Introduction To Solution Marketing (Fall 2009)

• 1. Introduction to Solution MarketingSteve Robins Principal Solution Marketing StrategiesDecember, 2009 Solution Marketing Strategies, 2009

2. Steve Robins 10+ years in solution marketing Expertise in product, solution and industry marketing Experience: EMC Documentum, KANA, The Yankee Group and more Principal, Solution Marketing StrategiesStrategic marketing consultancy: solution marketing, market research,messaging, campaigns and more Founder, The Solution Marketing BlogInbound Marketing Certified ProfessionalContact us: s.Robins [at] SolutionMKT.com SteveRobins1www.LinkedIn.com/in/ presented atwww.Twitter.com/SteveRobinswww.SolutionMarketingBlog.comwww.SolutionMarketingStrategies.comwww.barcamp.org/ProductCampBoston 2009p2 3. What Do These Have In Common? 2009p3 4. Hyundai Removing the Biggest Obstacle to Car-Buying 2009p4 5. ChuckECheeses Party Complete 2009 p5 6. IBM Thinks Like a Customer 2009 p6 7. Amazon Kindle The Complete Experience 2009p7 8. Solutions Everywhere! 2009p8 9. Solutions Everywhere! 2009p9 10. Is This You?ProductPocket Sprocket Pocket Sprocket Addresses only part of This new product willThis new product willcustomer needrevolutionize your business!revolutionize yourlife! life! business! Feature-function Best features! Best features! Prone to Newest capabilities! Newest capabilities!commoditizationTechnically advanced! Technically advanced! Fastest processing! Fastestprocessor speed! processor speed! processing! Pocket Sprocket 2009p10 11. Customers Want SolutionsSolutionCompletePocketCompletePocket SprocketSprocket Addresses the entireSprocket Solution Sprocket Solution This new product will This new product willcustomer need revolutionizeyourprofits revolutionizeyourprofits Increase your business!Increase your business! Includes the ecosystemStreamlines processes.Best features! Best features! Streamlines processes. Provides unique value Improves customer service.Newest capabilities!service. Newest capabilities! Improves customerLowers costs.Technically advanced! Technically advanced! Lowers costs. PartnerEnsures processing!Fastest processing! Fastest compliance. Ensures compliance. ServicesProducts SprocketSprocketTrainingProtector OptimizationIntegrationPocket SprocketSprocketStrategyProduct Support 2009p11 12. Comparing Product Marketing vs. Solution MarketingProduct MarketingSolution Marketing Product: features-benefits Solution: Customer needs Promotion: push Education & Engagement:communications Dialog Pricing: cost-plus Value: Cost vs. benefit Place: distribution Access: Customer choice* Derived from Dev & Schultz in Marketing Management, 2005SprocketSprocketProtector OptimizationPocket PocketSprocketSprocket Sprocket Strategy 2009p12 13. What is a Solution Anyways? 2009p13 14. Definition solution marketing. Noun. The process of defining, educating, and providing access to complete and integrated solutions that deliver customer value by helping customers to solve their problems. 2009p14 15. Technology Adoption CurveThe Chasm Main StreetRelative % of CustomersThe Solution OpportunityThe Tornado End of Life Early LifeBowlingAlley Innovators Early Adopters Early Majority/ Late MajorityLaggards TimeTechnology Visionaries PragmatistsConservativesSkepticsEnthusiasts Customers want technologyCustomers want solutions and convenience and performance Sources: E.M. Rogers, G. Moore 2009p15 16. Geoffrey Moores Technology Adoption Lifecycle Early Market Technology enthusiasts look to be first to get on board.The Chasm Early markets interest wanes but mainstream thinkstechnology is immature.Bowling Alley Niche-based adoption in advance of the generalmarketplace, driven by compelling customer needs and willingness ofvendors to craft niche-specific whole products.The Tornado Mass-market adoption as general marketplace switchesover to the infrastructure paradigm.Main street Aftermarket development, when base infrastructure hasbeen deployed and goal is to flesh out potential.End of Life New paradigms supplant the leaders.Adapted from Inside the Tornado, G. Moore 2009 p16 17. Solution Marketing Requires a New Model PromotionProduct P Price PThe 4 Ps P Place PDerived from SIVA model, Chekitan & Dev 2009p17 18. Solution Marketing Requires a New Model The 4 Ps - updatedWhere can I learn moreEducation about it?How can I solveSolution ValueWhat is mymy problem?SEVAtotal sacrifice Solution Marketingto get thissolution?Access Where can I find it?Solution Marketing answers 4 customer questions Derived from SIVA model, Dev & Schultz 2009 p18 19. Solution Marketing Adds Value To Marketing, Sales and Product Management FieldEnablement Social MediaFrictionlessSalesEducationSolutionValue SEVASolution Marketing Access Marketing Product SupportManagementSolution Marketing 2009p19 20. SolutionNot A Solution to the Customers ProblemProduct 2009p20 21. SolutionComplete Solution to the Customers ProblemSolution 2009 p21 22. SolutionComplete Solution to the Customers ProblemPeopleTechnology Applications User interfaces Complementary Trainingtechnologies Support Hardware and Best practicesinfrastructure Domain expertise Custom coding Integration servicesProcess ROI studiesReengineering Process optimization Information efficiency, Dataeffectiveness Content, documents,imagesServices External data sources Strategy Data security Project management Data policies Risk management Custom coding Integration services 2009p22 23. Solution MarketingSolutionSolution - ResearchCustomer: How can I solve my problem? Solution Research Solving the Problem Industry/functional issues and regulations Business challenges Operational challenges