propose Solution 60% $30,000 $18,000 01‐Mar‐10       199Redwood Product B Initial Communication 10% $10,000 $1,000 01‐Jun‐10       291Slide 28 Lead to Win
  29. 29. Sales Funnel What is a sales funnel • A tool that help you assess using different metrics how healthy and balanced your future sales are. It will tell you: – At what stage a customer is in the sales process – What value of opportunity is associated with a customer – How long customers are taking to move down the pipe – Gross figure on how many customers are at what stage – Project $$ revenue forecasts for your cash flow statementsSlide 29 Lead to Win
  30. 30. Map the funnel to cash flows Cash flow estimate: Cash injection into cashflow is: (closing date + credit terms) at a value of (deal size * funnel stage probability)Slide 30 Lead to Win
  31. 31. Map the funnel to cash flows Funnel  Est Close  Company Opportunity name value Date Sep‐09 Oct‐09 Nov‐09 Dec‐09 Jan‐10 Feb‐10 Mar‐10 Apr‐10 May‐10 Jun‐10Steve co Product A $500 01‐Feb‐10 $         500Bob co Product A and B $5,000 15‐Apr‐10 $      5,000ABD Product B $10,000 01‐Dec‐09 $   10,000DEF Product A $12,000 13‐Feb‐10 $   12,000GHI Product C $30,000 15‐Jan‐10 $   30,000Blockbuster Product A, B and C $22,500 24‐Feb‐10 $   22,500PWGSC Product C $34,000 04‐Nov‐09 $   34,000CIBC Product C $9,500 01‐Sep‐09 $   9,500Lead to Win Product A $18,000 01‐Mar‐10 $   18,000Redwood Product B $1,000 01‐Jun‐10 $   1,000 Totals $142,500 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000 $0 $1,000 With no credit termsSlide 31 Lead to Win
  32. 32. Map the funnel to cash flows Funnel  Est Close  Company Opportunity name value Date Sep‐09 Oct‐09 Nov‐09 Dec‐09 Jan‐10 Feb‐10 Mar‐10 Apr‐10 May‐10 Jun‐10Steve co Product A $500 01‐Feb‐10 $         500Bob co Product A and B $5,000 15‐Apr‐10 $   5,000ABD Product B $10,000 01‐Dec‐09 $   10,000DEF Product A $12,000 13‐Feb‐10 $   12,000GHI Product C $30,000 15‐Jan‐10 $   30,000Blockbuster Product A, B and C $22,500 24‐Feb‐10 $   22,500PWGSC Product C $34,000 04‐Nov‐09 $   34,000CIBC Product C $9,500 01‐Sep‐09 $      9,500Lead to Win Product A $18,000 01‐Mar‐10 $   18,000Redwood Product B $1,000 01‐Jun‐10 Totals $142,500 $0 $0 $9,500 $0 $34,000 $10,000 $30,000 $35,000 $18,000 $5,000 With 60 day credit termsSlide 32 Lead to Win
  33. 33. Exercise #1 – Building Sales Funnel Using Exercise #1 – Worksheet 1. List 10-20 potential customers and identify customer type (A,B,C or D) for – Leads – Qualified Prospects – Already engaged 2. Define Funnel Stages and according percentage values. 3. Populate the rest of worksheet for all fieldsSlide 33 Lead to Win
  34. 34. Exercise #1 - Worksheet 3 Customer 1 Customer 2 Stage Probabitlity Contract Funnel Value Estimated Product Funnel Stage Value Close Name Characteristics (%) (Stage Prob * ($) (month/year) Contract Value) 1 2 3 4 5 6 7 8 91011121314151617181920 A: ready to buy New Opportunity 5% B: need more research Initial Communication 10% C: have problem, but get by Fact Finding 25% D: no problem Develop Solution 40% Propose Solution 50% Evaluate Solution 75% Negociation 80% Contract 90% Close 100% Slide 34 Lead to Win
  35. 35. Exercise #2 – Sales Funnel Cash Flow Using Exercise #2 – Worksheet 1. Transcribe Funnel Value and Closing date information filled in Exercise #1 Worksheet into Exercise #2 worksheet 2. For each customer entry, enter the Funnel value into the appropriate closing date column 3. Calculate totals for each months 4. Identify your typical credit terms: ___ days 5. Change closing date months to reflect credit terms 6. Analyze cash flow requirementsSlide 35 Lead to Win
  36. 36. Exercise #2 - Worksheet 2 Funnel 1 Estimated Value Close Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Aug-10 Sep-10 Oct-10 Nov-10 (Stage Prob * (month/year) Contract Value) 1 2 3 4 5 6 7 8 91011121314151617181920 Totals 3 Slide 36 Lead to Win
  37. 37. In summary • Focus on required product features that are meaningful to the early and late majority, not on features that only excite early adopters and technology enthusiasts. • Structure the company operations to enable quick and rapid scaling to support the sales team. • Develop a sales execution strategy that matches a value proposition to the early majority. • Roll out the sales execution strategy using real metrics and a funnel that is appropriate to your particular market. • Recruit effectively (as described above) to maximize the revenue potential and minimize the cost of sale. • Utilize effective technology to support the sales execution process. • Engage only in marketing activities that directly generate qualified leads.Slide 37 Lead to Win
  38. 38. Participants Open DiscussionSlide 38 Lead to Win
  39. 39. Post Phase 2 TasksSlide 39 Lead to Win
