Copyright 2011 - LÛCRUM MARKETING
Best Practices for Creating and Delivering
Globally Competitive Products & Services
Pres...
High New Product Failure Rate
• Only one product concept out of seven becomes a new
product winner; and 44% of businesses’...
Why Technology Products Fail
• Product did not solve a problem that many were willing to
pay to solve
• Product did not ad...
Typical Business Approach
• Internally Driven
– Create a product/service, look for a problem to solve
– Driven by technolo...
Examples - Barriers to Creating Globally
Competitive Products & Services
• Small software company
– Sell’s in their countr...
The Role of Marketing
The aim of marketing is to know and understand the
customer so well that the product or service fits...
Copyright 2011 - LÛCRUM MARKETING
Key Themes to Creating Globally
Competitive Products & Services
• Identify a Compelling ...
Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING
Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING
Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING
Identify a Compelling Market Opportunity
• Key Questions to Answer
– Is there a real/valid market opportunity?
– Is this a...
Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING
Key 1 – Articulate Business Strategy
• Key Question
– Without a clear understanding of your business
strategy, how can you...
Defining Your Business Strategy
• Done by founders / top executives
• Should be done when company is founded
• Review on a...
Key 2 – Validate the Market Opportunity
• Key Question
– What are the big painful issues
– That many in your target market...
Validating the Market
• Start with Hypothesis
– Market Segment “X” has problem “Y” and we can solve
it by doing “Z”
• Spea...
Key 3 – Assess Competitive Landscape
• Key Question
– What are competitors already doing?
• Key Elements
– Competitive Ana...
Key 4 – Build Profitable Business Model
• Key Question
– How do we make a profit when selling your solution
• Key Elements...
Special Business Model Considerations
• Can you differentiate or create competitive advantage with
your business model?
– ...
Key 5 – Justify the Business Case
• Key Question
– Is this a profitable business opportunity for your
company?
• Key Eleme...
Key 6 – Prioritize Market Opportunities
• Key Question
– Which market opportunity offers the best return on
investment?
– ...
Selecting Opportunities
• Must involve all key executives and board members
• Cannot invest in all opportunities
• Ensure ...
Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING
Deliver a Compelling Solution
• Key Question to Answer
– How do you ensure you deliver a solution that solves
the market n...
Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING
Key 7 – Solicit Market Requirements
• Key Goal
– Clearly understand the needs of the market
• Key Considerations
– Solicit...
Soliciting Market Requirements
Copyright 2011 - LÛCRUM MARKETING
“If I had asked the market what they
needed, they would h...
Soliciting Market Requirements
• Should focus on problems to be solved (not on features)
• Important phrases
– Why?
– Tell...
Key 8 – Define Clear Product Vision &
Strategy
• Key Goal
– Communicate a clear long-term vision & plan for the
solution
•...
Key 9 – Clearly Specify the Solution
• Key Goal
– Make sure you get a solution that meets the market
needs
• Key Elements
...
Defining the Solution
• Market Requirements Document (MRD)
– Talks about market problems/needs
• User Personas
– Descripti...
Key 10 – Negotiate Release Plan
• Key Goal
– Deliver the right solution capabilities on schedule
• Key Elements
– Well def...
Using Agile
• Short development cycles
• Benefits
– More predictable development cycles
– Greater visibility into developm...
Key 11 – Ensure Whole Product Readiness
• Key Goal
– All elements are in place to make solutions usable.
• Key Elements
– ...
Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING
Build a Compelling Market Development
Strategy
• Key Question to Answer
– Do you have a well defined target market and kno...
Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING
Key 12 – Define Targeted Market
Development Plan
• Key Goal
– Focus market development efforts
• Key Elements
– Well defin...
What Happens Without Clear Strategy
• Create confusion in the market over what you offer
• You sound like everyone else in...
Key 13 – Establish Effective Channel
Strategy
• Key Question
– What is the best way to sell your solution to your target
m...
Channel Strategy Considerations
• Often need to establish direct sales before doing indirect
– Validate sales process
– En...
Key 14 – Create & Manage Launch Plan
• Key Goal
– A defined set of activities to ensure solution is ready for
launch
• Key...
