Docstoc

GTM Market

Document Sample
GTM Market Powered By Docstoc
					Go to Market – Sales/Channel & Marketing Plan
I.      Overview
This formalized “Go-to-Market” Sales & Marketing Plan has been created to address the areas of
Sales organization, Product Marketing and Opportunity Development requirements by XYZ
Corporation to meet their stated financial objectives during the period of November, 2007 -
December 2008:
A. Sales Organization Development – With funding now available the first and most critical
   objective for XYZ is to establish the organization and processes to drive revenues within their
   stated costs structure. This is the identification, hiring, development and growth of the sales
   organization throughout the US. It is important to note, that the first three categories listed
   below have critical time requirements to ensure the sales process gains momentum going into
   Fiscal Year 2008.
     Phase I - Immediate
     1. Job Titles/Description Finalization – Now that XYZ has established its revenue and expense
        requirements for the next 18 months, identification of the required resources needs to formalized
        and documented to begin the hiring process to include the desired experience, education and
        skill sets.
     2. Salary & Compensation Plan – Understanding the existing marketplace and the desired
        resources stated above, XYZ must formalize a competitive salary and bonus/compensation
        structure that is commensurate with those requirements and takes “cost of living” into




DRAFT
        consideration in the key areas targeted (e.g. Washington DC, NYC and LA).
     3. Candidate Interviews & Hiring – Once job descriptions, resource requirements and salary
        plan has been finalized, the next critical step is to begin advertising these jobs in the designated
        target cities ASAP to begin the interviewing process.
     Phase II – Within 45 Days
     1. Sales Territories – In tandem with completing the tasks within Phase I above, XYZ needs to
        assess it most immediate needs from a client/geographic standpoint to determine its priorities for
        sales and client opportunities to provide the fastest generation of revenues and establishment of
        client relationships.
     2. Quota Assignments (2007-2008) – Once the Sales & Compensation plan has been
        determined XYZ must also create a short-term and long-term quota plan to meet financial
        objectives with a “ramp-up” for new sales people taken into consideration.
     3. Initial Training – Equally important to the immediate hiring process is putting into effect a
        “crash course” training plan that can get new employees versed on XYZ and its products ASAP
        including the value add statements to assist in interviewing clients and assessing the best
        solution(s) to meet those needs.
     4. Job Performance and Management Plan – Finally, it’s critical that XYZ has a process in place
        from “day one” to monitor and manage the sales process to ensure that sales resources are
        being given the best opportunities to be successful. This process needs to include the metrics,
        benchmarks, data capture, data entry and retrieval of relevant information for the SVP to
        manage the process on a real-time basis.
     Phase III – Within 60 Days
     1. Long-term Training – Once new sales employees are in-place and begin the learning/sales
        process through real-time experience, a longer sales training program needs to be put into place
      to grow skills and knowledge to maximize their ability to drive revenues as well as enjoy a
      successful career at XYZ (retention).
   2. Sales Support Process – As part of the sales process, the sales organization must have a
      support mechanism to help them assess sales opportunities, create appropriate materials, build
      lead lists, enter information in CRM, pull reports to manage success and ensure customer
      satisfaction throughout and after the sales process.
   3. Sales Tracking Process – As a subset to the Job Performance tracking process is the ability to
      use information within CRM to track the sales process, cycle times and rates of success to build a
      stronger sales force and assess the needs of employees, the corporation and the client.

B. Product Marketing – Defines the various activities required to create take XYZ Corporations
   products to market including Market Segment Description, Market Metrics, Competitive Analysis
   and Marketing Requirements which includes, client development, strategic pricing/proposal
   development, marketing programs (Traction) and Marketing Communications (MARCOM).
   1. Market Segment Description – In tandem with the development of the sales organization it is
      imperative that XYZ develop formally define and document the market segment(s) it wishes to
      penetrate in the short-, medium-, and long-term to efficiently create training, job skills analysis,
      performance metrics and sales strategies and associated budgets to maximize ROI and minimize
      the sales cycle. Some of the key elements needed to identify the market are:
       a.   General Description of the Target Market(s)
       b.   Why this particular market(s) was chosen
       c.   Who are they - complete profile (e.g., demographics, psychographics, behaviors)




