Market Development


In market development, your sales responsibility is to turn neutral or negative customers into positive ones. If you are a new sales hire, you also inherit existing customers from senior salespeople who find them nonproductive (meaning dead ends). Inherit is probably the correct word because you seek to receive benefits from someone considered "dead" by others.

You apply the goals, measurable benefits, and systems of evaluations from your past successes in their market segments to them. Market development is ideal for MeasureMax because you:

  • Start with a blank slate. Unlike account development, no established method of conducting business exists (or very limited ones with your inherited customers) that might interfere with using MeasureMax.

  • Help customers make value measurable. You focus on goals, not products, to set you apart from competitors.

  • Use Spark Interest Statements, which highlight customers' goals in specific market segments, as excellent icebreakers. They eliminate the usual randomness of initial contacts and the risks of pulse check hinges. You generate interest on the first call as a customer advocate, not a product one.

  • Sell top down. Again, unlike account development, you have no established pecking order. You can start higher with decision makers more receptive to change.

  • Avoid the constant and sometimes irresistible urge of the negative sell in which you start explaining why your products are better than those of competitors. Do not force customers to defend their existing suppliers and decisions to use them. Eliminate these sales traps by keeping a positive emphasis on the customers' goals and how you help achieve them.

The following sales tools set MeasureMax into motion so that the quality and productivity of your selling efforts and the results in both account management and market development soar.

Note

To spare you the effort of looking up the various sales tools in their respective chapters, a sample is provided for each one.

Create Product Profile Sheets

Create one Product Profile sheet for each of your products or services as instructed in Chapter 2. To simplify matters if you have numerous ones, just do your top five with their top three features (or, at least, all their unique strengths). Then, do one for your key competitors, but list only their unique strengths. Make a separate profile for your company strengths. Treat them as universal features that might fit on every sales opportunity.

Use a pay-as-you-go strategy; create a new profile when the customers' goals and filters from MP 2: Measure Potential dictate. (Go to the www.measuremax.com Web site to download the Microsoft Word templates for these tools.) Samples of Product Profile sheets are shown in Exhibit 9-1 and Exhibit 9-2 on the following pages.

Product Profile

Product: Predicto Services

Features

(Adjective/Noun, Specific Characteristic, 2 to 3 Words)

Benefits

(Verb/Noun, Time or Money; 3 to 5 Words)

Value

(MV or (PV)

Focus

(Internal; External; Both)

Unique Strengths

(Y Or N)

Value Rating

(1 or 5)

Variance alerts (on-site monitors)

Prevents unscheduled breakdowns

Measurable value (calculate the costs of downtime)

Both. It ensures uninterrupted shipments to their customers (E) and saves money from lost production (I).

Yes

5

Analogy for Variance Alerts: It is like the low-fuel warning in your car. You look for a gas station before your tank hits empty.


Exhibit 9-1: Product profile sheet.

Competitor Product Profile

Our Product: Predicto Services

Competitor Name: PricePoint Services

List Price $: (if known)

Product Name: Early Alarm Network

Gross Margins %: (if known)

Features

(Specific Characteristic; Adjective/Noun)

Benefits

(Time or Money; Verb/Noun)

Value

(MV or PV)

Focus

(Internal; External; Both)

Unique Strengths Only

Value Rating Of 5

Trends Tracker (remote monitoring)

Prevents unscheduled breakdowns

Measurable value (calculate the costs of downtime)

Both. It ensures uninterrupted shipments to their customers (E) and saves money from lost production (I).

Yes

5


Exhibit 9-2: Competitor's product profile sheet.

Develop Your Market Profile Sheets

Create one Market Profile sheet for each of your individual market segments as instructed in Chapter 3. If you have numerous segments, just do your top five. Use a pay-as-you-go strategy with these profiles as well. Create them as you need them and before you do MP 1: Spark Interest.

This sheet builds on the Product Profile sheets, so only the first four rows have new information. A sample of a Market Profile sheet is shown in Exhibit 9-3.

start figure

Market Profile

Customer Name: Positron

Profit Levels: 30%

Market Segment: Global computer manufacturers

Economic Sensitivity: Cyclical

Annual Sales $: 3 Billion

Organizational Characteristics: 7/24 operations, high-dollar downtime, critical manufacturing tolerances, on-time deliveries and inventory levels critical, sensitive to competitors, receptive to state-of-the-art technologies, revenues of $3 billion, 20,000 employees

