Recently gave this presentation to a group of start

1. MIT Start Smart Program:
Maximizing Your
Go-To-Market
Strategy
Stephen N. Davis
“Partnering With Clients to Drive
Sustainable Profitable Growth”

2. John Wanamaker
“Half the money I spend
on advertising is wasted,
and the trouble is,
I don’t know which half.”
2000 - 2011 © CXO Advisory Group

3. 9 Steps
To Sales
Success
2000 - 2011 © CXO Advisory Group

4. Get Into
1 The Mind
Of Your
Buyer
2000 - 2011 © CXO Advisory Group

5. Develop
2 Your
Buyers
Profile
2000 - 2011 © CXO Advisory Group

6. Develop Your Buyers Profile
 Who is your “ideal customer?”
 Who is typically the “key decision maker?”
 How do they make their decisions?
 Where do they collect their information to make a
decision?
 What are their critical business issues?
 What is their buying process?
 What is the Sales Cycle?
 What are the “trigger events”
2000 - 2011 © CXO Advisory Group

7. 3 Be
Where
YOUR
Prospects
Are.
2000 - 2011 © CXO Advisory Group

8. Sales Channels – The Reality
“A product with better distribution will
always win over a product with poor
distribution or customer access”
It’s not fair. It’s not right.
But, it’s reality.
2000 - 2011 © CXO Advisory Group

9. Common Sales Strategy Mistakes
Not having an
adequate profile of
customers
2000 - 2011 © CXO Advisory Group

10. Common Sales Strategy Mistakes
Confuse channel
partners with final
customers
2000 - 2011 © CXO Advisory Group

11. Common Sales Strategy Mistakes
Channels are not in
sync with your
targeted buyers
2000 - 2011 © CXO Advisory Group

12. Common Sales Strategy Mistakes
Thinking your
“value proposition”
is the same as theirs
2000 - 2011 © CXO Advisory Group

13. Common Sales Strategy Mistakes
Failure to consider
licensing or joint-
venture agreement
2000 - 2011 © CXO Advisory Group

14. Common Sales Strategy Mistakes
Insufficient channel
margins
2000 - 2011 © CXO Advisory Group

15. Common Sales Strategy Mistakes
Insufficient
marketing budget
2000 - 2011 © CXO Advisory Group

16. Common Sales Strategy Mistakes
Not aligning
marketing to the
sales channel
2000 - 2011 © CXO Advisory Group

17. Common Sales Strategy Mistakes
Channel conflict
2000 - 2011 © CXO Advisory Group

18. Common Sales Strategy Mistakes
Going to the channel
before you’re READY
2000 - 2011 © CXO Advisory Group

19. Plan Your Entry into the Channel
“If you don’t know
where you’re going
you’ll probably
wind up
somewhere else”
2000 - 2011 © CXO Advisory Group

20. Types of Sales Channels
 Direct field sales reps  Internet sites
 Corporate resellers  Extranets
 Master or local  e-Marketplaces
distributors  Direct Mail
 Integrators  OEM’s
 Value-added resellers  Retail
 Manufacturer’s agents  Kiosk’s
 Brokers  Strategic alliances
 Franchises  Agents (consultants,
 Telemarketers affiliates, etc.)
 Inbound telesales
agents
2000 - 2011 © CXO Advisory Group

21. Computer Distribution Channels
2000 - 2011 © CXO Advisory Group

22. Customer Acquisition Costs
Cost
Freemium Minimal Inside Channel Direct
Touch Sales Sales Sales
Force
2000 - 2011 © CXO Advisory Group

23. What Do These Firms Have in
Common?
2000 - 2011 © CXO Advisory Group

24. Is Your Buyer Package up to Snuff?
 Marketing materials
 Price lists
 Outline of your marketing campaign – Demand Creation
 Product samples - Packaging
 COOP/MDF funds and campaigns
 In-store merchandising
 Prospect & customer correspondence
 Sales training for their personnel
 Sales support
 End user training
 End user support
2000 - 2011 © CXO Advisory Group

