Transcript 3 Marketing and Capture

Marketing and Capture
Austin W. Boyd, CEO Whitespace Innovations, Inc.
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The Big Picture
Marketing/Capture and Sales/Proposals
• Seven elements of business development
– Business model
Customer Value Proposition (CVP)
• Profit Model
• Key Processes
• Key Resources
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Vision
Market Research
Strategy
Identify Opportunities
Marketing (commercial world) and capture (federal world)
Sales (commercial world) and proposals (federal world)
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Two Perspectives
• Marketing
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Communicate the value of a product, service, or brand
Purpose is to increase product sales and profits
Choose target markets through analysis and market segmentation
Understand customer behavior
Appeals to commercial ventures
• Capture
– Communicate the value of a product, service, or brand
– Purpose is to increase product sales and profits with federal clients
– Choose target customers through opportunity identification and
focus on key markets
– Understand customer behavior and needs (customer engagement)
– Appeals to federal ventures
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Marketing
Relationship marketing : Focus on the consumer
Business marketing or industrial marketing: Focus on organization
Social marketing: Focus on benefits to society
Internet marketing: e-Marketing
Search engine marketing: Desktop advertising based on
preferences
• Branding: How are you remembered?
• Formal approach uses SIVA
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Solution
Information
Value
Access
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Some (Not All) Elements of Marketing
• Market research
– The second fundamental of business development
– Statistical interpretation of data to create information and
knowledge about the salability of a product or idea
– Define the problem, develop a research plan, collect and interpret
data, disseminate information and knowledge through report,
execute on what you learned
• Marketing environment
– Market “scans” continually acquires information to identify trends,
identify threats and opportunities
– Demographic forces: Shift in populations and makeup leads to
needs for new products and services
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Example: Islamic diaspora will lead to what product changes in Europe?
– Socio-Cultural forces: Cultural differences require different
approaches to different cultural segments
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Example: Marketing cowboy boots in Naples
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More on Some Elements of Marketing
• Economic forces: How does the economy drive your customers’
buying habits?
– Example: Selling mortgages in 2005 vs. 2008
• Regulatory forces: How does government intervention drive sales
opportunity or sales “prevention”?
– Example: Pipeline builders trying to move oil from Canada oil sands
• Competitive forces: How do you outmaneuver your competitor?
– Example: iPhone or Android? Same buyers with the same needs…
how differentiate to win the sale?
• Technological forces: Moore’s Law and entrepreneurship outrun
your ability to get a product to market. How will you adapt?
– Example: Beta tapes vs. VHS. Blockbuster vs. Netflix
• Bottom line: There are always forces at work to ruin your day.
– You have to plan ahead and build a strategy to adapt.
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Austin Boyd’s Technique for Success
• Adapt the strategy techniques (Booth modified process) from
this course to identify best marketing approaches based on your
target market
– 1. Conduct market research. What are you up against?
– 2. Continue market research. What are the market segments?
– 3. Continue market research. What forms of marketing does each
segment of your market respond to and why?
– 4. Apply your market research. Develop a matrix of marketing
approaches versus market segment, prioritizing the key markets
– 5. Identify the methods, strategies, costs, risks for each intersection of
market and marketing method
– 6. Test early and often. Feed testing data back into your marketing
strategy
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Example: Marketing Pregnancy
Resource Centers (PRCs)
Market Segment
Traditional
(Radio, TV, Newspaper, Billboard,
Direct Mail, Telephone)
15-25 yr. female
25-35 yr. female
35-45 yr. female
45-80 yr. female
25-45 yr. male
African-American
Caucasian
Hispanic
Muslim/Arab
Donor (Caucasian
male 40-70)
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Non-Traditional
(Web, social media, desktop
advertising, email campaign)
Example: PRC Client Marketing
Traditional Approaches
Market
Segment
Radio
TV
Billboard
15-25 yr.
female
25-35 yr.
female
35-45 yr.
female
45-80 yr.
female
25-45 yr. male
AfricanAmerican
Caucasian
Hispanic
Muslim/Arab
Donor
(Caucasian
male 40-70)
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Newspaper
Direct Mail
Example: PRC Client Marketing
Non-Traditional Approaches
Market
Segment
Web site
Facebook
Instagram
15-25 yr.
female
25-35 yr.
female
35-45 yr.
female
45-80 yr.
female
25-45 yr. male
AfricanAmerican
Caucasian
Hispanic
Muslim/Arab
Donor
(Caucasian
male 40-70)
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Desktop Ads
Twitter
Summary of PRC Example
• For the younger clients, what is the overwhelming conclusion
about marketing approaches?
• Which marketing approach (traditional, non-traditional) is the
most expensive, and why?
• Is the most expensive approach always the best approach?
• What forces are at work in each of the market segments?
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Demographic
Socio-Cultural
Economic
Regulatory
Competitive
Technological
• How do we address each market force in our strategy?
– What is the best cost-value trade off?
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Market Forces Versus Market
Segments
Market Forces
Market Segment
(Demographic, Socio-Cultural, Economic, Regulatory,
Competitive, Technological)
15-25 yr. female
25-35 yr. female
35-45 yr. female
45-80 yr. female
25-45 yr. male
African-American
Caucasian
Hispanic
Muslim/Arab
Donor (Male 40-70)
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Marketing Bottom Line
• Do your homework first.
– Market research: What are you up against?
– People do business with people. You won’t have a uniform people
distribution. Understand your target customer set. Get smart!
• Plan ahead.
