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24 key practices for creating and delivering globally competitive products & services   jan 26 2012 - tec de monterrey - incubadora
 

24 key practices for creating and delivering globally competitive products & services jan 26 2012 - tec de monterrey - incubadora

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The history of innovation and new products includes many examples of “supposedly great ideas” that were never able to achieve commercial success. The key reason is that these products were driven ...

The history of innovation and new products includes many examples of “supposedly great ideas” that were never able to achieve commercial success. The key reason is that these products were driven by an internal focus and then the companies hoped that marketing and sales could figure out to whom they could sell it. While occasionally successful, this approach is not a recipe for long-term growth and success.
The proven approach for achieving this success is by creating and delivering market-driven products and services. To do this, companies must consistently do the following:
• Identify a Compelling Market Opportunity – identify a problem that is significant enough that many buyers are willing to pay money to solve it.
• Deliver a Compelling Solution – deliver a competitive and differentiated solution in a timely manner that solves the market problem.
• Build a Compelling Market Development Strategy – create market messages and conduct appropriate marketing activities that resonate with the buyers in the target market, motivating them to solve their problem by purchasing the products/services.
There are 24 Key Practices that have been identified that, when appropriately implemented, ensure that companies have a consistent and repeatable methodology for delivering market-driven products and services that lead to commercial success.

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    24 key practices for creating and delivering globally competitive products & services   jan 26 2012 - tec de monterrey - incubadora 24 key practices for creating and delivering globally competitive products & services jan 26 2012 - tec de monterrey - incubadora Presentation Transcript

    • 24 Key Practices for Creating and DeliveringGlobally Competitive Products & Services Presented by: Tom Evans Lûcrum Marketing January 25, 2012 Copyright 2012 - LÛCRUM MARKETING
    • High New Product Failure Rate• Only one product concept out of seven becomes a new product winner; and 44% of businesses’ product development projects fail to achieve their profit targets.• One out of four development projects succeeds commercially. (75% failure rate) Robert G Cooper Copyright 2012 - LÛCRUM MARKETING
    • Why New Products & Services Fail• Product did not solve a problem that many were willing to pay to solve• Product did not adequately meet the market need• Company did not sufficiently understand their customers business and the value delivered to their customers• Product did not align with business strategy (or no clear business strategy) Copyright 2012 - LÛCRUM MARKETING
    • Typical Business Approach• Internally Driven – Create a product/service, look for a problem to solve – Driven by technology or internal ideas• Sales Driven – Pursue opportunities with no clear strategy (opportunistic) – Product/service changes for each new opportunity Copyright 2012 - LÛCRUM MARKETING
    • The Role of Marketing The aim of marketing is to know and understand the customer so well that the product or service fits him and sells itself. Peter Drucker Copyright 2012 - LÛCRUM MARKETING
    • Key Themes to Creating GloballyCompetitive Products & Services• Identify a Compelling Market Opportunity• Deliver a Compelling Solution• Build a Compelling Market Development Strategy Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Modelfor Product & Market Success Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Model Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Model Copyright 2012 - LÛCRUM MARKETING
    • Identify a Compelling Market Opportunity• Key Questions to Answer – Is there a real/valid market opportunity? – Is this an opportunity for your company? – Do you have a competitive advantage? – Does this result in a compelling business case?• Key Considerations – Do this for every new market opportunity Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Modelfor Product & Market Success Copyright 2012 - LÛCRUM MARKETING
    • Key 1 – Articulate Business Strategy• Key Question – Without a clear understanding of your business strategy, how can you determine if you should pursue a business opportunity?• Key Elements – Vision & Mission – Core competencies & target markets – Company positioning & brand promise – Competitive advantages Copyright 2012 - LÛCRUM MARKETING
