Mastering Market Leadership.ppt

Mastering Market Leadership,Park City Marketing Institute,Copyright 1997-2000 Park City Marketing InstituteAll rights reserved,Mastering Market Leadership,Park City Marketing Institute,The Conquest Market Leadership Mastery Methodology:1.Annihilate the competition2.Create highly leveraged operations and growth3.Generate hot aura and market buzz,More about us.,Richard CurrierFrom technology,to sales,to marketing,to managementThe hard knocks school of the underdogThe quest for a science leads to the workshopsPark City Marketing Institute100+high-tech clients:Amdahl,Compaq,CHC,Software AG,IBM,Intel,Price Waterhouse,PeopleSoft.Cognos,Optum,Kronos,IMI,Manugistics,SCO,SCT,SSA,VIASOFT.Clarus,Forecross,Princeton Softech,Secure Computing,Security First,1,000+workshop attendeesWhen mastering market leadership is critical:Revenue stallingTransitioning marketsLaunch/re-launch of products/companiesFinancing-private and public,Marketing and Market Leadership,“Marketing is the one thing in a company that is too important to delegate”David Packard“Go-to-market strategies and high-impact execution clearly distinguish marketplace winners from losers”Our belief,Historical High-Tech Marketplace,Success=Product/Service Success=Product/Service+Sales,Todays Market:hard to even be noticed,let alone become a leader,Noisy,crowded markets 10,000s of companies,100,000s of productsMillions of messages“Open products”mean“open market”Smart buyers Wary,having been“burned”multiple timesKnowledgeableTough price shoppersTougher competitors Established dominant playersWell-funded startupsGlobal proliferation of new alternatives,Why Not Market Leadership?Why most companies ignore the market leadership approach,Understandingunimportant impossibleDont know how(or know consumer marketing)FocusBottom-up,tactically-driven the wisdom of Tsun TsuEvent/response driven“marketing du jour”Functional/activity plans not go to market strategiesCommitment“Its a marketing problem”(no“lead-from-the-top teamwork”)“Its periodic problem”(“the yearly mission statement”)“Only when its a crisis”(If it aint a crisis,ignore it),Effective Market Leadership:The Litmus Test,A market leader has:Broad message consistencyEasily reached product-direction consensusHigh positive aura and exciting market buzzMinimal hand-to-hand combatNatural pipeline sufficiencyHigh predictability of resultsStreamlined operations and growth,Contrasting The Three Alternative Leadership Approaches,Product Leadership,Sales Leadership,Market Leadership,Product Leadership,High percentage of the product is uniqueUnique product aspects are clear to buyersProduct typically sold to early stage buyers:Bleeding-edge,Leading-edge,Early AdoptersPioneering buyers seeking significant advantagesEvaluation:Buyers dig into candidate productsImplementation:Buyers push product limits,not put off by rough edges,Product Leadership Erodes,Competitors increaseCompetitors respond by copying core featuresFeature-based competitiveness erodes rapidly“Good enough”:20-80%features Proving differentiation to less less knowledgeable buyers Elusive new“killer ap”feature opportunitiesThe Development Death SpiralDying while trying to develop-out-of differentiation problems,Sales Leadership,Excel at“hand-to-hand combat”:master new account entrydevelop“own leads”if necessaryfight to enter“active evaluation”as a real contestantmaster competitive battlesgreat product/industry knowledgeSuperior sales personnelStrong sales engineers,consultants,product/industry specialistswork very well with early-through mid-stage buyers,Sales Leadership Erodes,CostStart-up takes too long,costs too muchOperation takes too long,costs too muchCapacityNot enough skilled hand-to-hand combatantsEagles dont flock Run out of early-stage/mid-stage buyersBecome a“deal-driven company”,Market Leadership,Win in the market first,then at each accountEnjoy“unsolicited leads”Find accounts that are predisposed to buyReadily control buying agendaPut competitors on the defensiveMinimize hand-to-hand combatOperate high efficiency sales/marketing processLower costs(trade leveraged marketing for sales costs)Rapid,effective start-up of new sales/sales support staffQuicker,more predictable growth Prove Darwin right natural selection of the fittest,Market Leadership Critical Requirements,Market Leader Market OwnerVision-Based Thought LeadershipMarket Leader Competitively ObsessedIts not enough that I succeed,its that all others must dieMarket Leader Execution Masterproduct,sales,marketing Do things differentlyLaser focus,High impactMonitor,measure,correct,Key Market Leadership“How Tos”,Vision-based thought leadership Strategies to seize a solid position in a target marketStrategies to block the competition World-Class Message:Crisp,Clear and Compelling Message that is Consistently told Execute:Market the Vision,Sell the ProductExecute:Focused High-Impact ProgramsAnd,Master Key IndicatorsWhat Gets Measured Improves,Your Mastery of Market Leadership,The