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How to Be Successful at Selling Nothing – But Be a Marketing Success!. Scott W. Sommer, PE, CAP Automation Technology Manager Jacobs Engineering Group. Session Objectives:. Learn about a market segment that many automation suppliers and vendors underserve.

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How to be successful at selling nothing but be a marketing success l.jpg

How to Be Successful at Selling Nothing –But Be a Marketing Success!

Scott W. Sommer, PE, CAP

Automation Technology Manager

Jacobs Engineering Group


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Session Objectives:

Learn about a market segment that many automation suppliers and vendors underserve.

Learn why Architectural & Engineering (A&E) firms and other “non-end-users” may be vital to your company’s success.

Understand how marketing to A&E’s can yield long-term benefits other than a Purchase Order.

Understand the A&E firm’s business and why traditional sales and marketing methods will fail.


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Marketing Defined

"Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives."

- Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden Press.

"Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others"

- Philip Kotler, “Marketing Management", 7th edition, USA, 1991


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Sales – Defined

“An agreement by which one of the contracting parties, called the seller, gives a thing and passes the title to it, in exchange for a certain price in current money, to the other party, who is called the buyer or purchaser, who, on his part, agrees to pay such price.”

- Lectric Law Library Lexicon

“The exchange of goods or services for an amount of money or its equivalent; the act of selling. The exchange of goods or services for an amount of money or its equivalent; the act of selling.”

- World Dictionary


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Marketing & Sales in Automation

PRODUCTS

+

MARKETING

+

CUSTOMER

+

DEMAND

= $ALE!


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The Myopic View

Sensors

Boardroom

Valves

I/O

Maint.

A&E

Software

Factories

Corporate Eng.

Transmitters

HMI

Refineries

Controllers


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The A&E Firm

WHO WE ARE…

“The A&E Firm is a collection of vendor-independent engineers and other professionals who sell only their services to clients who hire their expertise to design, specify, construct, and make operational a physical plant.

As a general rule, A&E firms are not impressed by mass marketing nor tolerant of hard-pressured sales tactics. A&E engineers respond positively, however, to useful and accurate information, access to vendor’s engineering data, and pastry.”


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A Little Math

Just for JE Projects:

$8 Billion TIC

X 3% of TIC for Automation

= $240 Million

This represents a true opportunity!

…but how do you cash in?


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Understanding the Flow

Preferred Vendors List

Engineering Documents

CLIENT

Procurement Strategy

Standards

CLIENT

CLIENT

Bid Phase

CLIENT

Specification

CLIENT

Purchase


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Show Me the Opportunity

So, if you were assigned to sell only to non-end-user firms, like A&E’s, you would probably feel that you are…

‘ed


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Show Me the Opportunity

…But Wait!

Don’t SELL to these firms! MARKET to them!

Why? Because…

You can be successful at SELLING nothing and still be a MARKETING success!


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A Quick Review!

MARKETING

"Marketing is the process of planning and executing … and events to create and maintain relationships that will satisfy individual and organizational objectives."

to create and maintain

relationships

SALES

“An agreement by which one of the contracting parties, called the seller, gives a thing and passes the title to it, in exchange for a certain price in current money…”


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Relationships in Practice

Jacobs Core Values:

#1.We are a relationship-based company.

“We focus on forging strong, long-term relationships with our clients, as we consider sound client relationships the most important contributor to our success. We cement these relationships by providing superior customer value and by continuously improving our performance.“


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You are probably asking…

SO HOW DO I BUILD THESE RELATIONSHIPS WITH NON-END USER COMPANIES?


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Change Your Focus!

XXXX

What are you considering buying today?

How may I help you focus on your customers’ needs today?


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Needs of the Clients of A&E’s

  • Conceptual Planning, Scheduling, & Estimating

  • Unbiased, Professional Design Advice

  • Advice on Standards & Codes

  • Accurate, Complete Data Sheets

  • Accurate, Complete Drawings

  • Vendor Submittal Reviews

  • Bid Preparation

  • Bid Tabulation

  • Installation Details

  • Construction Support


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Now the Good Stuff!

CASE STUDIES

- Five Cases Will Be Presented

- All Are Real-Life Case Studies

- Personally Involved with Each One

- No JEG P.O.’s Cut to Any Vendor

- All Case Studies Were Win-Win

- All Started with Relationships


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Case Study #1

Firm: Solenoid Valve Manufacturer

Year: 2006

MO:Visit to drop off brochures and inquire about current projects.

