Sensors Expo 0609_FINAL_PPTs

Exhibitor Marketing Workshop

Bryan Manning"Founder & President"

Sensor Marketing Strategy

[email protected]

Teri Sun"Senior Account Director"

White Rhino

[email protected]


Part 1"Marketing strategy for sensor companies Part 2"Making sense of today's digital media landscape Workshop"Applying concepts to Tests ‘R Us Wrap Up"5 Mistakes to avoid when marketing to engineers Q&A

SensorMarketingStrategy.com 617 901 2782 3

Developing a Strategic Marketing Plan

for your Sensor Business

Presented by Bryan Manning

President Sensor Marketing Strategy

Sensor Market -Fragmented 3 way matrix

n  Property sensed (position, temp, pressure, etc.)

n  Technology (inductive, capacitive, optical)

n  Applications (aerospace, auto, powergen)

Example: capacitive non-contact displacement sensors for the aircraft engine rebuild market


Sensor Marketing Strategy job #1

Make the complicated…

- less complicated

Thru FOCUS SensorMarketingStrategy.com 617 901 2782 5

Sensor Market Strategy job #1

Well Executed Marketing Strategy

=

Profitable Growth



Marketing Strategy 1,2, 3 n  Step 1: Where we are today

Internal and External Analysis Ø  TALK TO CUSTOMERS Ø  Company’s Core Competencies Ø  Know your competition Ø  What’s happening in your Industry Ø  SWOT Analysis

n  Select company’s overall strategy

n  Step 2: Where we want to go Marketing Strategy

Ø  Segmentation Ø  Targeting Ø  Positioning

n  Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership

n  Step 3: How will we get there Detailed Value Proposition

Ø  Product Ø  Price Ø  Place (channels) Ø  Promotion

n  Match the value proposition to the Strategic Positioning

Step 1: Where we are today

Internal & External Analysis

TALK TO CUSTOMERS n  First and most important step in any marketing strategy n  Gives you a good baseline of where you are today

n  Concentrating on existing customers often overlooked

n  Value of existing customers can be very high


Talk to Existing Customers -The first step n  Contact existing customers on a frequent basis

n  Ask them is they are satisfied with your performance n  Customer Surveys

n  Pursue other applications in existing locations

n  Ask for contact names in other locations in the US and overseas


Benefits of a Strong Customer Orientation " Strong Satisfaction results in Repeat Purchase " It Costs 5x More to Acquire a New Customer Than to Retain an

Existing One

" Dissatisfied Customers Complain to 10 Other People "   Loyal Customers are more profitable

Source: MIT Sloan survey


Customer Profitability over time (if retained)

SensorMarketingStrategy.com 617 901 2782 11 Year 1 2 3 4 5 6 7

Price Premium

Company Profit Referrals

Increased Operating Profit Increased Purchases/Higher Balances

Base profit

Understand Your Core Competencies

n  Loyal Customer base n  Brand image n  Technology (product, process, communication) n  Quality/Service n  Marketing n  Sales/Distribution channels n  Global presence


Know Your Competition Why? n  Defend your base business n  Important in differentiation/positioning n  Forecast changes in the marketplace: (technology, pricing, trends

etc.) How? n  Customers/salesforce n  Constantly tracking them (by yourselves or with outside help) n  Shows/Seminars/Publications


Know Your Competition Sun Tzu The Art of War

400 – 320 BC

14

Sun Tzu says….

n  What enables the enlightened ruler and the sage general to achieve results beyond the capability of the ordinary man is FOREKNOWLEDGE

n  The expert commander strikes only when the situation assures victory

n  The only constant in war is constant change


Know Your Competition

Gates Casts Cold Eye on Google


CARLSBAD, Calif. -- Don’t be fooled by all those speeches about global health and high-school education. Bill Gates is still, first and foremost, about clobbering Microsoft Corp’s Competition. Courtesy: The Wall Street Journal

Know What’s Happening in Your Industry n  Keep track of trends in your industry

n  Size and growth of customer’s Industry n  Changes and direction of new technology such as:

n  Compact and faster electronics with lower noise and accuracy n  New players in the market

n  Why?

n  Your competitors and customers will be watching


Step 1: Where we are today

Final Step: Select Strategic Alternatives

n  After an in-depth review of “where you are today” decide on one or more overall strategic alternatives


Strategic Alternatives

n  Michael Porter says: “Differentiation and low cost represent the two basic strategies available to firms and that all successful strategies will involve one or both of these thrusts”


