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Hiding In Plain Sight: Segmenting and Targeting
Sales Readiness Series




                         Hiding in Plain Sight
        Segmenting and Prospect Profiling
                                Sales Readiness Series
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Sales Readiness Series Hosts




                             Dan Hudson                Matt Smith
                             3forward                  3forward
                             President, Co-Founder     Exec VP, Co-Founder
                             Dan.Hudson@3forward.net   Matt.Smith@3forward.net




3forward.com                                                                                        2
Create. Increase. Accelerate.TM                                                  ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                     Sales Goals Have Not Changed
                       Increasing wins from new logo prospects


                       Top of mind with prospects in ‘buying mode’


                        Accelerating in-bound lead generation


                       Consistent, sustained lead cultivation


                        Increasing sales efficiency and reducing cost/lead
3forward.com                                                                                    3
Create. Increase. Accelerate.TM                                              ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                  Neither Have Most Sales Models

                                                   List Purchased

                                                     Direct Mail
     Marketing

                                                    Cold Calling

                                                     Qualifying

                                   Sales
                                                    Presenting

                                                      Closing
3forward.com                                                                           4
Create. Increase. Accelerate.TM                                     ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                     And Results Continue Declining
     51.5%                        Reps Making Quota in 2009
     78.5%                        Overall Plan Attainment
     85.1%                        Companies Raising Quotas in 2010

     • 3,000+ Companies Participated Worldwide, Cross Industry Participation, SMB and
       Large Enterprises
     • 100+ Sales & Marketing Metrics Tracked
     • Best Practices Benchmarking on How Sales Teams are Leveraging People,
       Process, Technology and Knowledge to Address Challenges


                          CSO Insights, 2009 Sales Optimization Study
3forward.com                                                                                     5
Create. Increase. Accelerate.TM                                               ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




     New Market Realities Require Change




3forward.com                                                          6
Create. Increase. Accelerate.TM                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                    Where To Start?




3forward.com
                   The Answer May Be Hiding In Plain Site!                  7
Create. Increase. Accelerate.TM                          ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




               Strategic Market Planning Defined
           Formalizing and Documenting Company Vision
                     –            Mission
                     –            Goals
                     –            Objectives

           Develop Strategic Plans based on:
                     –            Company Vision
                     –            Analysis of Markets and Opportunities
                     –            Objectives and Strategies
                     –            Functional Strategic Planning
                     –            Tactical Action Plans to Implement Strategies

3forward.com                                                                                         8
Create. Increase. Accelerate.TM                                                   ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




      Strategic Marketing Best Practices
           •       Develop the strategic plan first. The operational plans should be
                   guided by a strategic plan – never the other way around.
           •       Put marketing as close as possible to the customer and make
                   marketing and sales the responsibility of one person
           •       Organize around customer groups, not functions
           •       Make marketing audit a rigorous process. No vague terms. Use
                   proven tools for capture, reporting and analysis.
           •       Focus SWOT on segments critical to the business. Concentrate
                   only on factors leading to objectives.
           •       Plan your planning.
           •       Prioritize objectives in terms of urgency and impact.
           •       Enlist the entire organization, from CEO to receptionist.
3forward.com                                                                                          9
Create. Increase. Accelerate.TM                                                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                 Barriers to Marketing Planning
           •       Confusion between marketing tactics and strategy.
           •       Isolation of the marketing function from operations.
           •       Confusion between the marketing function and the marketing
                   concept.
           •       Organizational barriers – too many layers or competing agendas.
           •       Lack of in-depth analysis.
           •       Confusion between process and output.
           •       Lack of knowledge or skills.
           •       Lack of a systematic approach to marketing planning.
           •       Failure to prioritize objectives.
           •       Hostile corporate cultures.
3forward.com                                                                                      10
Create. Increase. Accelerate.TM                                                 ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                       Strategic Marketing Process
    Marketing Planning Process                                                                                      Copyright 3forward LLC


          Goal Setting            Situation Review            Strategy Formulation    Resource Allocation
                                                                                        and Monitoring

                                                                  6. Marketing
           1. Mission             3. Marketing Audit             Objectives and           9. Budget         Strategic Marketing Plan:
                                                                   Strategies                               Process Output

