Identifying best routes to market

Identifying the Best Routes to Market for your Technology Business

Presented by Andrew McGeeCommercialisation Adviser

Thursday October 3rd 2013 at the Alba Innovation Centre; Livingston, Scotland

Identifying the Best Routes to Market for your Technology Business © 2013

http://www.albainnovationcentre.co.uk/

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Agenda

• Routes to market

• Analysing these markets

• Right ways to approach these markets

• The ‘Hidden Sales Cycle’

• The ‘Buyer’s Journey’

• Planning for success

http://youtu.be/M29wyyk2RkI

“The Future of Technology is Defined by Change”

“but, the Destiny of a Company is Defined by Commitment”

http://youtu.be/M29wyyk2RkI

http://www.youtube.com/watch?v=M29wyyk2RkI&feature=em-share_video_user

Routes to Market

Market research for business planning…

Market information

Market segmentation

Market trends

SWOT analysis

Routes to Market

Competitor research for business planning…

Competitor Array

Profiling

Media Scanning

New Opportunities

What to consider before you choose…Consider how & where your customers shopPlus, Keep in mind budgets and your ability to manage a chosen route…

1. Direct • Good for complex products• Good for making personal contact with an important customer• More expensive; time consuming & riskier

2. Wholesale • Good for selling lower value items and shifting a lot quickly• Lower profit margins and some complication

3. Importer • Easiest route for retail product sector• Least control over branding

Routes to Market

4. Contract Manufacturing / Solution Partner• Complimentary product • Localise the solution; relationship with end user• White labelling• IP protection

5. Reseller / Distributor Partner • UK & International markets• Already have relationships with clients• Engaged in complimentary solutions; preferably not competitive• Independent consultants / distributors

6. Strategic Partner• Multi-national consultancy practices / system integrators• Searching for innovative solutions • Demonstrate to their clients they have finger on the pulse

Routes to Market

7. Distance• Much cheaper than most other routes• But harder to build trust in product and business• Good for repeat orders and products that don't need demonstration

8. Online • Saves on costs and keeps business open 24/7• May reach a wider audience• Difficulties establishing trust and drawing in traffic• Get a reliable and straightforward website• SEO engagement

Combination of Channels• Can give a greater chance of reaching audience• Helps develop sales strategy• Challenge managing multiple channels

Routes to Market

Analysing These Markets

Objective is to

Choose the best route to market for your business

The potential for the client to find you

Create a means of maximising sales and profits


Consider the following…

• Think through the eyes of your buyer and,

• Trusted reseller with a relationship with end customer

• Your own personal strength, weaknesses AND

bandwidth

• Need to continually qualify opportunities in or out


Consider the following…

• Support needed from different resources

• Conducting a SWOT analysis

• Avoid being dragged from pillar to post

• Prioritisation is key

• Broad shoulders to say NO and walk away

90% of marketing collateral is wasted & does not engage buyers


Did You Know…

Courtesy of andomise

The Hidden Sales Cycle

• Smartphones, tablets, social media and the Internet

• The way people buy is changing HAS CHANGED

• Buyers have more information than ever before

• Guiding their discovery & evaluation is key

• From social networks, to suppliers’ websites & independent

content

• Unprecedented era of transparency between buyers & sellers


• Prospects entering the formal sales cycle are more informed

• “ THE HIDDEN” sales cycle has emerged

• Buyers are well into selection process before they become

visible to suppliers


To Compete… • Suppliers must adapt to manage these hidden sales cycles

• Identify ready, qualified buyers is simply not enough

• Suppliers must out-educate the competition to gain mind share

• Suppliers must shape the prospects’ vision early whilst,

• Demanding mastery of new capabilities & new channels


To Compete… • Necessitating a content-driven approach

• Delivering the right content to

the right prospect

at the right time AND

in the right place

This is the challenge…the solution is not simple but, its not going away!