Strategic Alternatives

20

Differentiation

Low Cost

Focus

Preemptive Move

Synergy

Differentiation Strategy Product offering is differentiated from the competition,

concentrating on what target customers value most such as:

n  Quality/Reliability n  Ease of use n  Features such as ability to handle harsh

environments n  Excellent Service


Focus Strategy Focusing the business on either a: n  Focus on the type of Sensor product offered:

n  Temperature and Pressure Sensors n  Level Sensors n  Non-contact Displacement Sensors

n  Focus on relatively small segments or sub segments of the market: n  Automotive braking systems market n  Brake testing systems n  Disc Brake displacement measurement


Growth Strategy Options


Existing Products New Products

New Markets

Existing Markets

#1 Market Penetration Product

Development

Market Development Diversification

#2

#3 #4

Marketing Strategy 1,2,3 n  Step 1: Where we are today!

!Internal and External Analysis!!Ø  TALK TO CUSTOMERS!Ø  Company’s Core Competencies!Ø  Know your competition!Ø  What’s happening in your Industry!

n  Select company’s overall strategy!

n  Step 2: Where we want to go!!Marketing Strategy ! !

!!Ø  Segmentation!Ø  Targeting!Ø  Positioning!

n  Develop a unique, sustainable value proposition backed by compelling evidence on differentiation to establish and maintain market leadership!


Step 2: Where we want to go..

Segmentation

Separate customers or potential customers into

groups with like wants and needs


Step 2: Where we want to go.. Segmentation

Typical Sensors Market Segmentation n  Property sensed n  Market n  Application n  Features/Benefits n  Geographic


Segmentation by Market


Powergen

Aerospace

Medical

Segmentation by Application


Engine Rebuild

Aircraft Assembly

Aerospace Market


Targeting

Key selection criteria n  Limited Competition n  Size/growth n  Market meets growth goals n  Core competencies match market needs n  Profitability



Positioning n  Describes the position a firm wishes to occupy in the

mind of customers in the target segment versus the competition

n  According to David Aaker, Positioning must: n  Resonate with the target market n  Differentiate from competitors n  Reflect the culture, strategy, and capabilities of the business



Positioning

n  Positioning statement should include: n  What (type of product offered) n  Who (target market and/or application) n  Differentiation (how you are different from the competition)

n  An example


Positioning Statement Gapman

For Aircraft Builders who are looking to replace feeler gages to measure thin gaps during aircraft assembly The Gapman is an “Electronic feeler Gauge” that is a portable non contact gap measurement instrument Unlike mechanical contact gauges our product is 5 times faster, 3X more accurate and has 0 user subjectivity .


Positioning

n  Once you have developed excellent Positioning you are 80% there because your road map is in place

n  You know what you are offering to who, specifically and why they should by your product.


Marketing Strategy 1,2, 3

n  Step 2: Where we want to go!!!

Marketing Strategy! ! !!Ø  Segmentation!Ø  Targeting!Ø  Positioning!



Marketing Strategy 1,2, 3 n  Step 1: Where we are today!

!Internal and External Analysis !!Ø  TALK TO CUSTOMERS!Ø  Company’s Core Competencies!Ø  Know your competition!Ø  What’s happening in your Industry!

n  Select company’s overall strategy!

n  Step 2: Where we want to go!!Marketing Strategy ! ! !!

Ø  Segmentation!Ø  Targeting!Ø  Positioning!


n  Step 3: How will we get there!!Marketing Tactics!

Ø  Product !Ø  Price!Ø  Place (channels)!Ø  Promotion!

n  Purse tactics that fit the Strategic Positioning

35

Thank You!!


It’s unbelievable how much you don’t know about the game you’ve been playing all your life. - Mickey Mantle

The Traditional Marketing Funnel The Modern Buyer’s Journey

Suspect

Prospect

Opportunity

Closed

General Recognition

Peer Validation

Purchase

Requirements Definition

Solution Evaluation

Need Recognition

Today’s buyers might be "anywhere from two-thirds to

Lori Wizdo, Forrester Analyst

90 of the way through their journey "

before they reach out to the vendor.

%

Sales’ new role"Consult the lead home.

Where your marketing "game plan?