    • Defining Your Business Strategy• Done by founders / top executives• Should be done when company is founded• Review on an annual basis – Has the market changed – Are we following the strategy• Typically requires adjustments every 3 - 5 year Copyright 2012 - LÛCRUM MARKETING
    • Key 2 – Validate the Market Problem• Key Question – What are the big painful issues – That many in your target market – Are willing to pay to solve• Key Elements – Market Evidence of potential problem – Form a hypothesis around the problem – Test hypothesis via research – Repeat until validated Copyright 2012 - LÛCRUM MARKETING
    • Validating the Market• Start with Hypothesis – Market Segment “X” has problem “Y” and we can solve it by doing “Z”• Speaking to potential customers – Most companies don’t and won’t do this – Significant time investment – Requires many conversations (cold calling) • May take over 100 conversations to validate.• You can pay now or pay later Copyright 2012 - LÛCRUM MARKETING
    • Key 3 – Validate the Product Concept• Key Question – Can you solve the market problem with your envisioned product?• Key Elements – Product concept that aligns with your business – Create low cost way of presenting product concept – Present concept and receive feedback – Repeat until validated Copyright 2012 - LÛCRUM MARKETING
    • Key 4 – Build Profitable Business Model• Key Question – How do we make a profit when selling your solution• Key Elements – Delivery Model – Cost to sell & deliver – Pricing Strategy Copyright 2012 - LÛCRUM MARKETING
    • Special Business Model Considerations• Can you differentiate or create competitive advantage with your business model? – Subscription or Usage v. License – Free (Freemium) – Pay for Premium offerings• How do you match the pricing model to value received? – Razor blades, printers – Usage, Subscription, SaaS Copyright 2012 - LÛCRUM MARKETING
    • Key 5 – Assess Competitive Landscape• Key Question – What are competitors already doing?• Key Elements – Competitive Analysis – Current offerings, target markets, strategies – Strengths & weaknesses – Market share• Don’t forget substitutes & potential new entrants Copyright 2012 - LÛCRUM MARKETING
    • Key 6 – Justify the Market Opportunity• Key Question – Is this a profitable business opportunity for your company?• Key Elements – Description of opportunity – Alignment with business strategy – Market size, revenue & profitability potential – Competitive advantages, differentiation – Investments required – Risks & impacts Copyright 2012 - LÛCRUM MARKETING
    • Key 7 – Prioritize Market Opportunities• Key Question – Which market opportunity offers the best return on investment? – Many alternatives – new products, new vertical markets, new geographical markets• Key Elements – Define ranking criteria – Assign team to make decision – Make trade-offs of budget & opportunity Copyright 2012 - LÛCRUM MARKETING
    • Selecting Opportunities • Must involve all key executives and board members • Cannot invest in all opportunities • Ensure the best opportunities receive right investment • Can be evaluated on an iterative basis – Gating process (e.g., Stage Gate) Weights 20 25 15 10 15 20 30 135 Market Seg Competitive Financial Resource Project/Product Strategic Fit Member Sat Feasibility Risk Project Score Go/Hold Attractivness Differentiator Return RequirementsCustomer RewardsProgram 5 4 4 5 5 4 4 585 35 GoEnter Brazil Market 5 4 4 3 5 4 4 565 50 Go Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Model Copyright 2012 - LÛCRUM MARKETING
    • Deliver a Compelling Solution• Key Question to Answer – How do you ensure you deliver a solution that solves the market needs and is competitive?• Key Considerations – Reviewed for each new release Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Modelfor Product & Market Success Copyright 2012 - LÛCRUM MARKETING
    • Key 8 – Define Clear Product Vision & Strategy• Key Goal – Communicate a clear vision & plan for the solution• Key Elements – Description of the Market – How the product will compete – Product vision & strategy – High level roadmap Copyright 2012 - LÛCRUM MARKETING
    • Key 9 – Solicit Market Requirements• Key Goal – Clearly understand the needs of the market (You can’t define a solution until you know what problem to solve)• Key Considerations – Solicit needs from all stakeholders (buyers, users, internal) – Validate & prioritize – Use various forms • Advisory councils, customer visits, user groups, etc. Copyright 2012 - LÛCRUM MARKETING
    • Soliciting Market Requirements “If I had asked the market what they needed, they would have told me faster horses. Henry Ford Copyright 2012 - LÛCRUM MARKETING
    • Soliciting Market Requirements• Should focus on problems to be solved (not on features)• Important phrases – Why? – Tell me more about that? – What’s the impact of that problem?• Remember your internal stakeholders – Support, professional services, operations, etc. – How do you help them better support customers & decrease costs? Copyright 2012 - LÛCRUM MARKETING