Hurdles:Not on Client’s Approved Vendor List; Client Picky about Solenoid Valves


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Client Needs…

  • Remote Solenoid Valve Panel

  • DeviceNet™ connection

  • NEMA 4X 304L SS Box

  • Remote 24VDC Feed

  • Air Regulator inside panel

  • Bulkhead fittings


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…Were Met By

  • Panel Designed to JE Specs

  • Fully-Dimensioned AutoCAD Dwg.

  • Bill-of-Materials

  • 3 Design Iterations

  • Alternate Design Analysis


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…with the Following Results:

  • Drawing = Remote SVP Typical

  • Saw product in action at show

  • Design Passed to Panel Vendor

  • Summer 2007: PO for 27 SVP’s

    from Client

  • Investment: 16 months, 60 EH


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Case Study #2

Firm: Panel Manufacturer

Year: 2007

MO:Pressuring Client to be Put on Bidders List for New Project.

Hurdles:Irritated Client; Client not Purchasing Panels Directly


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Client Needs…

  • Panels for Skids to be Built at Various Locations

  • FAT in Conjunction With SW FAT

  • Full Design & Documentation from Typical Layouts

  • Contract to be Let by SI Firm


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…Were Met By

  • Abandoning the Sales Focus

  • Establishing a Relationship with A&E

  • Spending Time to Understand Needs of Pharma Clients

  • Willingness to Partner with 3RD Party


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…with the Following Results:

  • Introduced to SI Firm on Bid List

  • Partnered with SI to Provide Panels

  • Led to Opening of Satellite Office to Service Client and Others

  • Investment: 2 Years


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Case Study #3

Firm: Large Automation Company

Year: 2006

MO:Corp. Focus on A&E Firms, although they assume a small potential for direct sales.

Hurdles:No Current Clients of A&E Have Firm’s Products Installed


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Client Needs…

  • Most Days: None in particular!

  • Periodic Requests for Bids to Keep Other Vendors Honest!

  • Alternative Approach to BAS

  • Process Analytical Technology Products and Solutions


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…Were Met By

  • Focusing on Needs of A&E

  • Establishing a Non-Sales Relationship with A&E

  • Spending Time to Understand Needs of Pharma Clients

  • Placing a Demo System At A&E


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…with the Following Results:

  • Understanding of A&E Business

  • Obtained Perspective on Market So that Sales Efforts Could be Most Effectively Focused

  • Kept Firm at Forefront in PAT

  • Investment: Continuous


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Case Study #4

Firm: Large Automation Company

Year: 2004

MO:Corp. Focus on Life Sciences, with an Eye on Increased Market Presence.

Hurdles:A&E is Vendor-Independent


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Client Needs…

  • Complex Controls Solutions

  • Current Product Information and Engineering Data

  • Access to Technical Experts

  • In-House Training

  • Design Support


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…Were Met By

  • Hosting a Series of Lunch-and-Learns

  • Establishing a Non-Sales Relationship with A&E

  • Having a Partner Mentality Rather Than a Competitor Mentality

  • Providing Technical and Product Data and Support

  • Providing “Freebies” Such as Training and Exhibition Attendance


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…with the Following Results:

  • Increased Business in Target Market

  • Unexpected Sales of Software Products and Applications

  • Sales of Speciality Controller to Client Based on Exhibition Demo

  • Investment: Continuous


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Case Study #5

Firm: System Integrator

Year: 2005

MO:Monthly Visits and Lunch.

Hurdles:Small SI suited to a limited range of project possibilities


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Client Needs…

  • Field Support

  • Specialized Programming

  • Small Expansions

  • Validation

  • GAMP4 Life Cycle Documentation


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…Were Met By

  • Seconded Personnel

  • Creative Working Arrangements

  • Cooperative Engineering

  • Automated Design Tools

  • Technology Transfer


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…with the Following Results:

  • Quick Response

  • Flexibility Which Lowered Cost

  • Increased Stand-Alone Oppor-tunities

  • Investment: 2 Years


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Common Themes

Each of the Case Studies was a success in that it created a win-win situation for Jacobs, the Vendor, and our Client.

Each case began with establishment of a relationship.


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Common Themes

Each of those relationships required nurturing.

Success was achieved as the result of consistently maintaining and growing that relationship.


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Some More Truths

Just as with life, not all relationships are worth nurturing!

There are only so many hours in the day and only so much you can do.

Establish relationships based on probabilities and possibilities.

Think through each opportunity: there may be more there than you think at first glance!


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Now It Is Your Turn!

GO AND CONQUER!


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QUESTIONS?


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