25. Joint Venture/ OEM / Private Label
 Quick penetration – less risk
 Established market presence
 Provides localization of product
 Handles all marketing, sales, distribution &
support
 Provides ongoing market analysis
 Provides ongoing competitive analysis
 Usually won't carry competing product
 Tough sale – long sales cycle
2000 - 2011 © CXO Advisory Group

26. Approaching a Potential
Joint Venture/ Private Label Partner
 Be Ready to Explain Key Product Advantages
 Do Your Homework
• Why should they be interested?
• Fills competitive hole
• Enhances existing product line
• Prevents having to compete against you
• You could develop market in your home country for their
products
 How easy it will be to work with you
 Support you will give them
• Technical
• Training
2000 - 2011 © CXO Advisory Group

27. Key Issues Licensing Agreement
 Specs & Deliverables  Marketing Obligations
 Acceptance  List Price of Product
 Grant of License  Performance Requirements
 Terms  Warranties
 Payments  Limitation of Liabilities
 Bookkeeping Requirements  Development Support
 Ownership  Rights to Updates
 Use of Trademarks  Termination
 Training  Source Code Access
 Decision Making Authority
2000 - 2011 © CXO Advisory Group

28. Distributors
 Sells to other channel players within designated
area
 Takes title to goods and is compensated by mark-up
upon sale
 Sells suppliers goods to his own customers
 No authority to act on your behalf
 Maintains Inventory
 Sells in original packaging
 May or may not provide after sales services
 Many products are taken on consignment basis
2000 - 2011 © CXO Advisory Group

29. What Distributors Look For
 Products with proven demand
 Product's packaging, ease of use & install
 Marketing budget
 Quality tech & Customer support
 Ability to scale up to demand
 Financial stability
 Training
 Distributor staff time required
Only 1% - 2% of products presented get chosen
2000 - 2011 © CXO Advisory Group

30. Manufacturers Agent/Commercial
Agent
 Alternative to own sales force
 Both authorized to solicit orders in designated area
 Receive salary or commission
 Usually bear no credit risk
 Maintains no inventory
 Requires same support & training as internal salesforce
 Carries several lines
 References, References, References
2000 - 2011 © CXO Advisory Group

31. Source to Identify GOOD Reps
 Customers and potential customers
 Known GOOD Reps
 Companies with complimentary products to yours
 MANA (Manufacturers Agents National Association)
• Manaonline.org
 ERA (Electronic Representatives Association)
• Era.org
 AIM/R (Association of Independent
Manufacturers'/Representatives)
• aimr.net
2000 - 2011 © CXO Advisory Group

32. Rep Agreement Caveats
 Most rep agreements have commissions due on order
• Commissions should be paid ONLY AFTER YOU COLLECT
 Commissions should be on NET Sales
• Sales MINUS returns and any upfront market development
funds paid to the retailer
 Splitting commissions
• Between rep territories
 Territory definition
 National (House) accounts
 Termination issues
 Automatic renewal
2000 - 2011 © CXO Advisory Group

33. Cost of Market Entry Options
Retailer Mark-up, 50% - 200%+
5-10% MDF, Slotting Fees,
Beware Consignment sales
Agent/ Rep. Commission, 5%–30%, Wants
to be paid on order
Value Added Reseller Margin, 20-40%, 5-10% MDF
(VAR)
Distributor (stocks product) Margin, 10%–50%, 2-5% MDF
2000 - 2011 © CXO Advisory Group

34. Your Most Critical Pieces for
Revenue Growth
Sales
Marketing
2000 - 2011 © CXO Advisory Group

35. 2000 - 2011 © CXO Advisory Group

36. 2000 - 2011 © CXO Advisory Group

37. “Your
Marketing Leads
S*CK!!!”
2000 - 2011 © CXO Advisory Group

38. “We Send
Qualified Leads
To Sales &
They Fall into a
Black Hole”
2000 - 2011 © CXO Advisory Group

