Sales & Marketing Do’s & Don’ts For The Entrepreneur

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

2. 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

3. Market DevelopmentWhy do it?

4. 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.

5. 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.

6. Market DevelopmentWhat 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.

7. Market DevelopmentGetting 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

8. Market DevelopmentWhere 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!

9. Message Development5 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?

10. Value PropositionWhat 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.

11. Turning your Marketing Plan into Sales CINA October 30, 2004

12. 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.

13. 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

14. 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

15. 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?

16. Know your customer!

17. 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

18. Selling Value

19. 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

20. 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

21. 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

22. A Network of Networks

23. Sales Success Requires Gardening Skills

24. Sales Success Requires Gardening Skills

25. Jennifer Vessels, PresidentNext Step, LLCwww.nextstepgrowth.comTel: 650.361.1902Michelle E. Messina, Co-founderSituational Marketing, Inc.Strategic Marketing for Technology Companieswww.sitmark.com Tel: 408.956.9844 or 408.981.4801