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How to Be Successful at Selling Nothing – But Be a Marketing Success!

How to Be Successful at Selling Nothing – But Be a Marketing Success!. Scott W. Sommer, PE, CAP Automation Technology Manager Jacobs Engineering Group. Session Objectives:. Learn about a market segment that many automation suppliers and vendors underserve.

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How to Be Successful at Selling Nothing – But Be a Marketing Success!

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  1. How to Be Successful at Selling Nothing –But Be a Marketing Success! Scott W. Sommer, PE, CAP Automation Technology Manager Jacobs Engineering Group

  2. Session Objectives: Learn about a market segment that many automation suppliers and vendors underserve. Learn why Architectural & Engineering (A&E) firms and other “non-end-users” may be vital to your company’s success. Understand how marketing to A&E’s can yield long-term benefits other than a Purchase Order. Understand the A&E firm’s business and why traditional sales and marketing methods will fail.

  3. Marketing Defined "Marketing is the process of planning and executing the conception, pricing, promotion, and distribution of ideas, goods, services, organizations, and events to create and maintain relationships that will satisfy individual and organizational objectives." - Contemporary Marketing Wired (1998) by Boone and Kurtz. Dryden Press. "Marketing is a social and managerial process by which individuals and groups obtain what they need and want through creating, offering and exchanging products of value with others" - Philip Kotler, “Marketing Management", 7th edition, USA, 1991

  4. Sales – Defined “An agreement by which one of the contracting parties, called the seller, gives a thing and passes the title to it, in exchange for a certain price in current money, to the other party, who is called the buyer or purchaser, who, on his part, agrees to pay such price.” - Lectric Law Library Lexicon “The exchange of goods or services for an amount of money or its equivalent; the act of selling. The exchange of goods or services for an amount of money or its equivalent; the act of selling.” - World Dictionary

  5. Marketing & Sales in Automation PRODUCTS + MARKETING + CUSTOMER + DEMAND = $ALE!

  6. The Myopic View Sensors Boardroom Valves I/O Maint. A&E Software Factories Corporate Eng. Transmitters HMI Refineries Controllers

  7. The A&E Firm WHO WE ARE… “The A&E Firm is a collection of vendor-independent engineers and other professionals who sell only their services to clients who hire their expertise to design, specify, construct, and make operational a physical plant. As a general rule, A&E firms are not impressed by mass marketing nor tolerant of hard-pressured sales tactics. A&E engineers respond positively, however, to useful and accurate information, access to vendor’s engineering data, and pastry.”

  8. A Little Math Just for JE Projects: $8 Billion TIC X 3% of TIC for Automation = $240 Million This represents a true opportunity! …but how do you cash in?

  9. Understanding the Flow Preferred Vendors List Engineering Documents CLIENT Procurement Strategy Standards CLIENT CLIENT Bid Phase CLIENT Specification CLIENT Purchase

  10. Show Me the Opportunity So, if you were assigned to sell only to non-end-user firms, like A&E’s, you would probably feel that you are… ‘ed

  11. Show Me the Opportunity …But Wait! Don’t SELL to these firms! MARKET to them! Why? Because… You can be successful at SELLING nothing and still be a MARKETING success!

  12. A Quick Review! MARKETING "Marketing is the process of planning and executing … and events to create and maintain relationships that will satisfy individual and organizational objectives." to create and maintain relationships SALES “An agreement by which one of the contracting parties, called the seller, gives a thing and passes the title to it, in exchange for a certain price in current money…”

  13. Relationships in Practice Jacobs Core Values: #1.We are a relationship-based company. “We focus on forging strong, long-term relationships with our clients, as we consider sound client relationships the most important contributor to our success. We cement these relationships by providing superior customer value and by continuously improving our performance.“

  14. You are probably asking… SO HOW DO I BUILD THESE RELATIONSHIPS WITH NON-END USER COMPANIES?

  15. Change Your Focus! XXXX What are you considering buying today? How may I help you focus on your customers’ needs today?