39. “Sales Sells
Product to the
Wrong People!”
2000 - 2011 © CXO Advisory Group

40. 90%
% Of Marketing Materials
UNUSED BY SALES
Source: AMA
2000 - 2011 © CXO Advisory Group

41. “Marketing Doesn’t
Provide What We
NEED!!”
2000 - 2011 © CXO Advisory Group

42. “Sales Doesn’t
Have a Clue About
BRANDING!”
2000 - 2011 © CXO Advisory Group

43. “I Can’t Believe
Sales Asked that
Question. It’s in the
Literature!”
2000 - 2011 © CXO Advisory Group

44. Sales Spends
40%
Of Their Time Creating Their Own
Marketing Materials
Source: CMO Council
2000 - 2011 © CXO Advisory Group

45. 10 Min/Week Additional Selling Time
= $57,000
Additional Revenue Per Year
Source: IDC Sales Enablement Research
2000 - 2011 © CXO Advisory Group

46. “Marketing Doesn’t
Involve Sales in its
Planning!”
2000 - 2011 © CXO Advisory Group

47. “Sales Doesn’t
Provide ANY
Feedback!”
2000 - 2011 © CXO Advisory Group

48. 4 Align
Sales
&
Marketing
2000 - 2011 © CXO Advisory Group

49. Better Aligned = More Business
5.4%
Faster Growth on Year-to-Year Basis
Than Competition
Source: MarketingProfs
2000 - 2011 © CXO Advisory Group

50. Better Aligned = More Business
38%
Better at Closing Proposals than
Non-Aligned Competition
Source: MarketingProfs
2000 - 2011 © CXO Advisory Group

51. Better Aligned = More Business
36%
Less Churn of Their Customers
To Competition
Source: MarketingProfs
2000 - 2011 © CXO Advisory Group

52. Marketing and Sales look at the world
through different lenses
2000 - 2011 © CXO Advisory Group

53. Marketing Looks For Mr. Right
2000 - 2011 © CXO Advisory Group

54. Sales Wants Mr. RightNOW
2000 - 2011 © CXO Advisory Group

55. When Their Isn’t A Common Profile
You End Up With
2000 - 2011 © CXO Advisory Group

56. “Marketing & Sales
Should Jointly
Define a
“Sales-Ready” Lead!”
2000 - 2011 © CXO Advisory Group

57. 5 Develop
Your
Inbound
Marketing
Program
2000 - 2011 © CXO Advisory Group

58. “ If the expenditure
doesn’t create a lead, or
directly help sales
close a prospect,
You SHOULDN’T do it”
2000 - 2011 © CXO Advisory Group

59. The Marketing Landscape has Changed…
“Buy
My
Product”
2000 - 2011 © CXO Advisory Group

60. Ads are Everywhere
People see and hear between 1,000
87,600,000 throughout their lives
and 3,000 advertising messages/day
2000 - 2011 © CXO Advisory Group

61. Trust Drives Transactions
66%
Of the Economy is Influenced by
Personal Recommendations
SOURCE: McKinsey & Co.
2000 - 2011 © CXO Advisory Group

62. Trust Drives Transactions
91%
Say consumer reviews are the
#1 Aid to Buying Decisions
SOURCE: JC Williams Group
2000 - 2011 © CXO Advisory Group

63. Trust Drives Transactions
78%
Trust Recommendations
of other Consumers
SOURCE: Nielson Report - October 2007
2000 - 2011 © CXO Advisory Group

64. Trust Drives Transactions
88% Will Buy from
Companies they TRUST
SOURCE: Edelman Trust Barometer, 2008
2000 - 2011 © CXO Advisory Group

65. Trust Drives Transactions
85%
Will NOT buy from
Companies they DISTRUST
SOURCE: Edelman Trust Barometer, 2008
2000 - 2011 © CXO Advisory Group