DRAFT
       d.   What benefits do they seek (i.e., what points-of-pain or problems are being solved)
       e.   What factors can affect their purchase or use decision
       f.   What attitudes do they have about the products/services currently or not currently offered
       g.   How is the product used
       h.   Products and Services that appeal to the target market
       i.   In general terms (not particular brands) what is currently appealing to this market
       j.   If there are no current providers, what types of products/services may appeal to this market (i.e., what is
            used now to solve the problem).
   2. Market Metrics – A key to development of market segment definition and penetration
      strategies is to determine critical metrics about the market to use for benchmarking, cycle
      tracking and performance analysis, e.g. size, scope, volume and competition.
       a.   Size estimates (current and future) for:
            − Overall market
            − Current size
            − Potential size
            − Actual penetration of current products/service within the total market
            − Individual market segments
            − Current size
            − Potential size
            − Actual penetration of current products/service within the total market
            − Usage rates
            − Frequency of product purchases
       b.   Growth estimates (current and future) for:
            − Overall market
            − Individual market segments
   3. Competitive Analysis – One of the most important aspects of the product marketing process is
      to determine who XYZ’s main competitors are in which markets and what products are competing
      with XYZ products within those markets. Key information about the competition will include the
      following summary of Current Competitors:
       a.   Listing by market share ranking (by each target market if possible) of Current Competitors - full analysis of
            top competitors including:
            − Products & Services (e.g., description, uniqueness, pricing, etc.)
            − Market share
            − Current customers
            − Positioning and promotion strategies
            − Partnerships/Alliances/Distributors
            − Recent news
            − SWOT Analysis - Strengths, Weaknesses, Opportunities & Threats
       b.   Potential Competitors
            − Explanation (though not as detailed as Current Competitors) on who they are or maybe and why they are
              seen as potential competitors

   4. Marketing Requirements – Once the information above has been formally defined and
      documented, XYZ must create internal sources of information, metrics, process and time frames
      in order meet the overall Roadmap to success. This includes 1) determining who the clients are
      and how to reach them, 2) what pricing will assist in making immediate sales based upon the
      competition, 3) the programs used to get immediate traction in the marketplace and the
      documentation needed to inform the sales organization, sales channels and the client.




DRAFT
       a.   Client Development/Market Share Growth – Defines the various activities required to build client lead
            lists, develop clients and new opportunities, grow existing client relationships and evolve existing XYZ
            products and services to meet the needs of clients today as well as in the future.
       b.   Strategic Pricing/Proposal – One of the most important aspects of building a sales and opportunity
            development process is to create a centralized strategic pricing process that builds a control point into the
            way pricing and proposals are presented to clients to maintain fiscal responsibility and client consistency.
            !   Roles & Responsibilities – The first step within the strategic pricing process is identifying and
                documenting the roles and responsibilities of each member of the sales organization within the overall
                process of putting competitive pricing/proposals in front of the client.
            !   Custom Deal Process – Once the roles are established, the next step is to document a process that
                sets specific standards for pricing XYZ products/services/features and presenting them to client. This
                process must be designed to ensure consistency in terms of what information is given to clients from both
                the XYZ sales organization as well as the external sales channel.
       c.   Marketing/Traction Programs – A critical element to delivering revenue quickly to the enterprise is to
            determine initial programs that can gain immediate “traction” within the marketplace to incentivize clients to
            make quick buy decisions. These programs and processes for determining information include:
            !   Traditional formats e.g. meetings, presentations and MARCOM – TBD
            !   Go to Market Tools and Processes – TBD
       d.   Marketing Communications – To maximize XYZ’s initial traction program it is recommended that initial
            materials/documentation be created to assist the sales organization deliver information to the client to assist
            in the buying decision-making process.

C. Business Opportunity Development – The final step to becoming operational is putting into
   place the means to find clients, develop opportunities, construct competitive proposals including
   features and pricing, delivering it to the clients in a fashion that emphasizes the value of the
   product and an ongoing relationship with XYZ, installing the product in a timely manner and
   then following up to ensure customer satisfaction to maintain long-term relationships. A subset
   of this process is developing the tools and metrics to monitor and analyze the process to ensure
   maximum success.
      1. Sales Process – The first step in this area is to develop a consistent sales process that allows
         XYZ to uncover client needs to and put forth a competitive proposal that will capture the client’s
         interest and lead to a successful sale. The process needs to be documented and managed on a
         consistent basis to understand the overall “sales cycle” which allows XYZ to know the anticipated
         timelines and revenue outcomes of a typical successful sale. As time progresses this sales cycle
         becomes imperative to XYZ in terms of managing resources and financial expectations of the
         corporation and the Product House.
      2. Business Tools – The second step in the area which goes hand-in-hand with the sales process
         is the development of business tools that assist the BDM do his/her job successfully while
         providing the intelligence to Sales and Corporate Management to manage the business and make
         adjustments real-time as needed.


II.      Operational Plan & Implementation
The following are recommendations on how XYZ must move forward and in what order of priority to
build a successful sales organization and ensure its ability to create a revenue stream and sales
pipeline to hit January, 2008 at full stride. It is extremely important for XYZ to understand that it
will take at least 90 days to get qualified people onboard and generating opportunities so it must act
quickly in order to meet its 2008 sales/revenue goals.
A. Sales Organization Development Roadmap – The most critical objective for XYZ to drive
   revenues identified in the Corporate Business Plan and Strategy. Based upon the following
   progression chart, in order for XYZ to show appreciable billed revenue opportunities by early to
   mid-January, the hiring process needs to begin ASAP.