with current process Legacy systems Training requirements Other business and system requirements 2009 p23 24. Solution MarketingSolutionSolution Develop the SolutionCustomer: How can I solve my problem? Action - Develop the Solution! Product enhancements required? Partner technologies Services strategy, process reengineering, integration, training, support Beta partners, prospects and customers 2009 p24 25. Solution MarketingEducation Education ResearchCustomer: Where can I learn more about it? Research Functional/industry terminology and buzzwords Target job titles and companies Optimal communication channels.. live events, podcasts, web, most popular publications, etc. (e.g., government employees often lack web access) 2009 p25 26. Solution MarketingEducation Education MessageCustomer: Where can I learn more about it? Message Its About Relevance Use language the prospect understands Industry/function terms Common business issues and challenges Remember this is all about how your solution solves their business problems Benefits: business-oriented rather than technical Higher profits, lower expense, higher revenue, better customer service, ensures compliance 2009p26 27. Solution Marketing Education Education - Tuning the Message Technical Message GeekSpeak High Credible Shortens mortgage cycle timeSOA architecture enables integrationwith legacy systems Business ITMgr. Business Message Low HighHelps your Janitor CFO company IncreasesprofitabilityVague Low Does it exist? 2009p27 28. Solution MarketingEducation Education the Solution Paradox Customer: Where can I learn more about it?Beware the Solution ParadoxDang Customere rThe customer wants out-of-boxExpectations offerings Message.but no one company can provide Solutioneverything out of the boxEven a fully integrated and completesolution cannot possibly solve all of acustomers problems due to:Ask:Ask: Unique environments Does the solution meet customer requirements? Does the solution meet customer requirements? Specific industry requirements Is the message backed up by the solution? Is the message backed up by the solution? 2009 p28 29. Solution Marketing Education Education Create a Dialog Customer: Where can I learn more about it? Action Create a Two-Way Dialog with the Market Give customers the right information on the right subject at the right time on their terms * Enable prospects to find your solutions Enable market education Use Web 2.0 tools Blogs, Podcasts, Twitter, Facebook, etc. Provide recent customer references, who are most likely to advocate *Go beyond one-sided push promotion* In the Mix (Marketing Management) (Dev & Schultz, 2005) 2009p29 30. Solution MarketingEducation Education - SalesCustomer: Where can I learn more about it? SALES Sales training:Solution selling methodology, consultative sellingBusiness problems, industry/functional issuesBusiness solutionsCompany and solution messagingPartner engagement models system integrators, tech partners etc. Sales tools:Collateral, referencesROI models and value toolsPricing 2009 p30 31. Solution MarketingValueValueCustomer: What is my total sacrifice to get this solution? Value = Benefit - CostResearch Identify and place value on significant customer purchase drivers * Common ROI models/before-afters Purchasing habits Budget trends Action! Articulate value in terms of price, ROI, TCO Develop ROI assessments with consulting/system integrator partners Reference customers value achieved * In the Mix (Marketing Management) (Dev & Schultz, 2005) 2009 p31 32. Value Value = Benefit - TCO Value-Based Pricing Assume that vendor charges fair pricefor features providedBusiness Benefit ($) Lost revenueCustomerBenefit Unneeded features Benefit Customer BenefitBenefit Price CustomerCustomer Benefit BenefitAB CD High ValueFair ValuePoor Value Fair Value Lost software Price matches Unneeded Price matches revenue benefit features benefitSolution use-case drives benefit and value 2009p32 33. Solution MarketingAccessAccessCustomer: Where can I find it? Research Common purchasing channels? Do they prefer to buy through VARs? Through SIs? Direct? On contract? Preferred delivery models Software? SaaS? Business Process Outsourcing?Action! Enable the customer to purchase the solution through the channels that they want New channels beyond the traditional Marketer provides fastest, least-expensive access Successfully complete the sale Ensure customer success through the last mile 2009 p33 34. Ensure Alignment Throughout the Extended EnterpriseSuppliers/Back Front Customers Partners Office OfficeTech, SI Manufacturing MarketingPartnersEngineeringSalesServiceGoal: Customers get what they were promisedHow Do You Achieve This? Consistent messages across entire company and ecosystem Sales longer sales cycles; solution training; specialized sales teams Support from engineering/product management, services, tech support, consulting teams Executive support 2009p34 35. Conclusion Solutions meet customer needsSolution Marketing - SEVA Solution Education & Engagement Value Access Benefits 3-7% return (increase) on sales (McKinsey, 2003) Higher margins - price based on value rather than cost-plus More differentiated offering Increased customer satisfaction 2009p35 36. Bibliography Dev, Chekitan S., and Don E. Schultz. 2005. In the Mix MarketingManagement 14, no. 1: 16-22. Business Source Premier,EBSCOhost (accessed February 25, 2009). 2009p36 37. Thank You Steve Robinss.Robins [at] SolutionMKT.comLinkedIn.com/in/SteveRobins1PrincipalSolution Marketing Strategies Twitter.com/SteveRobinsSolutionMarketingBlog.comSolutionMarketingStrategies.com www.SolutionMarketingStrategies.com 2009 p37