Daniel Tkach

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GETTING READY TO GROW YOUR COMPANY Marketing in
the US Strategy and Go-to-Market

• Daniel Tkach
• Managing Partner, PartnerAlliances LLC
• CEO, IIBD
• January 2005

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Agenda

• Strategy
• Providing Customer Value
• Positioning Strategy
• Marketing Strategy
• Go-to-Market
• The marketing plan
• Market opportunity by segment
• Terms and conditions for the offering
• Deliverables produced for the offering
• Education plan
• Technical Support plan
• Marketing activities
• Partnering for Value Creation
• Partners and Channels
• The Routes to Market Selling Model

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Strategy

• Comprehensive master plan how the company will
  achieve its mission and objectives
• Strategy formulation
• Long range plans for growth and business
  management
• Vision
• Mission
• Objectives

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Strategic Vision

• Alice Would you tell me, please, which way
  ought I go from here?"Cheshire cat That
  depends a good deal on where you want to get to
• The future of the company what the company wants
  to become
• Typically within a 3 to 5 year timeframe
• Microsofts original Vision Statement
• A computer on every desk and in every home"

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Mission Statement

• The mission statement sets guidelines for
  business operations
• The reason for the companys existence
• The firms customers, their needs and how they
  will be met by the firms products and services
• PartnerAlliances Mission Statement

PartnerAlliances delivers solutions that
confer competitive advantage to our clients by
enabling them to execute their marketing and
partnering strategies tactically. We bring
the competencies, resources, and tools to help
technology firms move their products to market
faster and more efficiently
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Providing Customer Value

• What is Value?
• Value is in the eye of the beholder
• Value is customer dependent
• Solving problems and easing pain points
• Adding or Increasing benefits
• How does a customer perceive Value
• Understanding
• Relating
• Defining Value Value proposition
• How do we show our Value to our customers and
  partners?
• The Value of the offering depends on its
  Positioning

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Vision, Mission and Value Exercise 5 min

• Vision Statement
• What does your company want to achieve in the
  next 5 years?
• Mission Statement
• What is your business?
• Who are your customers?
• How do you provide value to your customers?

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Positioning of the Offering

• Defining and validating new positioning and
  branding for the offering in order to
• Increase sales revenue
• Create or increase market awareness among the
  current customers
• Target new segments that have not been previously
  captured yet by the company
• Phases
• Define the Positioning Concept
• Create the Marketing Positioning Strategy

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The Positioning Concept

• Match the offering with the customer value
  requirements in the target markets,
• Define how the company wants to be perceived by
  the target market buyers.
• Identify and selecting markets or segments with
  business potential, target competitors and devise
  a strategy to compete more effectively.

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Defining the Positioning Concept

• Market Positioning
• Determine market wants and needs
• Analyze market opportunities
• Determine market critical success factors
• Size, growth, barriers to entry, price
  sensitivity, and profitability
• Identifying company and competitors' strengths
  and weaknesses
• Assessing abilities to meet market requirements
• Perceptual Positioning
• Crafting a distinctive corporate and brand
  identity for the company, based on market
  positioning

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Marketing Strategy

• Define the marketing mix
• Product
• Price
• Promotion
• Channels (Place)
• Organize the mix into a coordinated set of tasks
  designed to achieve the positioning objectives

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Marketing Strategy Components

• Offering Strategy
• Pricing Strategy
• Sales Force Strategy
• Channel/Distribution Strategy
• Promotion and Integrated Communications
  Positioning Strategy

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Go-to-Market Executing on the Marketing Strategy

• The Marketing plan
• Market opportunity by segment
• Segment(s) selection
• Terms and conditions for the offering
• Deliverables produced for the offering
• Education plan
• Technical Support plan
• Marketing activities

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The Marketing Plan

• Objective Provide evidence on why the offering
  should be brought to market by the company,
  including
• Customer pain points and business issues solved
  by the offering.
• Key offering features, functions and
  differentiators
• Competitive matrix showing what competitors offer
  and how their offerings compares with the
  companys.
• Target customers defined
• Route to market chosen, indicating the internal
  and external resources available in each step of
  the sales cycle.

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Market Opportunity by Segment

• Objective provide a common understanding of the
  market opportunity in each segment, including
• Market opportunity and segmentation by geography
• Segment value proposition, including defined
  benefits with supporting selling points and
  differentiators for each identified segment.
• Committed volumes and revenues
• Requirements for deliverables
• Requirements for education
• Messages for each segment
• Offering / release announcement and availability
  schedule

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Terms and Conditions and Licensing

• Objectives
• Document the common sets of terms and conditions
  for each business partner type or relationship
• Key Deliverables
• Standard proposal inserts
• Ts Cs Documentation

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Deliverables

• Objectives
• Provide communication vehicles for the sales
  force and partners to share information about new
  offerings
• The information must cover all related marketing
  aspects down to the individual product level.
• This information in can be distributed either a
  CD-ROM or through the Web sites
• Key deliverable
• The Business Development Kit