  40. 40. Follow up tasks Task 1 to complete for your business 1. Identify appropriate market segment to release technology into 2. Review list generated during Exercise #1 and add more target customers 3. Blue ocean helps you differentiate from your competition, even if you are not disruptive – perform analysis 4. This will enable you articulate key differentiators to your target customers 5. Start phoning. For each call categorize the customer 6. Identify and implement your own strategies for moving up the chain 7. Only return (initially) to the highest ranked customers for ongoing business developmentSlide 40 Lead to Win
  41. 41. Follow up tasks Task 2 -Doing it in practice - extend the example Simple additions that are valuable are (in no particular order): 1. Funnel value by month – vital for cash flow forecasting 2. Average number of days per funnel stage (too see where your “blockages” are) 3. Estimated vs actual close 4. % dropouts at each stage of the pipeline (closed lost) 5. Keep track of the contract value as it changes (initial estimate – final) to see how accurate your estimating isSlide 41 Lead to Win
  42. 42. Lead to Win “Business Aspects of Intellectual Property” Natalie Raffoul, P.Eng. (Electrical), J.D. Registered Patent Agent, LawyerSlide 42 Lead to Win
  43. 43. Disclaimer • This presentation provides general information regarding some basic principles of intellectual property law. It does not constitute legal advice and should not be relied upon as such. • If you have a particular question for which legal advice is required, please seek independent legal counsel. • I am a lawyer, but I am not your lawyer.Slide 43 Lead to Win
  44. 44. Overview • What is intellectual property? • Protection and Filing Strategies: – Patents – Trade-marks – Copyright – Industrial DesignsSlide 44 Lead to Win
  45. 45. What is Intellectual Property • Intellectual Property (IP) refers to creations of the mind: – inventions, literary and artistic works, and symbols, names, images, and designs used in commerce • Under intellectual property law, owners are granted certain exclusive rights to a variety of intangible assetsSlide 45 Lead to Win
  46. 46. What is Intellectual Property • IP is divided into 2 categories: – Industrial property: inventions (patents), trade-marks, industrial designs, geographic indications of source; and – Copyright: which includes literary and artistic worksSlide 46 Lead to Win
  47. 47. Types of Intellectual Property • Patents: inventions • Trade-marks: brands • Copyrights: expressive works • Designs: aesthetic features • Trade Secrets: confidential info • Domain Names: www.guinness.com • Integrated Circuit Topography Act • Plant Breeders’ RightsSlide 47 Lead to Win
  48. 48. PATENTS What does a patent get you? • Grant of limited monopoly for an invention by government • Enables owner to prevent others from making, using, importing or selling the claimed invention for a limited timeSlide 48 Lead to Win
  49. 49. Patent Basics • “invention” means any new and useful art, process, machine, manufacture or composition of matter (s. 2 Patent Act) • Examples: mechanical equipment, computer hardware, software, packaging materials, processes for making products, pharmaceuticals, vaccines etc.Slide 49 Lead to Win
  50. 50. Patent Basics • Patentability Requirements: – Subject Matter – Novelty – Non-Obviousness – UtilitySlide 50 Lead to Win
  51. 51. Parts of Patent Application • Specification – Description of problem and prior art – Description of invention and implementation – Drawings are an important tool for understanding the invention (US requirement) • Claims – Defines what is protectedSlide 51 Lead to Win
  52. 52. Overview of Patent Process • Prior art search • File application • Publication • Examination • Prosecution – Arguments – Claim amendments • Patent Grant and AnnuitiesSlide 52 Lead to Win
  53. 53. Importance of Dates • First-to-file systems – First to file patent application to an invention prevents others from patenting that invention – NEWS: US has a passed the America Invents Act => now first- to-file in the US with some exceptionsSlide 53 Lead to Win
  54. 54. Importance of Dates • Priority System – Convention priority benefits of earlier date US JP (months) 0 12 EPO CA OtherSlide 54 Lead to Win
  55. 55. Where should I file? • In which countries are your main competitors? • In which country are products in your industry usually manufactured or where are your services being sold/used? • Where is a potential licensee? • What is the worldwide market for the licensee?Slide 55 Lead to Win
  56. 56. Different Jurisdictions National Patent Offices ◦ Patent issues: e.g., Canada, US, China EPO (European Patent Office) ◦ Covers most of Western Europe ◦ EP patent issued but must be validated in various countries PCT (Patent Cooperation Treaty) ◦ Patent application deferral strategy: can delay filing in multiple countries/regionsSlide 56 Lead to Win