# Of Employees: 20,000

Annual Growth Rate: 28%

Position: VP of Operations

Contact Name: Olivia Ontime

Current Use of Similar Products or Services in $: 2 million

Previous Success Stories: Advanced Computer Co., Star Computers, PC Power Ltd., and Computer Giant Inc

Potential Use of Similar Products or Services In $: 3 million

General Goal Category (broad groupings)

Typical Goals (more specific by position)

Benefits of Achieving Goals (in time or money terms; in parenthesis, insert an "I" for internal benefits, an "E" for external ones, and a "B" for both)

Systems of Evaluation (calculations used to determine if goal is achieved)

Products

Feature Rating and Their Benefits (insert a value rating of 1 for regular feature or 5 for unique strength)

Operations

Reduce downtime

Prevent production stoppages (B) and lost revenues (I)

Hours of downtime

Predicto Services

Variance Alerts prevents unscheduled breakdowns (5)

Top Two Competitors

Competitor Product

Competitive Unique Strengths

  1. PricePoint Services

Early Warning Network

Trends Tracker's remote monitoring

end figure

Exhibit 9-3: Market profile sheet.

Use Quick-Entry Sales Management Sheets

No one likes to do paperwork—unless it is worth the return. You are motivated to fill out tax forms if you are getting a refund. Quick-Entry Sales Management (Q) sheets work the same way. Again, if you think of selling methods as diet plans, Qs are the scales you get on to see how they are working. With Qs, you know you are using the same scale every time to see how well you are doing.

Use them to measure, manage, and maximize your sales efforts in black and white, no gray areas allowed. Either you know the specifics of customers' goals, filters, benefits, systems of evaluations, conditional commitments—and how your solutions match up to them—or you do not.

Use the two-page Qs for the first two phases—MP 1: Spark Interest and MP 2: Measure Potential. Think of them as loose-leaf paper with columns and rows you fill in. (A Microsoft Word template for this tool is also found on the www.measuremax.com Web site so you can fine-tune them to your selling situations.)

A Q sheet takes about ten minutes to complete before you use it, and about ten minutes to fill out after you leave your meeting with the customer. This twenty-minute investment changes the 80/20 rule to the 80/80 law. With measurable information, you can make 80 percent of filled-out Qs generate proposals that produce 80 percent of your sales. It is not 100/100 because 20 percent of your sales still come from commodity-driven customers who equate low price with high-value regardless of your efforts.

Use Qs to record and coordinate your sales activities by market segments, goals, projects, and by contact levels (one Q sheet per decision maker on the same sale).

Step by Step

Qs also guide you through MP 1 and MP 2 by reminding you to get the necessary specifics and their Measurable Phase Changes. Fill in all the information you know before the initial Spark Interest phone call. Leave blank what you need to find out for MP 2: Measure Potential. Once you complete MP 1 and MP 2, you enter in the missing information. You then review your sheets to reflect what you need to achieve during MP 3: Cement Solution and MP 4: Implement Agreement.

Typically, you see patterns emerge when you use Qs as self-management tools. You usually are consistent in what information you make measurable and what you do not. Review whether you are asking the right questions to find them out. If you are asking the right questions, but still are not getting specifics, review your wording and reread Chapter 5. In addition, consider reviewing your Qs at your sales meeting to solicit group input and help. These reviews will help everyone improve his or her command of the process.

On joint sales calls, tell your manager and/or fellow salesperson what you want him to observe that you think you do well on a sales call (i.e., link customers' measurable answers to the next filter that needs details). Also ask him to observe a specific sales skill (i.e., suggesting SOEs if the customer doesn't know any to measure the value of achieving his goals) that you think you can do better. When you prompt someone on what to observe on a sales call beforehand, everyone's sales increase. Like customers, salespeople also win when you manage their expectations.

Finally, Qs also capture the reasons (goals, benefits, filters, SOEs, and conditional commitments) why you won or lost the sale. Use this historical information to concentrate on customers' goals and keep yourself razor sharp. Granted, you must fill in the data, but the more you do, the more valuable the information becomes for you. Keep thinking loose-leaf pad with rows and columns versus scattered notes.

Team Effort

Qs help coordinate your team-selling effort. Few things are worse in a joint sales effort than two or more salespeople working at different contact levels and not sharing a common language or system for evaluating their progress. You use Qs to eliminate this concern. The Qs display information by salesperson and contact levels. Everyone in a team sell is aware of which MP each salesperson is in. Everyone views the most current information of the different salespeople working on the same sales opportunity. You can make strategic decisions on how each salesperson should conduct the next MP.

