Business Development
description
Transcript of Business Development
WORKSHOP: BUSINESS DEVELOPMENT
www.springforwardtraining.com, 2010
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Learning Objectives
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• To understand and apply the sales cycle• To learn the steps in consultative selling• To gain new and refine existing prospecting approaches• To learn proven strategies to access agency contacts• To learn best practices for capture management• To know when to team and the available teaming options• To understand pricing models and when to use them• To understand the importance of customer relationship
management (CRM) and explore CRM tools• To revisit strategies for effective time management and
apply them to the sales process
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Begin with assumptions about the company.
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Skilled Team
Marketing Strategy
Viable Product or Service
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Begin with assumptions about the salesperson.
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The sales process is very complex and will take many years of practice and experience to master.
Must practice and obtain experience
Must have integrity and honesty
Must believe in product and service
Must have vital characteristics, enthusiasm, empathy for the customer and the ability to communicate
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Sales
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Sales
Capture
CRM
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THE SALES PROCESSExplore the Steps in the Sales Process
Discuss the Consultative Approach
Exercises: Product Features and Benefits, Qualifying Checklist, Develop a Script, Interview Assessment, 10 Common Rejections and Responses, Defining the Sales Cycle
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Explore the steps in the sales process.
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• Research and strategize• Qualify prospects (phone and in-person)• Confirm the decision maker• Conduct the sales interview/ meeting• Address objections• Present your solutions to the appropriate
audience• Close the sale
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Research and strategize.
• Know your product’s features and benefits
• Know your competitor’s features and benefits
• Develop a selling strategy emphasizing your strengths
Product Features and Benefits
Exercise
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Qualify prospective customers.
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The benefits of qualifying your prospects are two-fold, you do not waste time on unqualified prospects and you increase your chances of winning.
Do you use the product or service?
Can you afford it?
Do you need it?
Do you have time to consider the product or service?
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Qualify prospective federal government customers.
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Look at forecasts and past awards for quantities, costs, awarders, end-users and preferred procurement vehicles, i.e. GSA and E-Buy. One-year horizons are ideal.
Do you buy what my company sells?
How do you buy what I sell?
Who buys the product or service?
When do you buy?
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Chose prospects in a state of change.
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When organizations are in a state of transition, they will be more open to changing the way they do business and closer to purchasing products and services from a new company.
Company A
Company B
Pricing
Technical
Flexible
Pricing
Technical
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Determine if your prospects are qualified using a list of criteria.
• Write down 10 of your current prospects
• Indicate whether or not they meet the qualifying criteria
• Indicate if they are qualified
Qualifying Checklist: Current Prospects
Exercise
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Qualify prospects by phone.
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Keep in mind where you are in the sales process with a qualifying script. At this point, you are trying to determine if the organization uses your product or service, has a need, can afford it and has time to listen.
Develop a script Use the script to ask qualifying
questions Listen for feedback Respond appropriately
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Confirm the decision maker.
CEO VP Director Manager Supervisor End-user
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Federal Government Commercial Sector
OSDBU-Small Business Specialist
PCR-Procurement Center Representative
CMR-Commercial Marketing Representative
COTR-Contracting Officer’s Technical Representative (also COR and PO)
Contracting Officer (CO or KO)
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Develop a telephone script.
• Indicate your audience
• Craft a 30 second opener based on customer needs
• Plan the rest of the call around qualifying questions and prospect feedback
Develop a Script
Exercise
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Conduct the sales interview using the consultative approach.
• Open• Probe• Support• Close• Overcome
objections
Interview Assessment
Exercise
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Consultative Selling: Listening for the need and meeting the need.
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“Hear and Adhere” Freeman and
Kruvant (2008)
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Practice addressing objections.
• Probe for information
• Provide product and service features and benefits
10 Common Rejections and Responses
Exercise
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Present your solutions to the appropriate audience.
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Use industry jargon as appropriate.
Present to decision makers Establish credibility Address issues Provide solutions Use multiple approaches:
visual, audio and hands-on
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Close the sale.
• Trial close• Close
Close the sale when the customer provides specifics
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Define the sales cycle of your company.
Defining the Sales Cycle
Exercise
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• Answer the basic questions on the worksheet about your sales cycle
• Record any differences
• Note any changes that should be made as a result of this new information
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NEW BUSINESS PROSPECTING
Identify Ways to Increase Your Activity
Tailor Your Approach for Each New Audience
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Increase your prospecting activity.• Government
database of purchasing• Bid opportunities• Competitor
information• Vendor shows
• OSDBU Conference, Wednesday, 4/21
https://fpds.gov
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Ask OSDBUs, PRCs, CMRs, COTRs and COs the important questions.
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• When will the decision be made to bid the work being discussed at the agency?
