capital equipment consulting assessing our customers and their requirements
TRANSCRIPT
Capital Equipment Consulting
Assessing our Assessing our customers and customers and
their requirementstheir requirements
Critical success factors Perceptual and valueCritical success factors Perceptual and valueBenefits sought by customer
Weight Wgtd score us
Best Comp
Us Final Value Justification of feature
Operator ease of use 15 105 90 135 Operator ease converts at 1 min/hr saving enables the operator to handle 2% more samples a day = £20/day = £4500/year
Compatibility with existing
15 105 90 105 £10,000 saving from not having to develop a new calibration
Service 20 140 120 160 Agreed service will keep machine within +/-3%. Each additional 1% drift will cost £10,000/year
Delivery Speed 10 50 60 50 Delivery delay of 1 week costs £2000 to have samples done outside
Total of features % of ours
60 4001.11
360 1.0
450 1.25
Means that features account for 60% of the decision so comp 1 and 2 can stand a 15 and 7% price differential
Perceptual Price differential justifiable from ours
40 155
140 180 To help justify this we must develop quantifiable value justification that the customer accepts as his analysis
Value Price difference 10 Features that develop a cost difference that can be quantified like power consumption
Value adjusted price difference
40 155 150 180 Price allowing for both perceptual and value benefits.
NicNicee
NeeNeedd
Assessing the attractiveness of Assessing the attractiveness of applications/key accountsapplications/key accounts
Criteria for assessing customer/application attractiveness
Weight Wgtd score us
Best Comp
Us Final Comments
Size of segment 15 105 90 135
Competitive intensity of segment
15 105 90 105
% Gross Margins attainable in segment
20 140 120 160
Our market share in segment
10 50 60 50
Growth rate of segment
40 155
140 180
Total 555 500 630
Two considerations for key Two considerations for key accounts/applicationsaccounts/applications
Star Customer
s/ applicatio
n
Development
Customers/ application
Developed
Customers/
application
Regular Customers/ application
High Relative business strength Low
Hig
h C
usto
mer
Attra
ctive
ness L
ow
1000.00
1500.00
2000.00
2500.00
3000.00
3500.00
4000.00
0 200 400 600 800 1000 1200
Marketing Effort Level (X)
Sal
es
-10000.00
-5000.00
0.00
5000.00
10000.00
Pro
fit
a
b
c
d
Freeze
Show input data
Show Best fit
Zoom X Range
Sales Parameters
Profit Parameters
r
s
t
Show Profit
Profit = ( r - s )* Sales - tXSales = b + (a - b) * d + X
c X
c
Scroll Current Sales function parameters Scroll Profit function parametersView Graph Data
4500
1500
2.2
164349
4500
1500
2.2
164349
1
0.4
0.15
Developing sales response curves in the key Developing sales response curves in the key account, optimising against others and account, optimising against others and
valuing.valuing.
Dominance (D) 20%
Gordon Brown/George W
BushTime
Influence (I) 25%Clinton/Obama?
Being Heard
Conscientious (C) 10%
George H W BushBeing Right
Steadiness (S) 35%
Me John MajorBeing Liked
A Acedemic 10%
Tony Blair? Being interested
Abrupt Telephone Manner Friendly Guarded (task) Open (people)
Asse
rtive T
ele
ph
on
e
Man
ner P
assive
E
xtro
vert
Intro
vert
Competitive Negotiating Style Co-Operative
D Dominance Assertive/Task D Dominance Assertive/Task 19% Gordon Brown - Time19% Gordon Brown - Time
Constantly questioning the status quo
Brazenly Outspoken Fearlessly confident Assertive and demanding Determined and driven Visionary
D Dominance 19% - Gordon D Dominance 19% - Gordon BrownBrown??
