Mastering and Managing the Buying Process

1. Mastering and Managingthe Buying Process Juliann M. Grant, Partner Telesian Technology Inc. julianng@telesian.com 978-681-1600

3. Mastering The Buying ProcessBuilding Marketing Value That Drive Sales

4. The Bottom Line… • Must generate high quality leads • Maximize every opportunity • Sales doesn’t give marketing any credit • Marketing could be doing more to leverage sales

5. Principle of Leverage J. Paul Getty, who created one of the world's greatest fortunes, said: "I would rather make 1% on the efforts of 100 people than 100% on my own efforts.”

6. Marketing Landmines • Shot Gun Approach • Leaving it all up to channel to succeed • Inconsistent contact with your market • Inside-out thinking

7. Understanding The Buying Process • Understand buyer behaviors • Who are they • Know best times when are monies available • Motivators • Messaging is critical • Connect with your audience • Make your message different from your competitors • Take the competition test • What are you promising? (outside-in thinking)

8. What is the Buying Process? • Thinking process for making purchases or investments for your programs/services • Puts you in the Buyer’s shoes • Emotions • Excitement, fear, cognitive dissonance • Needs • Pains • Informational

9. The Buying Process Stages Awareness Interest Your Universe Confidence Close

10. Why Is It Effective? • It is strategic and not tactical • It complements the sales cycle • It focuses on moving buyers through each stage of the decision process: • Persuasion • Conditioning • Establishing preferences

11. Know Your Market • Market segmentation vitally important • Manufacturing is many markets • Discrete, Process, Utilities • Financial Services • Healthcare • Retail, CPG • New vs. existing • SIZE THEM ALL

12. New Buyers vs. Customers • New Buyers • Need more background info • Want to feel good about you – warm and fuzzy • Need confidence in your offerings • Customers • Want to know what’s happened since they last communicated/invested • Validation of previous investment • Successes, new programs • Goals achieved

13. Align Information Around Buyers • As buyers move through the process, their informational needs change • Early stages of buying • Mid stages of buying • Bought • Customer

14. What Aisle, What Shelf? Help your buyers know where your products and services fit

15. Market Strategically, Sell Tactically • Aligning messages, programs, tools around motivating needs • Urgent, important, useful • Address Customer lifecycle needs • Prospect to customer – the buzz, excitement, sexy bells and whistles • Existing customer – enhancement-based features

16. Pre-List vs. Post-List • New buyers focus on pre-list requirements • New to product/solution • Buzz and excitement • New features, sexy • Ex. Open source, SOA, Java OS, Integration • Customers focus on post-list • Know product/solution • User-driven requirements • Make my current product work better • Ex., Need a user-defined field in database, want a place to add comments, want to add catalog search capability

17. Balance is Key • Need both Pre-List and Post-List features addressed in new solutions and services • Customers place pressure on R&D for specific enhancements • Product marketing needs to understand pre-list features and speak for the market needs

18. Messages Change Subtly • As stages progress, a buyer’s informational needs change • Early Stages • Bonding needs • Sorting process, information gathering • Stand out messages that help buyer understand why you are different • Mid-Stages • Setting evaluation criteria • Competitive positioning • How are your solutions better

19. Uncovering Needs • Something required or desired that is lacking* • A condition in which help is required* *Webster’s New World Dictionary

20. Needs Can Develop From Trigger Events • Revenue shortfall • Acquisition/merger • Industry issues, i.e., Compliance • New hires or reorganization • Outdated system • Broken internal processes

21. Classifying Needs • Some needs are bigger than others • Urgent • Determines what and when they buy • Important • Influences what they evaluate • Useful • Influences what they look at

22. Awareness Needs Analysis Interest Requirements Defined Interest --- Confidence Capabilities Demo Confidence--- Close Your Universe Negotiation Close Leverage Points Approval Leveraging the Sales Process

23. What’s Happening in Each Buying Stage • Think like a buyer • Typical activities • Goals to move to the next stage Messages that Resonate

24. Awareness:What’s happening? I have a need • Evangelize problem types solved • Prospects bond with problems • Shows expertise and experience of vendor • Buyer’s savvier today – most likely been through this type of purchase before

25. Early Buying Stages: Building Awareness Awareness Needs Analysis Your Universe

26. Awareness: Think Like a Buyer • “I’ve got this problem, and I need to solve it.” • “All the vendors kind of sound the same.” • Improve throughput, reduce costs…etc. • “I’ve got to sort through this clutter and figure out what will best to address my needs.” • “We already use XYZ, but what can a new product/technology do to resolve my problem?”

