Presentation deliver at Cenfotec, San Jose, Costa Rica on June 3, 2011

1. Copyright 2011 - LÛCRUM MARKETING
Best Practices for Creating and Delivering
Globally Competitive Products & Services
Presented by:
Tom Evans
Lûcrum Marketing
June 3, 2011

2. High New Product Failure Rate
• Only one product concept out of seven becomes a new
product winner; and 44% of businesses’ product
development projects fail to achieve their profit targets.
• One out of four development projects succeeds
commercially. (75% failure rate)
Robert G Cooper
Copyright 2011 - LÛCRUM MARKETING

3. Why Technology Products Fail
• Product did not solve a problem that many were willing to
pay to solve
• Product did not adequately meet the market need
• Company did not sufficiently understand their customers
business and the value delivered to their customers
• Company had no clear business strategy
Copyright 2011 - LÛCRUM MARKETING

4. Typical Business Approach
• Internally Driven
– Create a product/service, look for a problem to solve
– Driven by technology or internal ideas
• Sales Driven
– Pursue opportunities with no clear strategy
(opportunistic)
– Product/service changes for each new opportunity
Copyright 2011 - LÛCRUM MARKETING

5. Examples - Barriers to Creating Globally
Competitive Products & Services
• Small software company
– Sell’s in their country based upon relationships
– Has products for ERP, CRM, Banking, Telecom
• Small software company
– Products for CRM, Access Control, Collections, Medical
Scheduling, Project Management, Telemarketing
• Software services company
– “What do you do best?” “We can do everything”
– So can the other thousands of companies just like you
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6. The Role of Marketing
The aim of marketing is to know and understand the
customer so well that the product or service fits him and
sells itself.
Peter Drucker
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7. Copyright 2011 - LÛCRUM MARKETING
Key Themes to Creating Globally
Competitive Products & Services
• Identify a Compelling Market Opportunity
• Deliver a Compelling Solution
• Build a Compelling Market Development Strategy

8. Compelling Marketer Model
for Product & Market Success
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9. Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING

10. Compelling Marketer Model
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11. Identify a Compelling Market Opportunity
• Key Questions to Answer
– Is there a real/valid market opportunity?
– Is this an opportunity for your company?
– Do you have a competitive advantage?
– Does this result in a compelling business case?
• Key Considerations
– Do this for every new market opportunity
Copyright 2011 - LÛCRUM MARKETING

12. Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING

13. Key 1 – Articulate Business Strategy
• Key Question
– Without a clear understanding of your business
strategy, how can you determine if you should pursue a
business opportunity?
• Key Elements
– Vision & Mission
– Core competencies & target markets
– Company positioning & brand promise
– Competitive advantagesCopyright 2011 - LÛCRUM MARKETING

14. Defining Your Business Strategy
• Done by founders / top executives
• Should be done when company is founded
• Review on an annual basis
– Has the market changed
– Are we following the strategy
• Typically requires adjustments every 3 - 5 year
Copyright 2011 - LÛCRUM MARKETING

15. Key 2 – Validate the Market Opportunity
• Key Question
– What are the big painful issues
– That many in your target market
– Are willing to pay to solve
• Key Elements
– Starts with Research
– Secondary – trends, business drivers, market size
– Primary – you must speak to potential customers to
really understand their problems
Copyright 2011 - LÛCRUM MARKETING

16. Validating the Market
• Start with Hypothesis
– Market Segment “X” has problem “Y” and we can solve
it by doing “Z”
• Speaking to potential customers
– Most companies don’t and won’t do this
– Significant time investment
– Requires many conversations (cold calling)
• May take over 100 conversations to validate.
• You can pay now or pay laterCopyright 2011 - LÛCRUM MARKETING

17. Key 3 – Assess Competitive Landscape
• Key Question
– What are competitors already doing?
• Key Elements
– Competitive Analysis
– Current offerings, target markets, strategies
– Strengths & weaknesses
– Market share
• Don’t forget substitutes & potential new entrants
Copyright 2011 - LÛCRUM MARKETING