Launch Plan (Readiness)
43
Product Readiness (Whole Product)
 Support services program
 Pricing and packaging
 Product ...
Key 15 – Sales Enablement
• Key Question
– Have you adequately prepared your sales channel to
effectively sell to your tar...
Sales Enablement (Base Components)
• Product Backgrounder
– Succinct key elements of market plan
• Sales Questioning Guide...
Tips for Sales Enablement
• Focus on just a few key messages
• Keep tools focused & concise
• Train often
• Train all mark...
Key 16 – Generate Thought Leadership
• Key Questions
– How do you make the market aware of you
products/offerings?
• Key E...
Key 17- Feed & Manage Sales Funnel
Copyright 2011 - LÛCRUM MARKETING
• Key Question
– How do you effectively create leads ...
Managing the Sales Funnel
Copyright 2011 - LÛCRUM MARKETING
Lead sources
Cost of lead/sale
Time to sale
Conversion ratios
...
Key 18 – Align & Create Marketing/Sales Tools
• Key Question
– Does your marketing & sales tools strategy support
your mar...
Potential Marketing/Sales Tools
• What tools do you need to move the sales/buying
process?
– Product brochures
– Market Se...
Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING
Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING
Key 19 – Managing Product Lifecycle
Profitability
• Key Question
– Do you manage this process to maximize profitability?
•...
Key 20 – Measuring Success
• Key Question
– How do you define success and know if you’re
improving?
• Key Elements
– Defin...
Example Metrics
• Strategic Metrics
– Product Revenue, Product Profitability, Market Share,
New customers/lost customers, ...
Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING
Five Priority Practices (to Start With)
Copyright 2011 - LÛCRUM MARKETING
The Product Manager Role is Key
Make Companies Market Driven
•By understanding and validating their market’s needs,
•Compa...
Copyright 2011 - LÛCRUM MARKETING
Questions
Muchas Gracias!
Tom Evans
Lûcrum Marketing
tevans@lucrum-marketing.com
+1-512-...
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VEINTE CLAVES PARA LOGRAR EL éXITO INTERNACIONAL CON PRODUCTOS Y SERVICIOS COMPETITIVOS

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Presentation deliver at Cenfotec, San Jose, Costa Rica on June 3, 2011

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VEINTE CLAVES PARA LOGRAR EL éXITO INTERNACIONAL CON PRODUCTOS Y SERVICIOS COMPETITIVOS

  1. 1. Copyright 2011 - LÛCRUM MARKETING Best Practices for Creating and Delivering Globally Competitive Products & Services Presented by: Tom Evans Lûcrum Marketing June 3, 2011
  2. 2. 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 2011 - LÛCRUM MARKETING
  3. 3. Why Technology Products 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 • Company had no clear business strategy Copyright 2011 - LÛCRUM MARKETING
  4. 4. 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 2011 - LÛCRUM MARKETING
  5. 5. Examples - Barriers to Creating Globally Competitive Products & Services • Small software company – Sell’s in their country based upon relationships – Has products for ERP, CRM, Banking, Telecom • Small software company – Products for CRM, Access Control, Collections, Medical Scheduling, Project Management, Telemarketing • Software services company – “What do you do best?” “We can do everything” – So can the other thousands of companies just like you Copyright 2011 - LÛCRUM MARKETING
  6. 6. 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 2011 - LÛCRUM MARKETING
  7. 7. Copyright 2011 - LÛCRUM MARKETING Key Themes to Creating Globally Competitive Products & Services • Identify a Compelling Market Opportunity • Deliver a Compelling Solution • Build a Compelling Market Development Strategy
  8. 8. Compelling Marketer Model for Product & Market Success Copyright 2011 - LÛCRUM MARKETING
  9. 9. Compelling Marketer Model Copyright 2011 - LÛCRUM MARKETING
  10. 10. Compelling Marketer Model Copyright 2011 - LÛCRUM MARKETING
  11. 11. 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 2011 - LÛCRUM MARKETING
  12. 12. Compelling Marketer Model for Product & Market Success Copyright 2011 - LÛCRUM MARKETING
  13. 13. 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 advantagesCopyright 2011 - LÛCRUM MARKETING