• Is it possible to set this bid aside for small business?
• When does the FY end for the agency?• What is the agency’s budget?• When will the agency’s budget be approved?• What are the agency’s priorities?• What are the anticipated and funded bids for
the upcoming FY?
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Capture Management
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Sales
Capture
CRM
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CAPTURE MANAGEMENT
Management Theory
The Capture Management Process
Exercise: Qualifying the Opportunity
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The basis of any management theory includes seven elements.
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• Planning• Organizing• Staffing• Leading • Coordinating• Controlling• Motivating
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Management theories have a long history.
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• Finding and acting on the strengths and weaknesses of all partiesThe Art of War
• People are motivated by self interest and how best to mange themThe Prince
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Management Strategies
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Discipline Notable Figures Dates Management Approach
Economic Adam Smith 1723-1790 Resource allocation
Eli Whitney 1765-1825 Standardization
Scientific Lillian Gilbreth 1900’s Applied motion
Henry Gantt 1910 Gantt chart
Sociology Max Weber 1900’s Interrelationships
Peter Druker 1900-2005 Applied management
Scientific Ronald Fisher 1890-1962 Management science
Bill Smith (Motorola) 1981 Six Sigma
Project Management Edmonds 1990 Agile software development
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What is Capture Management?
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• Is a management strategy• Includes the seven basic components of
management• Reduces development costs• Increases the probability of winning
government contracts
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The capture management team has many players.
Salesperson: qualifies the prospects and finds an opportunity
Business executive: sponsors the opportunity
Capture manager: manages the capture process
Proposal manager: manages and or writes the proposal
Subject-matter experts: provides technical input
Expert consultants: provides strategic input
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The capture manager wears many hats.
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• Takes responsibility for the “lead”• Works in conjunction with the sales
staff• Creates a pricing strategy• Identifies potential bid partners• Addresses potential weaknesses• Ensures the proposal is on time and
compliant
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The capture cycle begins with the qualified sales lead.
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The sales rep passes the lead to the capture manager
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The capture management process begins with three questions.
• What would it take to win?
• Where are we now?
• What are the steps to get there?
Capture Management: Qualifying the Opportunity
Exercise
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Capture Manageme
nt
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Proposal management is a subset of capture management.
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Sales Lead
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Steps within capture are similar to the steps within the pre-proposal phase.
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• Obtain a vendor list• Research incumbent• Send a FOIA request• Request meetings• Indentify teaming partners• Identify competitors• Identify proposal team• Identify win strategy• Review Bid/NoBid process• Perform an External and Internal SWOT
analysis• Develop schedules and budgets
Capture
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Capture Management Best Practices
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1. Fit the process to your culture2. Make the investment3. Select appropriate targets4. Select a mix of lead-times, roles and contract types5. Have a win theme for each proposal6. Seek to lower costs with alternatives7. Think about cost and price separately8. Write a proposal that wins, but that you can
execute9. Look at each bid opportunity as unique10. Have the capture manager follow through to award
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TEAMING
Knowing When to Team
Teaming Options
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Consider teaming if you fall short of the ideal win scenario.
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You may inquire with other “Interested Vendors” about teaming. Send a brief questionnaire with preliminary questions.
Will you be interested in being a prime or a subcontractor?
What services do you foresee providing on this contract opportunity?
What is your availability for proposal development assistance?
Who would be the point-of -contact for us to provide feedback?
Does your company have any past performance with this Agency which could be used favorably in a proposal?
Have you/will you provide a brief capability statement for us to review prior to any discussions?
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Get help with teaming.
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•CRMs perform this matchmaking through both personal introductions and the use of web-based tools.
Use a CRM-Commercial Market Representative
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PRICING MODELSModel Requirements
Types of Models
When to Use Each Model
Exercise: Create a Pricing Strategy
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Use proven strategies to develop accurate pricing.
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• Research past awards • Ask the prospect for the total ceiling for
the award• Use past fees charged for similar
projects• Include benefits and overhead costs and
profit percentage if an hourly rate
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Make use of the various pricing models.
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Cost Plus Value Based
Rate of Return
Competitor Index
How Determine your cost and add desired profit
Determine the perceived value to your customer and charge that amount
Start with a rate of return objective, such as 10% of sales
Identify competitors’ pricing then match, price under or price over
When to use •Required•Ease of use/ administration critical
•New product offering
•Market leader
•One or more dominant players
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Minimum Pricing Requirements
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• The price you set should achieve the financial goals of the company, i.e. profitability
• The price should fit the realities of the market place
• The price should support the product’s positioning in the market place
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Customer Relationship Management (CRM)
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Sales
Capture
CRM
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CUSTOMER RELATIONSHIP MANAGEMENTUnderstand CRM
Use of CRM to Automate Prospecting and Sales
Identify CRM Options
Discuss Planning and Implementation of a CRM
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CRM uses technology to synchronize business activities.
