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Hiding In Plain Sight: Segmenting and Targeting
Sales Readiness Series




                         Hiding in Plain Sight
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Hiding In Plain Sight: Segmenting and Targeting
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                     Sales Goals Have Not Chan...
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                  Neither Have Most Sales Mode...
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                     And Results Continue Decl...
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     New Market Realities Require Change




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                                    Where To S...
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               Strategic Market Planning Defin...
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      Strategic Marketing Best Practices
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                 Barriers to Marketing Plannin...
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                                  Phase I: Goa...
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                           Defining Company Mi...
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                                  Defining Com...
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                      Defining Company Objecti...
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                         Task: Goals and Objec...
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                            Phase II: Situatio...
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                                  Defining Mar...
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                             Example: Market A...
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                            Defining: Defining...
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                 Defining Customer Segmentatio...
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                             Task: Segmentatio...
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                      Task: What Are They Buyi...
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                            Task: Competitor A...
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             Task: Feature / Benefit Analysis
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                         Task: Segmentation Pa...
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                  Task: Category Segmentation
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                                    Defining P...
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                                  Task: Portfo...
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                                  Issues To Ad...
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                       Phase III: Strategy For...
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                 Phase IV: Resource Allocation...
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                                   Putting It ...
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   3forward’s Sales Transformation Model

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   3forward’s Sales Transformation Model

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                                  Today’s Sell...
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                                  Example: Who...
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Hiding In Plain Sight - Segmenting and Prospect Profiling

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Sales teams today cannot afford to spend valuable time and resources pursuing mass markets or poorly selected segments. Knowing where to focus however is not always immediately obvious. Sales leaders and marketing both can benefit by learning the fundamentals of prospect segmentation and target profiling.

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  1. 1. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Hiding in Plain Sight Segmenting and Prospect Profiling Sales Readiness Series
  2. 2. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Sales Readiness Series Hosts Dan Hudson Matt Smith 3forward 3forward President, Co-Founder Exec VP, Co-Founder Dan.Hudson@3forward.net Matt.Smith@3forward.net 3forward.com 2 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  3. 3. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Sales Goals Have Not Changed Increasing wins from new logo prospects Top of mind with prospects in ‘buying mode’ Accelerating in-bound lead generation Consistent, sustained lead cultivation Increasing sales efficiency and reducing cost/lead 3forward.com 3 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  4. 4. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Neither Have Most Sales Models List Purchased Direct Mail Marketing Cold Calling Qualifying Sales Presenting Closing 3forward.com 4 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  5. 5. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series And Results Continue Declining 51.5% Reps Making Quota in 2009 78.5% Overall Plan Attainment 85.1% Companies Raising Quotas in 2010 • 3,000+ Companies Participated Worldwide, Cross Industry Participation, SMB and Large Enterprises • 100+ Sales & Marketing Metrics Tracked • Best Practices Benchmarking on How Sales Teams are Leveraging People, Process, Technology and Knowledge to Address Challenges CSO Insights, 2009 Sales Optimization Study 3forward.com 5 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  6. 6. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series New Market Realities Require Change 3forward.com 6 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  7. 7. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Where To Start? 3forward.com The Answer May Be Hiding In Plain Site! 7 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  8. 8. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Strategic Market Planning Defined Formalizing and Documenting Company Vision – Mission – Goals – Objectives Develop Strategic Plans based on: – Company Vision – Analysis of Markets and Opportunities – Objectives and Strategies – Functional Strategic Planning – Tactical Action Plans to Implement Strategies 3forward.com 8 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  9. 9. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Strategic Marketing Best Practices • Develop the strategic plan first. The operational plans should be guided by a strategic plan – never the other way around. • Put marketing as close as possible to the customer and make marketing and sales the responsibility of one person • Organize around customer groups, not functions • Make marketing audit a rigorous process. No vague terms. Use proven tools for capture, reporting and analysis. • Focus SWOT on segments critical to the business. Concentrate only on factors leading to objectives. • Plan your planning. • Prioritize objectives in terms of urgency and impact. • Enlist the entire organization, from CEO to receptionist. 3forward.com 9 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  10. 10. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Barriers to Marketing Planning • Confusion between marketing tactics and strategy. • Isolation of the marketing function from operations. • Confusion between the marketing function and the marketing concept. • Organizational barriers – too many layers or competing agendas. • Lack of in-depth analysis. • Confusion between process and output. • Lack of knowledge or skills. • Lack of a systematic approach to marketing planning. • Failure to prioritize objectives. • Hostile corporate cultures. 3forward.com 10 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  11. 11. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Strategic Marketing Process Marketing Planning Process Copyright 3forward LLC Goal Setting Situation Review Strategy Formulation Resource Allocation and Monitoring 6. Marketing 1. Mission 3. Marketing Audit Objectives and 9. Budget Strategic Marketing Plan: Strategies Process Output · Mission Statement · Financial Projections · Market Overview 2. Corporate 7. Estimated 10. Implementation · SWOT Analysis 4. SWOT Objectives Results Program · Portfolio Summary · Major Assumptions · Marketing Objectives and Strategies · Forecasts and Budgets 8. Alternative Plans Corporate 5. Assumptions and Mixes Objectives Measurement and Review 3forward.com 11 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  12. 12. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase I: Goal Setting Mission Goals Objectives 3forward.com 12 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  13. 13. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Company Mission Mission – meaningful statement which influences the efforts of the organization: – Role or contribution of the business (i.e. profit generator, service department, opportunity seeker) – Definition of the business (i.e. needs we satisfy or benefits provided, not what we offer) – Core competencies: the essential and unique skills, capabilities, resources that apply only to this entity – Differentiation: the unique and valuable position the company is taking in the marketplace – Indications for future direction: what we will consider, might consider, will never consider 3forward.com 13 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  14. 14. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Company Mission Future Needs We Satisfy Core Competencies Differentiators Considerations 3forward.com 14 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  15. 15. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Company Goals Goals – destinations or where we want the business to be and feel, for example: – Relationships – Reputation – Image – Sustainability – Culture 3forward.com 15 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  16. 16. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Company Objectives Objectives – specific results we want the business to achieve, progress markers to attaining goals; for example: – Revenue – Profit – Market share – Recognition 3forward.com 16 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  17. 17. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Goals and Objectives Goals Objectives 3forward.com 17 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  18. 18. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase II: Situation Review Market Analysis (Audit) Portfolio Analysis Opportunities / Threats Strengths / Weaknesses Assumptions Issues To Be Addressed 3forward.com 18 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  19. 19. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Market Analysis Market Analysis – Process leading to creating marketing objectives and strategies for the company; taking into consideration: – Trends and developments which may affect the company – Where competitors add value – SWOT analysis highlighting internal differential strengths and weaknesses relative to external opportunities and threats 3forward.com 19 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  20. 20. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Example: Market Analysis External Audit Internal Audit Market Economic Company Operations Market size, characteristics Economic trends Sales (total, industry, client, etc.) Developments, trends Political, Legal factors Market share Products Social / Cultural issues Profit margins / costs Prices Technology impact Portfolio performance Customers Marketing procedures Industry practices Competition Marketing organization Major competitors Marketing information / research Size, market share, coverage Marketing mix variables Market standing, reputation - Product management Marketing methods - Price Diversification - Distribution International model - Promotion Key strengths and weaknesses 3forward.com 20 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  21. 21. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining: Defining Markets Market – aggregation of all the products that appear to satisfy the same need for a given customer category; crucial for: – Share measurement – Growth measurement – Specification of target customers – Recognition of relevant competitors – Formulation of marketing objectives and strategies 3forward.com 21 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  22. 22. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Customer Segmentation Segments – natural groups containing customers exhibiting the same broad characteristics; segments should: – Be of an adequate size to provide desired ROI – Posses high degree of similarity, yet be distinct from the rest of the market – Be definable by criteria relevant to the purchase situation – Be reachable and responsive to a distinct marketing mix Purpose of segmentation is to provide a competitive advantage by providing greater value to customers 3forward.com 22 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  23. 23. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Segmentation Part I Who and What: • Who is buying? List characteristics of customers: Size, locations, target end-customer, growth rates, etc. • What are they buying? Volume, price paid, frequency of purchase, etc. • List all relevant competitive products and services purchased, unbundling all components to determine comprehensive list of what is bought. Include frequency of purchases and departments involved. • Create a matrix identifying each who and all the unique what they buy. 3forward.com 23 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  24. 24. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: What Are They Buying Potential Customer Available Products or Categories (Segments) Category Needs Services 3forward.com 24 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  25. 25. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Competitor Analysis Competitor Products Markets Strategy Strengths Weaknesses 3forward.com 25 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  26. 26. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Segmentation Part II Why: • List features of all products / services with what they mean to the customer (benefit). • Classify each benefit as: – Standard – basic benefits arising from features – Double – benefits the customer and end-user – Company – relationship value – Differential – benefits compared with those of competitors 3forward.com 26 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  27. 27. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Feature / Benefit Analysis Available Products or Services Features Benefits 3forward.com 27 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  28. 28. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Segmentation Part III To determine realistic and achievable marketing and sales objectives: • Identify which segments share similar needs • Apply the minimum volume and value criteria to determine viability for each segment 3forward.com 28 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  29. 29. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Category Segmentation Identified Segments Segment Growth Key (Based On Common Needs) Rev Rate Trends Characteristics 3forward.com 29 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  30. 30. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Product Means to providing customer benefits, not physical products or services. Three Dimensions Augmented Product of Product Formal Product Guarantees Availabilty Deliverables Core Features Benefit Packaging Quality Delivery Warranties Price Design 3forward.com 30 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  31. 31. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Portfolio Analysis Offering Deliverables Benefits Customer Target 3forward.com 31 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  32. 32. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series SWOT s se hs es n gt kn re ea St W es iti ts n a tu re or Th pp O 3forward.com 32 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  33. 33. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Issues To Address • Issue 1 • Issue 2 • Issue 3 • … 3forward.com 33 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  34. 34. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Assumptions • Assumption 1 • Assumption 2 • Assumption 3 • … 3forward.com 34 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  35. 35. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase III: Strategy Formulation Marketing Objectives Marketing Strategies Estimated Results 3forward.com 35 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  36. 36. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase IV: Resource Allocation Forecasts and Budgets Evaluation and Measurement 3forward.com 36 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  37. 37. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Putting It All Together SALES READINESS Market Anchor Market Entry Client Expansion Programs Acquisition 3forward.com 37 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  38. 38. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series 3forward’s Sales Transformation Model SALES READINESS Market Anchor Market Entry Client Expansion Programs Acquisition LEAD CREATION Outbound Inbound Lead Demand Demand Nurturing Generation Generation 3forward.com 38 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  39. 39. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series 3forward’s Sales Transformation Model SALES READINESS Sales 2.0 Enablement Market Anchor Market Entry Client Expansion On-line Programs Acquisition Strategy & Engagement LEAD CREATION Research Outbound Inbound Lead and Insight Demand Demand Nurturing Generation Generation Virtual Presence 2.0 SERVICES INTEGRATION 3forward.com 39 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  40. 40. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Today’s Selling Model Sales Readiness Lead Creation Lead Engagement Lead Nurturing Marketing Lead Scoring Qualification Prove Value Sales Decision 3forward.com 40 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  41. 41. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Samples and Templates Who Is Buying Market Map SWOT Sweet Spot Matrix Segment Characteristics Model Content Planner Decision Maker Planner 3forward.com 41 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  42. 42. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Example: Who Is Buying ITSM ITSM Selling Who Size (B) Selling To HQ Maturity Competence ATOS Origin 2 Large In-Country, Mid-Tier Multi-National France Maturing Evolving Wipro 8 Large Multi-National, Large In-Country, Mid-Tier Multi-National India Developing Evolving TCS 8 Large Multi-National, Large In-Country, Mid-Tier Multi-National India Developing Evolving Infosys 8 Large Multi-National, Large In-Country, Mid-Tier Multi-National India Developing Evolving HCL 5 Large In-Country, Mid-Tier Multi-National India Developing Evolving Satyam 6 Large In-Country, Mid-Tier Multi-National India Developing Evolving Patni 3 Large In-Country, Mid-Tier Multi-National India Developing Evolving Cap Gemini 10 Large Multi-National, Large In-Country France Very Strong Perot Systems 3 Large Multi-National, Large In-Country US Maturing Strong Unisys 6 Large Multi-National, Large In-Country US Very Strong CSC 16 Global 100, Large Multi-National, Large In-Country US Very Strong IBM 200 Global 100, Large Multi-National, Large In-Country US Very Best In Class HP 70 Global 100, Large Multi-National, Large In-Country US Very Best In Class Accenture 50 Global 100, Large Multi-National, Large In-Country US Very Best In Class EDS 20 Global 100, Large Multi-National, Large In-Country US Very Best In Class 3forward.com 42 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  43. 43. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Example: Market Map Sales & Marketing Target Customer End User Companies Categories Classes Industry Analysts Global 100 Buyer Consultants 3Forward Large Multi- Top Tier Nationals Outsourcers Competitor A Emerging Mid-Tier Outsourcers Multinationals Competitor B Technology Services Providers Large Competitor In-Country C Direct Sale 3forward.com Intermediated Sale 43 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  44. 44. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series SWOT Strengths Weaknesses • History w/ similar projects / references • May not have all skill sets / certs for diverse projects • Team w/ this background • Not always price competitive – lower than US, more than • Near shore model well received – trend is to reduce India reliance on India • Scalability to project demands • Cultivate relationships well – once initiated • Sales process / opportunity management throuph-put • Established partner benches • Lack of domain expertise in active industries, i.e. • Mobility solutions practice medical, BFSI • US based / US presence • Government – any level or type • Multi-Lingual / Spanish • High volume transaction processing Opportunities Threats • Economy recovering / but hiring lagging • Lots of competition • Partnering / growing indirect channel • Heavy commoditization • High demand for mobility • Difficulty differentiating • Existing relationships show high degree of loyalty • Internal hiring if economy comes back fast / strong • Vertically specific indirect channels – (i.e. augmenting the • Govt.policy opposing off-shoring healthcare technology solution companies, BPOs) 3forward.com 44 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  45. 45. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Sweet Spot Matrix Category Strong Fit Neutral Weak Fit Annual $10m to $50m $5m to $10m or greater Less than $5m Revenues than $50 Geography US based North America Outside North America Support Model Shared Desk Dedicated Desk After Hours / Overflow Proprietary or technology Order Fulfillment Order Fulfillment Providing product or service Stage 2 Mature Start up Growth Stage Quality of Service, Growth QofS, Cost, Growth Cost containment Top Objective Enablement Group End Customers End Customers Internal Users Supported Services Tier 1 & 2 Tech Support Tier1 & 2 General Complex, Level 3 Needed 3forward.com 45 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  46. 46. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Segment Characteristics Model 3forward.com 46 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  47. 47. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Content Planner 3forward.com 47 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  48. 48. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Decision Maker Planner 3forward.com 48 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  49. 49. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Resources Sales Readiness 3forward Become a Fan 3forward Dan_3forward Mattat3forward Sales Leaders Blog Sales Leader New Tools Directory Resources 3forward.com 49 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  50. 50. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Resources New Model Sales, Marketing and Social Media Experts • McDonald, Keegan Marketing Plans That Work • Seley and Holloway Sales 2.0 • Ardath Albee Marketing and Content • Chris Brogan B2B Social Media • Brian Solis Social Media • David Meerman Scott Marketing and PR • Gerhard Gschwandtner Sales 2.0 Sales Benchmarking • CSO Insights • Sales Benchmark Index New Tools Directory • 9 categories of sales and marketing best practices and dozens of downloads 3forward.com 50 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
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