  57. 57. US Patent and Trademark Office PROS: • Provides coverage for a large market • Most inventions are patentable • Relatively easy to get a patent – Claim scope may be affected • Allows provisional applications • One (1) year grace period for published inventionsSlide 57 Lead to Win
  58. 58. US Patent and Trademark Office CONS: • Case law keeps changing • Because of changing case law, different rules may be applied to different patents/applications • Notorious for delays in prosecution • Prior art searching may not be as thorough • Can get expensive if prosecution is prolongedSlide 58 Lead to Win
  59. 59. Canada • Relatively cheap to file and prosecute applications • Easy to get a patent –Patent Prosecution Highway (PPH) with US, JP, DK, KO, etc. • Cheaper to litigate than US • One (1) year grace period • Rounds off coverage for North AmericaSlide 59 Lead to Win
  60. 60. European Patent Office PROS: • Provides coverage for most of Europe • Prior art searching is good • Short prosecution time frameSlide 60 Lead to Win
  61. 61. European Patent Office CONS: • Expensive to file and prosecute applications • Difficult and expensive to get a patent if you do not follow Examiner’s lead • No grace period (absolute novelty)Slide 61 Lead to Win
  62. 62. Chinese Patent Office (SIPO) • Relatively cheap to file and prosecute applications, even with additional translation costs • Fastest growing consumer market • No grace period (absolute novelty)Slide 62 Lead to Win
  63. 63. Patent Cooperation Treaty (PCT) • Mid-range in cost • Provides preliminary prior art search and written opinion on patentability • NO world patent • However, national/regional examining authorities will not always follow PCT examination results • News: PCT-PPH Agreement with CIPOSlide 63 Lead to Win
  64. 64. Filing Strategy Considerations • Offensive reasons – Infringement is highly likely • Defensive reasons – Cross-licensing opportunities • Funding purposes – VCs, angel investors, gov’t funding – Ex: start-up in OT that’s gone bankrupt, but their patent portfolio is still alive because there is a good technology thereSlide 64 Lead to Win
  65. 65. Cost of Patenting vs. Coverage • Initial Application Costs – Drafting costs for patent application ◦ Depends on complexity of invention ◦ Provisional application - $2.5k to $4k ◦ Full application - $4k to $8k ◦ Written for filing in all jurisdictionsSlide 65 Lead to Win
  66. 66. Cost of Patenting vs. Coverage Balance cost vs. advantage/coverage for the application ◦ US application – approx. $2k to file Covers large potential market ◦ CA application– approx. $1.5k to file ◦ Cheap and covers off North America ◦ EPO application – approx. $9k to file ◦ Covers off most of Europe ◦ PCT application – approx. $5k to file ◦ Delays costsSlide 66 Lead to Win
  67. 67. Pitfalls and Suggestions • Filing a cheap/poorly drafted application can increase prosecution costs later… • Badly drafted applications CAN destroy your rights – Improper coverage of invention by bad claim drafting – Missing details may make application useless • If unsure of patentability of invention, consider a patentability search and opinionSlide 67 Lead to Win
  68. 68. Licensing Economics • IP Licensing can generate significant amounts of revenue – Corporate example – MOSAID (Ottawa based tech licensing company) » 3Q 2008 revenue of $14 million (all licensing revenue) » By 3Q of 2008, portfolio will have 924 patents applications worldwide » Projected 2008 licensing revenue is $55 million » Very aggressive licensing and enforcement regimeSlide 68 Lead to Win
  69. 69. Patent Licensing • Why license? – Generate revenue for research – Can off-load patenting costs • Why file internationally? – More IP to license: different jurisdictions can be different licenses – Possibility of technology partnerships with international industrySlide 69 Lead to Win
  70. 70. Licensing Basics • Finding licensees – Consider marketing invention – Determine key players in the field – Contact and offer technology – Don’t forget non-disclosure agreement (NDA) if required – Broad-based marketing campaign • Starting point: Standard licensing agreementSlide 70 Lead to Win
  71. 71. License Terms • Consider the following for license terms: – Milestone payments – Minimum annual royalties – Signing bonus/fee – Reimbursement of costs for initial patenting activity – Continuing costs of patenting to be borne by licensee? – Percentage royalty on sales or flat license fee? – Who pays for and owns future developments?Slide 71 Lead to Win
  72. 72. Royalty Considerations • What is a “fair” royalty rate? – US universities generally use the “25% Rule” • Approx. 25% of licensee’s anticipated pre-tax profits – 25% Rule is a good starting point – Royalty depends on circumstances of the license, the technology, the market, etc. • “Risk” or discount factors? – Time to market for product? – Revenue generation timeframe?Slide 72 Lead to Win
