2006 Grant Buying Process

Mastering and Managing the Buying Process Juliann M. Grant, Partner Telesian Technology Inc. [email protected] 978-681-1600

© 2006 Telesian Technology Inc. www.telesian.com

Mastering The Buying Process

Building Marketing Value That Drive Sales

The Bottom Line…





Must generate high quality leads Maximize every opportunity Sales doesn’t give marketing any credit Marketing could be doing more to leverage sales

© 2006 Telesian Technology Inc. www.telesian.com

Principle of Leverage J. Paul Getty, who created one of the world's greatest fortunes, said: "I would rather make 1% on the efforts of 100 people than 100% on my own efforts.”

© 2006 Telesian Technology Inc. www.telesian.com

Marketing Landmines





Shot Gun Approach Leaving it all up to channel to succeed Inconsistent contact with your market Inside-out thinking

© 2006 Telesian Technology Inc. www.telesian.com

Understanding The Buying Process


Understand buyer behaviors







Who are they Know best times when are monies available Motivators

Messaging is critical



Connect with your audience Make your message different from your competitors





Take the competition test

What are you promising? (outside-in thinking) © 2006 Telesian Technology Inc. www.telesian.com

What is the Buying Process?



Thinking process for making purchases or investments for your programs/services Puts you in the Buyer’s shoes


Emotions





Excitement, fear, cognitive dissonance

Needs



Pains Informational

© 2006 Telesian Technology Inc. www.telesian.com

The Buying Process Stages

Awareness Your Universe

Interest Confidence Close © 2006 Telesian Technology Inc. www.telesian.com

Why Is It Effective?




It is strategic and not tactical It complements the sales cycle It focuses on moving buyers through each stage of the decision process:




Persuasion Conditioning Establishing preferences © 2006 Telesian Technology Inc. www.telesian.com

Know Your Market


Market segmentation vitally important


Manufacturing is many markets









Discrete, Process, Utilities

Financial Services Healthcare Retail, CPG New vs. existing SIZE THEM ALL © 2006 Telesian Technology Inc. www.telesian.com

New Buyers vs. Customers


New Buyers







Need more background info Want to feel good about you – warm and fuzzy Need confidence in your offerings

Customers





Want to know what’s happened since they last communicated/invested Validation of previous investment Successes, new programs Goals achieved © 2006 Telesian Technology Inc. www.telesian.com

Align Information Around Buyers


As buyers move through the process, their informational needs change





Early stages of buying Mid stages of buying Bought Customer

© 2006 Telesian Technology Inc. www.telesian.com

What Aisle, What Shelf?

Help your buyers know where your products and services fit © 2006 Telesian Technology Inc. www.telesian.com

Market Strategically, Sell Tactically


Aligning messages, programs, tools around motivating needs





Urgent, important, useful

Address Customer lifecycle needs



Prospect to customer – the buzz, excitement, sexy bells and whistles Existing customer – enhancement-based features

© 2006 Telesian Technology Inc. www.telesian.com

Pre-List vs. Post-List


New buyers focus on pre-list requirements




New to product/solution Buzz and excitement New features, sexy





Ex. Open source, SOA, Java OS, Integration

Customers focus on post-list



Know product/solution User-driven requirements



Make my current product work better Ex., Need a user-defined field in database, want a place to add comments, want to add catalog search capability © 2006 Telesian Technology Inc. www.telesian.com

Balance is Key




Need both Pre-List and Post-List features addressed in new solutions and services Customers place pressure on R&D for specific enhancements Product marketing needs to understand pre-list features and speak for the market needs © 2006 Telesian Technology Inc. www.telesian.com

Messages Change Subtly


As stages progress, a buyer’s informational needs change


Early Stages -

Bonding needs Sorting process, information gathering Stand out messages that help buyer understand why you are different

 Mid-Stages -

Setting evaluation criteria Competitive positioning How are your solutions better

© 2006 Telesian Technology Inc. www.telesian.com

Uncovering Needs



Something required or desired that is lacking* A condition in which help is required*

*Webster’s New World Dictionary © 2006 Telesian Technology Inc. www.telesian.com

Needs Can Develop From Trigger Events







Revenue shortfall Acquisition/merger Industry issues, i.e., Compliance New hires or reorganization Outdated system Broken internal processes

