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Ensemble b2b Segmentation and relative targetting

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A growing number of b-to-b marketing and sales leaders are incorporating the concept of Segmentation and relative targeting into their planning strategies. Ensemble BtoB et Siruis Decisions have seen some confusion around what factors should drive a relative targeting exercise.

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Ensemble b2b Segmentation and relative targetting

  1. 1. Relative Targetting & Demand Type Julian Archer, Research Director 18th December, 2014
  2. 2. © 2014 SiriusDecisions. All Rights Reserved 2 The Demand Creation Process Identify Target Market Determine the segments with the highest potential and chance of success and understand pain points and relevant product value propositions • Relative Targeting • Demand Type Understand Buyers Identify and develop personas for all relevant buyers • Persona Development Create Campaigns Create campaigns and messaging designed to address buyer’s needs • Campaign Framework Create Tactic Mix Identify influencers and create marketing plans with effective tactic mix • Degree of Influence • Nurture • Pipeline Accel Measure & Refine Create a framework to measure results and continually optimize efforts • Tactic Measurement Framework • Segmentation Strategy • Contact Database Management • Campaign Measurement Framework • Marketing Attribution • Aligned Measurement Framework Who to Target How To Create Demand How to Measure How to Organize
  3. 3. © 2014 SiriusDecisions. All Rights Reserved 3 The Demand Creation Process Identify Target Market Determine the segments with the highest potential and chance of success and understand pain points and relevant product value propositions • Relative Targeting • Demand Type Understand Buyers Identify and develop personas for all relevant buyers • Persona Development Create Campaigns Create campaigns and messaging designed to address buyer’s needs • Campaign Framework Create Tactic Mix Identify influencers and create marketing plans with effective tactic mix • Degree of Influence • Nurture • Pipeline Accel Measure & Refine Create a framework to measure results and continually optimize efforts • Tactic Measurement Framework • Segmentation Strategy • Contact Database Management • Campaign Measurement Framework • Marketing Attribution • Aligned Measurement Framework Who to Target How To Create Demand How to Measure How to Organize
  4. 4. © 2014 SiriusDecisions. All Rights Reserved 4 Most Common Targeting Mistakes Not involving sales in the development and evolution of your targeting strategy Ignoring the facts: Do you have a solution for them? Company or individual focus, instead of both Lack of periodic review Lack of customized messages Quantity over quality BAD TARGETING
  5. 5. © 2014 SiriusDecisions. All Rights Reserved 5 The SiriusDecisions Relative Targeting Framework EXTERNAL FACTORS Solutions Delta Domain Knowledge Messaging Sales Readiness Database INTERNAL FACTORS Trend Category Spend Offering Use Competitive Presence
  6. 6. © 2014 SiriusDecisions. All Rights Reserved 6 External Factors EXTERNAL FACTORS Trend Category Spend Offering Use Competitive Presence Are there trends that will make buyers more likely to purchase your product? Is this target segment growing? Are there regulatory issues? Are buyers spending money in your category? Have they increased or decreased this spend? Is the product in question critical to buyers? Do they tend to view it as a nice-to-have? Are there multiple strong competitors selling in this space? Is competitive presence relatively weak?
  7. 7. © 2014 SiriusDecisions. All Rights Reserved 7 Banking Insurance Brokerage External Factors INTERNAL FACTORS Solutions Delta Domain Knowledge Messaging Sales Readiness Database EXTERNAL FACTORS Trend Category Spend Offering Use Competitive Presence Banking Dormant Insurance Brokerage Banking Insurance Brokerage
  8. 8. © 2014 SiriusDecisions. All Rights Reserved 8 External Factors Scorecard ACTIVE NURTURE DORMANT Key Trends Current trends exist that indicate likelihood to buy  We are able to list three or more trends specific to this market that we believe will drive targets to make a purchase in the short term  We are able to list one to two trends specific to this market that we believe will drive targets to make a purchase in the short term  We cannot list any trends specific to this market that we believe will drive targets to make a purchase in the short term Target Health General health of the target  Growing  Stable  Shrinking Pending Triggers Are there any pending triggers that can be identified in the target market that will force targets to purchase imminently?  Yes, and we are aware of their specifics and how our product/service aligns with them  Yes, but we are not aware of their specifics and how our product/service aligns with them  No Category Spend Has there been an increase in your product’s category spend in the past 12 months?  Moderate to significant  Minimal to moderate  Minimal to none Leading Company Adoption Has there been adoption of the solution by leading companies within the target market?  We can identify a number of industry leaders that have adopted the solution  We can identify a few industry leaders that have adopted the solution  We cannot identify industry leaders that have adopted the solution Category Perception How your product category is currently perceived  Necessary  A nice-to-have  No established perception of use and importance Competitive Presence Are there existing solutions and competitors that target this segment?  No  Yes, but our offering is generally accepted to be superior  Yes, and our offering is generally accepted to be comparable to others TrendsOfferingUse
