Module 4 - Who are your Customers and What do they Need? Shai Vyakarnam and Simon Pratten Breakout...
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Transcript of Module 4 - Who are your Customers and What do they Need? Shai Vyakarnam and Simon Pratten Breakout...
Module 4 - Who are your Customers and What do they Need?Shai Vyakarnam and Simon Pratten
Breakout is an Epi-V initiative, delivered by Transitions.
Totally Totally newnew
ExistingExisting
ExistingExisting TotallyTotally new conceptnew concept
AA
CC
DD
BB
You have to sell something to someone to make a living!
TechnologiesTechnologies
MA
RK
ET
S a
nd
M
AR
KE
TS
an
d
CU
ST
OM
ER
SC
US
TO
ME
RS
Igor Ansoff, 1957
Segmenting the market
Benefits being sought
Technology solution
Service levelsPricingCommercials
Database of target clients
Typical sales curve – 80/20 rule
1 2 3 4 5 6 7 8
Pile of invoices for top five clients
CustomerCustomerAA
CustomerCustomerBB
CustomerCustomerCC
CustomerCustomerDD
CustomerCustomerEE
The Seller, the Buyer and the DMU
Is it a competitive price?Is it a competitive price?Can this supplier beCan this supplier be
trusted?trusted?
BUYERBUYERSELLERSELLER
D M UD M U
How about maintenanceHow about maintenanceand spares?and spares?
Will my customers like it?Will my customers like it?
Can it be Can it be upgradedupgradedtechnically?technically?
Will unskilled Will unskilled peoplepeoplebe able to use be able to use it?it?
The networking concept
ColleagueColleaguess
SupplierSupplierss
FriendsFriends
FamilyFamily
TradeTradecontactscontacts CustomerCustomer
ss
The Seller, the Buyer and the DMU
No. of Employees Average no. in DMU
Average no. of contacts made
0 – 200 3.42 1.72
201 – 400 4.85 1.75
401 – 1000 5.81 1.90
1000 + 6.50 1.85
The Seller, the Buyer and the DMU
Members of DMU (insert names in boxes).
Most important in box 1, thereafter in declining order of importance
DMU Member1 2 3 4 5
Statement1. Is aware of me and the company2. Is aware of our product/service3. Understands how products/services will
help4. Believes in the product/service5. Supports us 100%6. Has a specialist need7. It has been demonstrated how specialist
needs can be met8. General relationship is good
The Johari Window
OPEN
AREA
BLIND
SPOT
FAÇADE UNKNOWN
SUPPLIER
Knows Doesn’t knowKnows Doesn’t know
KnowsKnows
Doesn’t knowDoesn’t know
BUYER
Example spidergram of relationships
Customer GCustomer GOK at presentOK at presentpossible growthpossible growth
Customer FCustomer FInfrequent but profitableInfrequent but profitable
Customer ECustomer ENot so profitable, but you play Not so profitable, but you play
golfgolf
Customer DCustomer DLarge potentialLarge potential
but very bureaucraticbut very bureaucratic
Customer CCustomer CNew personNew person
has replaced your contracthas replaced your contract
Customer BCustomer BHighly Highly
profitableprofitable
Customer ACustomer ALarge volumeLarge volume
Customer HCustomer HLarge potential customerLarge potential customer 1010
88
66
44
22
00
As it is nowAs it is now As it should beAs it should be
From core science/product to solving problems for clients
Science
Technology
Applications
Markets – commercial advantage
Customers – viable applications
May need infrastructureLike electricity, construction industryManufacturing, trained labour force
Distribution channels
Unmet needsPush
Pull
The product/service as a total package
GuaranteesGuarantees
PackagingPackaging
DesignDesign
ReliabilityReliability
After-sales serviceAfter-sales service
Administrative issuesAdministrative issues
Repurchasing procedureRepurchasing procedure
Image/ReputationImage/Reputation
PricePrice
QualityQuality
Customer ServiceCustomer Service
etcetc
e.g.e.g.
CORECORE
The actual productThe actual product
or serviceor service
and its functionaland its functional
performanceperformance
Customer Service Analysis
Importance to Retailer
Low Medium High
ElementsPerformance
Poor Satisfactory Good
Delivery
On-time delivery
Information
on order status
Stockouts
Flexibility
Order completeness
Damage rate
Key CompetitorKey Competitor CompanyCompany
Marketing mix
Summarising a marketing strategy
Product
Place
Price
Promotion
Processes
People
Physical Evidence
FeatureFeature BenefitBenefit BenefitBenefit
PhysicalPhysicalcharacteristiccharacteristicof the productof the productor serviceor service
‘‘whichwhichmeansmeansthat’that’
What it doesWhat it doesfor thefor thecustomercustomer
‘‘whichwhichmeansmeansthat’that’
If requiredIf required
Changing a feature to a benefit
Benefit analysis for window cleaner
Call regularly
Fully insured
Long established
Keen prices
Your house appearance is always top class
You have no risk should accidental damage occur
Can be trusted to do a good job
Value for money
Obvious
Show certificate
Quote neighbours’ comments
Quote alternative cleaners’ prices
FeatureFeature BenefitBenefit ProofProof
11
44
33
22
But what are the unmet needs of your customers?
• Identify new products and services in terms of the benefits to your customers
• Who are the most likely to be receptive to your new products? Why?
When markets are changing
Positioning
High
Low Pr
ice
rela
tive
to c
ompe
titi
on
Value for money relativeto competitor
High
Low
Caused by EDLP
Looking for new marketswith current technologies
New markets
• You have to define what these are
• What is the scope and scale of them – in other words what is the value chain in the market?
• How do they “behave” – characteristics
• Leads to segmentation
• Gain an understanding of channels
• Is the market in pain? Can you provide an aspirin?
BUYER BEHAVIOURRule of thumb
Innovators Early Early Late Laggards Adopters Majority Arrivals
2.5% 13.5% 34+% 34% 16%
Reducing risk through social capital
Ed Crawley (MIT)
Soren Lund - Lego
Family owns Lego
Prof at Florida
QinetiQ – senior management
Rolls Royce BAe
MohanVCs
Legal
Sen Govt in UK
Senior EU
JRA Tech
AlanCandace
Shai