                                                                                                            ·   Mission Statement
                                                                                                            ·   Financial Projections
                                                                                                            ·   Market Overview
          2. Corporate                                            7. Estimated        10. Implementation    ·   SWOT Analysis
                                      4. SWOT
           Objectives                                                Results               Program          ·   Portfolio Summary
                                                                                                            ·   Major Assumptions
                                                                                                            ·   Marketing Objectives
                                                                                                                and Strategies
                                                                                                            ·   Forecasts and Budgets
                                                               8. Alternative Plans       Corporate
                                   5. Assumptions
                                                                    and Mixes             Objectives


                                                       Measurement and Review



3forward.com                                                                                                                                11
Create. Increase. Accelerate.TM                                                                                           ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Phase I: Goal Setting

                                                    Mission

                                                     Goals

                                                   Objectives



3forward.com                                                                      12
Create. Increase. Accelerate.TM                                 ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                           Defining Company Mission
           Mission – meaningful statement which influences the
             efforts of the organization:
                     – Role or contribution of the business (i.e. profit generator, service
                       department, opportunity seeker)
                     – Definition of the business (i.e. needs we satisfy or benefits
                       provided, not what we offer)
                     – Core competencies: the essential and unique skills, capabilities,
                       resources that apply only to this entity
                     – Differentiation: the unique and valuable position the company is
                       taking in the marketplace
                     – Indications for future direction: what we will consider, might
                       consider, will never consider


3forward.com                                                                                              13
Create. Increase. Accelerate.TM                                                         ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Task: Company Mission
                                                                                  Future
              Needs We Satisfy           Core Competencies   Differentiators   Considerations




3forward.com                                                                                            14
Create. Increase. Accelerate.TM                                                       ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Defining Company Goals
           Goals – destinations or where we want the
            business to be and feel, for example:
                     – Relationships
                     – Reputation
                     – Image
                     – Sustainability
                     – Culture


3forward.com                                                                 15
Create. Increase. Accelerate.TM                            ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                      Defining Company Objectives
           Objectives – specific results we want the
            business to achieve, progress markers to
            attaining goals; for example:
                     – Revenue
                     – Profit
                     – Market share
                     – Recognition


3forward.com                                                         16
Create. Increase. Accelerate.TM                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                         Task: Goals and Objectives
                                  Goals            Objectives




3forward.com                                                                      17
Create. Increase. Accelerate.TM                                 ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                            Phase II: Situation Review
                                   Market Analysis (Audit)
                                           Portfolio Analysis
                                    Opportunities / Threats
                                  Strengths / Weaknesses
                                                   Assumptions
                                  Issues To Be Addressed

3forward.com                                                                       18
Create. Increase. Accelerate.TM                                  ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Defining Market Analysis
           Market Analysis – Process leading to creating
            marketing objectives and strategies for the
            company; taking into consideration:
                     – Trends and developments which may affect the
                       company

                     – Where competitors add value

                     – SWOT analysis highlighting internal differential
                       strengths and weaknesses relative to external
                       opportunities and threats

3forward.com                                                                                19
Create. Increase. Accelerate.TM                                           ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                             Example: Market Analysis
                                      External Audit                                  Internal Audit
                             Market                    Economic                    Company Operations
         Market size, characteristics      Economic trends                Sales (total, industry, client, etc.)
         Developments, trends              Political, Legal factors       Market share
         Products                          Social / Cultural issues       Profit margins / costs
         Prices                            Technology impact              Portfolio performance
         Customers                                                        Marketing procedures
         Industry practices                            Competition        Marketing organization
                                           Major competitors              Marketing information / research
                                           Size, market share, coverage   Marketing mix variables
                                           Market standing, reputation          - Product management
                                           Marketing methods                    - Price
                                           Diversification                      - Distribution
                                           International model                  - Promotion
                                           Key strengths and weaknesses




3forward.com                                                                                                                 20
Create. Increase. Accelerate.TM                                                                            ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                            Defining: Defining Markets
           Market – aggregation of all the products that
            appear to satisfy the same need for a given
            customer category; crucial for:
                     – Share measurement
                     – Growth measurement
                     – Specification of target customers
                     – Recognition of relevant competitors
                     – Formulation of marketing objectives and strategies


3forward.com                                                                              21
Create. Increase. Accelerate.TM                                         ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                 Defining Customer Segmentation
           Segments – natural groups containing customers exhibiting
           the same broad characteristics; segments should:
                     – Be of an adequate size to provide desired ROI
                     – Posses high degree of similarity, yet be distinct from the rest of the
                       market
                     – Be definable by criteria relevant to the purchase situation
                     – Be reachable and responsive to a distinct marketing mix

                         Purpose of segmentation is to provide a competitive
                         advantage by providing greater value to customers


3forward.com                                                                                            22
Create. Increase. Accelerate.TM                                                       ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                             Task: Segmentation Part I
           Who and What:
           • Who is buying? List characteristics of customers: Size,
             locations, target end-customer, growth rates, etc.
           • What are they buying? Volume, price paid, frequency of
             purchase, etc.
           • List all relevant competitive products and services
             purchased, unbundling all components to determine
             comprehensive list of what is bought. Include frequency
             of purchases and departments involved.
           • Create a matrix identifying each who and all the unique
             what they buy.