• “HIDDEN” sales cycle presents some fundamental challenges

• Managing & monitoring the 1st stage of the sales process from a

distance

• Assuring the right message can reach the right person on their

preferred device at any time

• This is the seismic, tectonic, shift to…

Inbound Marketing & Marketing Automation


Phase 1 Hidden• Demand generation, prospecting & qualification• Prospects use own online networks AND,• Peer networks to qualify potential suppliers

Phase 2 Partially Hidden• Qualification & needs analysis• Prospect makes contact with pre-conceived ideas about

options to solve problems

Phase 3 Value Creation & Stakeholder Management• Sales person; trusted advisor & problem solver• Confident enough to push prospects out of their comfort

zone to…Create & Deliver Value

The Hidden Sales CycleBroken Down

Phase 4 Propose Solutions, Negotiate & Close

• Successful closure reinforces strategic trust

Phase 5 Case Study & Testimonial

• Capture 360˚ feedback

• Compare initial ‘pains’ to what was delivered & what the

client actually achieved

• Continual learning exercise plus,

• Creating referral opportunity and RTB

The Hidden Sales CycleBroken Down

• Uninterested & unaware that they have a problem TO,

• Acknowledging that they do indeed have a problem AND,

• That problem is causing the organisation real “pain” TO,

• Establishing a defined need TO,

• Researching options for that solution TO,

• Selecting a single option TO,

• Receiving value from the selected solution & solving the problem

‘Buyer’s Journey’ Progressesas Follows…

Key to Unlocking Interest in your Firm’s Offering is to…

• What problems are causing the most pain to their operations?

• Without real business “pain” there is little or no real buying action

• Speak to a group of typical buyers

• Conduct a survey; channel partners & sales team

• Write problems in the language of the buyer

• Not your jargon or language of products or solutions

• Be as specific as possible

Understand what Problems Plague these Buyers?

With a Clear Set of Buyer Problems:Next goal is to honestly assess your firm’s ability to solve these buyer’s problems

The Sweet Spot for your Marketing: Finding the overlap of a serious problem the buyer is facing & a strong capability your firm possesses

For Example: “My staff turnover in the last 6 months is increasing”

“I don’t believe I can achieve my product quality targets”

Rather than “I need to buy a training package to educate my staff”

Key to Unlocking Interest in your Firm’s Offering

Inbound Marketing Output

Need to create a buyer-based strategy that defines:

• Who most has this problem i.e. target audience

• What best solves this problem i.e. full product or solution

• Who best uncovers those who have this problem i.e. channel to market

• Who else solves this problem i.e. competition

Armed with these answers you are well positioned to move forward

Key to Unlocking Interest in your Firm’s Offering

http://youtu.be/DtFsmVl2RwM

Is Social Media a Fad?

…a good example of how fast the market is moving




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“1 minute of video is worth 1.8 million words” – Forrester (April 2010)

90% of all web traffic will be video – YouTube prediction

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Speeding up …

• Average time from Search to Purchase on a desktop device is 30 Days

• Average time from Search to Purchase on a mobile phone is 1 hour

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Social Media is Counter-Intuitive

Space defined by media

owner

Brand in control

One way / delivering a

message

Repeating the message

Focused on the brand

Entertaining

Company created content

Communications Media

Space defined by consumer

Buyer in control

Two way / part of a conversation

Adapting the message / beta

Focused on the buyer / adding

value

Influencing, involving

User created content / co-creation

Social Media

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Some Social Media Facts...

600 million active users to 1 Billion (4th Oct 2012)

(Average user has 130 friends, 50% login daily)

300 million users (1.6 billion searches per day)

50 million users worldwide to 135 million(2 million company pages, 6M+ members in UK)

Planning for Success

In Summary

• Market & competitor research

• Understand your ideal customer

• Reach out to your target audience

• Position your product for buyers to self-qualify

• Clearly probe to understand your clients specific need / pain

• Measure results & ROI

• Qualification-Qualification-Qualification is key to success

Goal is to increase sales; achieve a sustainable competitive advantage & Making a Profit!

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