  73. 73. TRADE-MARKS • A patent protects the technical aspect of a product, or know-how. Once youve developed a product, how do you market/sell it? • This is where trade-marks come in • Trade-marks = allow you to connect with consumersSlide 73 Lead to Win
  74. 74. Trade-mark Basics According to TM law: the key role of a trade-mark is to identify the source of a product or service. In other words, to distinguish wares and services of one trader from those of another. Ex. - DOVE mark identifies soap manufactured by Unilever vs. Johnson & JohnsonSlide 74 Lead to Win
  75. 75. Trade-mark Basics • In reality, trade-marks do more than merely identify the source of a product/service. • Trade-marks actually SELL goods and services = visual sound bites • Advertisers spend millions associating TMs with imagery designed to create impulse buying • eg. COKE brand creates thirstSlide 75 Lead to Win
  76. 76. Branding • A trade-mark/brand can be the key to business success consumer recognition SALES – MP3s - Diamond Multimedia Rio PMP300 v. iPod® – Vodka - GRAY GOOSE® v. SMIRNOFF® – Not only luxury goods - NO NAME®Slide 76 Lead to Win
  77. 77. Objectives • What are the objectives of a good brand? – delivers a clear message – confirms credibility – connects you with target consumers – motivates consumers to purchase – creates loyalty, trust and GOODWILL in your products, services and businessSlide 77 Lead to Win
  78. 78. Trade-mark Basics • What is a trade-mark? – Word: BURTON – Word & Design: NIKE & SWOOSH – Design: PEPSI Circle Logo – Slogan: “I’M LOVIN’ IT” – Device: Pillsbury Doughboy – Shape: shape of COCA-COLA BOTTLESlide 78 Lead to Win
  79. 79. Trade-mark Basics – sounds (i.e. NBC chimes) – colour (TIFFANY blue) – smell (scent of cut grass on tennis balls) – Holograms, motion marks • In Canada, the technical limitations of our legislation, prevents the protection of many non-traditional marks, but the law is evolving. • Non-traditional marks may still be protectable against passing at common law?Slide 79 Lead to Win
  80. 80. Strong Marks • strongest marks = inherently distinctive – (a) non-descriptive, – (b) coined or invented, and – (c) unique • Ex: EXXON ®, XEROX ®, KODAK ® • strong marks - words that bear no relation to the product, industry or field – APPLE ® for computers – RED ROSE® for teaSlide 80 Lead to Win
  81. 81. Weak Marks • Weak marks: words that have a clear connection with, or are descriptive of the wares and services • Ex: – ALL BRAN for cerealSlide 81 Lead to Win
  82. 82. Strong Marks • By selecting a trade-mark that is non-descriptive, unique, and preferably coined, you – increase the sphere of protection for your trade-mark and – minimize the risk that your trade-mark will infringe other trade-marks in the marketplaceSlide 82 Lead to Win
  83. 83. NOT Registrable What is NOT registrable as a trade-mark? – word(s) that are primarily merely the name or surname of an individual who is living • Ex. SMITH (exception marks that have acquired distinctiveness i.e. “GIORGIO ARMANI”) – words that are clearly descriptive or deceptively misdescriptive of wares/services or their place of origin • "FOAMY" for shaving cream • "MEXICAN" for tequila • "SILK WEAR" for clothing that is not made of silkSlide 83 Lead to Win
  84. 84. NOT Registrable • the name in any language of the wares or services – Spanish JUGO for juice • anything that is confusing with a prior registered trade- mark • Prohibited marks (incl. Obscene marks, Official Marks, Flags, Red Cross...)Slide 84 Lead to Win
  85. 85. Searching • Once you have identified a potential TM, the next step REGISTRABILITY SEARCH • Not mandatory but HIGHLY recommended – Will save you time and $$ – Will help you identify obstacles to both registration and use of the mark – Better to know in advance – registration process is over 18 months!Slide 85 Lead to Win
  86. 86. TM Registration Process • Trade-mark protection is national in scope therefore you will need to conduct searches and file applications in each jurisdiction where the mark will be used • Canadian Registration Process in a Nutshell – Filing Formalities Examination Approval Publication Opposition (if any), Allowance Registration – Canada is now essentially a first to file jurisdiction - DONT DELAY – Any number of wares and services - no extra cost BUT choose carefully b/c will need to prove USESlide 86 Lead to Win
  87. 87. Registration • The Registration Process in a Nutshell – Registration process = long 18 months, or longer if application is opposed. – Term of Registration is 15 years (most other jurisdictions, only 10) – Cost is in range of $2000+ for straight-forward trade-mark prosecution – Trade-marks may be renewed in perpetuitySlide 87 Lead to Win