DRAFT
DRAFT
Note – Using the timeline above, starting the process on September 20, 2007 will put booking
revenues into March, 2008.
This is the identification, hiring, development and growth of the sales organization through the
US including:
Phase I
1. Job Titles/Description Finalization – Based upon the decision by XYZ to move forward with
   the recommended “Business Development Consultancy” model described above, the following
   positions should be formalized immediately to begin the hiring process:
   a.   Business Development Associate – Sales support role designed to assist the sales team develop new
        business customer’s leads and information for business opportunities. Experience, education and skills
        required:
        −   Entry Level Research & Sales Support position
        −   College Degree
        −   Identify/Research/Develop new client leads by geographic territory
        −   Work with individual Sales Managers by territory to develop calling plans
        −   Monthly Reporting - CRM
        −   Billing/Collection issues
        −   Lead generation
        !   General Job Description – The Business Development Associate is an entry-level Sales Support
            manager who works with each Business Development Manager to identify leads by industry/vertical and
            region and follows up with initial contact to (hunter role) key clients to begin the opportunity
         development process. In addition the, BDA assists the VP, Sales in running monthly reports to monitor
         business growth as well as the individual performance of each BDM.
b.   Business Development Manager – Experienced Business Development and Opportunity Manager with
     previous experience in assessing client needs and translating XYZs product line and core competencies
     towards creating a solution. Experience, education and skills required:
     − 5+ Years of Experience
     − College Degree (MBA Preferred)
     − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
     − Understanding Client Business Models
     − Identify/Research/Develop new client relationships
     − Opportunity Assessment (client business needs)
     − Opportunity Development (Proposals)
     − Lead generation
     − Fact finding/Meetings with clients and prospects
     − Understanding of Financials
     − Communication Skills
     − Writing Skills
     − Presentation Skills
     − Build/Maintain existing client relationships
     − Monthly Reporting - CRM
     − Consultancy Sales
     − Multiple-Industry Expertise
     !   General Job Description – The Business Development Manager is responsible for develop new
         business opportunities through lead development, client relationship building delivering timely and
         accurate proposals that meet specific client needs. Approximately 75% of the BDM’s time is spent
         cultivating new clients and business opportunities as well as partnering with the external XYZ Sales
         Channel to ensure a consistent price and product message is delivered to the client. The remaining 25%




DRAFT
         is spent working with existing clients to ensure satisfaction and long-term business retention.
c.   Senior Business Development Manager – Experienced Business Development and Opportunity Manager
     with previous experience in assessing client needs and translating XYZs product line and core competencies
     towards creating a solution. Experience, education and skills required:
     − 7+ Years of Experience
     − College Degree (MBA Preferred)
     − Existing client lead list within preferred industry segments
     − Strengths, Weaknesses, Opportunities and Threats (SWOT) Analysis
     − Understanding Client Business Models
     − Identify/Research/Develop new client relationships
     − Opportunity Assessment (client business needs)
     − Opportunity Development (Proposals)
     − Lead generation
     − Fact finding/Meetings with clients and prospects
     − Understanding of Financials
     − Communication Skills
     − Writing Skills
     − Presentation Skills
     − Build/Maintain existing client relationships
     − Monthly Reporting - CRM
     − Consultancy Sales
     − Multiple-Industry Expertise
     !   General Job Description – The Senior Business Development Manager is responsible for develop new
         business opportunities through lead development, client relationship building delivering timely and
         accurate proposals that meet specific client needs. Approximately 50% of the BDM’s time is spent
         cultivating new clients and business opportunities as well as partnering with the external XYZ Sales
         Channel to ensure a consistent price and product message is delivered to the client. The remaining 59%
         is spent working with existing clients to ensure satisfaction and long-term business retention.
d.   Senior Business Manager – Experienced Business Manager with ability to craft and approve strategic
     pricing proposals for clients, serve as primary interface to external sales channel and prove real-time
     information to the Product House based upon the changing marketplace. Experience, education and skills
     required:
        −   10+ Years of Experience
        −   College Degree (MBA Preferred)
        −   Custom Deal Architecture & Strategic Pricing
        −   Channel Sales Management
        −   Product Marketing
        −   Financial Tracking and Forecasting Responsibilities
        −   Writing Skills
        −   Multiple-Industry Expertise
        !   General Job Description – The Senior Business Manager is responsible for managing centralizing all
            price/proposals delivered to clients via the internal sales team and external sales channel. In addition,
            responsible for providing intelligence to the Product House based upon client input of price, contract
            terms and product/features.
   e.   Vice President, Business Development – Experienced leader of Sales, Marketing and Business
        Development Managers with previous experience in assessing managing, coaching and motivating sales
        resources. Experience, education and skills required:
        − 10+ Years of Experience
        − College Degree (MBA Preferred)
        − Coaching, Mentoring and Motivating Sales Teams
        − Custom Deal Architecture & Strategic Pricing
        − Product Marketing
        − Financial Tracking and Forecasting Responsibilities
        − Communication Skills
        − Writing Skills
        − Presentation Skills
        − Multiple-Industry Expertise
        !   General Job Description – The VP Business Development is responsible for managing and driving the




