Strategies for Sales & Marketing Management A Practical Guide for Growth. Bob Gollaher SandCastle Consulting

Transcription

1 Strategies for Sales & Marketing Management A Practical Guide for Growth Bob Gollaher SandCastle Consulting

2 BASIC PREMISE Whatever it was that got you where you are today is not sufficient to keep you there.

3 Goal To provide a practical planning process linking company objectives and strategies with sales & marketing management tools to maximize growth and return on investment

4 How to Grow a Business Lessons from Leading Entrepreneurs Sobey School of Business St. Mary s University Compelling vision Proper positioning of the company within the marketplace Sound processes and structure High performing people

5 Learning Objectives To understand the need for organizational planning and the interface between strategic planning, marketing and sales strategy. To formulate a practical market and sales strategy that is relevant to your business To utilize management tools to develop a sales/territory plan and to forecast revenue

6 Business Planning Process Too small Too busy not enough time Too complicated We can react fast enough to the market without a plan Wrote a plan once no one followed it Can t change the situation

7 Key Questions to Ask Yourself List the key personnel of your company and their unique contributions to the firm. What unique capabilities or technical advantages does your company have? What is the company s image and reputation among Customers? Prospects? The competition?

8 Key Questions to Ask Yourself What are the company s relative strengths and weaknesses compared to the competition? What are the present markets of your company? What are the future markets of your company? What has the company s sales history been during the last 3-5 years...why?

9 Key Questions to Ask Yourself We have a clearly defined strategy for differentiating the following by customer segment: Service Pricing Selling resources We have developed customer profiles and plans on all key and target customers. Our sales force is held accountable for completing customer profiles Our sales force is held accountable for forecasting sales in a timely manner

10 Key Questions to Ask Yourself Our sales compensation plan reinforces the most important customers and products we sell Resources and time are available for planning ( market, territory and account )

11 2 TOP CHALLENGES YOU FACE IN YOUR BUSINESS TODAY

12 Company Progression Start-up Volume Growth Market Share Optimization Any business is good All business is good What business is good Certain business is good One product one market One product one big market Old/new products many markets Redefine customers segment selling Sell to service Sell volume to lower costs What business is good Optimize to get best returns

13 The Role of Planning in Your Organization Fits the company to the environment The glue that holds the company together Blueprint for the future Helps to achieve business and personal objectives

14 Business Planning Process Management Strategic Plan Marketing Market Plan Sales Management Sales Plan Territory Plan Account Plan

15 Company Progression Start-up Volume Growth Market Share Optimization Any business is good All business is good What business is good Certain business is good One product one market One product one big market Old/new products many markets Redefine customers segment selling Sell to service Sell volume to lower costs What business is good Optimize to get best returns

16 Strategic Plan Sets the overall direction and tone of the organization Communicate to everyone what is most important Counters excessive inward and short-term thinking Consisting of: Mission statement Vision Goals Objectives Strategies Action Plans

17 Marketing Plan The plan provides the organization, specifically the sales organization, the product offerings and the definition of which markets the company will pursue the map to success Product/Market Matrix Pricing, Promotion and competition May include Go to market assessment direct or indirect channel

18 Sales Plan Critical to the success of the company a good marketing plan without a good sales plan will fail Sales Plan will consist of The role of the salesperson expectations The size of the sales force The organizational structure of the sales force Account management Training of the sales organization Compensation of the sales organization Ongoing evaluation of the sales organization

19 Territory Plan Each sales person should develop a territory plan Territory objectives Sales in $ for the territory Sales in product/market segments Evaluation of accounts account classification

20 5 Elements of a Plan Situational Analysis where have we come from Goals /Objectives where do we want to go Strategies how will we get there Action plans who is responsible for what by when Control measures how will I monitor & adjust

21 Situational Analysis Strengths Weaknesses Opportunities Threats

22 SWOT Analysis Easy to understand Apply to any organizational level Needs to be analytical and specific Honesty about weaknesses required

23 Strengths Weaknesses -Things you do well -Core competencies -Tangible example - Loyal customers -Intangible good reputation -Things that prevent you from doing what you really need to do - Internal so within your control Opportunities -Potential areas for growth and higher performance -External in nature Threats - Challenges confronting the organization external in nature

24 Strategic Plan Sets the overall direction and tone of the organization Communicate to everyone what is most important Counters excessive inward and short-term thinking Consisting of: Mission statement Vision Goals Objectives Strategies Action Plans

25 Strategic Plan Major Components Mission Vision Goals Objectives Strategies Action Plans Measures Targets

26 Mission Statement Captures the essence of why the organization exists who we are, what we do Explains the basic needs that you fulfill Should be brief and to the point Easy to understand Try to convey the unique nature of your organization and the role it plays that differentiates it from others