66. Lead Scoring For Better
Allocation of Resources
 Ranks one prospect vs
another
 Unbiased way to determine
which department should
focus prospect
 Identifies “Sales-Ready”
Prospects
 Helps tune your ideal buyer
profile
2000 - 2011 © CXO Advisory Group

67. Have a Formal Lead Management System
New Lead
Registered Lead
Lead Nurturing
Buying Cycle
Phone Ready Lead
TeleQualify Leads
Sales-Validate Lead Hand Off
to Sales
Demo/Meet/Proposal
Enter Sales Forecast
Closed Deals
2000 - 2011 © CXO Advisory Group

68. Develop Relevant Buying Cycle Sales Tools
2000 - 2011 © CXO Advisory Group

69. 6 Automate
And
Track
2000 - 2011 © CXO Advisory Group

70. 7 Measure
Marketing On
Contribution to
Revenue
2000 - 2011 © CXO Advisory Group

71. 8 Analyze
Quality of
Leads
Generated
And Tools
2000 - 2011 © CXO Advisory Group

72. 9 Improve
Your
Tools
And
Programs
2000 - 2011 © CXO Advisory Group

73. The 9 Steps
1. Get Into The Mind Of Your Buyer
2. Develop Your Buyers Profile
3. Be Where YOUR Prospects Are
4. Align Sales & Marketing
5. Develop Your Inbound Marketing Program
6. Automate And Track
7. Measure Marketing On Contribution to Revenue
8. Analyze Quality of Leads Generated And Tools
9. Improve Your Tools And Programs
2000 - 2011 © CXO Advisory Group

74. Questions
2000 - 2011 © CXO Advisory Group

75. Driving Profitable Growth
2000 - 2011 © CXO Advisory Group

76. Driving Profitable Growth
We help companies optimize business
development and marketing; accelerate
sales; and seize the most attractive
growth opportunities.
2000 - 2011 © CXO Advisory Group

77. The CXO Advisory Group
 CXO Advisory Group is a strategic operations advisory
and management firm comprised of proven C-level
executives with both breadth and depth of experience.
 CXO Advisory Group Team members have achieved
success in positions ranging from: President/CEO to
COO, and VPs of Sales, Marketing, Corporate
Development and Human Resources.
 Has proven success in business development and in
building US sales and distribution channels
2000 - 2011 © CXO Advisory Group

78. How Can CXO Help You?
Business Strategy Services
• Audit business practices and organization
• Evaluate product and pricing strategies
• Evaluate effectiveness of sales channel
• Assess effectiveness of existing sales and marketing
programs
Market Entry Program
• Analyze competitive landscape
• Market launch strategy and plan
• Channel strategy and programs
• Establish sales channels
• Generate sales and manage relationships
• Identify and develop strategic partnerships
2000 - 2011 © CXO Advisory Group

79. How Can CXO Help You?
Sales Channel Management
• Review and revise sales channel strategies
• Channel partner identification, prospecting and recruitment
• Eliminate channel conflict
• Channel contract development and negotiation
Interim Management Resources
• Interim CEO, COO, CMO, CSO
• Interim VP of Sales and Marketing
• Consultant on staff
• Launch team coaches
2000 - 2011 © CXO Advisory Group

80. How Can CXO Help You?
Venture Advisory Services
• Fine tune operations, business strategy and market entry
• Assist with due diligence
• Strategic business assessment of portfolio companies
2000 - 2011 © CXO Advisory Group

81. Contact Information:
Stephen Davis
Interim COO/VP Sales & Marketing |
Business Consultant | Sales Channel and
Business Development Expert | Author &
Speaker
“Partnering With Clients to Drive
Sustainable Profitable Growth”
Phone: (508) 528-7571
Email: sdavis@cxoadvisorygroup.com
Website: www.cxoadvisorygroup.com
Linkedin: www.linkedin.com/in/stephendavis
Twitter: twitter.com/stephendaviscxo