How to Sell to K-12

How to Sell to K-12

How to Sell to K-12John Q. PorterPresident, Blue Sky Innovative Solutions, LLCJuly 16, 2014

Market Five Force AnalysisFORCELOWMEDIUMHIGHThreat of New EntrantsX Substitute Products/ServicesXSupplier PowerX Buyer PowerXCompetitive RivalryX7/16/2014Blue Sky Innovative Solutions2Market Attractiveness GridCATEGORYWEIGHT2015 (1-5)2020 (1-5)Profitability (10%=3)3Market Growth (10%=3)2Niche Size ($100m=3)1Threat of new entrants1Substitute products/services1Supplier Power2Customer Power1Competitive Rivalry1Fit to Core Competency3Weighted Average157/16/2014Blue Sky Innovative Solutions3SWOT AnalysisSTRENGTHS1.2.3.4.5.6.7.OPPORTUNITIES1.2.3.4.5.6.7.WEAKNESSES1.2.3.4.5.6.7.

THREATS1.2.3.4.5.6.7.

7/16/2014Blue Sky Innovative Solutions4Long Term PositioningGoal: To develop and execute a set of strategic and supporting plans that sustain a competitive advantage for the company in existing and new markets.

Long term plan should not be directed at any one opportunity.7/16/2014Blue Sky Innovative Solutions5Long Term PositioningObjective:Long term positioning activities are continuously performed and refinedThey set the stage for linking Business Development planning with the companys strategic planPositioning is not aligned to a particular milestone in any individual opportunity or pursuit; rather, it supports many opportunities across the entire customer/prospect base.These plans lay the groundwork for targeted, customer/prospectfocused marketing and sales activities.7/16/2014Blue Sky Innovative Solutions6Long Term PositioningInputsActivitiesOutputs7/16/2014Blue Sky Innovative Solutions7Hierarchy of strategic & other plansAnnual operating plansFunctional area resource plansSelling & B&P plansDevelop 4-yr. strategic planDevelop annual BU operating planOrganize marketing teamsExplore market areasPerform market assessmentBuild strategic relationshipsPosition assetsDefine business strategyCompany targets of opportunityCompany corp. objectivesCompany annual 4-year strategic planCompany financial & quality metricsIndustry/market reports & trend forecastsSpecialized market & tech. studiesComp. analysis & benchmarking assessmentsLessons learnedExisting business development plans for specific opportunitiesAssessment PhaseGoal: Assess the characteristics of an individual opportunity and determine its suitability for pursuit.

Objectives:How well an opportunity aligns with the strategic plan and how the companys capabilities and offerings align with the customers/prospects needs.Accurate intelligence about the customers needs, requirements, resources and schedule are essential to determining how well an opportunity aligns with business plans and objectives.Accurate intelligence about potential competitors is essential to developing a winning strategy.7/16/2014Blue Sky Innovative Solutions8Assessment PhaseInputsActivitiesOutputs7/16/2014Blue Sky Innovative Solutions9Strategic plansAnnual operating plansOpportunity infoBusiness development databaseAssign opportunity leadDevelop call planDevelop customer relationshipUnderstand program requirementsAssess strategic fitAccept pipeline entryIdentify competitionPrepare initial win strategyDevelop capture planPrepare for pursuit reviewPursuit reviewInitial capture planCandidate solutionsCall planPursuit review packageBusiness development database updateThe Benefit to YouProvides understanding of customer issues and challenges and an early opportunity to confirm alignment with company strategy, plans and priorities.Provides opportunity to influence customers perception of company and shape the procurement.Provides intelligence on firms that could become key competitors.Allows management to assess whether the opportunity fully aligns with business strategy and provides reasonable win probability.7/16/2014Blue Sky Innovative Solutions10How to Sell to K-127/16/2014Blue Sky Innovative Solutions11K-12 Market Size*Mkt. SegmentMkt. Size 2012Mkt. Size 2015Growth 2012-2017Mkt. Size 2017K-12687 B788 B4%853.1 BE-learning K-125.4 B9.3 B20%13.4 BChild care65 B77.4 B6%87.0 BTest prep/ tutoring/ counseling11 B13.1 B6%14.7 BInstructional materials20.1 B23.9 B6%26.9 B7/16/2014Blue Sky Innovative Solutions12*GSA AdvisorsSIIA Analysis of the K-12 Technology Market, 2012Education technology (non-hardware) products and services: 7.97 B

Major segments:ContentInstructional support (including assessment* and professional development)Platform & administration software tools (including central office, data and IT)

Special areas:APSpecial Education**ELL materialsOnline courses***

*Testing was largest growth area; instructional support in general, 36% growth**Highest growth year over year***Online growth more than 200%7/16/2014Blue Sky Innovative Solutions13Key Initiatives in K-12Assessment/ diagnostic toolsInstructional materials focused on high stakes assessment content areasSpecial educationAnalysis toolsHardwareProfessional developmentInstructional support services7/16/2014Blue Sky Innovative Solutions14Critical Sales Cycle Timelines for K-12What is the buying season?What is the best time to influence budget allocations?7/16/2014Blue Sky Innovative Solutions15Key Decision Makers7/16/2014Blue Sky Innovative Solutions1616Key Decision Makers7/16/2014Blue Sky Innovative Solutions17How to Sell to K-12: The AssessmentBackground Research:Does the district have a strategic plan? If so, read it and know it.What are the districts and superintendents next 12 month priorities?Review the districts budget.Google all key personnel that could influence your procurement and create a dossier on each person.How long has this administration been in place? (It matters whether it is new or has been in place for a while)What are the political dynamics between the board, superintendent and community elected officials?Look for articles in which key personnel have been cited that could give you hints on their strategic direction.Spend time getting to know the district website.7/16/2014Blue Sky Innovative Solutions18How to Sell to K-12: The AssessmentContinued-

Understand how the district is organized.What is the Theory of Action of the district centralized, or decentralized?Look for outside pressures that your product or service could help to alleviate.Does the district have a bias for or against vendors of a particular size?Do you know anyone that could refer you to senior level personnel in the organization?KNOW YOUR COMPETITION!Are your competitors presently providing services or productions to the district or its schools?Understand how the competition positions their products and services.