27 Vision How the organization wants to be perceived in the future what success look like An expression of the desired end state Inspires a compelling future Provides a long-term focus for the entire organization

28 Strategic Plan Major Components Mission Vision Goals Objectives Strategies Action Plans Measures Targets

29 Strategic Framework A tool to assist management in the following; Focus on value adding activities Alignment of the organization Communication the direction and success of the company to employees A scorecard to manage key initiatives

30 Mission Goals Objectives Strategies Action Plans

31 Goals Desired outcomes that are supportive of the mission and vision Shapes the way ahead in actionable terms Best applied where there are clear choices about the future Puts strategic focus into the organization Assign specific ownership of the goals

32 Developing Goals Cascade from the top Mission & Vision SWOT analysis Limit to 4-6 Goals Consensus at the top re goals buy-in at the execution level Should drive higher levels of performance and close critical performance gap Broad in scope

33 Strategic Plan Major Components Mission Vision Goals Objectives Strategies Action Plans Measures Targets

34 Objectives Relevant directly supports the goal Compels the organization into action Simple and easy to understand Realistic and attainable May need several objectives to reach goal Narrow in scope

35 Strategic Plan Major Components Mission Vision Goals Objectives Strategies Action Plans Measures Targets

36 Strategies Details how you are going to meet the objective Specific enough so we can quantify and measure the results Simple and easy to understand May need several strategies to reach goal

37 Strategic Plan Major Components Mission Vision Goals Objectives Strategies Action Plans Measures Targets

38 Action Plans The Action Plan identifies the specific steps that will be taken to achieve the initiatives and strategies Action Plans are geared toward operations, procedures, and processes Describes who, what, when & where timeframe and resources and milestones

39 Action Plans The people resources needed to succeed The time resources needed to succeed The money resources needed to succeed The physical resources ( facilities, technology, etc. ) needed to succeed

40 Business Planning Process Management Strategic Plan Marketing Market Plan Sales Management Sales Plan Territory Plan Account Plan

41 Marketing Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, and services, to create exchanges that satisfy individual and organizational objectives.

42 Marketing state of change Micromarketing, mass customization, crossfunctional teams Internationalization global vs local, regional markets, world regions, country of excellence Modular outsourcing non-core activities Relationship marketing vertical partnering focused on the consumer

43 Marketing Plan The plan provides the organization, specifically the sales organization, the product offerings and the definition of which markets the company will pursue the map to success Product/Market Matrix Pricing, Promotion and competition May include Go to market assessment direct or indirect channel

44 Marketing Planning Checklist Select Target Markets How big are the markets? Can we reach them? Can we develop a position? Can we hold or increase position? What are the alternatives? Perform Situation Analysis What are the Opportunities/Threats? What are our Strengths/Weaknesses? Set Objectives What do we want to achieve? What can we achieve? What must we achieve? What are the target markets to serve? Develop Marketing Strategies What are we going to do in existing markets? What are we going to do to reach new markets? What are we going to do to develop new product lines? What major business and marketing capabilities must be developed? Implement Action Plans What buying influences and decision makers do we have to reach? What influences their decisions? What level of acceptance can we expect? What product lines are needed? What customer service approach should we use? What marketing and selling skills do we need? What pricing approach will work? What advertising and promotion is needed to communicate effectively? What locations should handle product lines? What is our action timetable? Who is responsible for implementing the plan?

45 Step 1 Market Segmentation Which markets will we pursue?

46 Marketing Plan Need /Application Which industry? Which market within that industry? Country? Which geographical area within that country?

47 Marketing Plan Which Industry? Hospitality Healthcare Automotive Biosciences IT Agriculture Fisheries Which segment within the market?

48 Marketing Plan In what 2 markets/segments does your company participate in? In what 2 markets/segments would you like your company to participate?

49 Marketing Plan Need /Application Which industry? Which market within that industry? Country? Which geographical area within that country?