DRAFT
            sales organization to success through coaching, mentoring and motivation as well as all aspects of day-to-
            day operational management including financials, forecasting and training. In addition, VP has corporate
            fiscal responsibility within the strategic pricing and proposal process to ensure XYZ meets its financial
            objectives. VP also serves as the primary interface between the client and the Product House to ensure
            that XYZ products and features meet the objectives of the client and the existing marketplace.
        In addition to the experience and education levels listed above by title, the BDM should specific experience in
        Business Development, Strategic Planning or Solution Sales. Key skills and experiences should be in
        finding/generating leads, understanding the business models of their particular verticals, proposing
        customized solutions that can enhance those business models, the ability to present and communicate their
        solutions, seek out “C” level management (Key Decision Makers – KDMs) within those enterprises, client
        relationship building and the ability follow up and close. Other crucial skills include:
        −   Ability to understand the business models of their respective clients/verticals
        −   Ability to translate that knowledge and research to client-focused SWOT Analysis
        −   Computer literacy in order to develop presentation materials, proposals and results tracking.
        −   Ability to use the Internet to searchin for information and opportunities is also a critical skill.
        −   The ability to work autonomously and in a Virtual Office environment with little managerial, marketing or
            IT support.
        Note – The ideal scenario is to have a Senior BDM and BDM paired up within the NYC and DC
        offices to provide team support and mentoring especially in a Virtual Office environment.
        Considerations should also be made to put a second BDM in Los Angeles to handle northern
        California as the western region becomes more cultivated.
2. Salary & Compensation Plan – Based upon the needs of XYZ to place qualified BDM’s in key
   and high “cost-of-living” markets like NYC, LA and Washington DC, it is recommended that
   management create a financial package that has three components, salary, compensation and
   bonus that is “top heavy” with regards to salary to attract the most experienced professionals as
   possible.
   a.   Salary – In order to bring in experience and qualified candidates in high cost-of-living areas, it is
        recommended that XYZ pay a salary plan that rewards responsible managers who can work autonomously
        and demonstrates a professional maturity to find, cultivate and maintain long-term client relationships. To
        meet these requirements, the following ranges are recommended:
            Business Development Associate              $50,000 - $65,000
            Business Development Manager                $70,000 - $85,000
         Senior Business Development Manager            $95,000 - $110,000
     Note - This higher salary structure also resolves issues for new employees making little or no
     compensation for 1-4 months as they ramp up into their job and create a pipeline.
b.   Compensation – With more emphasis on hiring experienced and mature professionals through higher
     salaries, XYZ should create a minimum compensation plan that incentivizes the manager to meet or exceed
     their annual sales quotas but also recognizes that the manager is receiving 75% of their total annual
     earnings through salary. The way to motivate the manager however is to provide escalators once they
     “exceed plan” that makes it lucrative for them to excel beyond their quota. The following is a chart of shows
     the compensation paid per lead/sale up at 100% of quota and above:

             Lead/Sale Type          @ 0-100% @ 100.1% @ 105.1% @ 110.1%
              Product 1 Leads            $25            $30             $34           $38
              Product 2 Leads            $50            $60             $68           $75
              Product 1 Sales           $2,500         $3,000         $3,375         $3,750
              Product 2 Sales           $5,000         $6,000         $6,750         $7,500
     Note – Key to the chart above is a lowered per sale compensation plan up to 100% of quota to
     balance out higher salaries. What the escalators do is incentivize each BDM to exceed 100% of
     quota where the plan now would pay at 110% of quota what the existing plan pays at 100%. It
     is very important to provide a “carrot” for the BDM to want to exceed quota. Flat payouts per sale
     will ultimately allow the BDM to give up during adversity seeing no advantage to excel!

c.   Bonus – Based on XYZs profitability/ROI model, a potential bonus 5% of base salary per annum based upon
     the BDM meeting 100% of objectives. The bonus can grow beyond 5% incrementally if the BDM surpasses




DRAFT
     his/her personal, corporate and revenue targets. These bonuses should be paid in increments either once or
     twice per year based upon the needs of the business.
     Note – Each BDM can receive a portion of this bonus if they fall below 100% of their targets, but
     this will only apply to personal objectives and not revenue objectives as there should be no partial
     reward for failure to meet quota.
Listed below are the salary, compensation and bonus ranges per title based upon meeting exactly
100% of all targets.
                                            Compensation
          BDA              Base Salary        @100%                Bonus @100%               Range
            Lowest          $55,000       +    $4,080          +      $2,750   =            $61,830
             Middle         $60,000       +    $4,080          +      $3,000   =            $67,080
            Highest         $65,000       +    $4,080          +      $3,250   =            $72,330

                                            Compensation
          BDM              Base Salary        @100%                Bonus @100%              Range
            Lowest          $70,000       +   $21,000          +      $3,500   =           $94,500
             Middle         $77,500       +   $21,000          +      $3,875   =           $102,375
            Highest         $85,000       +   $21,000          +      $4,250   =           $110,250