© 2006 Telesian Technology Inc. www.telesian.com

Classifying Needs


Some needs are bigger than others


Urgent





Important





Determines what and when they buy Influences what they evaluate

Useful


Influences what they look at

© 2006 Telesian Technology Inc. www.telesian.com

Leveragings the Sales Process es n e ar w A Needs Analysis

t s e r e Int

Requirements Defined Your Universe

C est

Inter Capabilities Demo

ce n e d onfi

e s o l C e nc e d i nf

Co Negotiation

e Clos Approval © 2006 Telesian Technology Inc. www.telesian.com

What’s Happening in Each Buying Stage


Think like a buyer




Typical activities




Goals to move to the next stage

Messages that Resonate

© 2006 Telesian Technology Inc. www.telesian.com

Awareness: What’s happening? I have a need







Evangelize problem types solved Prospects bond with problems Shows expertise and experience of vendor Buyer’s savvier today – most likely been through this type of purchase before © 2006 Telesian Technology Inc. www.telesian.com

Early Buying Stages: Building Awareness ss e n e r a Aw Needs Analysis

Your Universe

© 2006 Telesian Technology Inc. www.telesian.com

Awareness: Think Like a Buyer


“I’ve got this problem, and I need to solve it.”




“All the vendors kind of sound the same.”
Improve throughput, reduce costs…etc.




“I’ve got to sort through this clutter and figure out what will best to address my needs.” “We already use XYZ, but what can a new product/technology do to resolve my problem?”




© 2006 Telesian Technology Inc. www.telesian.com

Awareness: Buyer Activities


Information gathering:





Surf internet Attend seminars, shows Analyst reports Talk to colleagues




Create list of potential companies to work with




Early stages of figuring out evaluation criteria

© 2006 Telesian Technology Inc. www.telesian.com

Awareness: Vendor Activities







Search engine optimization Advertising – web and print Programs focused on evangelizing problems Seminars, trade shows Analyst relations Public relations

© 2006 Telesian Technology Inc. www.telesian.com

Getting to the Next Stage


Breakthrough the clutter!




Ensure your company finds its way on the prospect’s list of vendors to investigate




Want prospect to quickly understand why you are different than other vendors




Tools that help: Interview tools, White papers focused on problems/solutions and set criteria, customer list, partners, etc.

© 2006 Telesian Technology Inc. www.telesian.com

Messages that Resonate


“Looks like many vendors can solve my problem.”


How is your solution different?



Is it new and exciting? How? Who are you and what are you about




Not feature/function




Focus on problems, how you solve them, and benefits derived




Competitor test: If I inserted my competitor’s name in my position statement, could they claim it?

© 2006 Telesian Technology Inc. www.telesian.com

Leveraging the Sales Process ss e n e r a Aw Needs Analysis

t s e r e Int

Requirements Defined Your Universe

© 2006 Telesian Technology Inc. www.telesian.com

Developing Interest: What’s happening?






Prospects starting evaluation process Have list of vendors they are interested in learning more about RFPs and other evaluation criteria being defined Beginning stages of buyer preference Needs analysis

© 2006 Telesian Technology Inc. www.telesian.com

Interest: Think Like A Buyer


What’s the best way to evaluate this solution for my problem?




Here’s what I know of the company and/or product, here’s what I really need to know




Which company has demonstrated experience with my kind of company?




What was the response from the companies so far?
Did they send information timely?
Did I get a return call?

© 2006 Telesian Technology Inc. www.telesian.com

Interest: Buyer Activities




The bake-off begins! Evaluation criteria formulates and evolves In-depth corporate website surfing





Looking for “like” companies or scenarios

RFP is done and out, now reading the results – apples to apples comparison

© 2006 Telesian Technology Inc. www.telesian.com

Interest: Vendor Activities Sales tactics vs. marketing strategy Needs analysis discussion








Uncovering problems Conversations that build relationship and trust Demonstrate understanding of their business

Product positioning tactics





Shaping the evaluation criteria


Educate on differences – technology highlights – laser vs. guided wave radar

© 2006 Telesian Technology Inc. www.telesian.com

Getting to the Next Stage


Vendor building a good relationship




Helped the customer identify things that they did not think of before




Building preference over all others




Tools that help: Needs analysis docs, FAQs, key industry issues, features/advantages/benefits

© 2006 Telesian Technology Inc. www.telesian.com

Messages that Resonate




Why is your product better Help sales position your solution around the buyer’s needs Competitive positioning tactics



Lay landmines, overcome obstacles Leverage a weakness on competition and turn into a strength


Example: vertical focus vs. niche player

© 2006 Telesian Technology Inc. www.telesian.com

Creating Confidence ss e n e r a Aw Needs Analysis

t s e r e Int

C Requirements Defined st e r e t In

Your Universe

e c n e onfid

Capabilities Demo

© 2006 Telesian Technology Inc. www.telesian.com

Creating Confidence: What’s Happening


Proof, proof, and more proof




Show Me How Demonstrations




You vs. The Competition




Many influencers now engaged




Preference is established




Want to be the “preferred” vendor © 2006 Telesian Technology Inc. www.telesian.com

Confidence: Think Like a Buyer


“I really like Company X, but Company Y costs less.”




“We already use Company Y.”




