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View Article  How not to add value in the marketing and sales process

If you’re a marketer and want to antagonize a salesperson, just tell them that Peter Drucker says: “The aim of marketing is to make selling superfluous.” Why would you want to antagonize a sales person? Because you can, and they antagonize real good.

Properly understood, Drucker’s point is that marketing’s job is to make the salesperson more efficient, not redundant. The antagonism can contribute to healthy competition between sales and marketing: sales challenges marketing to develop great programs, and marketing challenges sales to close deals.

By defining the target audience, creating a clear value proposition unique to that audience and then communicating that value in advance of a sales call, marketing makes the salesperson’s job easier. But marketing doesn’t close the deal. A focused, knowledgeable, professional sales person does, especially when the product is software designed to increase the effectiveness of complex websites.

A colleague recently experienced what happens when a salesperson who lacks the qualities mentioned above fulfills a request created by effective marketing.

But before learning from his story, let’s get a refresher on how to create effective marketing programs. In a recent article in CMO called “Going Guerrilla”, Michael W. McLaughlin provides five guerrilla marketing rules that will assist marketers in professional services to boost sales.

 

1.    Stress how your firm solves specific problems. That will get the attention of the right clients.

2.    The best companies are able to create evangelists of their people. Use low-cost, high-return marketing tactics like nonsponsored speaking opportunities, e-newsletters, blogs, webinars and surveys to make your experts a part of your marketing and sales processes.

3.    In professional services, clients are the richest source of new business and referrals. For that reason, focus roughly 60 percent of marketing resources on cultivating those relationships. Use 30 percent of your marketing efforts to reach prospects in your target market(s). Save the final 10 percent for building visibility in the business community.

4.    The needs of professional-service clients vary too widely for generic marketing. So a critical guerrilla marketing principle applies: One size fits none. Tailor marketing to meet the precise needs of clients and your market.

5.    Answer the tough questions. Before using resources for any marketing program, ask these questions: Why do we need this program? Is it aligned with client needs? What are the desired results? How will we measure effectiveness? How will the company be involved in rolling it out? Is there a better way to use these resources?

 

Great suggestions. Now let’s see what happens when the sales rep doesn’t follow the script.

My colleague was sourcing web software in a crowded space in which there were little opportunities for differentiation. The situation called for due diligence, so he prepared a detailed RFP and then contacted key vendors.

One company had managed to stand out by securing a high rating in a respected industry study, and my colleague was suitably impressed by the focused, marketing explanation featured on the vendor’s website regarding how the product would solve his specific problems. Textbook marketing up this point, with a rep receiving: a highly qualified lead complete with champion, timeframe and budget; decision-criteria set favoring the vendor’s solution; positive brand awareness.

Here’s what happened when my colleague contacted the salesperson:

·      The salesperson refused to respond to the RFP: the product’s features would sell themselves in a demo and the product was priced to “own the market” (yes, he put that in an e-mail). In other words, even a minimum level of sales effort was superfluous.

·      A refusal to allocate a development resource for the requested demo. Because the rep judged the sales value to be too low, he thought it best to utilize a service technician instead (yes again on the e-mail communiqué).

·       Following an impressive demo, in which the technician suggested to my colleague that a brief conversation with a developer would be beneficial, the sales rep prevented that conversation from taking place because the sales value was too low (written in an e-mail? Oh yeah.)

·       After this antagonism, my colleague still saw enough value in the software to schedule a conference call between the six-person purchasing team and the sales rep to finalize a price. The rep issued an electronic invitation for a time that suited him… and then missed the call.

Guess who didn’t get the sale.

Unfortunately, the experience has left my colleague wishing the sales role was superfluous. Or non-existent.

 

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View Article  Don’t let the bastards grind you down

Last week Yahoo! reported record profits – double the profit of last year. What was Wall Street’s response? Hammer it. The stock dropped quickly because it failed to reach the expectations of a few analysts. Those ‘expectations’ were off a couple of pennies per share. Yahoo’s stock is now less than it was a year ago despite doubling its profit on tremendous grouwth. Yahoo’s price-to-earnings ratio now sits at under 27.

 

Pessimism continues to proliferate Wall Street and Main Street. Ironically, this is the complete opposite of the trend six years ago when Wall Street couldn’t buy enough Internet stocks – sending prices to outrageously high and unconscionable levels. Those same sage investors now turn down their noses at Internet stocks, driving the prices to levels lower than would otherwise be seen as reasonable to outside onlookers. USA Today’s index of 50 Internet stocks increased just 1% in 2005. Without Google, it would have lost 8.2%.

 

Does this mean you should hesitate to invest in your website? An informed decision is required. Let’s take a look at some of the numbers:

  • Almost 80 percent of North Americans have Internet access.
  • More than 50 percent have made online purchases.
  • A majority use the Internet as a decision-making tool.
  • Online retail sales in the two weeks preceding Christmas were up 29% over last year to US$3.03 billion.
  • The Internet is cited as the most influential channel on luxury purchasing (cited by 44 percent of affluent purchasers).
  • 35% of first-time buyers consider the Internet to be their most important informational tool, as compared to 8.2% naming TV
  • Online newspaper reading is up 30% to 53.6 million visitors a month during the fourth quarter of 2005
  • 39%of North Americans use online banking.
  • 73.5% of e-commerce sites estimate sales growth of 15 to 35% this year.
  • 60% of chain retailers estimate web sales growth of 25-200 percent.
  • Time spent online by adult Canadians has increased 50% since 2002 and Internet use is ready to overtake watching television.

Those numbers reflect a different story then the dogged, pessimistic tale woven by Wall Street. Its credibility as it relates to Internet stocks was ruined in the bubble of 1999 – 2000. That credibility continues to fail today.

 

“And it's not for a lack of profit,” writes USA Today’s Matt Krantz in Dot-coms' song and dance no longer entertains investors. “Forty-eight of the current members of the Internet 50 that were public in 2000 have seen their profits as a group quadruple since then. Google and Salesforce.com were private in 2000, so that doesn't even include Google's massive profit contribution.”

 

Here’s another key fact: according to the IDC FutureScan, all the indicators depict an expectation of 5% growth in U.S. IT spending this year. In other words, off the street and in the offices, business is investing in IT and the Web.

 

Don’t be scared away by Wall Street. Instead, listen to and embrace what your customers demand.

 

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© 2006 Toby Ward - Prescient Digital Media