                                            Compensation
          SBDM             Base Salary        @100%              Bonus @100%                Range
            Lowest          $90,000       +   $30,000          +    $4,500   =             $124,500
             Middle         $97,500       +   $30,000          +    $4,875   =             $132,375
            Highest         $105,000      +   $30,000          +    $5,250   =             $140,250

Note – The above salary, compensation and bonus plan is suggested as a “Year 1” plan to both
entice the best candidates immediately to ensure quicker sales revenue traction as well as promote a
higher rate of retention.
3. Candidate Interviews & Hiring – Based upon the timeline above, the following steps should
   then be followed ASAP:
   a.   Begin posting job ads nationally for BDM’s in NYC and Washington DC immediately with considerations
        towards bringing candidates in for Chicago, Atlanta and possibly Dallas by EOY 2007.
   b.   Begin interviewing ASAP with the goal of having at least one NYC and DC candidate hired by mid-October,
        2007. These two initial candidates should be senior managers and paid at the highest range to gain as much
        traction within the sales cycle before mid-December, 2007. It is critical that there be a viable pipeline of
        sales opportunities developed and ready for closure by late January, 2008.
   c.   If possible, finding additional candidates in NYC, DC, Dallas and potentially Chicago and Atlanta by YE 2007
        will be critical to meeting 2008 sales revenue objectives.
   Note – It is critical to the XYZ Corporation 2008 Business Plan to begin the hiring process immediately
   in order to have a sales pipeline robust enough to begin producing billed revenue in early January.
Phase II
1. Sales Territories – In tandem with the hiring plan listed above, emphasis on bring candidates
   in to managed strategically identified geographic and industry verticals is extremely important to
   building a sales pipeline that will provide as many high Probability of Sales (POS) as possible in a
   short period of time. With this in mind, XYZ should focus it internal sales team in the verticals
   within the following geographic areas:
   a.   New York City – Approximately 60% of all the Fortune 100/500 has HQ or Operational Centers within the
        New York, New Jersey and Connecticut tri-state area. In particular, the Financial, Entertainment,
        Telecommunications, Chemical, Pharmaceutical, Tobacco and Professional Sports verticals, all of which are
        primary candidates for both Product 2 and Product 1.




DRAFT
   b.   Washington DC – This should be a crucial location for XYZ for both products considering the high amount
        of Political, Information Technology (Dulles Corridor in Virginia), Hotels (Marriott), Trade Associations and
        Defense Contractors (270 Technology Corridor in Maryland).
   c.   Dallas/Ft. Worth (or Houston) – Dallas is one of the top five cities in the US for corporate Headquarters
        as well as proximity to highly visible Petroleum Industry, Airlines and Hotels. Texas has also had several
        political scandals in recent years e.g. Tom DeLay. Also close proximity to Louisiana with several post-Katrina
        issues at every state, federal and corporate level as well as Wal-Mart.
   d.   Los Angeles – Entertainment industry (Product 1 for improving images of companies and their stars as well
        as Product 2 for helping promote upcoming movies and albums). Another area for consideration would be
        the concentration of High Net-worth Individuals. Also has proximity to Las Vegas (Casinos, Hotels and
        Gaming) and Phoenix (American Express, America West, Copper Mining and Best Western Hotels.
   e.   Atlanta (or Miami) – Delta Airlines (bankruptcy), Coca Cola (global expansion and PR issues), Bell South
        (merger with AT&T), CNN, Ted Turner (CNN and Philanthropic), WorldSpan, UPS, Home Depot (fierce
        competition with Lowes), Georgia-Pacific (environmental issues) and proximity to Miami (hotels and cruise
        industry).
   f.   Chicago – Proximity to the “Rust Belt” throughout Michigan, Indiana, Ohio, Pennsylvania and Illinois (steel
        and automotive and parts manufacturers) e.g. GM, Ford, Bridgestone/Firestone, Daimler/Chrysler, Whirlpool
        and US Steel. Others include United Airlines (bankruptcy), Dow Chemical (environmental issues), KMart.
        Minneapolis contains several financial institutions including AMEX, MasterCard, Northwest Airlines, General
        Mills, Target, Radisson & Carlson Hotels and 3M.
   g.   San Francisco – Proximity to a vast majority of the Information Technology Sector companies such as
        Oracle, Adobe Systems, Cisco Systems, eBay, Fujitsu, Hewlett-Packard, Hitachi, NEC, Siebel, SUN, WebEX as
        well as high visibility companies like Bechtel & Visa International, a vast majority of the US wine producers
        and a significant amount of Asia Pacific US Corporate Headquarters, especially Japanese companies.
   Note – The above list is not necessarily a recommendation for locations of BDM’s but instead a focus
   on major US cities that have a high degree of specific verticals. This list should however be used to
   make decisions going forward on where to locate BDM’s based upon the cost of hiring/locating a new
   BDM versus the cost of a BMD traveling on a regular basis from another location such as Seattle or
   Los Angeles.
The following are suggested geographic/vertical territories:




DRAFT
2. Quota Assignments (2007-2008) – This area will be addressed in 2Q 2008 after the sales
   organization has been put into place and the marketplace can be reassessed. The current quota
   appears to be realistic for the short-term based upon limited market data concerning both
   products, especially Product 2.
3. Initial Training – In order to get as much traction as possible by YE 2007 XYZ must develop a
   quick 2-3 day training session to get each new hire on board as quickly as possible with the basic
       knowledge, tools and materials to begin finding new opportunities and driving through the sales
       cycle process. The basic essentials for this training should include:
       a.   Product Training – An in-depth look at both Product 1 and Product 2 products including features, pricing
            and benefits.
       b.   Business Development/Sales Training – Along with Product Training, each BDM must learn how to find
            clients, develop opportunities, create proposals, present and close opportunities. This training requires
            value-add messaging from XYZ to allow each BDM to propose services and demonstrate the value/benefits it
            presents to each client.
       c.   Support Materials – As part of sales training, XYZ must provide each BDM with access to materials that
            will assist them in presenting products to clients as well as creating and delivering proposals.
       d.   System & Process Training – The last element of basic training is providing each BDM with the basic tools
            to perform their jobs from time reporting to CRM and pipeline management. As a part of this, BDM’s must
            learn how to submit requirements to the SBM to develop price proposals as well as the formalized escalation
            process within XYZ.

   4. Job Performance and Management Plan – XYZ should create, document and incorporate
      specific metrics into evaluation process of each BDM to measure success and improvement or to
      identify issues and obstacles requiring corrective measures. Recommendations are detailed
      within the associated Performance Plan attached at the bottom of this document.
       a.   Performance Objectives & Metrics – See attached Performance & Objectives Plan.

   Phase III
   1. Long-term Training – Over the next 3-6 months XYZ needs to define a more intense training
      program to ensure their sales team has the best chances for success as well increasing their




DRAFT
      personal skills for higher retention rates. A professional sales organization is key to XYZ’s long-
      term survival and perception by the client. Training program(s) include:
       a.   Sales Skills
       b.   Business Development Skills
       c.   Computer Skills (e.g. Office, Database, Internet)
       d.   Presentation Skills
       e.   Writing Skills

   2. Sales Support Process – This is another critical area to consider within the next 3-6 months
      which is how to best support the BDM in the field and virtual office environment. This includes
      the ability to create, receive and store marketing/pricing materials on a shared drive and a
      person to assist in uncovering leads, make phone calls, do research, record metrics and pull
      reports to track success.
   3. Sales Tracking Process – This area will be discussed in more detail once the current
      CRM/SUGAR system has been reviewed.
B. Product Marketing – A key to the development of the XYZ sales and product marketing
   strategy is to fully document the market(s) they wish to penetrate, frames, metrics for success,
   programs to get the product into the market quickly, information used by the sales team for
   training and present to the client as well as understanding who the competition is and the
   pricing needed to gain critical market in the first 90-120 days of product release.
   1. Market Segment Description – The following is a general recommendation for the initial
      target markets XYZ should target its products towards to gain quick revenue/market share. The
      main reasons for these recommendations are the visibility of the markets and the ability to
      quickly repeat successful efforts with other clients within the same markets/verticals.
       a.   General Description of the Target Market(s) – Markets/clients that have a high degree of visibility and
            traditionally carry negative public opinion due to their business and how the media portrays them including
            the following industries:
            − Tobacco, Pharmaceutical, Oil & Gas, Political Campaigns, Professional Sports & Entertainment
   b.   Why this particular market(s) was chosen – High negatives associated with these industries
   c.   Who are they - complete profile (e.g., demographics, psychographics, behaviors) – See the attached
        description of companies in the “Client Calling Plan.”
   d.   What benefits do they seek (i.e., what points-of-pain or problems are being solved) – Traditionally have high
        marketing budgets to combat negative public opinion. These products are minimal investment within those
        budgets and can have immediate impact on their marketing efforts.
   e.   What factors can affect their purchase or use decision – Small investment proportionally to their marketing
        budgets. Quick impact on public perception. Easily tracked. Can be used to proactively market new product
        releases.
   f.   What attitudes do they have about the products/services currently or not currently offered – TBD
   g.   How will the products be used – Change negative perception on website/blog searches.
   h.   Products and Services that appeal to the target market – Both the Product 1 and 2 will assist in change
        public perceptions.
   i.   In general terms (not particular brands) what is currently appealing to this market – TBD
   j.   If there are no current providers, what types of products/services may appeal to this market (i.e., what is
        used now to solve the problem) – Traditional advertising agency practices e.g. client forums.
2. Market Metrics – The following metrics need to be determined by XYZ as soon as possible in
   order to incorporate into its marketing, sales strategy/organization development and marketing
   programs.
   a.   Size estimates (current and future) for: – TBD
        − Overall market
        − Current size