7/16/2014Blue Sky Innovative Solutions19Corporate Sales Team7/16/2014Blue Sky Innovative Solutions20Responsibilities: Business DevelopmentKey external face of the organizationIdentifies and qualifies opportunityEstablishes prospect and customer contact and assesses competitors capabilitiesOverall authority for leading sales process from strategy phase through post-proposal submittalSupports proposal writing team during proposal development to ensure strategies developed in sales process are implementedContinues to feed market intelligence to proposal team7/16/2014Blue Sky Innovative Solutions21Types of Sales ConfigurationsDirectIndirect/ channelsIndependentInsideHybrid7/16/2014Blue Sky Innovative Solutions22Responsibilities: Proposal ManagerOverall authority and responsibility for leading the proposal effortResponsible for initiating proposal planningManages all proposal development and review activities7/16/2014Blue Sky Innovative Solutions23Responsibilities: Technical LeadDevelops the winning technical solution, driven by the overall win strategy.Serves as principal member providing support by understanding customer technical requirements and assessing competitors technical capabilities.Identifies technical risk to the proposal and provides risk mitigation plans to be incorporated into the proposal.7/16/2014Blue Sky Innovative Solutions24Responsibilities: Senior ManagementShould understand all aspects of the proposal.Conducts final review of the proposal for strength of strategy, themes.Reviews final details of cost and price recommendations and technical solution.Makes the ultimate decision that the opportunity meets the strategic direction of the company, with the necessary ROI. Validates that appropriate resources can be engaged to deliver a winning proposal with successful implementation.7/16/2014Blue Sky Innovative Solutions25How to Identify Sales TalentJob FactorsSample Interview Questions1. Quality of Planning: Developing strategies to manage sales consistent with company objectives and customer needs.What is the sequence of steps you follow in developing a sales strategy?What preparations do you make before visiting a customer site?How do you determine the point at which a sales strategy needs revision?2. Forecasting Accuracy: Forecasting business accurately and on a timely basis.What procedures do you follow in formulating business forecasts in terms of value and timing?What do you consider to be an acceptable margin of variation regarding the accuracy of your estimates?What factors contribute to a successful forecast?How do you identify potential charge backs and prevent them from occurring?7/16/2014Blue Sky Innovative Solutions267/16/2014Blue Sky Innovative Solutions27Job FactorsSample Interview Questions3. Prospect Management: Identifying and contacting new leads.How do you identify potential leads on new accounts?Do you like cold calling?How do you determine the appropriate levels for making contacts?What was your territory and quota on your last sales job? How did your performance compare with your quota?How do you investigate the potential for expansion of a current account?4. Account Management: Maintaining existing accounts and obtaining orders of high quality.How do you prevent being limited to dealing with a single function or level within a company?What measures would you take to protect current accounts from our competition?Describe a situation in which you identified a problem and took corrective action before a crisis developed.What considerations deserve the greatest attention in maintaining an existing account?7/16/2014Blue Sky Innovative Solutions28Job FactorsSample Interview Questions5. Administration: Keeping accurate records, documenting actions and managing commitments effectively.What do you feel are the most important administrative records for a sales representative?Describe three kinds of business forms with which you have experience.What steps do you take to keep within administrative time frames?How do you handle a backlog of paperwork?6. Customer Communications: Demonstrating a professional sales approach with customers.Characterize an effective sales letter.Compared to others, would you say you are better at making telephone calls or in face-to-face contact?What do you feel are the most important elements of a successful sales presentation?7. Support Organization Interface: Negotiating and cooperating with others to accomplish optimal utilization of resources.How do you go about gaining the support of another department or organization?Describe an occasion when you cooperated well with others toward the attainment of a common goal.What do you consider to be the important factors in maintaining an effective team relationship?7/16/2014Blue Sky Innovative Solutions29Job FactorsSample Interview Questions8. Internal Management Interface: Communicating effectively with company management and accepting managements overall goals.What has been your means of communication with superiors?Describe a situation in which you successfully handled a set of unclear instructions.Compare your written and oral reporting skills.9. Effort/ Innovation: Persisting with special effort and using innovative problem solving to reach goals.Describe a unique marketing strategy you designed.What was the most difficult order you ever won? How did you do this?What kinds of special qualifications are required of a sales representative as compared with other professionals?What length of sales cycle are you most comfortable with?In what situations are you most inclined to exert additional efforts, beyond the usual standard?10. Self-Development: Seeking to improve ones organizational effectiveness through formal and informal channels.What activities do you pursue on your own to improve your sales skills?How do you keep current with product changes?In what areas would you appreciate help improving your skills?Describe an occasion when you responded favorably to suggestions for improvement.29Questions?7/16/2014Blue Sky Innovative Solutions30John Q. PorterPresident, Blue Sky Innovative Solutions, [email protected]