  14. 14. 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 2011 - LÛCRUM MARKETING
  15. 15. Key 2 – Validate the Market Opportunity • Key Question – What are the big painful issues – That many in your target market – Are willing to pay to solve • Key Elements – Starts with Research – Secondary – trends, business drivers, market size – Primary – you must speak to potential customers to really understand their problems Copyright 2011 - LÛCRUM MARKETING
  16. 16. 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 laterCopyright 2011 - LÛCRUM MARKETING
  17. 17. Key 3 – 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 2011 - LÛCRUM MARKETING
  18. 18. 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 2011 - LÛCRUM MARKETING
  19. 19. 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 2011 - LÛCRUM MARKETING
  20. 20. Key 5 – Justify the Business Case • 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 2011 - LÛCRUM MARKETING
  21. 21. Key 6 – 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 Copyright 2011 - LÛCRUM MARKETING
  22. 22. 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) Copyright 2011 - LÛCRUM MARKETING Weights 20 25 15 10 15 20 30 135 Project/Product Strategic Fit Member Sat Market Seg Attractivness Competitive Differentiator Feasibility Risk Financial Return Project Score Resource Requirements Go/Hold Customer Rewards Program 5 4 4 5 5 4 4 585 35 Go Enter Brazil Market 5 4 4 3 5 4 4 565 50 Go
  23. 23. Compelling Marketer Model Copyright 2011 - LÛCRUM MARKETING
  24. 24. 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 2011 - LÛCRUM MARKETING
  25. 25. Compelling Marketer Model for Product & Market Success Copyright 2011 - LÛCRUM MARKETING
  26. 26. Key 7 – Solicit Market Requirements • Key Goal – Clearly understand the needs of the market • Key Considerations – Solicit needs at all levels • Executive, mid management, technical, user • All parts of the value chain (sales, implementation, support, etc) – Do this on a regular basis – Use various forms • Advisory councils, customer visits, user groups, etc.Copyright 2011 - LÛCRUM MARKETING
  27. 27. Soliciting Market Requirements Copyright 2011 - LÛCRUM MARKETING “If I had asked the market what they needed, they would have told me faster horses. Henry Ford
  28. 28. 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 2011 - LÛCRUM MARKETING
  29. 29. Key 8 – Define Clear Product Vision & Strategy • Key Goal – Communicate a clear long-term vision & plan for the solution • Key Elements – Market opportunity & need – Product vision – Prioritization of market needs – High level roadmap Copyright 2011 - LÛCRUM MARKETING
  30. 30. Key 9 – 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 – Use Cases – Product Requirements Document (PRD) Copyright 2011 - LÛCRUM MARKETING
  31. 31. Defining the Solution • Market Requirements Document (MRD) – Talks about market problems/needs • User Personas – Description of stereotypical user • Use Cases – Describes how user uses solution • Product Requirements Document (PRD) – Describes product functionality to meet needs Copyright 2011 - LÛCRUM MARKETING
  32. 32. Key 10 – Negotiate Release Plan • 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 2011 - LÛCRUM MARKETING
  33. 33. 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 2011 - LÛCRUM MARKETING
  34. 34. Key 11 – Ensure Whole Product Readiness • Key Goal – All elements are in place to make solutions usable. • Key Elements – Whole Product • Actual Product • Packaging/Services – documentation, training, implementation & support services • Augmentation & Infrastructure – 3rd party tools/applications, systems, etc. to make the product complete and usable. Copyright 2011 - LÛCRUM MARKETING
  35. 35. Compelling Marketer Model Copyright 2011 - LÛCRUM MARKETING
  36. 36. Build a Compelling Market Development Strategy • 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 2011 - LÛCRUM MARKETING
  37. 37. Compelling Marketer Model for Product & Market Success Copyright 2011 - LÛCRUM MARKETING
  38. 38. Key 12 – Define Targeted Market Development 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 workCopyright 2011 - LÛCRUM MARKETING
  39. 39. 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 2011 - LÛCRUM MARKETING