3forward.com                                                                        23
Create. Increase. Accelerate.TM                                   ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                      Task: What Are They Buying
               Potential Customer                                   Available Products or
              Categories (Segments)                Category Needs         Services




3forward.com                                                                                           24
Create. Increase. Accelerate.TM                                                      ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                            Task: Competitor Analysis
       Competitor                 Products         Markets   Strategy   Strengths   Weaknesses




3forward.com                                                                                             25
Create. Increase. Accelerate.TM                                                        ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                           Task: Segmentation Part II
           Why:
           • List features of all products / services with what
             they mean to the customer (benefit).
           • Classify each benefit as:
                     –      Standard – basic benefits arising from features
                     –      Double – benefits the customer and end-user
                     –      Company – relationship value
                     –      Differential – benefits compared with those of
                            competitors


3forward.com                                                                                    26
Create. Increase. Accelerate.TM                                               ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




             Task: Feature / Benefit Analysis
               Available Products or
                     Services                      Features   Benefits




3forward.com                                                                               27
Create. Increase. Accelerate.TM                                          ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                         Task: Segmentation Part III
           To determine realistic and achievable
             marketing and sales objectives:
           • Identify which segments share similar
             needs
           • Apply the minimum volume and value
             criteria to determine viability for each
             segment


3forward.com                                                              28
Create. Increase. Accelerate.TM                         ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                  Task: Category Segmentation
               Identified Segments             Segment   Growth                 Key
          (Based On Common Needs)                Rev      Rate    Trends   Characteristics




3forward.com                                                                                         29
Create. Increase. Accelerate.TM                                                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                    Defining Product
           Means to providing customer benefits, not
           physical products or services.
                                                                                                 Three Dimensions
                                                   Augmented Product                                of Product




                                                       Formal Product
                                  Guarantees                                              Availabilty

                                                Deliverables       Core      Features
                                                                  Benefit
                                                Packaging                   Quality

                                     Delivery                                           Warranties
                                                          Price         Design




3forward.com                                                                                                                          30
Create. Increase. Accelerate.TM                                                                                     ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Task: Portfolio Analysis
                         Offering          Deliverables   Benefits   Customer Target




3forward.com                                                                                     31
Create. Increase. Accelerate.TM                                                ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                                    SWOT




                                                                    s
                                                                se
                                              hs




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                                  St




                                                         W
                                                    es
                                                   iti




                                                               ts
                                              n




                                                                a
                                           tu




                                                             re
                                         or




                                                          Th
                                   pp
                                  O




3forward.com                                                                              32
Create. Increase. Accelerate.TM                                         ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Issues To Address
           •       Issue 1
           •       Issue 2
           •       Issue 3
           •       …




3forward.com                                                            33
Create. Increase. Accelerate.TM                       ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                           Assumptions
           •       Assumption 1
           •       Assumption 2
           •       Assumption 3
           •       …




3forward.com                                                               34
Create. Increase. Accelerate.TM                          ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                       Phase III: Strategy Formulation

                                      Marketing Objectives
                                       Marketing Strategies
                                          Estimated Results




3forward.com                                                                    35
Create. Increase. Accelerate.TM                               ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                 Phase IV: Resource Allocation


                                    Forecasts and Budgets
                                  Evaluation and Measurement




3forward.com                                                                     36
Create. Increase. Accelerate.TM                                ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                   Putting It All Together

                         SALES READINESS
                             Market      Anchor
                                                       Market
                              Entry       Client
                                                      Expansion
                            Programs    Acquisition




3forward.com                                                                        37
Create. Increase. Accelerate.TM                                   ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




   3forward’s Sales Transformation Model

                         SALES READINESS
                             Market       Anchor
                                                          Market
                              Entry        Client
                                                         Expansion
                            Programs     Acquisition