  88. 88. Benefits of Registration What are the benefits of a TM Registration? • “right to the exclusive use of the mark across Canada" in relation to goods/services specified in registration” • Tangible proof of ownership • Public notice – deters others from adopting/using a confusing mark • TM Office will reject subsequent applications that are confusing with registered marks • A trade-mark registration is useful for protecting a domain nameSlide 88 Lead to Win
  89. 89. Unregistered Marks • Are unregistered marks protected? – Yes, BUT… – Common Law rights are limited: • restricted geographically • remedy limited to an action for "passing off" (cannot sue for infringement, depreciation of goodwill) • expensive to enforceSlide 89 Lead to Win
  90. 90. • “Passing off” aims to prevent misrepresentation • MUST prove: • A reputation or goodwill • A misrepresentation by the defendant causing deception • Damage/Injury to the plaintiffSlide 90 Lead to Win
  91. 91. 5 KEY POINTS 1. Canada is a use-based jurisdiction – USE IT OR LOSE IT: Registrations can be expunged for non-use – BE CAREFUL as to the date of first use: • If actual use of the mark commences after the date of first use claimed, the application may be successfully challengedSlide 91 Lead to Win
  92. 92. 5 KEY POINTS 2. Avoid Generic Use of TM – "Pass me a Kleenex" = WRONG – "Pass me a Kleenex® tissue" = CORRECT – a trade-mark should never be used as a noun, in possessive form or plural form - ALWAYS as adjective – the trade-mark should appear in a manner to stand out from regular text – Ex: CAPITALIZATION, "quotation marks", italics, bolding, ® symbolSlide 92 Lead to Win
  93. 93. 5 KEY POINTS 3. Trade-mark "Marking" – TM / MC symbols can and should be used on all unregistered trade-marks – ®/ MD symbol can only be used on a registered trade-markSlide 93 Lead to Win
  94. 94. 5 KEY POINTS 4. Quebec – doing business in Quebec requires compliance with their language laws – can use an English trade-mark in Quebec provided that: • you use the ®/MD (marque deposee), OR TM/MC (marque de commerce) symbols as notice that you are using the English word(s) as a trade-markSlide 94 Lead to Win
  95. 95. 5 Key Points 5. Trade-mark v. trade name / business name? • CAUTION: Clients often confuse a business name registration, and a TM registration • NOT the same thingSlide 95 Lead to Win
  96. 96. Trade-mark v. Trade Name • A trade (business) name is a name under which an individual or company carries on business – must registered in each province in which company carries on business – purpose = registry for consumer protection – does not grant positive rights to a trade-name or name (Ministry shifts onus/risk) – does not function as a trade-markSlide 96 Lead to Win
  97. 97. COPYRIGHT • Copyright means – the sole right to produce or reproduce (i.e., copy) a work (or a substantial part of it) in any form – Simply put, “copyright” means “the right to copy”Slide 97 Lead to Win
  98. 98. Copyright Basics • Copyright provides protection for – Literary, artistic, dramatic or musical works (including computer programs) and – 3 other areas known as: performances, sound recordings and communication signalsSlide 98 Lead to Win
  99. 99. Copyright Works • literary works: books, pamphlets, poems, other works consisting of text, lyrics without music and computer programs • dramatic works: films, videos/DVDs, plays, screenplays and scripts • musical works: compositions that consist of both words and music, or music only • artistic works: paintings, drawings, maps, photographs, sculptures and architectural worksSlide 99 Lead to Win
  100. 100. Other Subject Matter • performer’s performances: performers such as actors, musicians, dancers and singers have copyrights in their performances • sound recordings: makers of recordings, such as records, cassettes, and compact discs • communication signals: broadcasters have copyrights in the communication signals that are broadcastSlide 100 Lead to Win
  101. 101. What you can’t copyright • titles and short word combinations • ideas: copyright is restricted to the expression in a fixed manner of an idea, not the idea itself • names or slogans • methods • plots or charactersSlide 101 Lead to Win
  102. 102. What you can’t copyright • factual information: facts, ideas and news are all considered part of the public domain • although layout, adaptations and translations of factual information are protected by copyright – Ex: magazine article containing factual information: it is the expression of the information that is protected and not the factsSlide 102 Lead to Win
  103. 103. Automatic protection • When you create a work or other subject matter protected by copyright, you automatically have copyright protection provided that, at the time of the creation, you – the Creator – were: – a citizen/subject/resident of a Berne Convention country, a Universal Copyright Convention Country, a Rome Convention Country, or a country that is a member of the WTOSlide 103 Lead to Win