27. Awareness: Buyer Activities • Information gathering: • Surf internet • Attend seminars, shows • Analyst reports • Talk to colleagues • Create list of potential companies to work with • Early stages of figuring out evaluation criteria

28. Awareness: Vendor Activities • Search engine optimization • Advertising – web and print • Programs focused on evangelizing problems • Seminars, trade shows • Analyst relations • Public relations

29. Getting to the Next Stage • Breakthrough the clutter! • Ensure your company finds its way on the prospect’s list of vendors to investigate • Want prospect to quickly understand why you are different than other vendors • Tools that help: Interview tools, White papers focused on problems/solutions and set criteria, customer list, partners, etc.

30. Messages that Resonate • “Looks like many vendors can solve my problem.” • How is your solution different? • Is it new and exciting? How? • Who are you and what are you about • Not feature/function • Focus on problems, how you solve them, and benefits derived • Competitor test: If I inserted my competitor’s name in my position statement, could they claim it?

31. Leveraging the Sales Process Awareness Needs Analysis Interest Requirements Defined Your Universe

32. Developing Interest:What’s happening? • Prospects starting evaluation process • Have list of vendors they are interested in learning more about • RFPs and other evaluation criteria being defined • Beginning stages of buyer preference • Needs analysis

33. Interest: Think Like A Buyer • What’s the best way to evaluate this solution for my problem? • Here’s what I know of the company and/or product, here’s what I really need to know • Which company has demonstrated experience with my kind of company? • What was the response from the companies so far? • Did they send information timely? • Did I get a return call?

34. Interest: Buyer Activities • The bake-off begins! • Evaluation criteria formulates and evolves • In-depth corporate website surfing • Looking for “like” companies or scenarios • RFP is done and out, now reading the results – apples to apples comparison

35. Interest: Vendor Activities • Sales tactics vs. marketing strategy • Needs analysis discussion • Uncovering problems • Conversations that build relationship and trust • Demonstrate understanding of their business • Product positioning tactics • Shaping the evaluation criteria • Educate on differences – technology highlights – laser vs. guided wave radar

36. Getting to the Next Stage • Vendor building a good relationship • Helped the customer identify things that they did not think of before • Building preference over all others • Tools that help: Needs analysis docs, FAQs, key industry issues, features/advantages/benefits

37. Messages that Resonate • Why is your product better • Help sales position your solution around the buyer’s needs • Competitive positioning tactics • Lay landmines, overcome obstacles • Leverage a weakness on competition and turn into a strength • Example: vertical focus vs. niche player

38. Creating Confidence Awareness Needs Analysis Interest Requirements Defined Interest --- Confidence Capabilities Demo Your Universe

39. Creating Confidence:What’s Happening • Proof, proof, and more proof • Show Me How Demonstrations • You vs. The Competition • Many influencers now engaged • Preference is established • Want to be the “preferred” vendor

40. Confidence: Think Like a Buyer • “I really like Company X, but Company Y costs less.” • “We already use Company Y.” • “I really like Jim the rep, he and I work well together.” • “I don’t like Jim the rep, he’s a pain to work with.”

41. Confidence: Buyer Activities • Closely evaluating products • Carefully comparing vendors and products against each other • Grading vendors on demo • Who did a better job, who worked in the whole scenario • What were the cool features • Negotiations around pricing • Building consensus on buying team • Looking at risks for doing business with a particular vendor

42. Confidence: Vendor Activities • Product positioning • Strategic, Financial, Cultural, Operational Pains • Competitive positioning • Product/Feature/Capability Pains vis-à-vis competitors/categories of competitors

43. Messages that Resonate • Stability • Low risk, safe bet • Demonstrated successes • Customer for life • Proven implementation methods • Training • Share their vision

44. Getting to the Next Stage • Proving your company is the right partner • Risk management • Know your buyer • Tools that help: Annual reports, success stories, references, customer press releases, articles, analyst reports

45. The Close Awareness Needs Analysis Interest Requirements Defined Interest --- Confidence Confidence--- Close Capabilities Demo Your Universe Negotiation Close Approval

46. The Close: What’s Happening • Buyer knows what they want • They know how much they want to pay • Negotiations in play • Want to identify real ROI • Prospect looking for warm & fuzzies • Selling the system “up” to management

47. Close: Activities • Checking references • ROI analysis • Contract negotiations • Terms, timing • Internal reviews • Consensus building on vendor/solution

48. Getting to the Next Stage • A signed contract… • Tools that help: Annual reports, ROI calculator, corporate fact sheet, analyst endorsements, articles, positive press, project schedule, help desk, service accolades

49. Mapping Your Tools & Programs

50. Measuring Your Effectiveness Ask yourself these questions: • Where does it fit in buying process? • Do the messages address the concerns of this stage? • Do they overcome obstacles or create them? • How will this help move the prospect to the next stage?