DRAFT
   b.
        − Potential size
        − Actual penetration of current products/service within the total market
        − Individual market segments
        − Current size – TBD
        − Potential size – TBD
        − Actual penetration of current products/service within the total market
        − Usage rates
        − Frequency of product purchases
        Growth estimates (current and future) for: – TBD
        − Overall market
        − Individual market segments
3. Competitive Analysis – There does not appear to be any products currently on the market that
   directly compete, feature-to-feature as XYZ’s Product 1 and Product 2. The major competitors
   however to XYZ in the space appear to be other companies within the SEO/SEM, Public Relations
   and Marketing companies such as Omnicom and smaller firms like Razorfish, Digitas, aQuantive
   and Agency.com.
   a.   Listing by market share ranking (by each target market if possible) – TBD
        − Current Competitors - full analysis of top competitors including:
        − Products & Services (e.g., description, uniqueness, pricing, etc.)
        − Market share
        − Current customers
        − Positioning and promotion strategies
        − Partnerships/Alliances/Distributors
        − Recent news
        − SWOT Analysis - Strengths, Weaknesses, Opportunities & Threats
   b.   Potential Competitors – TBD
        − Explanation (though not as detailed as Current Competitors) on who they are or maybe and why they are
          seen as potential competitors

4. Marketing Requirements – The following areas need to be addressed by XYZ immediately to
   create a “client approach process” in order to begin the sales and client development process and
   to drive revenues as quickly as possible. The key goal during this process is to understand the
   marketplace, clients and competition in order to provide the sales organization the appropriate
   amount of training, skills, tools, performance metrics, collateral and competitive pricing. A major
   factor within this overall process is to determine the sales cycle which is the time anticipated by
   XYZ from first client meeting to final service turn up and billing. Once this is established, the
   following information and processes can then be created to ensure that the cycle is a) met or
   exceed, b) can be escalated when appropriate, and c) measured for the purposes of revenue
   forecasting, performance management and the need for additional programs to grow interest.
   a.   Client Development/Market Share Growth – This area will be discussed in more detail in a future
        version once an assessment has been done of the current XYZ marketplace, client contacts, Channel contacts
        and general interest in both Product 1 and Product 2 products.
   b.   Strategic Pricing/Proposal – In order to streamline the sales process and ensuing sales cycle, XYZ should
        create a centralized process for crafting pricing, proposals, terms & conditions that will manage the internal
        and external sales processes as well as Product Marketing requirements back to Headquarters (Seattle). This
        process involves the redesign of roles within the process as well as the process itself.
        − Roles & Responsibilities – The key to managing this process is to centralize and control the sales and
          pricing process between the client, internal sales managers, external sales channel, the Product House and
          the CFO organization. To accomplish this, XYZ should create and/or fill a Senior Business Manager (SBM)
          position within the Sales Organization to serve four key functions within the overall sales process, Channel
          Single-Point-of-Contact (SPOC), Strategic Pricing & Product Marketing Management and Escalations. This




DRAFT
          position would report directly to the VP, Sales as well as “dotted line” reporting into the CFO organization
          to ensure pricing and contract terms are in-line with corporate goals.




         i.    Channel SPOC – In this role, the SBM is in direct control of all proposals and pricing delivered to clients
               via Channel partners to ensure that contract terms and post-sales support as well as pricing conforms to
               the XYZ business plan and model. This process is designed specifically to ensure consistency with
               regards to pricing as well as the terms of the design/proposal given to each client.
        ii.    Strategic Pricing Management – Similar to role above, the SBM is also responsible for taking all data
               gathered from the sales team and crafting competitive deals in an expedient manner to ensure
               maximum use of XYZ resources as well as managing the sales cycle. In this role, the SBM in partnership
               with the SVP has the ability to make strategic pricing decisions and has the “Authority to Quote” as the
               representative to the CFO organization within XYZ.
        iii.   Product Marketing Management – The within the strategic pricing and sales cycle management
               processes, the SBM is also in a unique position to understand what clients will/will not buy and the value
    they place on each product/feature in terms of making short-term purchase and long-term relationship
    decisions with XYZ. This intelligence can then be vocalized back to the Product House and CFO
    organization to drive the development of the product, features and strategic pricing.
iv. Escalation Management – The final role the SBM would serve is to serve as an escalation point back
    to XYZ Senior leadership in areas where issues or price decisions are not enough to obtain business from
    key clients. This role can also utilize the Business Development Associate to perform post-sales follow-
    up to ensure a) services are installed on time, b) the clients objectives are being met, and c) overall
    client satisfaction to build long-term relationships.