“I really like Jim the rep, he and I work well together.”




“I don’t like Jim the rep, he’s a pain to work with.”

© 2006 Telesian Technology Inc. www.telesian.com

Confidence: Buyer Activities



Closely evaluating products Carefully comparing vendors and products against each other


Grading vendors on demo








Who did a better job, who worked in the whole scenario What were the cool features

Negotiations around pricing Building consensus on buying team Looking at risks for doing business with a particular vendor

© 2006 Telesian Technology Inc. www.telesian.com

Confidence: Vendor Activities


Product positioning





Strategic, Financial, Cultural, Operational Pains

Competitive positioning


Product/Feature/Capability Pains vis-à-vis competitors/categories of competitors

© 2006 Telesian Technology Inc. www.telesian.com

Messages that Resonate








Stability Low risk, safe bet Demonstrated successes Customer for life Proven implementation methods Training Share their vision © 2006 Telesian Technology Inc. www.telesian.com

Getting to the Next Stage



Proving your company is the right partner Risk management





Know your buyer

Tools that help: Annual reports, success stories, references, customer press releases, articles, analyst reports

© 2006 Telesian Technology Inc. www.telesian.com

The Closess

ne e r a w A Needs Analysis

t s e r e Int

C Requirements Defined st e r e t In

Your Universe

Capabilities Demo

fi n o C Negotiation

d

e c n e onfid

se o l C e enc

e Cl os Approval © 2006 Telesian Technology Inc. www.telesian.com

The Close: What’s Happening


Buyer knows what they want




They know how much they want to pay




Negotiations in play




Want to identify real ROI




Prospect looking for warm & fuzzies




Selling the system “up” to management

© 2006 Telesian Technology Inc. www.telesian.com

Close: Activities




Checking references ROI analysis Contract negotiations





Terms, timing

Internal reviews


Consensus building on vendor/solution

© 2006 Telesian Technology Inc. www.telesian.com

Getting to the Next Stage


A signed contract…




Tools that help: Annual reports, ROI calculator, corporate fact sheet, analyst endorsements, articles, positive press, project schedule, help desk, service accolades

© 2006 Telesian Technology Inc. www.telesian.com

Mapping Your Tools & Programs Building Awareness

Generating Interest

Creating Confidence

Getting the Close

SEO, Websites, Seminars, webinars, trade shows

Overview brochures, product catalogs, data sheets

Annual reports, case studies, company awards

Annual reports, case studies

Direct mail programs, emails, newsletters

PPTs

References

References

Educational white papers

Technical white papers

ROI Analysis

Service & support structure, help desk

Telemarketing scripts, voicemail scripts, messages on hold

Product & competitive positioning, Dialogfocused tools I.e., interview questions

Service and support collateral, website, etc.

Discounts, sales incentives

© 2006 Telesian Technology Inc. www.telesian.com

Measuring Your Effectiveness Ask yourself these questions:



Where does it fit in buying process? Do the messages address the concerns of this stage?





Do they overcome obstacles or create them?

How will this help move the prospect to the next stage?

© 2006 Telesian Technology Inc. www.telesian.com

Mapping Your Tools Stage

Awareness Interest Confidence What do you have to show me I still have questions - I need to that can save me money or What do you have that is understand your experience in make me money? unique from your competitors? this area. Customer perspective

Activities How to Move to Next Stage

Key Messages Offerings Product 1

Close Help me understand why Company X?

Web searches, Lead generation, initiate contact / initial phone call

Getting in the door; conducting needs review; appointment Product evaluations, facilitating setting and delivery references Closing deal Show them our unique Answer all questions/respond Get their attention, identify with capabilities; prove to them to all concerns raised in the Demonstrate good ROI; their unique issues you're the experts last step corporate stability why you are "better;" why you are exciting; how you why you are different; Company demonstrate customer what makes Company low risk, can solve their critical unique positioning, areas of satisfaction: use cases, key the stable choice; the value business/production problem successes expertise, and knowledge message Tools Tools Tools Tools

Product 2

Product 3

© 2006 Telesian Technology Inc. www.telesian.com

Mapping out the Message








Stakeholders Pains How your solution My Message Chart addresses pain Benefits Understanding the impact of not addressing pain

© 2006 Telesian Technology Inc. www.telesian.com

Is it a Feature or a Benefit? Feature -

Java OS New GUI Single server Workflow

Benefit -

Open platform Easy to use Low TCO Improve productivity

© 2006 Telesian Technology Inc. www.telesian.com

Questions & Answers Juliann M. Grant, Partner Telesian Technology Inc. Marketing, Web, & e-Business Services for B2B Markets [email protected] 978-681-1600 http://www.telesian.com

Thank You For Your Time! © 2006 Telesian Technology Inc. www.telesian.com