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Marketing, Selling & Pricing

Marketing, Selling & Pricing

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Marketing, Selling & Pricing

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  1. Marketing, Selling & Pricing

    It is our pleasure to supply these slides to MMMMMMMMMMMMM 2011
  2. About me I am a “one man” company But, I can be a “Group of Associates” Have purchased consultancy support Have sold consultancy Marketing Manager for 2 US CAD companies I earn most of my money: Optimising business processes Defining asset management strategies And giving strategic advice to small companies
  3. Seminar Contents Introducing the Topics Marketing Product Launch Selling Features & Benefits CLOSE the sale & Sales Bullets Pricing
  4. Module 1

    Introduction
  5. A Continuum
  6. A Continuum Pricing
  7. A Continuum Marketing Pricing
  8. A Continuum Marketing Selling Pricing
  9. The Desired Outcome Marketing Selling Pricing Maximised Profit! =
  10. Module 2

    Marketing
  11. Marketing is…. Marketing Selling Pricing Knowing what you have to sell Knowing who to sell it to = suspects Selling profitably
  12. Marketing What have you got that is saleable? Define in terms of features – easy Define in terms of benefits to buyers - harder Are there different types of buyers Responsive to differing benefits What markets are they in? Where are they located? How do I reach them?
  13. How do I develop my plan? You know the features of your offering “I can solve your problem” – is a hard sell Know the business problems the features solve For benefits - get into suspects shoes List them – quantify them – value them
  14. Who has the relevant problems? This work is desk research Estimate sector size Is it easy to sell to? What are the economic conditions? What is the buying cycle Private vs. public sectors Field work - some trial marketing?
  15. Desk Research Today the INTERNET Also Companies House Trade Directories Yellow Pages
  16. Competition You must know about the current and potential competition Their product features & development plans Pricing Market share
  17. Trial Marketing Based on our 61 point questionnaire
  18. Getting the market size Hopefully more than one type of company So focus on key players in several sectors Where are they located? Close as possible, reduces cost of sales Unless one is a potential “prize” reference site
  19. How to reach prospects Word of mouth, good, but can restrict price freedom Yellow pages, local & lots of competition Adverts, watch the cost per lead/sale Cold selling, by mail, phone or visit Exhibition, expensive, but valuable if you have an established customer base
  20. Marketing is selling profitably Not chasing your tail Having a high hit rate Visit to Quote (near 1) to Order (3 or 4 to 1) If you are selling you are not doing Doing = income Do not deceive yourself Know the buying attitude of prospects
  21. 20CC has…. A short Survey Visit Agenda A six page list of Survey Questions This method tries to ascertain where your problems lie – Marketing, Selling or Pricing Sample on next slide A 61 point Launch Strategy Development Document
  22. Company market survey Remedial marketing checklist – shorter version What are the company’s marketing strengths? What are the company’s marketing weaknesses? What marketing problems does the company have? What share of turnover is taken by the largest 10 customers? What are the ratios of numbers of enquiries to numbers of quotations made to numbers of sales made? When did it last win a new customer? How far ahead does the company plan its marketing operations? What are the responsibilities of the head of marketing or sales in the company? What use is made of market research techniques? What regular analyses are made of historical sales information and records? How are these analyses used in the control and evaluation of marketing effort? Does the company employ its own sales representatives and/or agents, whether in the UK or elsewhere? What does the company know about the end markets for its products, or those which its products help to serve? Where does the company plan to be in five years time on an overall turnover and profitability basis?
  23. Corporate Strategy Marketing must be in line with the company’s strategies Short term, this FY Medium term, next 3 years Long term, 5 years or more
  24. Module 3

    Selling
  25. Selling is…. Marketing Selling Pricing Is a communication skill To identify qualified prospects If you get your message right – the price matters less!
  26. Defining customer states Suspect, just job title and industry Prospect, a name who is known to have a need Qualified prospect, who agrees he has a specified need and the budget Customer, has/is buying
  27. The Sales Process Suspects, anyone out there who fits your prospect profile, the role of marketing Prospects, have come to your attention, somehow, sales converts them into qualified prospects (leads) Qualified prospects, you know what they need, when and they have the budget Customers when they are convinced on the price and order
  28. Critical Product Knowledge The Seller needs to be an expert on: The Features of the Product But to state only those important to the type of client in front of them The Benefits those Feature produce for the user What is the realistic monetary value of them Correctly done - your personal credibility soars
  29. Client Profile This is fundamental to successful selling Public or Private Beware of stereotypes Greater or lesser formality Delegated authority of your contact
  30. That first face-to-face Listen more than you speak Evaluate their needs Discuss – convince them of your competence Evaluate your worth to them Assess how serious they are Develop a rapport Any mutual interests A little personal touch – if in doubt do not
  31. Your Selling Process Get clarity on scope & an acceptable delivery What are the “hot buttons” Establish your outstanding competence Do WE Possess Good Solution Challenge the clients perception Can WE be the Supplier (approved lists) Must determine T&Cs and RISKS Understand Decision Process & Timescale Know who are the competition (if you can)
  32. Prospects Processes Buying Process Formal ITT or not Usually firmer on price than the delivery spec. Decision makers Budget Process Annual cycle Money available Delegated authority Together often known as the Sales Cycle
  33. Closing This short module is not a sales course Quote the benefits, agree their value and ask for the order Have clear minimum price Try to deduce what the market will bear Ask for more, be prepared to walk away Once a day-rate is set with a client it is hard to put it up
  34. Prospect’s Paying Process Are customers good for the fees? How quickly will they pay? Large organisations can be slow payers Often just carelessness, but your survival Keep on top of debts Allow for retentions in the cost estimate
  35. Selling Summary Establish your worth to the client Diminishes price sensitivity Evaluate the “value” to the client Diminishes price sensitivity Your market price comes from experience Topic Location Your own perception of YOU There must be satisfaction & reward
  36. Module 3 - Extended