  16. Needs of the Clients of A&E’s • Conceptual Planning, Scheduling, & Estimating • Unbiased, Professional Design Advice • Advice on Standards & Codes • Accurate, Complete Data Sheets • Accurate, Complete Drawings • Vendor Submittal Reviews • Bid Preparation • Bid Tabulation • Installation Details • Construction Support

  17. Now the Good Stuff! CASE STUDIES - Five Cases Will Be Presented - All Are Real-Life Case Studies - Personally Involved with Each One - No JEG P.O.’s Cut to Any Vendor - All Case Studies Were Win-Win - All Started with Relationships

  18. Case Study #1 Firm: Solenoid Valve Manufacturer Year: 2006 MO: Visit to drop off brochures and inquire about current projects. Hurdles: Not on Client’s Approved Vendor List; Client Picky about Solenoid Valves

  19. Client Needs… • Remote Solenoid Valve Panel • DeviceNet™ connection • NEMA 4X 304L SS Box • Remote 24VDC Feed • Air Regulator inside panel • Bulkhead fittings

  20. …Were Met By • Panel Designed to JE Specs • Fully-Dimensioned AutoCAD Dwg. • Bill-of-Materials • 3 Design Iterations • Alternate Design Analysis

  21. …with the Following Results: • Drawing = Remote SVP Typical • Saw product in action at show • Design Passed to Panel Vendor • Summer 2007: PO for 27 SVP’s from Client • Investment: 16 months, 60 EH

  22. Case Study #2 Firm: Panel Manufacturer Year: 2007 MO: Pressuring Client to be Put on Bidders List for New Project. Hurdles: Irritated Client; Client not Purchasing Panels Directly

  23. Client Needs… • Panels for Skids to be Built at Various Locations • FAT in Conjunction With SW FAT • Full Design & Documentation from Typical Layouts • Contract to be Let by SI Firm

  24. …Were Met By • Abandoning the Sales Focus • Establishing a Relationship with A&E • Spending Time to Understand Needs of Pharma Clients • Willingness to Partner with 3RD Party

  25. …with the Following Results: • Introduced to SI Firm on Bid List • Partnered with SI to Provide Panels • Led to Opening of Satellite Office to Service Client and Others • Investment: 2 Years

  26. Case Study #3 Firm: Large Automation Company Year: 2006 MO: Corp. Focus on A&E Firms, although they assume a small potential for direct sales. Hurdles: No Current Clients of A&E Have Firm’s Products Installed

  27. Client Needs… • Most Days: None in particular! • Periodic Requests for Bids to Keep Other Vendors Honest! • Alternative Approach to BAS • Process Analytical Technology Products and Solutions

  28. …Were Met By • Focusing on Needs of A&E • Establishing a Non-Sales Relationship with A&E • Spending Time to Understand Needs of Pharma Clients • Placing a Demo System At A&E

  29. …with the Following Results: • Understanding of A&E Business • Obtained Perspective on Market So that Sales Efforts Could be Most Effectively Focused • Kept Firm at Forefront in PAT • Investment: Continuous

  30. Case Study #4 Firm: Large Automation Company Year: 2004 MO: Corp. Focus on Life Sciences, with an Eye on Increased Market Presence. Hurdles: A&E is Vendor-Independent

  31. Client Needs… • Complex Controls Solutions • Current Product Information and Engineering Data • Access to Technical Experts • In-House Training • Design Support

  32. …Were Met By • Hosting a Series of Lunch-and-Learns • Establishing a Non-Sales Relationship with A&E • Having a Partner Mentality Rather Than a Competitor Mentality • Providing Technical and Product Data and Support • Providing “Freebies” Such as Training and Exhibition Attendance

  33. …with the Following Results: • Increased Business in Target Market • Unexpected Sales of Software Products and Applications • Sales of Speciality Controller to Client Based on Exhibition Demo • Investment: Continuous

  34. Case Study #5 Firm: System Integrator Year: 2005 MO: Monthly Visits and Lunch. Hurdles: Small SI suited to a limited range of project possibilities

  35. Client Needs… • Field Support • Specialized Programming • Small Expansions • Validation • GAMP4 Life Cycle Documentation

  36. …Were Met By • Seconded Personnel • Creative Working Arrangements • Cooperative Engineering • Automated Design Tools • Technology Transfer

  37. …with the Following Results: • Quick Response • Flexibility Which Lowered Cost • Increased Stand-Alone Oppor-tunities • Investment: 2 Years

  38. Common Themes Each of the Case Studies was a success in that it created a win-win situation for Jacobs, the Vendor, and our Client. Each case began with establishment of a relationship.

  39. Common Themes Each of those relationships required nurturing. Success was achieved as the result of consistently maintaining and growing that relationship.

  40. Some More Truths Just as with life, not all relationships are worth nurturing! There are only so many hours in the day and only so much you can do. Establish relationships based on probabilities and possibilities. Think through each opportunity: there may be more there than you think at first glance!

  41. Now It Is Your Turn! GO AND CONQUER!

  42. QUESTIONS?

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