  104. 104. Benefits of Registration • You don’t have to register to have copyright protection in Canada • A certificate of registration is evidence in court that the registrant is the copyright owner • But in some countries, you cannot pursue infringers without registration – Ex: United StatesSlide 104 Lead to Win
  105. 105. Registration Limitations • Registration does not guarantee against infringement • Registration does not guarantee that the legitimacy of ownership or originality in a work will never be questionedSlide 105 Lead to Win
  106. 106. How long do copyrights last? • General rule is that copyright lasts for the life of the author, the remainder of the calendar year in which the author dies, and for 50 years following the end of that calendar year – Protection will expire on December 31 of the 50th year after the author dies – After that, the work becomes part of the public domain • Some exceptions to the general rule applySlide 106 Lead to Win
  107. 107. Indicating Copyright • There is no requirement to mark your work under the Copyright Act • However, the Universal Copyright Convention provides for marking with the symbol ©, the name of the copyright owner and the year of first publication – Ex: © Jane Doe, 2011 • Some other countries require such markingSlide 107 Lead to Win
  108. 108. “Fair Dealing" • Under Copyright Act, “Fair Dealing” provisions allow individuals or organizations to use original works without such use being considered an infringement: – Criticism and review – News reporting – Private study or research • Act also exempts certain categories of users – Ex: non-profit educational institutionsSlide 108 Lead to Win
  109. 109. INDUSTRIAL DESIGNS • Industrial Designs are the visual features of shape, pattern, configuration or ornament (or any combination of these features) applied to a finished manufactured article made by hand, tool or machine • An industrial design must: – Have features that appeal to the eye – Must be originalSlide 109 Lead to Win
  110. 110. Industrial Design Basics • A unique design for a chair is an example of an industrial design • A well-designed chair is not just a pleasure to sit on, but also a pleasure to behold • For most manufactured products, the value depends not only what they do, but how they lookSlide 110 Lead to Win
  111. 111. REGISTRATION • Registration provides an exclusive right to your design for up to 10 years from the date of registration • Under the Industrial Design Act, you cannot register: – A method of construction – An idea – The materials used in the construction of an article – The function of an articleSlide 111 Lead to Win
  112. 112. REGISTRATION • You can register: – A repeat pattern applied to wallpaper – The shape of a perfume bottle (trade-mark protection also available if distinguishing guise) – The ornamentation applied to a t-shirt – The visual features of a running shoeSlide 112 Lead to Win
  113. 113. REGISTRATION • You can’t register: – The way an MP3 player functions – The material of which a protective mask is made – The idea of putting advertising on bus sheltersSlide 113 Lead to Win
  114. 114. REGISTRATION • When to register? – In Canada, there is no time limit for registration as long as the design has never been published • Never made public or offered for commercial sale or use anywhere in the world – If your design has been published, you must file a registration within 12 months of publicationSlide 114 Lead to Win
  115. 115. REGISTRATION • Examination and Search – Application will be examined to ensure that it conforms with the formalities of the Act – Examiner will also undertake a search of existing industrial designs to determine whether your design is original – If the design is original and the application conforms to all of the requirements, a registration will be grantedSlide 115 Lead to Win
  116. 116. PRIORITY • Paris Convention Priority – Similar to patents, applicants can request convention priority for design applications – Someone who has filed for a design registration in one Convention country has six (6) months to file an application for the design in another country in order to be given the same rights as if s/he had filed in the second filing country on the original filing dateSlide 116 Lead to Win
  117. 117. In Summary Patent Fundamentals • File early, file often – earliest inventions most valuable • The “threshold” for patentability is lower than you think! • Software is patentable • Do not disclose before filing (use NDA if necessary) • Work with licenced professionalsSlide 117 Lead to Win
  118. 118. In summary Trade-mark Fundamentals • Go with a strong mark: “inherently distinctive” • Avoid its generic use • Register!Slide 118 Lead to Win
  119. 119. In summary Copyright Fundamentals • Assert your rights by marking all works with © … • Software is better protected by patents Industrial Design Fundamentals • Explore this form of protection if your product is likely unpatentableSlide 119 Lead to Win
