FI Pres 17_1_12 KMC
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Transcript of FI Pres 17_1_12 KMC
8/3/2019 FI Pres 17_1_12 KMC
http://slidepdf.com/reader/full/fi-pres-17112-kmc 1/28
Sales and Marketing
Understanding Customers to Create
and Sustain Your Business
Kris Childress
The Founder Institute
17 January 2012
8/3/2019 FI Pres 17_1_12 KMC
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Mythbusting
Myth #1: Customer is always right
± Reality: customer is frequently wrong but he/she has the
money respect but dont fawn
Myth #2: Cheaper is always better
± Reality: cost and value always a complex interplay. Cost not
the only variable.
Myth #3: Customers are not always rational ± Reality: actually, this is true. Customers make decisions for
a host of irrational reasons that they then rationalize
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Reality
Nothing Lives In A Vacuum . . .
Especially Marketing
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The Greek word hamartia () or sin
means, literally, to miss the mark as in an archer
missing his target not hitting the bulls eye
Major sin in marketing = missing the mark by not
understanding customers needs and motivations
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CEM Corp: The Company
Current Model
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The CEM Corp. Challenge Pt 1
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The CEM Corp. Challenge Pt 2
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CEM - Digging for The Truth
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CEM Success Story 1
With CEM analyzers, a dairy processor could now
analyze incoming milk in minutes identify and direct
higher solids milk to valuable ice cream, etc. and sendlower solids milk to bottling. This reduced use of
expensive milk powder.
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CEM Success Story 2
Paper plant idling coating machines for any reason had
to do a 30 minute solids test on the liquid coatings
before restarts. Downtime was about $1,000 an hour.
CEM test = 2 minutes . . . paid for itself in a week. (The
plant later bought two more).
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CEM Sales Approach
OLD Faster analysis = greater
lab productivity/
efficiency/flexibility
W
ho? Lab manager/QC
NEW
Faster analysis = realtime information to takethe right action and saveor make more money bottom line value
Who?- Production Mgt
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Sample CEM Marketing Concept
Question: Whats the Difference Between these Two
Cheeses?
Answer: About $50,000 per year
A plant processing 500,000 lbs of cheese per week andraising the average moisture content by just 0.2% candrive over $50,000 to the bottom line. Its possible withCEMs amazing rapid moisture analyzer call us to findout how at XXX-XXX
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Company 2: Software Optimization
This US company sells optimization software thatoptimizes material blends
The software is most commonly used for processedmeats to achieve greater consistency and lowercosts (saving a penny or two per kg)
In 1992 Company produced the first software of thiskind in MicrosoftWindows
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Moving to New Markets I
Key market largeprocessed meat
plants in US wasrelatively small
By the late 1990sthe largest US
companies(Hormel, Armour
Swift-Eckrich, SaraLee, Johnsonville,
etc.) werecustomers
New marketswere needed
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Moving to New Markets II
Identified 3 common characteristics forprospective customers:
Raw materialsvary greatly in
quality fromlot to lot
Raw materialsrelativelyexpensive
Final productmust be
blended tospecifications
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Graphic: Reduce Your Biggest Cost!
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Taking Optimization
to New Vertical Markets
Other Possible
Markets Identified
Pet foods
No. Many entrenchedcompetitors from animalfeed markets, redocean
Citrus Juice:
No. Strong need butsome specs (such asacidity) are non-linearand not optimizeable
Processed Cheese
YES. Strong similarities tomeat processing
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Optimization Market #2: International
Meat identified a strong
international partner with
common marketing
interests (ProteinTechnologies now Solvay)
and worked co-operatively
in Spain, Argentina and
several other countries to
sell the software
Meat and processed cheese
identified knowledgeable
individuals with access to
other countries NewZealand, Canada and
Australia
Ultimately identified a
global partner selling
analytical equipment
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Final Example: Energy Consultant
Originally helped businesses in Chicago (IL, USA) area
to purchase lower cost power and gain-shared a
percentage of savings versus utility rate. In 2005 2 problems cropped up:
± Open market costs went ABOVE utility rates and
± Fixed utility rates were scheduled to phase out 1 January
2007
. . . Business model crashed.
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Restructuring Business Model
Company still provided value!
Customers more concerned about not losing than
saving!
Restructured biz model to protect against surges in
market prices. Company thrived.
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Moving Into Markets
Determine t he domain
knowledge needed. Forexample: economic
drivers, governmentregulations, industryecosystems, etc.
Find allies advisors, partners,
employees withsignificant domainknowledge
Find and connect
wit h centres of
influence analysts,writers, university
programs,associations, etc
Become involved
where informationis shared: blogs and
discussion sites,AND trade shows,conferences, etc.
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Some Take Aways
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Establishing Domain Expertise
Selling into most markets requires understanding the
customer needs and the rules of the game
±
I researched the industries we were selling to very closely actually became a speaker at university seminars on
applications of optimization technology
± I tried to partner with individuals and companies that had
domain expertise
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MBFPA
MBFPA: Marketing By Following People Around
(get close to your prospective customers)
Surveys and secondary sources are great, but . . .Spend time
with your customers and prospective customers (even if youare an internet company)
What do they do exactly?
What do they expect?What language do they use?
How do they/would they use your product exactly?
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How to Understand Customers
What do your customers want? Listen
What are their motivations? Ask Questions ANDOBSERVE (what keeps them awake?)
Do you have successes? UnderstandWhy
Do you have failures? UnderstandWhy
Where do your potential customers meet? Go there
What do your potential customers read? Read It
Who are your competitors? Study Them
Can You Become an Authority? Do It
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Bonus: Three Things to Do NOW!
1) Find and join all LinkedIn group(s) in your domain
(or create one)
2) Identify 3 trade groups in your domain3) Subscribe to (at least) three newsfeeds in your
domain (Google Alerts can be one.)
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Thank You(Dont Applaud Just
Throw (Paper) Money)