18. Key 4 – Build Profitable Business Model
• Key Question
– How do we make a profit when selling your solution
• Key Elements
– Delivery Model
– Cost to sell & deliver
– Pricing Strategy
Copyright 2011 - LÛCRUM MARKETING

19. Special Business Model Considerations
• Can you differentiate or create competitive advantage with
your business model?
– Subscription or Usage v. License
– Free (Freemium) – Pay for Premium offerings
• How do you match the pricing model to value received?
– Razor blades, printers
– Usage, Subscription, SaaS
Copyright 2011 - LÛCRUM MARKETING

20. Key 5 – Justify the Business Case
• Key Question
– Is this a profitable business opportunity for your
company?
• Key Elements
– Description of opportunity
– Alignment with business strategy
– Market size, revenue & profitability potential
– Competitive advantages, differentiation
– Investments required
– Risks & impacts
Copyright 2011 - LÛCRUM MARKETING

21. Key 6 – Prioritize Market Opportunities
• Key Question
– Which market opportunity offers the best return on
investment?
– Many alternatives – new products, new vertical
markets, new geographical markets
• Key Elements
– Define ranking criteria
– Assign team to make decision
Copyright 2011 - LÛCRUM MARKETING

22. Selecting Opportunities
• Must involve all key executives and board members
• Cannot invest in all opportunities
• Ensure the best opportunities receive right investment
• Can be evaluated on an iterative basis
– Gating process (e.g., Stage Gate)
Copyright 2011 - LÛCRUM MARKETING
Weights 20 25 15 10 15 20 30 135
Project/Product Strategic Fit Member Sat
Market Seg
Attractivness
Competitive
Differentiator
Feasibility Risk
Financial
Return
Project Score
Resource
Requirements
Go/Hold
Customer Rewards
Program 5 4 4 5 5 4 4 585 35 Go
Enter Brazil Market 5 4 4 3 5 4 4 565 50 Go

23. Compelling Marketer Model
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24. Deliver a Compelling Solution
• Key Question to Answer
– How do you ensure you deliver a solution that solves
the market needs and is competitive?
• Key Considerations
– Reviewed for each new release
Copyright 2011 - LÛCRUM MARKETING

25. Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING

26. Key 7 – Solicit Market Requirements
• Key Goal
– Clearly understand the needs of the market
• Key Considerations
– Solicit needs at all levels
• Executive, mid management, technical, user
• All parts of the value chain (sales, implementation, support,
etc)
– Do this on a regular basis
– Use various forms
• Advisory councils, customer visits, user groups, etc.Copyright 2011 - LÛCRUM MARKETING

27. Soliciting Market Requirements
Copyright 2011 - LÛCRUM MARKETING
“If I had asked the market what they
needed, they would have told me faster
horses.
Henry Ford

28. Soliciting Market Requirements
• Should focus on problems to be solved (not on features)
• Important phrases
– Why?
– Tell me more about that?
– What’s the impact of that problem?
• Remember your internal stakeholders
– Support, professional services, operations, etc.
– How do you help them better support customers &
decrease costs?Copyright 2011 - LÛCRUM MARKETING

29. Key 8 – Define Clear Product Vision &
Strategy
• Key Goal
– Communicate a clear long-term vision & plan for the
solution
• Key Elements
– Market opportunity & need
– Product vision
– Prioritization of market needs
– High level roadmap
Copyright 2011 - LÛCRUM MARKETING

30. Key 9 – Clearly Specify the Solution
• Key Goal
– Make sure you get a solution that meets the market
needs
• Key Elements
– Market Requirements Document (MRD)
– User Personas
– Use Cases
– Product Requirements Document (PRD)
Copyright 2011 - LÛCRUM MARKETING