  120. 120. Participants Open DiscussionSlide 120 Lead to Win
  121. 121. Customer & Partner Value Propositions October 26, 2011 David HudsonSlide 121 Lead to Win
  122. 122. Define compelling value propositions for customers and partners • Upon completion you will know about: – Compelling customer value propositions – Ways to define customer value propositions – Value word equations • And you will be able to: – Use customer value propositions to communicate an offer’s superior value and deliver superior business performance – Use value word equations to make value propositions persuasiveSlide 122 Lead to Win
  123. 123. What a value proposition is NOT • All of the following are useful but are not a value proposition in themselves – Product/Technology/Service – Brand – Slogan – Ad/collateral – IPR – Secret sauce • A value proposition need not be static – May evolve as your market, customers, competitors evolve – Likely to retain core elementsSlide 123 Lead to Win
  124. 124. Market offers • A market offer (offer) defines: – What is purchased – Rights over what is purchased – How it is purchased • Offers: – Get jobs done for customers – Solve problems – Satisfy needs that customers have – Reduce cost or drive revenue for your customerSlide 124 Lead to Win
  125. 125. Customer value • Value a company delivers to its customers is referred to as customer value and can be assessed as: Customer value = Benefits from what is purchased + Benefits from how it is purchased + Emotional benefits – (Financial + Non-financial burdens) • This is about why a customer purchases instead of what a customer purchases and fundamentally overcomes three issues – Customer does nothing – Customer does what the competition says – Customer does what you say, but not at your priceSlide 125 Lead to Win
  126. 126. Partners as force multipliers • Your other stakeholders may include channels, suppliers, complementors, customers’ customers, ecosystem, etc. • Value propositions for key stakeholders need to be as compelling as customer value propositions – E.g., a company that has a channel partner as part of its go to market strategy will need to deliver both compelling customer value and compelling channel partner value • Partners, suppliers, ecosystem all make choices too! – Likely competing for attention, position, priority, mindshare • Partner relationship may not be financial, so equation may deal primarily with emotional benefitsSlide 126 Lead to Win
  127. 127. Partner value • Partner value = Net financial + emotional benefit – Non-financial burdens + Collaboration benefit – Collaboration burden • Ecosystem collaboration benefits: – Market entry barrier reduction – Access to customers – Operations cost reduction – Elimination of regional limitations – Makes niche markets viable – Leverages international disparities – Makes scarce skills abundant – Community/asset reuseSlide 127 Lead to Win
  128. 128. Challenges • Term “customer value proposition” is used widely, but no agreement as to what it is • Unsure as to what makes one compelling • Loose talk, not backed up by evidence • Value that is intuitive but not quantified or not uniquely owned • We often talk more than we listen • We often try to put too many points on the table • Customers do not believe suppliers’ assertionsSlide 128 Lead to Win
  129. 129. Strategy – deliberate, not accidental • Deliver superior value relative to competitors which is measurable and sustainable • Make all-in company responsible for defining compelling customer value propositions • Define customer value propositions of “resonating focus” type • Use customer value propositions to: – Communicate your offer’s superior value – Deliver superior business performance • Use value word equations to make customer value propositions persuasive • Use process and tools to demonstrate valueSlide 129 Lead to Win
  130. 130. All benefits All Benefits Favorable Points of Resonating Focus Difference Consists of: All benefits All favorable points of Few points of difference customers receive difference a market whose improvement will from an offer offer has relative to deliver the greatest value next best alternative to customer Answers Why should our Why should our firm What is most worthwhile customer firm buy your buy your offer instead for our firm to keep in question: offer? of your competitor’s? mind about your offer? Requires: Knowledge of our Knowledge of our own Knowledge of how our own market offer market offer and next own market offer delivers best alternative superior value to customers compared with next best alternativeSlide 130 Lead to Win
