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Understanding market development, message creation, and sales approaches for successful entrepreneurial ventures. Learn the do's and don'ts to avoid common mistakes and drive business growth effectively.
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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
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 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.
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
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!
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?
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.
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?
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
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
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