    Sales Techniques
  37. It is a numbers game What are yours? Enquiries to Visits Visits to Quotations Successful Quotations
  38. Assessing Risk
  39. Other Sources Clay Hardesty CV book Sjord Eisma notes
  40. Key points to include Know your Audience Aim for the CoG, and if there is not one? Why did he ask that? Never assume
  41. Module 4

    One Person Consultancy
  42. Your Functions Managing director - plan the business Sales director - sell your experience Marketing director - promote your business Administrator - pay bills - issue invoices Book keeper - records for tax, vat, etc Technical expert - fee earning aspect
  43. Your Cost Base - Overheads Office Accommodation £ 2,000 Secretarial services £ 5,000 Professional indemnity £ 1,000 Computer hardware/software £ 1,000 Stationery, postage, phones £ 2,000 Special equipment £ 500 Car expenses (depn, running costs) £ 6,000 Seminars, professional fees etc £ 500 Marketing costs £ 500 Accountancy fees £ 1,500 Healthcare £1,000 TOTAL £ 21,000 A Pension at some point
  44. The hours in a year The sum needs to be borne in mind 35x52 = 1,820 for ONE year, under 30! Statutory holiday 2 weeks Personal holiday 3 weeks Keeping up to date 2 week Marketing (most variable) 6 weeks = 13 So 35x39 = 1,365 = 75% for the fit & lucky
  45. The 65% sum General management 5% Administration/records 5% Sales/marketing 20% Keeping up to date 5% Fee earning 65%
  46. Module 5

    Pricing
  47. Pricing is…. Marketing Selling Pricing Winning customers And the price is a measure of one or a combination of: Value to the purchaser Cost The state of the market Your desperation for an order
  48. Pricing - not a simple balance Price of greatest perceived importance Price is NOT the easiest value to answer Two extremes? – one side wants near to zero, the other wants every penny?
  49. Types of pricing Opportunity pricing Cost plus with no/reduced contribution Cost plus with full contribution – and more! Rate card There will be an element of negotiation in all of these Emulate your “open market” salary
  50. Your Fee Rate Structure Depends on number of employees In small companies if you are selling You are not doing So you are all roles Ratio of fee earners to non-fee earners Use of contractors or associates
  51. Rate Card Keep it simple – E.G. no expenses within M25 “Professional Day” – hourly, usually lower, if you have to
  52. Rate Card If the competition is the Big 5 – YIPPEE!
  53. Your Budgeting Process Days available for sale Budget achievement often set at 65% Not in larger scale (engineering) contracting If you operate alone, you need a fair salary If you employ people you have to cover overheads You must control overheads
  54. A detailed estimate/work plan
  55. Your Estimating Process Detailed costing – include everything! Variable rates, try some for size Realistic contingencies The real effort, how fixed are the costs? Cut the rates, as allowed, but NOT the effort involved A job that loses money is in no-one’s interest
  56. Your Estimating Process Contingencies cover normal operational risk Abnormal risk has to be assessed Resulting in negotiation to remove it, insurance to cover it, or declining to bid
  57. Discounting Policies Most of my work is fixed price against a defined scope Time & rate based are often discounted Duration and volume of work based Avoid compromising the 65% for too long Lower rated staff are often contracted and cannot be discounted
  58. Difficult Balancing Act Real costs Nice to have extra cash How keen are you for the work What is the competition charging Your “priceless” experience Real Skill Actual value How much is it worth Big 5 Prestige
  59. What is the job worth? To you What is the cost Depends on size of company Recovery of marketing costs Annual budget & Cost of Sale When compared with “big 5”
  60. What are you worth? To the potential client Cost of not having your service or product Is there a regulatory issue – fear factor Price they are comfortable with Individually Their level in the organisation As a business unit
  61. Your Selling Value What are you worth to a client? Can they use someone else of comparable benefit at lower cost? Can they use a less experienced but less expensive consultant? How can you prove your worth? What is your minimum fee rate? What is a reasonable fee rate?
  62. Further key points Cannot work around the clock for ever Do not undervalue yourself – for too long Do not be afraid to “walk away” Even from a (poor) job, contract permitting Long term projects must also “grow” you There must be satisfaction & reward
  63. The Myriad of Issues Public or Private Formal ITT Sales skills Size of prospect Budget holder Professional competence Purchase authority An acceptable delivery Work breakdown Your Company T&Cs Available resources Need for work Charging rate Risk Negotiating skills Perceived value Compliance Quoted price Discounts Payment terms Packaging the proposal
  64. Your Desired Result Win! Win!