31. Defining the Solution
• Market Requirements Document (MRD)
– Talks about market problems/needs
• User Personas
– Description of stereotypical user
• Use Cases
– Describes how user uses solution
• Product Requirements Document (PRD)
– Describes product functionality to meet needs
Copyright 2011 - LÛCRUM MARKETING

32. Key 10 – Negotiate Release Plan
• Key Goal
– Deliver the right solution capabilities on schedule
• Key Elements
– Well defined criteria to prioritize requirements
– Negotiating scope v. schedule
– Managing scope changes
– One person that owns scope
• Understand the Minimum Marketable Features
Copyright 2011 - LÛCRUM MARKETING

33. Using Agile
• Short development cycles
• Benefits
– More predictable development cycles
– Greater visibility into development status
– Faster response to market changes
– Always have a relatively stable product
• Shippable if absolutely necessary
Copyright 2011 - LÛCRUM MARKETING

34. Key 11 – Ensure Whole Product Readiness
• Key Goal
– All elements are in place to make solutions usable.
• Key Elements
– Whole Product
• Actual Product
• Packaging/Services – documentation, training, implementation
& support services
• Augmentation & Infrastructure – 3rd party tools/applications,
systems, etc. to make the product complete and usable.
Copyright 2011 - LÛCRUM MARKETING

35. Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING

36. Build a Compelling Market Development
Strategy
• Key Question to Answer
– Do you have a well defined target market and know the
right messages to communicate to them to create the
need and desire to purchase your solution?
Copyright 2011 - LÛCRUM MARKETING

37. Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING

38. Key 12 – Define Targeted Market
Development Plan
• Key Goal
– Focus market development efforts
• Key Elements
– Well defined target market
– Define buyer roles and their challenges/goals/needs
– Clear messages to communicate
• Value Proposition – what we do for you
• Positioning & Differentiation – why buy our solution
• Based upon market validation workCopyright 2011 - LÛCRUM MARKETING

39. What Happens Without Clear Strategy
• Create confusion in the market over what you offer
• You sound like everyone else in the market
• Investments are spread across multiple segments with
little impact
• Sales pursues opportunities that don’t match with the
solution
• Company always responding (chaos)
Copyright 2011 - LÛCRUM MARKETING

40. Key 13 – Establish Effective Channel
Strategy
• Key Question
– What is the best way to sell your solution to your target
market.
• Key Elements
– Sales Model – Direct, Indirect
– Profile/skills of sales team/channel partner
– Sales methodology
– Supporting sales tools
Copyright 2011 - LÛCRUM MARKETING

41. Channel Strategy Considerations
• Often need to establish direct sales before doing indirect
– Validate sales process
– Enablement tools in place
• Establish lead generation programs
Copyright 2011 - LÛCRUM MARKETING

42. Key 14 – Create & Manage Launch Plan
• Key Goal
– A defined set of activities to ensure solution is ready for
launch
• Key Elements
– Product Readiness
– Marketing & Channel Readiness
– Company Readiness
Copyright 2011 - LÛCRUM MARKETING

43. Launch Plan (Readiness)
43
Product Readiness (Whole Product)
 Support services program
 Pricing and packaging
 Product availability
 Certifications & Regulatory approvals
 Testing complete
 Documentation
 Intellectual Property (Trademarks, Patents)
 Warranty Program
Company Readiness
 Services & support trained
 Manufacturing/Production
 IT Systems
 Suppliers
 Capacity
Marketing & Sales Channel Readiness
 Market Plan
 Marketing/Sales Tools
 Product Backgrounder
 Website, Brochures & Presentations
 Analysts & Press Kits
 Competitor Analysis
 References
 Sales Channel (MSRs) Enabled/Trained
 Launch Activities Defined
 Pre-briefs to thought leaders
 Market Testing
 Press Events
 Demand Generation
 Advertising

44. Key 15 – Sales Enablement
• Key Question
– Have you adequately prepared your sales channel to
effectively sell to your target market?
• Key Elements
– Sales tools
• Executive level presentation, product backgrounder, sales
guide, message driven demo
– Enablement process (training)
– Testing & certifying
Copyright 2011 - LÛCRUM MARKETING