  9. 9. © 2014 SiriusDecisions. All Rights Reserved 9 Internal Factors Solutions Delta Domain Knowledge Messaging Sales Readiness Database How much of the problems does your solution solve? What is the gap of current offering to meet the buyer need fully? Knowledge of needs and nuances of the target? Are the buyer and user personas defined, as well as buying process and buyer needs? For vertical solutions, is there industry domain expertise? Are the buyer personas understood? Is there specific messaging by audience segment? Is demand type understood? Can the sales enablement program be executed on (training, tools, collateral)? Is the sales force aligned and focused? Do viable channel partners exist? Access to data? Do you have lists and data insights on these prospects or customers?
  10. 10. © 2014 SiriusDecisions. All Rights Reserved 10 Banking Insurance Brokerage Internal Factors INTERNAL FACTORS Solutions Delta Domain Knowledge Messaging Sales Readiness Database EXTERNAL FACTORS Trend Category Spend Offering Use Competitive Presence Banking Dormant Insurance Brokerage Banking Insurance Brokerage Active Nurture
  11. 11. © 2014 SiriusDecisions. All Rights Reserved 11 Internal Factors Scorecard ACTIVE NURTURE DORMANT Solution Delta How has the product/service in question been designed?  Our product/service is designed specifically for the target market  Our product/service has been altered/enhanced to address needs within the target  The product/service is designed for generic use across markets Domain Knowledge How knowledgeable are marketing and sales about the target?  We have deep domain expertise in regard to the market  We have limited domain expertise in regard to the market  We have no domain expertise in regard to the market Messaging Has your organization developed specific messaging that addressed known needs within the target?  Yes, we have a built a complete messaging approach for the target  We haven’t built a messaging approach, but have the resources and expertise to do so  We haven’t built a messaging approach, and don’t have the resources/expertise to do so Sales Readiness How well prepared is the sales team to sell into the target?  The sales force can access a complete set of tools and collateral to help build knowledge and competency  The sales force can access a limited set of tools and collateral to help build knowledge and competency  We cannot identify industry leaders that have adopted the solution Database Do you have the database capability and/or list procurement ability/budget to market to this target?  We have a significant, complete number of records in the market  We have a significant number of records, but many are inaccurate or incomplete  We have few records in the target, and it would be difficult to secure them from a third party
  12. 12. © 2014 SiriusDecisions. All Rights Reserved 12 SiriusPerspective: The type – or types – of demand an organization is trying to create play a significant role in its approach. Demand Type Impact on New Market Approach Established Market SiriusDecisions Demand Spectrum New Concept • Disruptive product / service • No budgetary line item • Requires issue creation New Paradigm Market Leadership • Retools existing process • Solves current problem better • Replaces current line item Process / Solution Change • Necessary product / service • Highly contested market • Trying to steal market share Competitive Positioning DEMAND TYPE KEY CHARACTERISTICS KEY REQUIREMENT
  13. 13. © 2014 SiriusDecisions. All Rights Reserved 13 Impact of Demand Type on Buying Cycle Solution Loosening of the Status Quo Committing to Change 1. 2. Education Exploring Possible Solutions Committing to a Solution 3. 4. Justifying the Decision Making the Selection 5. 6. Vendor Selection New Concept New Paradigm Established Market
  14. 14. Segmentation Strategy Discussion
  15. 15. © 2014 SiriusDecisions. All Rights Reserved 15 Guiding Principles Practically Useful Homogeneous Populations Objectively Measurable and Identifiable
  16. 16. © 2014 SiriusDecisions. All Rights Reserved 16 Dimensions – Commonly Used/Easy to Obtain • Company size • Geography • Industry • Ownership and financial mission • Types of offerings • Consumption • Customer type and purchase patterns
  17. 17. © 2014 SiriusDecisions. All Rights Reserved 17 Dimensions – Less Common/More Difficult to Obtain • Location • Age • Technology/systems used • Buying center attributes • Credit rating/debt • Growth rate • Profitability • Market position • Revenue and sales models • Geographic activity • Direct vs. indirect • The company’s customers
  18. 18. © 2014 SiriusDecisions. All Rights Reserved 18 Dimensions – Least Common/Most Difficult to Obtain • Corporate culture • Technology adoption • Decision making structure • Growth strategy • Corporate governance
  19. 19. © 2014 SiriusDecisions. All Rights Reserved 19 Recommended Approaches • Limit segments to a manageable number • Don’t attempt to cover everything • Use criteria that are easy to identify • Identify segments that are stable • Look beyond the obvious
  20. 20. © 2014 SiriusDecisions. All Rights Reserved 20 Thank You – Let’s Keep the Conversation Going! Julian Archer Research Director Demand Creation Strategies julian.archer@siriusdecisions.com @JulianArcher Floriane Malot Sales – Marketing – Product Alignment Evangelist – France Floriane.malot@siriusdecisions.com @floriane_ma_fr

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