50 Market Planning Process Market Attractiveness Strength of Position

51 Market Planning Process Market Attractiveness Potential Stars Dogs Stars Cash Cows Strength of Position

52 Market Attractiveness Variables Market size/potential Market growth rate Profit margins Competitive intensity Ease of entry Seasonality Need for products/services Strategic importance

53 Strength of Position Variables Market share Price competitiveness Product quality Service quality Sales effectiveness Market coverage Market knowledge Product fit with segment needs Distribution Reputation/recognition with accounts in the segment

54 Summary Evaluating Market Segment Attractiveness Market Segments Market Attractiveness Factors 1-5 Market Size/Potential Profit Margins Market Growth Competitive Intensity Ease of Entry Seasonality Market Trends Totals

55 Market Segments Strength of Position Variables 1-5 Market Share Summary Evaluating Strength of Position Price Competitiveness Product Quality Sales Effectiveness Market Coverage Knowledge of Market Distribution Totals

56 Segment Portfolio Summary Market /Segment 1. Market Segment Attractiveness (score) Strength of Position (score)

57 Market Segment Attractiveness Product/Service Strength of Position Low Moderate High Low Moderate High

58 Marketing Planning Checklist Step 2 Select Target Markets How big are the markets? Can we reach them? Can we develop a position? Can we hold or increase position? What are the alternatives? Perform Situation Analysis What are the Opportunities/Threats? What are our Strengths/Weaknesses? Set Objectives What do we want to achieve? What can we achieve? What must we achieve? What are the target markets to serve? Develop Marketing Strategies What are we going to do in existing markets? What are we going to do to reach new markets? What are we going to do to develop new product lines? What major business and marketing capabilities must be developed? Implement Action Plans What buying influences and decision makers do we have to reach? What influences their decisions? What level of acceptance can we expect? What product lines are needed? What customer service approach should we use? What marketing and selling skills do we need? What pricing approach will work? What advertising and promotion is needed to communicate effectively? What locations should handle product lines? What is our action timetable? Who is responsible for implementing the plan?

59 Situational Analysis Strengths Weaknesses Opportunities Threats

60 Strengths Weaknesses Opportunities Threats

61 Marketing Planning Checklist Step 3 Select Target Markets How big are the markets? Can we reach them? Can we develop a position? Can we hold or increase position? What are the alternatives? Perform Situation Analysis What are the Opportunities/Threats? What are our Strengths/Weaknesses? Set Objectives What do we want to achieve? What can we achieve? What must we achieve? What are the target markets to serve? Develop Marketing Strategies What are we going to do in existing markets? What are we going to do to reach new markets? What are we going to do to develop new product lines? What major business and marketing capabilities must be developed? Implement Action Plans What buying influences and decision makers do we have to reach? What influences their decisions? What level of acceptance can we expect? What product lines are needed? What customer service approach should we use? What marketing and selling skills do we need? What pricing approach will work? What advertising and promotion is needed to communicate effectively? What locations should handle product lines? What is our action timetable? Who is responsible for implementing the plan?

62 Marketing Planning Checklist Step 4 Select Target Markets How big are the markets? Can we reach them? Can we develop a position? Can we hold or increase position? What are the alternatives? Perform Situation Analysis What are the Opportunities/Threats? What are our Strengths/Weaknesses? Set Objectives What do we want to achieve? What can we achieve? What must we achieve? What are the target markets to serve? Develop Marketing Strategies What are we going to do in existing markets? What are we going to do to reach new markets? What are we going to do to develop new product lines? What major business and marketing capabilities must be developed? Implement Action Plans What buying influences and decision makers do we have to reach? What influences their decisions? What level of acceptance can we expect? What product lines are needed? What customer service approach should we use? What marketing and selling skills do we need? What pricing approach will work? What advertising and promotion is needed to communicate effectively? What locations should handle product lines? What is our action timetable? Who is responsible for implementing the plan?

63 2012 Market Segment Summary Market Projections Market Size ---- Market Share Market Growth Company Industry Structure --Include external factors such as Political, Economic, Social, Technological, Threat of Substitutes, Bargaining Power of Buyers, Threat of New Entrants, Competitive Analysis ( predict future moves, identify areas of vulnerability, predict reactions to our moves ) Position in Marketplace - Objectives Where are we now in the marketplace and where do we want to be in 2012? Value Drivers Price COGS SG&A R&D Customer Satisfaction Asset Management A/R, DSO Operating Strategies What we want to do in 2012 to maintain our position in the marketplace. Be sure to include, if necessary, details on product, price, channels & distribution strategy along with promotion activities. Marcomm to include media, tradeshow, internal communication and PR plan.