45. Sales Enablement (Base Components)
• Product Backgrounder
– Succinct key elements of market plan
• Sales Questioning Guide
– Per buyer profile: Challenges / Impact / Capability /
Benefits
• Executive Level Presentation
– High level discussion of how your solution addresses
needs. (10 – 15 slides)
• Message Driven Demo
Copyright 2011 - LÛCRUM MARKETING

46. Tips for Sales Enablement
• Focus on just a few key messages
• Keep tools focused & concise
• Train often
• Train all market facing personnel
• Ensure you have executive management support
Copyright 2011 - LÛCRUM MARKETING

47. Key 16 – Generate Thought Leadership
• Key Questions
– How do you make the market aware of you
products/offerings?
• Key Elements
– Product evangelism – speaking engagements
– Public relations strategy – 3rd party validation
– Tools to support this – white papers, presentations,
press kits, etc.
– Online marketingCopyright 2011 - LÛCRUM MARKETING

48. Key 17- Feed & Manage Sales Funnel
Copyright 2011 - LÛCRUM MARKETING
• Key Question
– How do you effectively create leads that result in sales
• Key Elements
– Create Awareness
– Move into the funnel
– Manage through the funnel
– Understand the funnel metrics

49. Managing the Sales Funnel
Copyright 2011 - LÛCRUM MARKETING
Lead sources
Cost of lead/sale
Time to sale
Conversion ratios
Leads/Suspects
Prospects
Negotiating
Customer
Target Market

50. Key 18 – Align & Create Marketing/Sales Tools
• Key Question
– Does your marketing & sales tools strategy support
your market & sales strategy?
• Key Elements
– Marketing/Sales Tools for:
• Different markets
• Different buyers
• Different stages of the sales/buying process
Copyright 2011 - LÛCRUM MARKETING

51. Potential Marketing/Sales Tools
• What tools do you need to move the sales/buying
process?
– Product brochures
– Market Segment Solution brochures
– White Papers
– Presentations
– ROI calculation
– Draft RFP
– Demo
– Website
Copyright 2011 - LÛCRUM MARKETING

52. Compelling Marketer Model
Copyright 2011 - LÛCRUM MARKETING

53. Compelling Marketer Model
for Product & Market Success
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54. Key 19 – Managing Product Lifecycle
Profitability
• Key Question
– Do you manage this process to maximize profitability?
• Key Elements
– Clear ownership of responsibilities
• Product Manager
– Managing strategy across product lifecycle
– Managing the total product portfolio and investments for
maximum profit
Copyright 2011 - LÛCRUM MARKETING

55. Key 20 – Measuring Success
• Key Question
– How do you define success and know if you’re
improving?
• Key Elements
– Defined metrics
– Means to measure metrics
– Corrective actions
Copyright 2011 - LÛCRUM MARKETING

56. Example Metrics
• Strategic Metrics
– Product Revenue, Product Profitability, Market Share,
New customers/lost customers, Win/loss ratios,
Customer satisfaction
• Operational metrics (Diagnostic indicators)
– Market sensing activities, Requirement changes, On
schedule development, Time to market, Product
defects/bugs, Support issues, Sales enablement
activities, Product management deliverables
Copyright 2011 - LÛCRUM MARKETING

57. Compelling Marketer Model
for Product & Market Success
Copyright 2011 - LÛCRUM MARKETING

58. Five Priority Practices (to Start With)
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59. The Product Manager Role is Key
Make Companies Market Driven
•By understanding and validating their market’s needs,
•Companies deliver products and services that solve their
market’s problems and
•Create messages and positioning that cause customers to
want their products.
Resulting in Increased Revenue & Profit!
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60. Copyright 2011 - LÛCRUM MARKETING
Questions
Muchas Gracias!
Tom Evans
Lûcrum Marketing
tevans@lucrum-marketing.com
+1-512-961-5267
Skype: tevanstx