Sales & Marketing Do’s & Don’ts For The Entrepreneur CINA October 30, 2004

Market Development What is it? Method for gaining facts to validate the business model Moving the business plan idea into a viable and sustainable business

Market Development Why do it?

Why Companies Fail Is it the technology? Is it a lack of sufficient customers and sustainable revenues? What about lack of attention to the market? Remember the Apple Newton in 1993? What about home networking? More than $250M in venture investment, yet few consumers see a need for the technology.

Market Development vs. Technology Development Technology development = Product specifications, architecture, design execution, production, alpha and beta versions etc. Market development = Product planning, strategic partnerships, market research, focus groups, pricing, communications and sales tactics, beta programs.

Market Development What is it? Constant touch point with your customer Selling what you have today. Early adopters generally are interested in your future product vision. Opportunity to build relationships with key market influencers.

Market Development Getting Started Look to your market first. Is there a market? What price point? What is the customer’s pain? Hire the right Sales and Marketing VPs Consultative listeners vs. Evangelizers Solicit feedback: where, how and when Create an efficient feedback loop Continually survey your market User Groups Customer Advisory Boards

Market Development Where it Can Lead Message development process Brand ownership: who owns your brand? Market development is the beginning stage of building a trusting relationship with customer….because you listened!

Message Development 5 Core Components Target Market: Ideal customer profile, basic demographic info (industry/SIC code, geography, size). Psychographic profile: preferences, values, interests etc. Pain: What is your target market’s pain, problem or issue that requires assistance? Are you a pill or vitamin? Solution: What results can you produce when working with your customers? Expected outcomes? Proof Points: References, testimonials, case studies etc. Differentiation: What makes you stand apart from the competition? What is the true advantage you deliver?

Value Proposition What is it? An implicit promise your company makes to deliver upon a combination of values such as prices, performance, quality, convenience, expected outcome and more.

Turning your Marketing Plan into Sales CINA October 30, 2004

Sales Sales is the process through which a product / service moves from the manufacturer or provider to the end user to meet a need, solve a problem or otherwise add value to that person’s life or work.

Common Sales Mistakes Not understanding your market Unclear value proposition / message Lack of a Sales Process Ineffective hiring of sales representatives Not selling value to your potential customers

To overcome these issues… Market and customer definition comes first Clear customer benefits and real, perceived value must be defined and communicated The most suitable, potentially successful seed customers should be identified and closed Developing seed customers into future business opportunities is essential Implementation and USE of a clear Sales Process

Start by Understanding your Customers What is the issue you are trying to solve? What pain, need or want does your product solve or meet? How is this solved without your solution? How ELSE could the issue be resolved? Who has the issue or need? What are demographics of your IDEAL target market? WHY do they have a need, issue or desire? What motivates them to buy?

Know your customer!

Features, Benefits, Value Feature:What it does, how it is made, what it is Benefit:Advantage the feature brings to the customer Value: Business impact the benefit brings to the customer organization

Selling Value FEATUREBENEFITVALUE Easy to use interface Less time to learnEmployee productivity Customized for industry FULLY meets your needs Time savings of one solution

Identifying Initial Customers Do your ideal customers recognize they have an issue or need? Where does your ideal customer look for solutions to this type of issue? Associations Press Colleagues, trusted advisors

Closing the Initial Deal Understand their motivators Sell the business benefits and VALUE from their perspective Provide political protection for the early adopter Offer research when references are requested Include incentives for follow-on business in initial proposal Negotiate based on VALUE not discounts

Sales Development Define and USE a clear sales process Expand your Sales Resources Sales Representatives Outsourced Sales Resources Develop relationships / partnerships / alliances Leverage your Eco-System

A Network of Networks

Sales Success Requires Gardening Skills

Jennifer Vessels, President Next Step, LLC Tel: Michelle E. Messina, Co-founder Situational Marketing, Inc. Strategic Marketing for Technology Companies Tel: or