64 2012 Market Segment Summary Performance Commitments 2011 Act Goal 2012 EYE 2013 Goal SOM Volume x Price= Revenue Strategies Action Plans Timeframe Key Downside Risks: Impact: Key Upside Opportunities: Impact:

65 Competitor Position Summary Category Importance % Competitive Ranking Best Worst Product Quality Price Technology Leadership Service/Support

66 Business Planning Process Management Strategic Plan Marketing Market Plan Sales Management Sales Plan Territory Plan Account Plan

67 Situational Analysis Strengths Weaknesses Opportunities Threats

68 Strengths Weaknesses Opportunities Threats

69 Sales Plan Critical to the success of the company a good marketing plan without a good sales plan will fail Sales Plan will consist of: Strategic Issues The role of the salesperson expectations, roles & responsibilities The size of the sales force deployment? By geography, product, market or function? The organizational structure of the sales force outside vs inside sales? Territory and account management expectations sales calls, reports, demonstrations

70 Sales Plan Sales Plan will consist of: Tactical Issues Recruitment Training of the sales organization By company, outside sources, by management Compensation of the sales organization Ongoing evaluation of the sales organization Sales growth, new account targets, time allocation Coaching and Counseling Tools for Monitoring Deployment and Success

71 Territory Plan Each sales person should develop a territory plan based on the information within the market plan; it should include Situational analysis territory analysis including economic, political, and competitive activity Territory objectives Sales in $ for the territory Sales in product/market segments Evaluation of accounts key, target, maintenance, why bother

72 Sales Planning Process Account Attractiveness Strength of Position

73 Sales Planning Process Account Attractiveness Target Why bother Key Maintenance Strength of Position

74 Account Attractiveness Market position Growth rate of account Financial position of account Size of Account PEI based or multinational Profitable Reputation within the industry

75 Strength of Position Previous experience with the account Familiarity with account operations Relationship with decision makers Relationship with product users Market share within the account

76 Account Attractiveness Target Attractiveness Accounts are potentially attractive since they offer high opportunity, but sales organization currently has weak position with accounts. Sales Call Strategy Accounts should receive a high level of sales calls to strengthen the sales organizations position. Why bother Attractiveness Accounts are very unattractive since they offer low opportunity and sales organization has weak position. Sales Call Strategy Accounts should receive no field sales calls and a minimum of inside sales resources. Key - Attractiveness Accounts are very attractive since they offer high opportunity and sales organization has strong position. Sales Call Strategy Accounts should receive high level of sales calls since they are the sales organization s most attractive accounts. Maintenance Attractiveness Accounts are somewhat attractive since sales organization has strong position, but future opportunity is limited. Sales Call Strategy Accounts should receive a moderate level of sales calls to maintain the current strength of the sales organization s position. And, efforts should be made to replace field sales calls with virtual sales ie telephone, social media, . Strength of Position

77 Five Commandments of Territory Planning 1. Analyze your territory, products and services, market segment, competition, accounts and trends. 2. Set objectives based on your territory s potential rather than historic sales. 3. Plan a strategy for the territory in general and specifically for your individual accounts. 4. Keep accurate records 5. Analyze your records periodically and set new objectives based on this analysis.

78 2012 Territory Plan Market Projections Market Size ---- Market Share Market Growth Company Industry/ Territory Structure Include external factors such as Political, Economic, Social, Technological, Threat of Substitutes, Bargaining Power of Buyers, Threat of New Entrants, Competitive Analysis ( predict future moves, identify areas of vulnerability, predict reactions to our moves ) Position in Marketplace - Objectives Where are we now in the marketplace and where do we want to be in 2012? Elements of Territory Strategy Development Account Classification Key, Target, Maintenance Pricing Services Service Levels Selling Promotion Distribution Product Mix Operating Strategies What we want to do in 2012 to maintain our position in the territory. Be sure to include, if necessary, details on product, price, promotion activities

79 2012 Territory Summary Performance Commitments 2012 Goal 2012 EYE SOM Volume x Price= Revenue Strategies Action Plans Timeframe Key Downside Risks: Impact: Key Upside Opportunities: Impact:

80 DEVELOPING EFFECTIVE SALES STRATEGIES

81 THE SALES ORGANIZATION IS YOUR MOST IMPORTANT ASSET!

82 Why? Sales drives the engine The sales organization is the face of the company Sales provides important customer feedback Sales provides market intelligence Ear to the ground Competitor information Pricing strategies deals that were lost

83 Effective Sales Strategies 1. Hire the right people Selling requires caring Selling requires planning & study Selling requires strength of character Selling requires determination & persistence Selling requires responsibility

84 Effective Sales Strategies 1. Hire the right people 2. Provide training on products/sales techniques Product and or service training Sales training SPIN Strategic selling Consultative Insight Selling

85 Selling Techniques SPIN fundamental sales course basis one-to-one methodologies transactional in nature Situation Problem Implication Needs Payoff