    • Key 10 – Clearly Specify the Solution• Key Goal – Make sure you get a solution that meets the market needs• Key Elements – Market Requirements Document (MRD) – User Personas – Problem Scenarios – Product Requirements Document (PRD) Copyright 2012 - LÛCRUM MARKETING
    • Defining the Solution• Market Requirements Document (MRD) – Talks about market problems/needs• User Personas – Description of stereotypical user• Problem Scenarios – Describes how user uses solution to solve problem• Product Requirements Document (PRD) – Describes product functionality to meet needs Copyright 2012 - LÛCRUM MARKETING
    • Key 11 – Manage Scope & Schedule• Key Goal – Deliver the right solution capabilities on schedule• Key Elements – Well defined criteria to prioritize requirements – Negotiating scope v. schedule – Managing scope changes – One person that owns scope• Understand the Minimum Marketable Features Copyright 2012 - LÛCRUM MARKETING
    • Using Agile• Short development cycles• Benefits – More predictable development cycles – Greater visibility into development status – Faster response to market changes – Always have a relatively stable product • Shippable if absolutely necessary Copyright 2012 - LÛCRUM MARKETING
    • Key 12– Ensure Whole Product Readiness• Key Goal – All elements are in place to make solutions usable.• Key Elements – Whole Product • Core Product • Packaging – documentation, training, implementation & support services • Augmentation & Infrastructure – 3rd party tools/applications, systems, etc. to make the product complete and usable. Copyright 2012 - LÛCRUM MARKETING
    • Key 13 – Test Market Readiness• Key Goal – Confirm product solves market problem.• Key Elements – Test functionality in normal usage – Verify it solves market problem – Test market strategy Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Model Copyright 2012 - LÛCRUM MARKETING
    • Build a Compelling Market DevelopmentStrategy• Key Question to Answer – Do you have a well defined target market and know the right messages to communicate to them to create the need and desire to purchase your solution? Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Modelfor Product & Market Success Copyright 2012 - LÛCRUM MARKETING
    • Key 14 – Define Targeted MarketDevelopment Plan• Key Goal – Focus market development efforts• Key Elements – Well defined target market – Define buyer roles and their challenges/goals/needs – Clear messages to communicate • Value Proposition – what we do for you • Positioning & Differentiation – why buy our solution• Based upon market validation work Copyright 2012 - LÛCRUM MARKETING
    • What Happens Without Clear Strategy• Create confusion in the market over what you offer• You sound like everyone else in the market• Investments are spread across multiple segments with little impact• Sales pursues opportunities that don’t match with the solution• Company always responding (chaos) Copyright 2012 - LÛCRUM MARKETING
    • Key 15 – Establish Effective ChannelStrategy• Key Question – What is the best way to sell your solution to your target market.• Key Elements – Sales Model – Direct, Indirect – Profile/skills of sales team/channel partner – Sales methodology – Supporting sales tools Copyright 2012 - LÛCRUM MARKETING
    • Channel Strategy Considerations• Often need to establish direct sales before doing indirect – Validate sales process – Enablement tools in place• Create criteria to evaluate potential channel partners• Establish lead generation programs Copyright 2012 - LÛCRUM MARKETING
    • Key 16 – Align & Create Marketing/Sales Tools• Key Question – Does your marketing & sales tools strategy support your market & sales strategy?• Key Elements – Marketing/Sales Tools for: • Different market segments • Different buyers • Different stages of the sales/buying process Copyright 2012 - LÛCRUM MARKETING
    • Potential Marketing/Sales Tools• What tools do you need to move the sales/buying process? – Product brochures – Market Segment Solution brochures – White Papers – Presentations – ROI calculation – Draft RFP – Demo – Website Copyright 2012 - LÛCRUM MARKETING
    • Key 17 – Create & Manage Launch Plan• Key Goal – A defined set of activities to ensure solution is ready for launch• Key Elements – Product Readiness – Marketing & Channel Readiness – Company Readiness – Launch Strategy Copyright 2012 - LÛCRUM MARKETING
    • Launch Plan (Readiness)Product Readiness (Whole Product) Marketing & Sales Channel Readiness Support services program  Market Plan Pricing and packaging  Marketing/Sales Tools Product availability  Product Backgrounder Certifications & Regulatory approvals  Website, Brochures & Presentations Testing complete  Analysts & Press Kits Documentation  Competitor Analysis Intellectual Property (Trademarks, Patents)  References Warranty Program  Sales Channel Enabled/Trained  Launch Activities DefinedCompany Readiness  Pre-briefs to thought leaders Services & support trained  Market Testing Manufacturing/Production  Press Events IT Systems  Demand Generation Suppliers  Advertising Capacity 46