Description assertive/task
Response - time
Constantly questioning the status quoBrazenly outspokenFearlessly ConfidentAssertive and demandingDetermined and drivenVisionary
Above all establish your credibilityHold your ground, but find the middle groundKeep your emotions – and your ego in checkGo to the source of credibilityDon’t be too detailedBe prepared, be brief and be gone
I Influence Assertive/People I Influence Assertive/People Obama/Clinton 25% - being Obama/Clinton 25% - being
heardheard Enthusiastic Imaginers – blue sky
thinkers Innovative risk takers Pro-active and decisive Responsible and accountable Interactive Bottom Liners
I Influence 25% ?I Influence 25% ?Obama/Clinton – being heardObama/Clinton – being heard
Descrip Descrip assertive/peopleassertive/people
Response being Response being heardheard
Enthusiastic imaginers
Innovative risk takers
Pro-active and decisive
Responsible and accountable
Bottom-Liners Interactive
Give the headlines first
Stay grounded no matter what
Address risks up front
Follow through, follow through, Follow through
Let them sell themselves on it first
S Steadiness Passive/People S Steadiness Passive/People 36% - Me John Major Being 36% - Me John Major Being
Liked Liked Devoted to the tried and trusted Averse to the new Empathetic Deft people handlers Difficult to identify
S Steadiness 36% Michael S Steadiness 36% Michael Howard/John MajorHoward/John Major
Descrip people Descrip people passivepassive
Response being likedResponse being liked
Devoted to the tried and trustedAverse to the newConscientious corporate citizensDeft people handlersEmpatheticDifficult to identify
When in doubt, assumeSupply proof, proof and more proof.Stress people benefitsLink the new to the oldDon’t dive straight into work – have some chatMake sure they agree before moving on Be consultative
C Conscientiousness C Conscientiousness Passive/Task 9%Passive/Task 9%
George W Bush – Getting it George W Bush – Getting it RightRight Fiercely self reliant
Absolute and Resolute Meticulous Unyielding Perfectionists
C Conscientious 9% - George W C Conscientious 9% - George W Bush?Bush?
DescriptionDescription ResponseResponse
Driven by fear of being wrongProactiveFiercely self reliantAbsolute and resoluteMeticulousUnyielding perfectionists
Enable action but don’t force itFly below the radarBuild AlliancesDraw your line and hold to it
A Academic 11% Tony Blair A Academic 11% Tony Blair Being InterestedBeing Interested
Intellectually fluid Balanced Information driven Methodical and process oriented
A Acedemic 11%A Acedemic 11%Tony BlairTony Blair? Being Interested? Being Interested
Description - Balanced
Response Being Interested
Methodical and process orientedInformation drivenQuantitative and preciseRelentlessly thoroughGuarded and cautiousBalancedIntellectually fluid
Tell your story chronologicallyInvolve the thinker in your processBe exhaustive but patientAllow and encourage others to join the thinking
Identify Your Style and Your Bosses Identify Your Style and Your Bosses Style – What do each of them want Style – What do each of them want
and therefore what should your first and therefore what should your first words be to each?words be to each?
Identify Your Style and Your Bosses Identify Your Style and Your Bosses Style – What do each of them want Style – What do each of them want
and therefore what should your first and therefore what should your first words be to each?words be to each?
What Do They Want What they want to hear
D They want to know what and how long you want
I need 20 minutes to get your decision on this
I They want the stage How was your ski-ing trip
S They want to be liked How are you
C They want to decide for themselves after exploring
I would like to ask your opinion on how to deal with a problem we are having with..
A They want to be interested
I would like to discuss with you a problem we are having
What do we say to them?
How do customers respond to our How do customers respond to our selling stylesselling styles
Selling Style D I S C A
D Direct and pushy L D D D
I Friendly and persuasive
L L D L
S Personable D L L L
C Thorough knowledgeable
D D L D
A Explorative D L L D L
We have to be able to adapt or match our team with theirs
In General Concentrate on In General Concentrate on Dominance, Influence and Dominance, Influence and
Steadiness– 79%Steadiness– 79%
First establish credibility and provide proof that you know what you are doing – dominance and steadiness.
Next provide an overview – influence Go through in detail – might hook
the academic Summary of what I just told you.
Capital Equipment Consulting
Assessing Our Assessing Our CustomersCustomers
Decision Making Decision Making RolesRoles
Industrial SellingIndustrial Selling
Economic decision Economic decision makermaker
Usually only 1Can say yes or noCan find a budget or take it awayDifferent for each sale – strategic, first time, rebuy
User User decision decision makermaker
Can be manyCan say yes or no
GatekeepeGatekeeperr
Can say no but not normally yes
Friend or foeYour sponsor
Influencers, Silver foxes The oily rags
Project Sponsors
Role in customer’s decision Role in customer’s decision making teammaking team
Assessing our Customers Assessing our Customers Decision Making Mood to your Decision Making Mood to your
ProposalProposalOn a roll – open to persuasion if you match one of their opportunities
Fire-fighting – open to persuasion if you match one of their threats. Trouble before growth!
Level Pegging – has not
recognised need
Head in the Clouds – no
needs