The Market Profile sheet analyzes individual customers in specific market segments in terms of the concepts discussed in this chapter. Use your Product Profile sheet from Chapter 2 (Exhibit 2-5) to fill in the information for the product and unique strengths feature columns. A Microsoft Word template for these sales tools is found as a downloadable file on www.measuremax.com. You need to fill out the following information:
Company Name.
Market Segment. The more specific you are in defining your market segments, the greater the chances that customers will express interest in the potential goals you mentioned to them on your initial sales contact. Remember the hospital example.
Economic Sensitivity. Determine whether the market segment falls into the cyclical, countercyclical, or noncyclical category. Try to balance your market segments to ensure consistency of sales opportunities during all types of economic conditions.
Organizational Characteristics. The more detailed these are, the more confident you can be about identifying customers' goals accurately.
Contact Name. Person you are contacting or working with.
Position. An individual's position coupled with the organizational characteristics determines his or her potential goals. One position can have more than one goal category. For example, a vice president of manufacturing's interest probably lies in the goal categories of both operations and finances.
Previous Market Segment Success Stories. Run on your record of expertise in their industries.
Profit Levels. What profit margins does the company generate? Find out this number via the company's Web site or annual reports, or ask during MP 2: Measure Potential.
Annual Sales Dollars. Find out this number via the company's Web site or annual report, or ask during MP 2: Measure Potential.
Number of Employees. Find out this number via the company's Web site or annual report, or ask during MP 2: Measure Potential.
Annual Growth Rate. Find out this number via the company's Web site or annual report, or ask during MP 2: Measure Potential.
Current Use of Similar Products or Services in Dollar Amount. Ask during MP 2: Measure Potential.
Potential Use of Similar Products or Services in Dollar Amount. Ask during MP 2: Measure Potential.
General Goal Category. General goals that interest customers.
Typical Goals. Subsets within the general goal category. For example, the goal of improves reliability is a subset of operations; the goal of increase return on investment is a subset of finance.
Benefits of Achieving Goals. The benefits of the goals expressed in time or money. Please note that a goal can have more than one benefit.
Systems of Evaluation. The methods customers use to assign value to their goals. You win when these SOEs accurately reflect the measurable value of their goals and connect to your unique strengths.
Product. The products that achieve the goals.
Unique Strength Features. Review the summary on unique strengths from Chapter 2 before you classify a feature as such. Again, not every feature is a unique strength. As a reminder: Sometimes your uniquestrengths occur at the organizational level (location of distribution centers, stocking levels, warranty policies, technical support, payment terms, and the like) and not at the product levels. If you do not have any unique strengths, try to redefine your market segments, packaging (Chapter 2), or use your strongest features and denote it as such.
Note | You can still win sales without unique strengths as long as you show how your products produce measurable benefits from achieving customers' goals better than competitors. |
Top Two Competitors. List your top two competitors in this market segment.
Competitive Unique Strengths. List your top two competitors' unique strengths.
Note | If more than one position is involved with the sale, you would create a new Market Profile sheet to reflect that position's goals. |
The Market Profile sheet in Exhibit 3-6 on the previous spread builds on the Product Profile sheet Steven Smartsell used in Chapter 2. His Market Profile sheet is for Positron, a computer manufacturer, and its vice president of manufacturing, Olivia Ontime.
Market Profile Sheet
Customer Name: Positron
Profit Levels: 30%
Market Segment: Global computer manufacturers
Economic Sensitivity: Cyclical due to their manufacturing status
Annual Sales $: 3 Billion
Organizational Characteristics: 7/24 operations, high-dollar down-time, 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%
Contact Name: Olivia Ontime
Position: VP of manufacturing
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; insert an "I" for internal benefits, an "E" for external ones, or a "B" for both)
Systems of Evaluation (calculations to determine if goal is achieved)
Products
Unique Strengths or Features with Their Benefits (features are in italics;check marks denote a unique strength)
Reduce downtime
Prevent production stoppages (B) and lost revenues (I)
Hours of downtime
Predicto Services
Variance Alerts prevent unscheduled breakdowns
Tolerance Checks prevent unscheduled breakdowns
Operations
Increase productivity
Lowers manufacturing costs (I) and product costs to distributors (E)
Man-hours used
ProdoGain
Single-Operator Controls eliminate need for current two operators
Increases revenues (I)
Amount of production capacity
ProdoGain
200-Unit Capacityincreases capacity by 15%
Reduce operating expenses
Eliminates budget deficits (I)
Amount of unallocated expenses
Predicto Services
Variance Alerts prevent major equipment failures
Frees up money for equipment upgrades (I)
Dollar value of repair costs
ProdoGain
5-Year Warranty eliminates repair parts costs
Administrative
Ensure compliance with laws and codes
Protects company against fines or forced shut downs (I)
Amount of code violations and fines
The CodeCheck Program
Computerize Program analyzes operations for potential violations
Top Two Competitors
Competitive Unique Strengths
PricePoint Services
Low price
FastShip Technology
Fastest delivery
Note | When you create a target list of customers you want to pursue, start from the bottom of the list, not the top. With the bottom-up approach, you'll have little to lose (there's only upside), you'll hear every customer concern in the world, you won't be practicing on your best prospects, and you'll be prepared for a good opportunity when you see one. |