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The Business Development Kit

• Market Opportunity
• Partnership offering opportunity
• Product opportunity
• Services and Support opportunity
• Sales kit
• Offering directed Web Content
• (Web) Seminar invitation
• Direct mail / e-mail
• Inside sales script
• Collateral and demo
• Customer references
• Pilot program
• Fast implementation support (accelerator program)
• Contact/order points
• How to order deliverables
• Who is the partner contact point at each partner

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Education and Technical Support

• Education
• Marketing training
• Sales training
• Technical training (entry level and advanced)
• Certification program
• Technical support
• Pre-sales support,
• E.g. handling pre-sales technical questions
• Post-sales support
• E.g. Solving problems related to installation,
  migration, customization, performance and
  operations.

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Marketing Activities

• Demand generation marketing plan
• Awareness and lead generation
• Advertising, Web, direct mail, sales promotions,
  and PR plan
• Web site landing pages, white papers and Web
  seminars
• Lead management
• Consolidation, prioritization, qualification,
  assignment and tracking of leads.
• Clear lead referral system directed to specific
  partners
• Campaigns and activities
• Media plan
• Press releases, advertising
• Events, associations, personal relationships

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Communicating the Customer Value

• Outbound component of the companys Go-To-Market
• Integrated Communications, Marketing
  Communications, Key to project the desired image
• Including
• Message Set and Copy Platform
• Collateral
• Offering fact sheets, brochures, white papers,
  presentations and Web seminars
• Advertising in selected media
• PR Press releases and publications
• Web Site development and maintenance
• Field sales tools
• Event marketing

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Buy vs. Build vs. Partner

• Buy
• Do you have the financial resources, time and
  expertise
• To buy or license intellectual property
• To acquire another company / merge
• Build
• Do you have the right technical capabilities,
  resources, and time
• To build new technologies
• To expand your current product portfolio into new
  areas
• Partner (the path of least resistance)
• Do you have the right people and skills
• To establish a successful business relationship
• To manage-through the process
• To stay focused on achieving the partnership
  goals

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Partnering for Value Creation
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Partnering is Necessary, but it is not Easy

• Partnering requirements
• Develop clear strategic partnership goals
• Select a partner and develop the relationship
• Position and market the joint partner solution
• Measure the success of the partnership
• PartnerAlliances proven Partner Engineering
  process

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Selling Partners (a.k.a. Channels) - I

• Systems Integrator (SI)
• A company that provides multi-vendor software
  and hardware integration, implementation,
  reengineering and consulting. Design, develop and
  implement complex projects
• Consultant
• A company that helps define, evaluate and
  implement new product/business opportunities, and
  programs to increase market share, sales and
  profits of the base business.
• Solution Provider
• A company that provides customized business
  solutions for customers. Focus on vertical or
  cross-industry applications.
• Reseller
• A company that resells large volumes of standard
  offerings directly ti its customers. Provide
  configuration and product or infrastructure
  related services

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Selling Partners (a.k.a. Channels) - II

• Independent Software Vendor (ISV)
• A company that develops, sells and supports
  software proprietary software, on top of one or
  more vendor platforms.
• Original Equipment Manufacturer (OEM)
• A company that buys a vendors product or
  component, customizes or repackages it for its
  particular needs, and sell their offering under a
  private label
• Value Added Reseller (VAR)
• A company that resells another vendors product
  together with software, applications or
  consulting services of its own, thus adding
  value. The original products name is usually
  still used

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Partner Roles in the Selling Model

• Demand Generation Prospect and Qualify
• Demand generation Campaigns, advertising, press,
  direct mail, sales promotion, web seminars, etc.
• Lead management Lead consolidation,
  prioritization, qualification, assignment,
  tracking and measurement
• Pre-Sales Develop, Solution and Proof
• Understanding customer needs and issues, provide
  information on pricing, availability, Ts Cs,
  solution configuration, tests and demos,
  competitive analysis.
• Close the Deal
• Obtain customer order including final
  negotiations, contract signing and financial
  arrangements
• Deploy
• Receiving and fulfilling the order, from order
  delivery to billing, installation, customization,
  integration, training. May include business
  process reengineering.
• Support
• Technical support and customer care

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The Routes to Market Selling Model
Demand Generation
Pre-Sales
Deploy
Support
Close the Deal
Develop Solution Proof
Fulfill Install Bill
Reengineer Integrate Train
Prospect
Qualify
Close
Technical Support
Customer Care
Partner
Consultant ISV Sol. Provider Reseller OEM SI VAR E
duc. Prov. Supp. Provid. SW Vendor .
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Final Comments

• The way marketing needs to be done in the US
  is very different from the approach that is used
  in Latin America
• The way a company goes to market can make the
  difference between success and failure for the
  companies that want to compete in the US
  marketplace

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Questions?