    • Key 18 – Enable Channel (Sales Enablement) • Key Question – Have you adequately prepared your sales channel to effectively sell to your target market? • Key Elements – Sales tools • Executive level presentation, product backgrounder, Needs Discovery Guide™, Message Driven Demo™ – Enablement process (training) – Testing & certifyingNeeds Discovery Guide and Message Driven Demo are registered trademarks of The Lûcrum Group, Inc. Copyright 2012 - LÛCRUM MARKETING
    • Sales Enablement (Base Components)• Product Backgrounder – Succinct key elements of market plan• Needs Discovery Guide™ – Per buyer profile: Challenges / Impact / Capability / Benefits• Executive Level Presentation – High level discussion of how your solution addresses needs. (10 – 15 slides)• Message Driven Demo™ Needs Discovery Guide and Message Driven Demo are trademarks of The Lûcrum Group, Inc. Copyright 2012 - LÛCRUM MARKETING
    • Tips for Sales Enablement• Focus on just a few key messages• Keep tools focused & concise• Train often• Train all market facing personnel• Ensure you have executive management support Copyright 2012 - LÛCRUM MARKETING
    • Key 19 – Generate Awareness• Key Questions – How do you make the market aware of the need and how to solve it?• Key Elements – Product evangelism – speaking engagements – Public relations strategy – 3rd party validation – Tools to support this – white papers, presentations, press kits, etc. – Online marketing Copyright 2012 - LÛCRUM MARKETING
    • Key 20 - Feed & Manage Sales Funnel• Key Question – How do you effectively create leads that result in sales• Key Elements – Demand generation activities (into funnel) – Qualify/prioritize leads – Manage through the funnel – Understand the funnel metrics Copyright 2012 - LÛCRUM MARKETING
    • Managing the Sales Funnel Target Market Leads/Suspects Lead sources Prospects Cost of lead/sale Time to sale Negotiating Conversion ratios Customer Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Model Copyright 2012 - LÛCRUM MARKETING
    • Process & Portfolio Management• Key Question to Answer – How do you manage your product delivery process and manage the overall profitability of your portfolio of products/services? Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Modelfor Product & Market Success Copyright 2012 - LÛCRUM MARKETING
    • Key 21 – Managing Product Lifecycle Profitability• Key Question – What strategies are requires based upon product lifecycle to maximize profitability?• Key Elements – Where product is in lifecycle – Understand changes in market & buyers – Adapt product & strategy Copyright 2012 - LÛCRUM MARKETING
    • Key 22 – Optimize Product Portfolio Profitability• Key Question – Where do you invest limited resources to maximize the value of product portfolio?• Key Elements – Portfolio balance – Prioritization of investments Copyright 2012 - LÛCRUM MARKETING
    • Key 23 – Measure Success (Metrics)• Key Question – How do you define success and know if you’re improving?• Key Elements – Defined metrics – Means to measure metrics – Corrective actions Copyright 2012 - LÛCRUM MARKETING
    • Example Metrics• Strategic Metrics – Product Revenue, Product Profitability, Market Share, New customers/lost customers, Win/loss ratios, Customer satisfaction• Operational metrics (Diagnostic indicators) – Market sensing activities, Requirement changes, On schedule development, Time to market, Product defects/bugs, Support issues, Sales enablement activities, Product management deliverables Copyright 2012 - LÛCRUM MARKETING
    • Key 24 – Manage Investment/Risk Decisions• Key Question – Do you make the next level of investment in the product development and commercialization process?• Key Elements – Decision Checkpoints • Product Development • Launch • End-of-Life Copyright 2012 - LÛCRUM MARKETING
    • Decisions CheckpointsSource: AIPMM – Product Management Framework Copyright 2012 - LÛCRUM MARKETING
    • Compelling Marketer Modelfor Product & Market Success Copyright 2012 - LÛCRUM MARKETING
    • Five Priority Practices (to Start With) Copyright 2012 - LÛCRUM MARKETING
    • The Product Manager Role is Key Make Companies Market Driven•By understanding and validating their market’s needs,•Companies deliver products and services that solve theirmarket’s problems and•Create messages and positioning that cause customers towant their products. Resulting in Increased Revenue & Profit! Copyright 2012 - LÛCRUM MARKETING
    • Product Management Training • Mexico City: – Feb 15 – 17 – Mar 22 – 24 • Monterrey – Apr 26 – 28 – June 11 - 13 • Guadalajara – May 17 – 19 Copyright 2012 - LÛCRUM MARKETING
    • Questions Muchas Gracias! Tom Evans Hugo Amezcua Lûcrum Marketing NPD Strategytevans@lucrum-marketing.com hamezcua@npdstrategy.com +1-512-961-5267 818252-2013 Skype: tevanstx Copyright 2012 - LÛCRUM MARKETING