The average person

IGNORES "5,000 ads per day

Higher average cost

to acquire "a new

customer

Search Spam Paid / Rented Email Lists TV, Radio + Print Ads Billboards + Outdoor Ads Throwaway Press Releases Off-Platform Social Media Ads"Pop-Ups + Pop-Unders Contextual Ads Outbound Sales Calls

Interstitial Pages Trade Show Booths Forum, Comment + UGC Spam Banner + Display Ads Paid App Reviews Video Ads

Responsible for <10% "

of clicks on the web

Powered by budget + repetition

Costs remain generally static with

scale

Opt-in Email Lists SEO, SEM + Retargeting Native Social Media Advertising High-Value Content Development Blogging Influencer Outreach Earned Social Media Authoring Books / Print Media Sponsoring Events

Press + Public Relations Thought Leadership Community Building Public Speaking Word of Mouth + Viral Mktg Organic App Store Visibility Video Content

Responsible for >90% of clicks on the

web

Lower average cost

to acquire" a new

customer

Powered "by creativity, talent + effort

Generates momentum,

making future efforts

easier

Traditional Marketing"Interrupting someone’s flow of activity "in order to get attention

Content Marketing"Earning attention organically without interrupting anyone’s path

Content Marketing

costs"

"less

62% generates"

"the results 3x

But engineers don’t use social media

57% & growing "use social media to "research products

Source: IHS Engineering360 Research Report, 2015 Social Media Use in the Industrial Sector

“I’m seeking inspiration”

“I’m looking for a new

perspective”

“I read trade journals to

keep in touch with my field”

“I hope the website can tell me about this company’s

culture”

“I like to keep in touch with old

friends”

How can you attract attention?

“B2B purchasers are almost 50% more likely to buy a product or service when they see personal value”

B2Me"It’s Science!

What’s so big about torque?

So, maybe torque is okay.

Torque Rules

3,000"Target Audience

6"Previous year’s

attendance

120"TorqueToberFest

attendance

Beer isn’t the only way to an Engineer’s brain

B2Me Insights: Engineers

“We criticize everything in the world – where’s the inefficiency in this object?”

Engineers don’t simply “see” the world, "they are wired to deconstruct it.

https://www.youtube.com/watch?v=Q-TClLfoXuo&feature=youtu.be

Website visits increased 256% "1,445 new leads generated"

Product sales up 22%"

2,200 former customers back in touch"

"

"A hot dog at the ballgame beats roast beef at the Ritz.” - Humphrey Bogart

Workshop

Typical Positioning Statements

• We are the industry leader • We offer solutions to your problems • Best in industry Quality and Service • We value our customers

Typical Positioning Statements These mean “everything and nothing” and are

Positioning Statement Format

Positioning Statement Exercise

For target customer Who statement of the need or opportunity The product name is a product category

Positioning Statement Exercise That state compelling reason to buy Unlike primary competitive alternative Our product primary differentiation

Gapman®

“electronic feeler gauge”

Capacitec Gapman

For Aircraft builders Who are looking to replace feeler gages to measure thin gaps during aircraft assembly The Gapman is an “Electronic feeler Gauge”

Capacitec Gapman

That is a portable non contact gap measurement instrument Unlike mechanical contact gauges Our product is 5 times faster, 3X more accurate and has 0 user subjectivity.”

Tests ‘R Us

a national engineering testing facility servicing Aerospace

Positioning Statement Tests ‘R Us

Background: Company is a national engineering testing facility servicing the Aerospace market with offices in key locations in the US For Aerospace Manufacturers


Key Industry trend: Change from in-house to outsourced product testing Who are struggling to find a compelling reason to outsource testing of their large systems


Products & Services: •  National network of engineering service centers •  Full service testing houses

The Tests ‘R Us is a national full service testing house

Compelling Value Proposition: •  An extension of customers own engineering teams •  Has expertise to build better, stronger, safer, more reliable

products and bring those products to market quickly That state compelling reason to buy


Unlike other testing competitors


Benefits: A customer collaboration portal that lets engineers observe tests remotely" Our product includes a customer collaboration portal that lets engineers observe test remotely


For Aerospace Manufacturers who are struggling to find a compelling reason to outsource testing of their large systems Testing ‘R US is a national full service testing house that is an extension of customers own engineering teams. Unlike other testing competitors local services our product includes a customer collaboration portal that lets engineers observe tests remotely.


B2Me research shows that Engineers like "making videos and watching them. Videos of "

other people’s failures are particularly entertaining.

Marketing Campaign Tests ‘R Us

Inspiration: Will it Blend?

Thought Starters

Tests ‘R Us works with Aerospace Companies that need to test their jet engines. Some tests they run:

•  Lightening strikes •  Bird impact •  Rain/wind

Wrap Up: 5 mistakes to avoid when marketing to engineers

Selling instead of consulting

Thinking of marketing and sales as "two different departments

Not developing a compelling value prop

Focusing too much on business value "rather than personal value

Avoiding social media


Bryan Manning"Founder & President"

Sensor Marketing Strategy

[email protected]

Teri Sun"Senior Account Director"

White Rhino

[email protected]

Sensors Expo 0609_FINAL_PPTs

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