  40. 40. Key 13 – Establish Effective Channel Strategy • 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 2011 - LÛCRUM MARKETING
  41. 41. Channel Strategy Considerations • Often need to establish direct sales before doing indirect – Validate sales process – Enablement tools in place • Establish lead generation programs Copyright 2011 - LÛCRUM MARKETING
  42. 42. Key 14 – 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 Copyright 2011 - LÛCRUM MARKETING
  43. 43. Launch Plan (Readiness) 43 Product Readiness (Whole Product)  Support services program  Pricing and packaging  Product availability  Certifications & Regulatory approvals  Testing complete  Documentation  Intellectual Property (Trademarks, Patents)  Warranty Program Company Readiness  Services & support trained  Manufacturing/Production  IT Systems  Suppliers  Capacity Marketing & Sales Channel Readiness  Market Plan  Marketing/Sales Tools  Product Backgrounder  Website, Brochures & Presentations  Analysts & Press Kits  Competitor Analysis  References  Sales Channel (MSRs) Enabled/Trained  Launch Activities Defined  Pre-briefs to thought leaders  Market Testing  Press Events  Demand Generation  Advertising
  44. 44. Key 15 – 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, sales guide, message driven demo – Enablement process (training) – Testing & certifying Copyright 2011 - LÛCRUM MARKETING
  45. 45. Sales Enablement (Base Components) • Product Backgrounder – Succinct key elements of market plan • Sales Questioning 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 Copyright 2011 - LÛCRUM MARKETING
  46. 46. 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 2011 - LÛCRUM MARKETING
  47. 47. Key 16 – Generate Thought Leadership • Key Questions – How do you make the market aware of you products/offerings? • Key Elements – Product evangelism – speaking engagements – Public relations strategy – 3rd party validation – Tools to support this – white papers, presentations, press kits, etc. – Online marketingCopyright 2011 - LÛCRUM MARKETING
  48. 48. Key 17- Feed & Manage Sales Funnel Copyright 2011 - LÛCRUM MARKETING • Key Question – How do you effectively create leads that result in sales • Key Elements – Create Awareness – Move into the funnel – Manage through the funnel – Understand the funnel metrics
  49. 49. Managing the Sales Funnel Copyright 2011 - LÛCRUM MARKETING Lead sources Cost of lead/sale Time to sale Conversion ratios Leads/Suspects Prospects Negotiating Customer Target Market
  50. 50. Key 18 – 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 markets • Different buyers • Different stages of the sales/buying process Copyright 2011 - LÛCRUM MARKETING
  51. 51. 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 2011 - LÛCRUM MARKETING
  52. 52. Compelling Marketer Model Copyright 2011 - LÛCRUM MARKETING
  53. 53. Compelling Marketer Model for Product & Market Success Copyright 2011 - LÛCRUM MARKETING
  54. 54. Key 19 – Managing Product Lifecycle Profitability • Key Question – Do you manage this process to maximize profitability? • Key Elements – Clear ownership of responsibilities • Product Manager – Managing strategy across product lifecycle – Managing the total product portfolio and investments for maximum profit Copyright 2011 - LÛCRUM MARKETING
  55. 55. Key 20 – Measuring Success • Key Question – How do you define success and know if you’re improving? • Key Elements – Defined metrics – Means to measure metrics – Corrective actions Copyright 2011 - LÛCRUM MARKETING
  56. 56. 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 2011 - LÛCRUM MARKETING
  57. 57. Compelling Marketer Model for Product & Market Success Copyright 2011 - LÛCRUM MARKETING
  58. 58. Five Priority Practices (to Start With) Copyright 2011 - LÛCRUM MARKETING
  59. 59. 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 their market’s problems and •Create messages and positioning that cause customers to want their products. Resulting in Increased Revenue & Profit! Copyright 2011 - LÛCRUM MARKETING
  60. 60. Copyright 2011 - LÛCRUM MARKETING Questions Muchas Gracias! Tom Evans Lûcrum Marketing tevans@lucrum-marketing.com +1-512-961-5267 Skype: tevanstx
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