                         LEAD CREATION
                            Outbound         Inbound
                                                                Lead
                             Demand          Demand
                                                               Nurturing
                            Generation      Generation




3forward.com                                                                                 38
Create. Increase. Accelerate.TM                                            ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




   3forward’s Sales Transformation Model

                         SALES READINESS                                    Sales 2.0
                                                                           Enablement
                             Market       Anchor
                                                          Market
                              Entry        Client
                                                         Expansion           On-line
                            Programs     Acquisition
                                                                            Strategy &
                                                                           Engagement
                         LEAD CREATION
                                                                            Research
                            Outbound         Inbound
                                                                Lead       and Insight
                             Demand          Demand
                                                               Nurturing
                            Generation      Generation
                                                                             Virtual
                                                                            Presence
                        2.0 SERVICES INTEGRATION
3forward.com                                                                                               39
Create. Increase. Accelerate.TM                                                          ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Today’s Selling Model
                                                   Sales Readiness

                                                    Lead Creation

                                                   Lead Engagement

                                                    Lead Nurturing
          Marketing

                                                    Lead Scoring

                                                     Qualification

                                                        Prove
                                                        Value

                                      Sales            Decision
3forward.com                                                                           40
Create. Increase. Accelerate.TM                                      ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Samples and Templates
                                          Who Is Buying
                                            Market Map
                                              SWOT
                                        Sweet Spot Matrix
                                   Segment Characteristics Model
                                         Content Planner
                                      Decision Maker Planner

3forward.com                                                                         41
Create. Increase. Accelerate.TM                                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Example: Who Is Buying
                                                                                                                   ITSM         ITSM Selling
     Who                     Size (B)   Selling To                                                        HQ       Maturity     Competence
     ATOS Origin                  2     Large In-Country, Mid-Tier Multi-National                         France   Maturing     Evolving
     Wipro                        8     Large Multi-National, Large In-Country, Mid-Tier Multi-National   India    Developing   Evolving
     TCS                          8     Large Multi-National, Large In-Country, Mid-Tier Multi-National   India    Developing   Evolving
     Infosys                      8     Large Multi-National, Large In-Country, Mid-Tier Multi-National   India    Developing   Evolving
     HCL                          5     Large In-Country, Mid-Tier Multi-National                         India    Developing   Evolving
     Satyam                       6     Large In-Country, Mid-Tier Multi-National                         India    Developing   Evolving
     Patni                        3     Large In-Country, Mid-Tier Multi-National                         India    Developing   Evolving
     Cap Gemini                  10     Large Multi-National, Large In-Country                            France   Very         Strong
     Perot Systems                3     Large Multi-National, Large In-Country                            US       Maturing     Strong
     Unisys                       6     Large Multi-National, Large In-Country                            US       Very         Strong
     CSC                         16     Global 100, Large Multi-National, Large In-Country                US       Very         Strong
     IBM                        200     Global 100, Large Multi-National, Large In-Country                US       Very         Best In Class
     HP                          70     Global 100, Large Multi-National, Large In-Country                US       Very         Best In Class
     Accenture                   50     Global 100, Large Multi-National, Large In-Country                US       Very         Best In Class
     EDS                         20     Global 100, Large Multi-National, Large In-Country                US       Very         Best In Class




3forward.com                                                                                                                                         42
Create. Increase. Accelerate.TM                                                                                                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                     Example: Market Map
                    Sales & Marketing   Target Customer                          End User
                       Companies          Categories                             Classes

                                                           Industry Analysts


                                                                                Global 100
                                                            Buyer
                                                          Consultants
                          3Forward

                                                                               Large Multi-
                                           Top Tier
                                                                                Nationals
                                          Outsourcers
                        Competitor
                           A

                                           Emerging                              Mid-Tier
                                          Outsourcers                          Multinationals
                        Competitor
                           B
                                          Technology
                                           Services
                                           Providers                               Large
                        Competitor                                              In-Country
                           C


                                                                                          Direct Sale
3forward.com                                                                              Intermediated Sale               43
Create. Increase. Accelerate.TM                                                                          ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                                              SWOT
                                     Strengths                                                         Weaknesses
         •    History w/ similar projects / references                       •   May not have all skill sets / certs for diverse projects
         •    Team w/ this background                                        •   Not always price competitive – lower than US, more than
         •    Near shore model well received – trend is to reduce                India
              reliance on India                                              •   Scalability to project demands
         •    Cultivate relationships well – once initiated                  •   Sales process / opportunity management throuph-put
         •    Established partner benches                                    •   Lack of domain expertise in active industries, i.e.
         •    Mobility solutions practice                                        medical, BFSI
         •    US based / US presence                                         •   Government – any level or type
         •    Multi-Lingual / Spanish
         •    High volume transaction processing