Conquest Methodology:Craft killer“go to market”strategies and messages Master executionGo to market with:“Market the vision,sell the product”Achieve:focused,high-impact programsYou and your company:Achieve total company participationtop-down and bottom-upExecute the three key fundamentalsThought leadership,market vision/sell product,high-impact executionStay the CourseA journey not an event-instill in company cultureKey indicators,measurement and vigilant follow-upPlan for reinventing yourself regularly,Breakthrough Market Impact,Paths to Success,My ViewTypical Clients View,The Three Most Important Rules for Market Leadership,FocusFocusFocus,Mastering Market Leadership Workshop:Course Outline,Introduction and OverviewMessages and Strategies:Market Attack PlanMarket Leadership InsightMarket Leader Strategic FrameworkMastering ExecutionBuying Process ModelBreakthrough Market Impact Building the PlanCharting the Course/Staying the Course As time allows:Tips and techniques,Mastering Market Leadership Workshop:Approach,LectureQuestions&Answers understanding and clarificationCase Studies/Storiessome of the best lessons learned the“hard way”latest client stories are“off-limits”full lifecycle stories,Mastering Market Leadership Workshop:Schedule/Details,Day One9:00 5:00Lunch at About NoonDay Two9:00 4:00/4:30Lunch at About Noon Breaks Mid-Morning/Afternoon,Market Attack Plan,Before we master market leadership,a simple question:What market do you want to lead?,The Market Size Trap,The story of the$92 B Market,Segment-sized-based success factor,Very Low,High,The probability of your success is inversely proportional to the size of your market,Case Study The Significance of Segmentation:,Solving first things first:“who are you going to lead?”The first three steps to leadership:1.Define“them”2.Find“them”3.Reach“them”Getting in the door can be the toughest leadership problem,Case Study Effective Market Definition Lessons,All other things being equal:1.The smaller the markets,the greater the successMarkets are sufficiently compact to be affordably servedHigh impact is realistically achievable2.The more cohesive the market,the greater the successA single-theme compelling message is achievableThe message can be communicated consistently,Populations versus Markets,Market:VendorsA store or shop that sells a particular type of merchandise:a meat market.BuyersA subdivision of a population considered as buyers:cosmetics for the upscale market.Population:1.a.All of the people inhabiting a specified area.b.The total number of such people.5.Statistics The set of individuals,items,or data from which a statistical sample is taken.In this sense,also called universe.Source:American Hertiage Dictionary,Any Group of Buyers is Not a MarketThe Bigger the Group the Less So,Recipe for Failure:Simplistic,overly-broadhigh heterogeneity Fortune 2000 Cross Industry Open Systems Worldwide,Recipe for Success:Focused homogeneityEarly Stage BuyerWarehouse 100+K SFJoint IS/End-User BuyIndustry LeadersMinimal Automated Material HandlingDemanding Accuracy Requirements,Why Segmentation Fails,Dont want to segment,reason#1:the“Entrepreneur Syndrome”“everyone must want it”“never give up on anything”Dont want to segment,reason#2:the“Bad Salesman Syndrome”“when in trouble,sell to more”Just dont do segmentation:dont know how arent committed distracted by tactical pressures,Contrasting Alternative Market Definition Techniques,Low,High,Geography,Buyer Telltales,Industry,Company Size,Defining Potential Market Segments,Effective“market segment”=“like buyers”:compellingly motivated response to single-theme messagesGreater homogeneity=more effective segmentThink segments,not marketsyour market can have multiple segments,The Methodology for Assessing Alternative Market Definitions,The Basis:The Laws of Free Market FormationThe Wisdom of“Neutron Jack”Welch:Be#1 or#2 or get outThe Goal:Clear Market LeadershipThe Approach:Define potential market(s)Develop draft market leadership approachCredible#1 or#2?Iterate until successfulRank-order successful candidatesChoose the“smallest,highest potential”,Crafting the Market Attack Plan,Market Size,Time,Grow/add markets to meeting sales growth requirementsRank-order by attractiveness“Enter”1-3 sales cycles ahead“Presence”in broad markets,“Markets”vs Sales“Sweet Spots”,Sales sweet spot:Buys standard product/service Buys on standard termsLikely to buy from you,Market Size,Time,Effective market definition:motivated response to single theme message,Market Targeting Summary:“Market Leadership”Drives the Market Attack Plan,A market can be feasibly led if it is sufficiently compact,cohesive and reachable,Leaders Have Great Market Insight,What you absolutely,positively must know about:Marketshow many buyersBuyershow to lead themCompetitorshow to beat them to become the market leaderYouyour leadership possibilities and how to learn it,Gaining Marketplace Insight,Raw Data Market Intelligencetype of information,quantity of information High