86 Selling Techniques Strategic Selling advanced sales where its complex and there are multi-buyer methodologies

87 Economic Low cost of ownership Good budget fit ROI Financial responsibility Increased productivity Profitability Smooth out cash flow flexibility User Reliability Increased efficiency Upgrade skills Fulfill performance requirements Best problem solution Do job better/faster/easier Versatility Super-service Easy to learn & use Technical Coach Specs best and product meets them Delivery timely Best technical solution Discounts/low bids/price reliability Recognition Visibility Get strokes Make contribution Be seen as problem-solver

88 Consultative & Insight Selling Consultative selling selling consultation and insights for a solution which has 2 ways to impact your client 1. reduce costs 2. increase revenue and earnings. Focus on customer potential to change & challenge them with provocative insights with coaching on how to buy More analytical look for mobilizers within the organization go getters, skeptics, teachers

89 Account Plan Structure and Format depends on type of selling SPIN STRATEGIC SELLING CONSULTATIVE SELLING INSIGHT SELLING

90 Effective Sales Strategies 1. Hire the right people 2. Provide training on products/sales techniques 3. Focus the sales organization Market Planning sales/territory planning

91 Sales Planning Process Account Attractiveness Target Why bother Key Maintenance Strength of Position

92 Effective Sales Strategies 1. Hire the right people 2. Provide training on products/sales techniques 3. Focus the sales organization Market planning sales/territory planning Business aspect of their time

93 Sales Productivity = GM/COS

94 Sales Planning Process Account Attractiveness Target Why bother Key Maintenance Strength of Position

95 Effective Sales Strategies 1. Hire the right people 2. Provide training on products/sales techniques 3. Focus the sales organization Market/account information & planning sales planning Business aspect of their time Forecasting

96 Sales Forecasting & Funnel Management Lead Generation Generic Lead-to-Revenue 7 Stage Funnel Lead Qual 1 Cust. Valid 2. Lost Opportunity Quote 3 Negotiation 4 Opportunity becomes an Order Commit Implementation 6 Healthy Funnel Metrics - Load Factor (new add rate) - Velocity (rate of deal flow) - Yield (closing ratio) Customer acceptance 7 Invoice $$ Contract Yield

97 Phase Definitions 1. Lead Qualification Initial customer contact has been made The customer is expressing an intention to buy We are considered a potential supplier The prospect is willing to invest time into a meeting or call The customer/prospect is asking for a quote

98 2. Customer Validation We are seeking a better understanding of the customer issue or problem We have a clear picture of the customer decision making process Preliminary configuration and pricing has been completed The customer/prospect has requested budget/financing internally

99 3. Quote We are providing final proposal approval and pricing.

100 4. Negotiation We have been short-listed or declared vendor of choice in writing We and the customer/prospect are in final negotiation for pricing and/or contract Budget/financing has been approved and made available There has been a meeting with the decision maker We know the important decision criteria for the customer There is a customer implementation timeline understood by both sides Although a customer has agreed to use product/ services; until an invoice generated, this is still in the negotiation stage.

101 5. Contract received/customer commitment The customer has agreed and signed a contract or we have received a letter of intent to purchase.

102 Lost This deal has been lost to a competitor The customer has decided not to buy at this time

103 High 80-99% Med 50-80% Low < 50% Confidence levels:

104 Sales Forecasting & Funnel Management Lead Generation Generic Lead-to-Revenue 7 Stage Funnel Lead Qual 1 Cust. Valid 2. Lost Opportunity Quote 3 Negotiation 4 Opportunity becomes an Order Commit Implementation 6 Healthy Funnel Metrics - Load Factor (new add rate) - Velocity (rate of deal flow) - Yield (closing ratio) Customer acceptance 7 Invoice $$ Contract Yield

105 Revenue Scorecard See handout review scorecard

106 Effective Sales Strategies 1. Hire the right people 2. Provide training on products/sales techniques 3. Focus the sales organization 4. Communicate Provide expectations Feedback/evaluations Mentorship

107 Effective Sales Strategies 1. Hire the right people 2. Provide training on products/sales techniques 3. Focus the sales organization 4. Communicate 5. Compensation Salary only Base + commission Base + corporate incentive

108 A Great Salesperson Assess multiple customer needs and motivation Analyze & forecast market trends Use sophisticated & automated tools Develop value driven solutions in partnership with clients Have critical thinking/analytical skills and the ability to communicate and negotiate

109 Operational Activities Monthly S&OP Sales review with the sales organization forecast quarter and year end... Sales & Operational Review with marketing, sales management, planning and finance Quarterly Strategic Framework review Reset quarterly goals Communicate company s progress

110 Business Planning Process Management Strategic Plan Marketing Market Plan Sales Management Sales Plan Territory Plan Account Plan

111 Thanks for your participation! Bob Gollaher