                                    Opportunities                                                           Threats
         •    Economy recovering / but hiring lagging                        •   Lots of competition
         •    Partnering / growing indirect channel                          •   Heavy commoditization
         •    High demand for mobility                                       •   Difficulty differentiating
         •    Existing relationships show high degree of loyalty             •   Internal hiring if economy comes back fast / strong
         •    Vertically specific indirect channels – (i.e. augmenting the   •   Govt.policy opposing off-shoring
              healthcare technology solution companies, BPOs)




3forward.com                                                                                                                                       44
Create. Increase. Accelerate.TM                                                                                                  ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                      Sweet Spot Matrix
              Category                  Strong Fit                      Neutral                Weak Fit
                 Annual           $10m to $50m                 $5m to $10m or greater   Less than $5m
                Revenues                                       than $50
                Geography         US based                     North America            Outside North America

             Support Model        Shared Desk                  Dedicated Desk           After Hours / Overflow

                                  Proprietary or technology    Order Fulfillment        Order Fulfillment
                 Providing
                                  product or service
                                  Stage 2                      Mature                   Start up
             Growth Stage


                                  Quality of Service, Growth   QofS, Cost, Growth       Cost containment
             Top Objective        Enablement

                  Group           End Customers                End Customers            Internal Users
                Supported

                 Services         Tier 1 & 2 Tech Support      Tier1 & 2 General        Complex, Level 3
                 Needed


3forward.com                                                                                                                  45
Create. Increase. Accelerate.TM                                                                             ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




              Segment Characteristics Model




3forward.com                                                         46
Create. Increase. Accelerate.TM                    ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                    Content Planner




3forward.com                                                            47
Create. Increase. Accelerate.TM                       ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                  Decision Maker Planner




3forward.com                                                                 48
Create. Increase. Accelerate.TM                            ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                              Resources
                                                     Sales Readiness

                                                   3forward Become a Fan
                                                         3forward
                                                       Dan_3forward
                                                       Mattat3forward

                                                    Sales Leaders Blog

                                  Sales Leader
                                                    New Tools Directory
                                   Resources
3forward.com                                                                                49
Create. Increase. Accelerate.TM                                           ©2010, 3forward, LLC
Hiding In Plain Sight: Segmenting and Targeting
 Sales Readiness Series




                                                  Resources
               New Model Sales, Marketing and Social Media Experts
                         •        McDonald, Keegan           Marketing Plans That Work
                         •        Seley and Holloway         Sales 2.0
                         •        Ardath Albee               Marketing and Content
                         •        Chris Brogan               B2B Social Media
                         •        Brian Solis                Social Media
                         •        David Meerman Scott        Marketing and PR
                         •        Gerhard Gschwandtner       Sales 2.0

               Sales Benchmarking
                         •        CSO Insights
                         •        Sales Benchmark Index

               New Tools Directory
                         •        9 categories of sales and marketing best practices and dozens of
                                  downloads
3forward.com                                                                                                       50
Create. Increase. Accelerate.TM                                                                  ©2010, 3forward, LLC

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Hiding In Plain Sight - Segmenting and Prospect Profiling