– Identify strengths, weaknesses, opportunities and threats
– Build a plan to attack each market segment with the approach that
suits it best.
– Identify risks, cost-benefit trades, and overall investment needs
– Prioritize! Be ruthless
• Execute the plan
– Keep metrics. Test early and often
– Feedback into your plan to update and adapt
– Above all! Be ethical, tell the truth, and do not mislead or
misrepresent your product.
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“Capture” Is Almost the Same… But Not
• Fundamentals look a lot like marketing
– Communicate the value of a product, service, or brand
– Purpose is to increase product sales and profits with federal clients
– Choose target customers through opportunity identification and
focus on key markets
– Understand customer behavior and needs (customer engagement)
– Appeals to federal ventures
• What makes it unique is that you now have a very limited market
segment
– Perhaps only one customer and some unknown decision makers
– Your keys to success become getting to know the customer as well
as possible, as fast as possible, and getting them to know and
understand you.
– You must focus on “customer engagement”
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Customer Engagement Plan
• Customer Engagement Plan (CEP)
– Your strategy to connect with the customer
– People do business with people… you need to be a person they
respect and want to do business with
– You need to bring a solid story about your product or service
– You need to do all of your engagement within very strict confines of
federal law
• Austin Boyd recommends:
– Build a CEP and track execution on a weekly basis
– Put someone in charge and hold them accountable
– Move fast and move early. Competitors are outflanking you as we
speak!
– Develop a “pursue-no pursue” criteria
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“You gotta know when to hold ‘em, and know when to fold ‘em!”
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Example: Pursue-No Pursue Tool
• Pursue-No Pursue Tool
• Probability of Win Calculator
• Based on
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26 separate customer engagement criteria
#of bidders vs. # of awards
Historic company win rate
Results of “black hat” SWOT analysis
• Pursue-No Pursue tells you when to quit
– Not worth spending the money
– Or… shows areas you need improvement
• Probability of Win Calculator
– Shows likelihood of win for investment plan
– Helps build “bid and proposal budget”
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Elements of Customer Engagement
We have identified the key
decision makers for the program
and we understand their
We have identified the key We have identified the
perceptions of the program
decision makers for the
key decision makers for
requirements, our company, and program and understand the program. Have not
our competition. We have met some of their perceptions, met the decision makers
with the key decision makers to through direct meetings or and have no direct
reach these conclusions, and
written correspondence. written correspondence.
have written correspondence to
substantiate our understanding.
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We do not know the key
decision makers for this
program and have no
written correspondence
about their understanding
of our company or the
competition.
Elements of Customer Engagement
We have a rigorous and well-understood
Customer Engagement Process (CEP)
with the purpose of providing
intelligence to qualify and/or influence
opportunities. We complete homework
on our customer before a call, create a We have met with our customer
proactive call plan and scripted
and took more than one person to
questions to gather intelligence, and record notes and body language.
meet post-call to assess our capture We met after the call to assess our
plans and/or our business case. We ask capture plan and/or our business
key questions, and spend most of the case. We asked questions and also
We met with the customer ad
customer meetings in a listening mode. completed a presentation to the
hoc, most likely on only one
More than one person attends the
customer. We used our planning
occasion, and/or with only one
We have not met with the
customer call, helping to keep notes and
to attempt to influence the
person. We do not have a CEP. customer and we did not follow a
record body language. We have met with opportunity, but do not have a
We made a "dog and pony"
Customer Engagement Process
the Contracting Officer for this
rigorous and repeatable process
pitch, and did not spend most of
on this procurement.
procurement or his/her representative for Customer Engagement Process
the meeting listening to answers
to understand this particular acquisition. (CEP). We responded to any and
to key questions.
We also responded to any and all RFIs all RFI's and worked to shape the
and worked to shape the procurement procurement for our particular
for our particular NAICS and capabilities, NAICS and capabilities OR we met
and to change requirements that may
with the Contracting Officer to
have been influenced by our
identify our company and our
competition. We have met with the
capabilities.
customer or Technical Point of Contact
(TPOC) at least once to learn about the
customer needs and to present some
summary information about our
offering.
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The Best Customer Engagement Guy
• Harvey McKay
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Best selling author, head of successful envelope business
http://www.harveymackay.com/
Newspaper columnist
Speaker/Motivator
There is only one way to earn a good reputation, and that is by earning it. Once
you do, don’t ever let it slip away.
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Some Key Points from Harvey McKay
• Know your customer better than anyone else
• 66-point customer profile that you build on your clients
– The customer does not care how much you know about them as
long as they know that you care about them.
• Gather your insights (your customer engagement plan) through
routine conversation and observation
– This takes a long time. It does not happen overnight
• You must humanize your selling strategy
– People do business with people
– You cannot underestimate the value of relationships
• You need to network
– The people you know will introduce you to the people who buy
– Put a strong focus on your networking
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Austin Boyd’s Takeaway on Harvey
• He’s right. Always.
• Give to others freely and never expect a return
– “Free-miums”: Premium quality services and advice that comes at no
cost to the recipient, and which effectively costs me nothing
– When offered freely, with no expectation of compensation,
customers sit up and take notice… they remember you
• Learn everything you can about your customers
– Keep records. Build a database of customer information
– You are developing your market research, including market
segments and customers and their specific desires, likes, dislikes
– I have a 900 person contact database that I invest in heavily to keep
up to date
• Become the connection King/Queen
– When people need to know “who does this?”, help them make a
connection if you believe in their product
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One Last Word from Harvey
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