Low,Clueless,Dense,Slow,Smart,Market Research Falls Short,Market research market intelligence:A superb history of failuresMarket research discovers the pastResearch is the“Black Box”of marketingMarket research answers the question“what went wrong”?Research discovers“market facts”Good marketing entails creating facts,Creating Market Facts:Case Studies,VIASOFT and the 46%The origin of market factsVM Software and The VM MarketGoing the full circle with market factsThe French Discover MaintenanceGoing to the extremes,Core Components of Market Insight,How many buyers?Why do they buy?How do beat the competitors?,Market Segment Quantification,Numbers of Transactions,Seats,Revenue for:Gross potential marketEvery-buyer*maximum-they-could-buy“Taken”and“Available”marketsAvailable Market=Gross Potential Market less“never buy”and“never buy from you”Yearly market factor-“whos in the market”10-20%is common,above 80%is rare;varies by yearKey:Yearly available market,Key to Leading Markets:Mastery of Buyer Knowledge,Motivational CategorizationEvolution of PerceptionsStrategic values Tactical needs,Classifying Motivational Needs,Urgent needs determines what and when they buyImportant needs influences what they seriously evaluateUseful needs influences what they initially look at,The Two Lists of Requirements and Their Consequences,Pre-sales list:list incomplete sales/marketing can influence listsoften early leaders,but frequently fads,shelfwaresecond-act essentialPost-sales list:meets most urgent and some important/useful needsusually niche,may have a loyal customer baseMarket Leaders master both lists,Understanding the Two-sided Buyer:Strategic and Tactical,Market the Vision,Sell the ProductThe perils of not“marketing the vision”Lose to someone else who markets a visionLose in feature/function wars and price warsReadily postponedIndicators of ineffective“vision marketing”problemLose before you start or after you seem to win the evaluationLose because of no perceived differentiation“Theyre all the same well go with the cheapest,easiest,etc.”Inability to create urgency,Market the Vision,Sell the Product,Vision Messages,Product Messages,Aura-buildingExecutive presentationsExecutive collateral(high-gloss)General PR,Lead generationSales qualificationSales collateralCost justification,Role for Buyers,Vendor preferenceExecutive buy-in,Timing of closeProduct hurdles,Role for Vendors,What You Must Know About Buyers,Motivational Categorization Urgent,important and useful needsEvolution of Perceptions“The two list phenomenon”Strategic values Tactical needsMarket the Vision,Sell the Product,Visionaries Exploit the Guru Gap,Time,Evolution of New Technologies/Business Trends Over Time,Expectations,Reality,Guru Gap,Value,Exploiting the Guru Gap,Become the thought leaderAssert the definitionsLeverage namingCritical for Underdog Success,What You Must Know to Beat Your Competitors,The coordinated attack to annihilate the competition:Marketplace:become the thought leaderAccount:project compelling differentiationProduct:project a competitive edge,Intelligence for Differentiation and Competitive Edge Construction,Attributes,ProductArch/techServiceVendorPrice/terms,The“Materiality”Hurdle,The AttributeCategorization,U,SU,MT,T,The Materiality Hurdle is the“Sales-Cycle Pivotal Needs”,Identify Prospects,Get“In”,Get“Considered”,Get“Evaluated”,Get“Bought”,Get“Selected”,“Sales Cycle Pivotal Needs”reflect attributes of your offering that are“material”when transitioning vendor/product from state to state during the buying process model,Assessing Competitive Attributes,In the Mind of the Buyer:Will I use it for discriminating among alternatives in a state-to-state Buying Process Model transition?How will I categorize the attribute?,?,?,U,SU,MT,T,No,Yes,Buyer-Based Competitive Classification,UniqueBuyers will agree:your feature uniquely satisfies the needSemi-uniqueBuyers will agree:your features clearly satisfies the need betterMe-TooBuyers perceive their needs to be satisfied by alternativesTroubleBuyers perceive the need uniquely satisfied by a competitor,Example Product Analysis,Prod“A”,Prod“B”,Prod“C,D”,Unique,Dynamic add,Flexible ACK,Auto consolidation,Windows,Dynamic add,Flexible ACK,Auto consolidation,UNIX,Dynamic Add,Semi-,unique,Simple Forms,Auto consolidation,Fast Reporting,Me-too,UNIX,Fast Reporting,Windows,Simple Forms,Fast Reporting,UNIX,Windows,Simple Forms,Flexible ACK,Trouble,Mainframe Server,Price,How to Become a Great Pied Piper,Its everyones rolefeedback from every interaction with customers,opinion shapers and buyersSpecialized research techniques:Co-opting opinion shapersget the right ones,understand how they assess messages,let them find errors,have them spread the wordConducting a“perfect”focus groupsprofessional recruitment,professional settingnon-disclosure before answers derivedkey differences from traditional professional:aggressive persuasion followed by flawless facilitation,The Essential Formula for“Home Run Products”,The Acid Test for Successful M