  • 1. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Hiding in Plain Sight Segmenting and Prospect Profiling Sales Readiness Series
  • 2. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Sales Readiness Series Hosts Dan Hudson Matt Smith 3forward 3forward President, Co-Founder Exec VP, Co-Founder Dan.Hudson@3forward.net Matt.Smith@3forward.net 3forward.com 2 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 3. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Sales Goals Have Not Changed Increasing wins from new logo prospects Top of mind with prospects in ‘buying mode’ Accelerating in-bound lead generation Consistent, sustained lead cultivation Increasing sales efficiency and reducing cost/lead 3forward.com 3 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 4. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Neither Have Most Sales Models List Purchased Direct Mail Marketing Cold Calling Qualifying Sales Presenting Closing 3forward.com 4 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 5. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series And Results Continue Declining 51.5% Reps Making Quota in 2009 78.5% Overall Plan Attainment 85.1% Companies Raising Quotas in 2010 • 3,000+ Companies Participated Worldwide, Cross Industry Participation, SMB and Large Enterprises • 100+ Sales & Marketing Metrics Tracked • Best Practices Benchmarking on How Sales Teams are Leveraging People, Process, Technology and Knowledge to Address Challenges CSO Insights, 2009 Sales Optimization Study 3forward.com 5 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 6. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series New Market Realities Require Change 3forward.com 6 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 7. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Where To Start? 3forward.com The Answer May Be Hiding In Plain Site! 7 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 8. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Strategic Market Planning Defined Formalizing and Documenting Company Vision – Mission – Goals – Objectives Develop Strategic Plans based on: – Company Vision – Analysis of Markets and Opportunities – Objectives and Strategies – Functional Strategic Planning – Tactical Action Plans to Implement Strategies 3forward.com 8 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 9. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Strategic Marketing Best Practices • Develop the strategic plan first. The operational plans should be guided by a strategic plan – never the other way around. • Put marketing as close as possible to the customer and make marketing and sales the responsibility of one person • Organize around customer groups, not functions • Make marketing audit a rigorous process. No vague terms. Use proven tools for capture, reporting and analysis. • Focus SWOT on segments critical to the business. Concentrate only on factors leading to objectives. • Plan your planning. • Prioritize objectives in terms of urgency and impact. • Enlist the entire organization, from CEO to receptionist. 3forward.com 9 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 10. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Barriers to Marketing Planning • Confusion between marketing tactics and strategy. • Isolation of the marketing function from operations. • Confusion between the marketing function and the marketing concept. • Organizational barriers – too many layers or competing agendas. • Lack of in-depth analysis. • Confusion between process and output. • Lack of knowledge or skills. • Lack of a systematic approach to marketing planning. • Failure to prioritize objectives. • Hostile corporate cultures. 3forward.com 10 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 11. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Strategic Marketing Process Marketing Planning Process Copyright 3forward LLC Goal Setting Situation Review Strategy Formulation Resource Allocation and Monitoring 6. Marketing 1. Mission 3. Marketing Audit Objectives and 9. Budget Strategic Marketing Plan: Strategies Process Output · Mission Statement · Financial Projections · Market Overview 2. Corporate 7. Estimated 10. Implementation · SWOT Analysis 4. SWOT Objectives Results Program · Portfolio Summary · Major Assumptions · Marketing Objectives and Strategies · Forecasts and Budgets 8. Alternative Plans Corporate 5. Assumptions and Mixes Objectives Measurement and Review 3forward.com 11 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 12. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase I: Goal Setting Mission Goals Objectives 3forward.com 12 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 13. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Company Mission Mission – meaningful statement which influences the efforts of the organization: – Role or contribution of the business (i.e. profit generator, service department, opportunity seeker) – Definition of the business (i.e. needs we satisfy or benefits provided, not what we offer) – Core competencies: the essential and unique skills, capabilities, resources that apply only to this entity – Differentiation: the unique and valuable position the company is taking in the marketplace – Indications for future direction: what we will consider, might consider, will never consider 3forward.com 13 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 14. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Company Mission Future Needs We Satisfy Core Competencies Differentiators Considerations 3forward.com 14 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 15. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Company Goals Goals – destinations or where we want the business to be and feel, for example: – Relationships – Reputation – Image – Sustainability – Culture 3forward.com 15 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 16. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Company Objectives Objectives – specific results we want the business to achieve, progress markers to attaining goals; for example: – Revenue – Profit – Market share – Recognition 3forward.com 16 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 17. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Goals and Objectives Goals Objectives 3forward.com 17 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 18. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase II: Situation Review Market Analysis (Audit) Portfolio Analysis Opportunities / Threats Strengths / Weaknesses Assumptions Issues To Be Addressed 3forward.com 18 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 19. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Market Analysis Market Analysis – Process leading to creating marketing objectives and strategies for the company; taking into consideration: – Trends and developments which may affect the company – Where competitors add value – SWOT analysis highlighting internal differential strengths and weaknesses relative to external opportunities and threats 3forward.com 19 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 20. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Example: Market Analysis External Audit Internal Audit Market Economic Company Operations Market size, characteristics Economic trends Sales (total, industry, client, etc.) Developments, trends Political, Legal factors Market share Products Social / Cultural issues Profit margins / costs Prices Technology impact Portfolio performance Customers Marketing procedures Industry practices Competition Marketing organization Major competitors Marketing information / research Size, market share, coverage Marketing mix variables Market standing, reputation - Product management Marketing methods - Price Diversification - Distribution International model - Promotion Key strengths and weaknesses 3forward.com 20 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 21. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining: Defining Markets Market – aggregation of all the products that appear to satisfy the same need for a given customer category; crucial for: – Share measurement – Growth measurement – Specification of target customers – Recognition of relevant competitors – Formulation of marketing objectives and strategies 3forward.com 21 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 22. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Customer Segmentation Segments – natural groups containing customers exhibiting the same broad characteristics; segments should: – Be of an adequate size to provide desired ROI – Posses high degree of similarity, yet be distinct from the rest of the market – Be definable by criteria relevant to the purchase situation – Be reachable and responsive to a distinct marketing mix Purpose of segmentation is to provide a competitive advantage by providing greater value to customers 3forward.com 22 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 23. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Segmentation Part I Who and What: • Who is buying? List characteristics of customers: Size, locations, target end-customer, growth rates, etc. • What are they buying? Volume, price paid, frequency of purchase, etc. • List all relevant competitive products and services purchased, unbundling all components to determine comprehensive list of what is bought. Include frequency of purchases and departments involved. • Create a matrix identifying each who and all the unique what they buy. 3forward.com 23 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 24. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: What Are They Buying Potential Customer Available Products or Categories (Segments) Category Needs Services 3forward.com 24 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 25. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Competitor Analysis Competitor Products Markets Strategy Strengths Weaknesses 3forward.com 25 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 26. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Segmentation Part II Why: • List features of all products / services with what they mean to the customer (benefit). • Classify each benefit as: – Standard – basic benefits arising from features – Double – benefits the customer and end-user – Company – relationship value – Differential – benefits compared with those of competitors 3forward.com 26 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 27. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Feature / Benefit Analysis Available Products or Services Features Benefits 3forward.com 27 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 28. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Segmentation Part III To determine realistic and achievable marketing and sales objectives: • Identify which segments share similar needs • Apply the minimum volume and value criteria to determine viability for each segment 3forward.com 28 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 29. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Category Segmentation Identified Segments Segment Growth Key (Based On Common Needs) Rev Rate Trends Characteristics 3forward.com 29 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 30. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Defining Product Means to providing customer benefits, not physical products or services. Three Dimensions Augmented Product of Product Formal Product Guarantees Availabilty Deliverables Core Features Benefit Packaging Quality Delivery Warranties Price Design 3forward.com 30 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 31. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Task: Portfolio Analysis Offering Deliverables Benefits Customer Target 3forward.com 31 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 32. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series SWOT s se hs es n gt kn re ea St W es iti ts n a tu re or Th pp O 3forward.com 32 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 33. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Issues To Address • Issue 1 • Issue 2 • Issue 3 • … 3forward.com 33 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 34. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Assumptions • Assumption 1 • Assumption 2 • Assumption 3 • … 3forward.com 34 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 35. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase III: Strategy Formulation Marketing Objectives Marketing Strategies Estimated Results 3forward.com 35 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 36. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Phase IV: Resource Allocation Forecasts and Budgets Evaluation and Measurement 3forward.com 36 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 37. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Putting It All Together SALES READINESS Market Anchor Market Entry Client Expansion Programs Acquisition 3forward.com 37 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 38. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series 3forward’s Sales Transformation Model SALES READINESS Market Anchor Market Entry Client Expansion Programs Acquisition LEAD CREATION Outbound Inbound Lead Demand Demand Nurturing Generation Generation 3forward.com 38 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 39. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series 3forward’s Sales Transformation Model SALES READINESS Sales 2.0 Enablement Market Anchor Market Entry Client Expansion On-line Programs Acquisition Strategy & Engagement LEAD CREATION Research Outbound Inbound Lead and Insight Demand Demand Nurturing Generation Generation Virtual Presence 2.0 SERVICES INTEGRATION 3forward.com 39 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 40. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Today’s Selling Model Sales Readiness Lead Creation Lead Engagement Lead Nurturing Marketing Lead Scoring Qualification Prove Value Sales Decision 3forward.com 40 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 41. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Samples and Templates Who Is Buying Market Map SWOT Sweet Spot Matrix Segment Characteristics Model Content Planner Decision Maker Planner 3forward.com 41 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 42. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Example: Who Is Buying ITSM ITSM Selling Who Size (B) Selling To HQ Maturity Competence ATOS Origin 2 Large In-Country, Mid-Tier Multi-National France Maturing Evolving Wipro 8 Large Multi-National, Large In-Country, Mid-Tier Multi-National India Developing Evolving TCS 8 Large Multi-National, Large In-Country, Mid-Tier Multi-National India Developing Evolving Infosys 8 Large Multi-National, Large In-Country, Mid-Tier Multi-National India Developing Evolving HCL 5 Large In-Country, Mid-Tier Multi-National India Developing Evolving Satyam 6 Large In-Country, Mid-Tier Multi-National India Developing Evolving Patni 3 Large In-Country, Mid-Tier Multi-National India Developing Evolving Cap Gemini 10 Large Multi-National, Large In-Country France Very Strong Perot Systems 3 Large Multi-National, Large In-Country US Maturing Strong Unisys 6 Large Multi-National, Large In-Country US Very Strong CSC 16 Global 100, Large Multi-National, Large In-Country US Very Strong IBM 200 Global 100, Large Multi-National, Large In-Country US Very Best In Class HP 70 Global 100, Large Multi-National, Large In-Country US Very Best In Class Accenture 50 Global 100, Large Multi-National, Large In-Country US Very Best In Class EDS 20 Global 100, Large Multi-National, Large In-Country US Very Best In Class 3forward.com 42 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 43. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Example: Market Map Sales & Marketing Target Customer End User Companies Categories Classes Industry Analysts Global 100 Buyer Consultants 3Forward Large Multi- Top Tier Nationals Outsourcers Competitor A Emerging Mid-Tier Outsourcers Multinationals Competitor B Technology Services Providers Large Competitor In-Country C Direct Sale 3forward.com Intermediated Sale 43 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 44. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series SWOT Strengths Weaknesses • History w/ similar projects / references • May not have all skill sets / certs for diverse projects • Team w/ this background • Not always price competitive – lower than US, more than • Near shore model well received – trend is to reduce India reliance on India • Scalability to project demands • Cultivate relationships well – once initiated • Sales process / opportunity management throuph-put • Established partner benches • Lack of domain expertise in active industries, i.e. • Mobility solutions practice medical, BFSI • US based / US presence • Government – any level or type • Multi-Lingual / Spanish • High volume transaction processing Opportunities Threats • Economy recovering / but hiring lagging • Lots of competition • Partnering / growing indirect channel • Heavy commoditization • High demand for mobility • Difficulty differentiating • Existing relationships show high degree of loyalty • Internal hiring if economy comes back fast / strong • Vertically specific indirect channels – (i.e. augmenting the • Govt.policy opposing off-shoring healthcare technology solution companies, BPOs) 3forward.com 44 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 45. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Sweet Spot Matrix Category Strong Fit Neutral Weak Fit Annual $10m to $50m $5m to $10m or greater Less than $5m Revenues than $50 Geography US based North America Outside North America Support Model Shared Desk Dedicated Desk After Hours / Overflow Proprietary or technology Order Fulfillment Order Fulfillment Providing product or service Stage 2 Mature Start up Growth Stage Quality of Service, Growth QofS, Cost, Growth Cost containment Top Objective Enablement Group End Customers End Customers Internal Users Supported Services Tier 1 & 2 Tech Support Tier1 & 2 General Complex, Level 3 Needed 3forward.com 45 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 46. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Segment Characteristics Model 3forward.com 46 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 47. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Content Planner 3forward.com 47 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 48. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Decision Maker Planner 3forward.com 48 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 49. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Resources Sales Readiness 3forward Become a Fan 3forward Dan_3forward Mattat3forward Sales Leaders Blog Sales Leader New Tools Directory Resources 3forward.com 49 Create. Increase. Accelerate.TM ©2010, 3forward, LLC
  • 50. Hiding In Plain Sight: Segmenting and Targeting Sales Readiness Series Resources New Model Sales, Marketing and Social Media Experts • McDonald, Keegan Marketing Plans That Work • Seley and Holloway Sales 2.0 • Ardath Albee Marketing and Content • Chris Brogan B2B Social Media • Brian Solis Social Media • David Meerman Scott Marketing and PR • Gerhard Gschwandtner Sales 2.0 Sales Benchmarking • CSO Insights • Sales Benchmark Index New Tools Directory • 9 categories of sales and marketing best practices and dozens of downloads 3forward.com 50 Create. Increase. Accelerate.TM ©2010, 3forward, LLC