In addition, Qs help you to track the different contacts when you are working with multiple decision makers on a sales opportunity. You view the goals and filters columns for each contact level in a sales opportunity. Compare the information from gatekeepers, advocates, and final-decision makers for consistency (or lack thereof). Use any discrepancies to guide the different contacts involved on what goals and filters need clarification.

For the front page of the Steven Smartsell sample Q sheet, see Exhibit 9-4 on a preceding spread.

click to expandclick to expand
Exhibit 9-4: Front page of Q sheet.

For the back page of the Steven Smartsell sample Q sheet, see Exhibit 9-5 on a preceding spread.

click to expandclick to expand
Exhibit 9-5: Back page of Q sheet.

Connect the Value Sheet

You use this sales tool during MP 3: Cement Solution. You take the information you gathered on your Q sheets to build the customers' solutions from their goals down, not from your products' features up. You follow the MP 3 steps as instructed in Chapter 7. The downloadable, electronic template for this sheet is found on www.measuremax.com. (See Exhibit 9-6.)

Connecting Value Sheet

Customer: Positron

Contact: Olivia Ontime

Specific Goals

Measurable Benefits

Systems of Evaluation

Solutions

Features

Value & Focus

(Internal, External, or Both)

U.S. & Value Rating

Reduce downtime

Prevent production stoppages from 18 hours annually to 9, which generate savings of $360,000 annually

Hours of downtime

Predicto Services

Variance Alerts prevent unscheduled breakdowns

Perceived Value. Both. Ensures uninterrupted shipments to their customers (E) and saves them money from lost production (I).

Yes/5

Predicto Services

Tolerance Checks prevent unscheduled breakdowns

Same as above

Yes/5

Improve capacity

Increase production by 15%

Units per hour

ProdoGain

200-nit capacity

Measurable value and internal

No/1

Conditional Commitment: Reduce the costs of $40,000 per downtime hour (SOE) to no more than nine hours annually (goal), save $360,000 (measurable benefit), begin in November and finish by December (start and completion dates), not exceed $1,080,000 budget (funding), get at least a three-year payback (SOE).

Do Proposed Solutions Satisfy It?

Yes

q No. Why Not?


Exhibit 9-6: Connecting value sheet.

Take the Pulled-Through Test

This sales tool allows you perform a simple test on whether customers are pulling your proposals through the sales process or whether you are pushing them through. As discussed in Chapter 1, you want customers to be at least as motivated as you are about achieving their goals. Otherwise, value and productivity suffer. Like the other sales tools, the Microsoft Word template can be found on the www.measuremax.com Web site. (See Exhibit 9-7.)

Does Your Proposal Pass the Pulled-Through Test?

Sales Opportunity Name: Central Plant Upgrade

Contact Name: Olivia Ontime

Position: VP of manufacturing

Date Customer Received Proposal: 4/10

Date of Last Customer Contact: 4/17

MPC 1: Interest Confirmed obtained

MPC 2: Potential Confirmed obtained

"Pushed-Through"

(Salesperson-Generated)

"Pulled-Through"

(Customers-Generated/Measuremax)

q

Goals and filters are not measurable or specific

Goals and filters are measurable or specific

q

No verifications of Measurable Phase Changes

Verifications of Measurable Phase Changes

q

No conditional commitment or attainment measurement exists

Conditional commitment or attainment measurements exists

q

Uncertainty over what prompted the proposal

Proposal generated at customers' request using well-defined goals

q

Proposal contains limited customer's input

Proposal uses customer's input to fill out Q sheet

q

MPs not conducted in proper sequence

MPs conducted in proper sequence

q

Salesperson avoids or supplies own numbers for cost justifications

Customer supplies the means for direct or indirect cost justification

q

Proposal considered as a means to flush out concerns or undisclosed goals and filters

Proposal used to formalize agreed upon MPCs

q

Clarification calls to customers before making presentations are nonexistent

Numerous clarification calls and the customers understand the reasons for them.

q

Unclear time frame for starting

Well-defined time frame for starting

q

Uncertainty over chances of success

Proposal status is well known

q

Proposal focuses on numerous product features without connecting to specific customers' goals and measurable benefits

Proposal focuses on customers' agreed-upon goals and measurable benefits, and demonstrates connections between them and products' features

Total Check Marks: 0

Total Check Marks: 13

q Pushed-Through

Pulled-Through


Exhibit 9-7: Passing the pulled-through test.




The Science of Sales Success(c) A Proven System for High Profit, Repeatable Results
The Science of Sales Success: A Proven System for High-Profit, Repeatable Results
ISBN: 0814415997
EAN: 2147483647
Year: 2006
Pages: 170
Authors: Josh Costell

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