  131. 131. Favorable points of difference All Benefits Favorable Points of Resonating Focus Difference Consists of: All benefits All favorable points of Few points of difference customers receive difference a market whose improvement will from an offer offer has relative to deliver the greatest value next best alternative to customer Answers Why should our Why should our firm What is most worthwhile customer firm buy your buy your offer instead for our firm to keep in question: offer? of your competitor’s? mind about your offer? Requires: Knowledge of our Knowledge of our own Knowledge of how our own market offer market offer and next own market offer delivers best alternative superior value to customers compared with next best alternativeSlide 131 Lead to Win
  132. 132. Resonating focus All Benefits Favorable Points of Resonating Focus Difference Consists of: All benefits All favorable points of Few points of difference customers receive difference a market whose improvement will from an offer offer has relative to deliver the greatest value next best alternative to customer Answers Why should our Why should our firm What is most worthwhile customer firm buy your buy your offer instead for our firm to keep in question: offer? of your competitor’s? mind about your offer? Requires: Knowledge of our Knowledge of our own Knowledge of how our own market offer market offer and next own market offer delivers best alternative superior value to customers compared with next best alternativeSlide 132 Lead to Win
  133. 133. Resonating focus • Also meaning, concise and to the point • At most two or three key points – Like a good essay, a good argument • There are likely many benefits to your product or service but you must establish which are critical to the purchase decision • Concentrate on those pointsSlide 133 Lead to Win
  134. 134. Most of us • Need to discover these with our customers and partners – But we don’t always listen because we’re busy talking! • Every pitch is a learning experience • If you have the benefit, ensure one person from your team is actively listening – Asking questions – Probing for why – Restating and getting confirmation • Resist the temptation: “They didn’t get it”Slide 134 Lead to Win
  135. 135. Value elements Point of Element that makes Point to distance yourself difference supplier’s offer either superior from all other offers or inferior to next best alternative Point of Element with essentially Point to take off the table parity same performance or functionality as those of next best alternative Point of Element about which the Point to counter (often contention supplier and its customers these are the competitor’s disagree regarding how its points of difference) functionality or performance compares with those of next best alternative Find significant – order of magnitude – points of difference for which customers are willing to paySlide 135 Lead to Win
  136. 136. Make value propositions compelling Fits: Fits with customers’ and channel partners’ needs to grow and/or make pain go away Value for all Satisfies requirements and power roles: relationships of who really buys: (i) economic buyer; (ii) user; (iii) gatekeeper; and (iv) advocate Superior: Better than those of competition (order of magnitude) Demonstrable: Based on tangible points of difference that can be quantified in monetary terms Substantiated: Claims supported by evidence collected with customers and channel partners Sustainable: Sustainable for a long timeSlide 136 Lead to Win
  137. 137. Use value word equations to bring sharp focus on value • Focus on points of difference • Equation that concretely demonstrates customer value proposition using words with which customers are familiar • Power reduction cost savings = [kW spent x number of operating hours per year x $ per kW hour x number of years system solution in operation] Competitor - [kW spent x number of operating hours per year x $ per kW hour x number of years system solution in operation] My Business UnitSlide 137 Lead to Win
  138. 138. Demonstrate value Pre-sale talk Post sale evidence • Promoters’ endorsements • With customer define what will • Published comparisons and be tracked, track, and rankings document results • Case histories • Value calculators • Evidence of post sale impact is • Data collected in customers’ highly valuable intellectual property premises • Collect data from customer sites • Benefit guarantees and develop relationships while doing so • Reference accounts and data for quantified points of differenceSlide 138 Lead to Win
  139. 139. Moment of truth • Define the compelling value proposition for your business – Identify your (a) Customer and (b) Partner Value Props • Write them down • Be brutal: at most 2-3 points each – Present your value prop back to the group here. • 5 minutes MAXSlide 139 Lead to Win
  140. 140. References • Anderson, J.C., Narus, J.A. & Van Rossum, W. (2006) Customer value propositions in business markets. Harvard Business Review.Slide 140 Lead to Win
  141. 141. Day 2 takeaways October 26, 2011 Tony BailettiSlide 141 Lead to Win
  142. 142. Day 2 takeawaysSlide 142 Lead to Win