• Sales• Marketing• Customer service• Technical support
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SAP, CRM Vendor
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CRM is an enterprise-wide business strategy.
• Find, attract and win new customers
• Retain customers• Bring back old
customers• Reduce the cost
of marketing
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Oracle, CRM Vendor
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CRM requires planning, implementation and support.
Install and maintain IT infrastructure
Web-based
Up-front, one-time expense
Subscription base
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Installation Options Purchasing Options
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CRM-Sales Force Automation • Upcoming Activities• Top Accounts• Home Page
Dashboard• Top Quotes (RFQ)• Key Metrics• Top Trouble Tickets• Top Sales Orders• My New Leads
Salesforce.com, CRM Vendor
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Steps in the sales process are automated using CRM-Leads.
• Go to leads module
• Click “Convert Leads” button
• Verify information “Creating an Account and a Potential”
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Convert a lead to an account
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Steps in the sales process are automated using CRM- Calls.
• Click on phone number to make a call
• Incoming call details provided
• Generate call reports
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Make calls and associate calls to leads and contacts
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Steps in the sales process are automated using CRM- Reports.
• Select the report module
• Select the secondary module, i.e. contacts, leads, etc.
• Specify type of report
• Select the fields to show
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Generate a report using CRM
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A 2007 survey of senior executives reported these finding on CRM.
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• The biggest challenge is getting staff to use the system
• 43% said that they use less than ½ the functionality
• 72% said that they would trade functionality for ease of use
• 51% cited data synchronization as a major issue• 67% said that finding time to evaluate systems
was a major problem
Sims, D. (2007). CRM adoption ‘biggest problem’ in 83 percent of cases
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Some considerations for selecting and implementing CRM.
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Does the company have the manpower to plan and implement and support a company-wide initiative?
Will the staff likely use it? What specific features are essential? How easy is the system to use? How will the company handle training? How will the company handle internal support? Who will be responsible for system
effectiveness?
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TIME MANAGEMENT
Principles of Time Management
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Steps for Better Time Management
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Set time limits for certain activities. This strategy works well for perfectionists who are apt to spend more time on an activity than is necessary.
Know that we manage ourselves and what we do with our time
Discover what activities waste time Set goals to eliminate these
activities and track your progress Use time management tools to
schedule and prioritize Delegate Establish routines and set time
limits for certain tasks
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Match your productivity cycle with the sales process.
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Research• Independ
ent• Solitary• Focused• Low
Energy
Prospecting• Depende
nt• Outgoing• Unfocuse
d• High
Energy
Meeting/ Interview• Depende
nt• Outgoing• Unfocuse
d• High
Energy
Follow Up/ Admin.• Independ
ent• Solitary• Focused• Low
Energy
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Learning Objectives
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• To understand and apply the sales cycle• To learn the steps in consultative selling• To gain new and refine existing prospecting approaches• To learn proven strategies to access agency contacts• To learn best practices for capture management• To know when to team and the available teaming options• To understand pricing models and when to use them• To understand the importance of customer relationship
management (CRM) and explore CRM tools• To revisit strategies for effective time management and
apply them to the sales process
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THE END!
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References
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• Dibble Kurcfeld, D. (2009). Capture Management –Between the Sales and Proposal Development Processes. D2D Inc. Blog. Retrieved from http://d2dinc.blogspot.com/2009/04/capture-management-between-sales-and.html
• Freeman, S.T., & Kruvant, M.C. (2008). Gems of wisdom for increasing 8(a) BD competitiveness. Washington, DC: AASBEA Publishers.
• Merle, R. (2007). Government short of contracting officers. The Washington Post. Retrieved from http://www.washingtonpost.com/wp-dyn/content/article/2007/07/04/AR2007070401424.html
• NetMBA. (2007). Pricing Strategy. Retrieved from http://www.netmba.com/marketing/pricing/
• Score. (2010). 60-Second Guide to Developing a Pricing Strategy. Retrieved from http://www.score.org/60_guide_pricing_strategy.html
• Sims, D. (2007). CRM adoption ‘biggest problem’ in 83 percent of cases. TMCNet Bloggers. Retrieved from http://blog.tmcnet.com/telecom-crm/2007/11/30/crm-adoption-biggest-problem-in-83-percent-of-cases-wigan-gets-crm-tre.asp
• Smotrova-Taylor, O. (2008-2009). How effective is your capture process. OST Global Solutions. Retrieved from http://ostglobalsolution.com/resources/articles/080715_Effective-Capture-Process.htm
• Thomas, R. C. (2004-2005). Four essential questions for successful marketing to the federal government. The Minority Business Guide.