DRAFT
− Custom Deal Process – Once the SBM has been put into place, the following process should be put into
  place:
   i. The Channel or Business Development Manager meets with a client and receives a “Request for
      Proposal” (RFP) to include an overview of the service(s), timeframes for installation, terms and
      conditions and strategic pricing to include:
      − Base price
       − Terms
       − Discounts
   ii. Channel/BDM fills out a basic online form to include size and scope of client needs to the Senior
       Business Manager to include:
       − Business Impact to XYZ Corporation
       − Total Revenue Opportunity
       − Probability of Sale (5)
       − Client timeline for making purchase
  iii. The SBM creates a competitive price based upon impact to XYZ (winning vs. losing business) within 3-
       5 business days and returns to Channel/BDM.
  iv. Channel/BDM presents to client with SBM supporting via telephone if appropriate to assess situation
      and assist the VP of Sales, in closing sale. Based upon client feedback, the SBM and SVP can make
      further concessions if deemed appropriate within their P&L parameters designated by XYZ. If further
      concessions are required, SBM and SVP can appeal to CFO for assistance if deemed appropriate.
   v. SBM uses feedback from client to assess/re-assess pricing (to CFO) and products/features (to Product
      House) if required.
Note – This process also serves the purpose of ensuring that Channel Sales involves XYZ with all client
meetings and price proposals and that the appropriate XYZ BDM is in-the-loop on the opportunity for long-
term relationship building and service continuity for the purposes of service retention
        c. Marketing/Traction Programs – Once the major first strike clients have been identified by
           XYZ, appropriate traction program should be created that will include:




DRAFT       −
            −
            −
            −
            −
                Advertising via trade magazines, the Internet, Email and mailers
                Initial pricing/discount plans for early adopters
                Sales/Channel training to present XYZ value-add and product silver bullets
                Customer awareness – Trade shows, brochures, presentations, WebEx conferences and meetings
                Go to Market Tools and Processes:
                ! Dynamic Content
                ! Business Podcasting "Studio in-a-box"
                ! Traffic Building
                ! Search engine optimization (SEO)
                ! Pay-per-click (PPC) advertising
                ! Pipeline Building
                ! Website monitoring
                ! Website chat and real time lead qualification
        d. Marketing Communications – Associated documentation and materials to be used for public
           consumption including white papers, brochures, presentations, pricing templates, competitive
           analysis and product silver bullets to be used by the sales/channel and the Marketing organization
           to inform clients. This material should be created by XYZ Corporation as soon as possible to
           maximize ROI and minimize the sales cycle to include the creation and growth of the Sales
           Pipeline via their CRM system.
C. Business Opportunity Development – The final step to becoming operational is putting into
   place the means to find clients, develop opportunities, construct competitive proposals including
   features and pricing, delivering it to the clients in a fashion that emphasizes the value of the
   product and an ongoing relationship with XYZ, installing the product in a timely manner and
   then following up to ensure customer satisfaction to maintain long-term relationships. A subset
   of this process is developing the tools and metrics to monitor and analyze the process to ensure
   maximum success.
   1. Sales Process – The first step in this area is to develop a consistent sales process that allows
      XYZ to uncover client needs to and put forth a competitive proposal that will capture the client’s
      interest and lead to a successful sale. The process needs to be documented and managed on a
      consistent basis to understand the overall “sales cycle” which allows XYZ to know the anticipated
      timelines and revenue outcomes of a typical successful sale. As time progresses this sales cycle
      becomes imperative to XYZ in terms of managing resources and financial expectations of the
      corporation and the Product House.
   2. Business Tools – The second step in the area which goes hand-in-hand with the sales process
      is the development of business tools that assist the BDM do his/her job successfully while
      providing the intelligence to Sales and Corporate Management to manage the business and make
      adjustments real-time as needed.
D. Business Opportunity Development – In order to gain as much traction as quickly as
   possible, XYZ should target 4-5 verticals immediately within the NYC, LA, Dallas and DC areas
   that are high visibility or have brand issues. Within the verticals, 3-4 clients for each should be
   selected based upon current affairs, existing relationships or existing clients within the same
   vertical. Each BDM must establish a “road map” to build a sales funnel from client identification
   to contact to meeting to follow up to close and track each component in Sugar with constant
   updates to ensure accuracy as well as build a complete profile of the client.
   1. Sales Process – After the verticals and clients have been identified, KDMs need to be identified
      for contact. Based on that client’s business model, a SWOT analysis should be created and
      marketing materials customized for the vertical and client with a clear message depicting the
      value-add of XYZ and Product 1/Product 2.




DRAFT
   2. Business Tools – What is XYZ using now, Hoovers, D&B?
       a.   CRM – To be filled in after a review of the current SUGAR system.


III. Timeline
The following are recommendations on which actions should take place over the next 1-6 months to
develop a successful sales organization and begin creating short- and long-term sales opportunities
in line with XYZ’s 2008 Business Plan.
Mid-September – October, 2007
   1. Sales Organization Development – The first and most essential task is to begin interviewing
      candidates for New York and Washington DC with the goal of finding an SBDM for each city to
      start, followed by a second BDM in each city. By finding a senior experienced manager, XYZ can
      start the opportunity development process almost immediately by hopefully tying into the new
      employee’s already expansive knowledge of the marketplace and key client contacts.
       Ideally the SBDM will also have gained enough momentum within the first 30 days to help coach
       and mentor the BDM hired soon thereafter.
   2. Job Titles/Description Finalization – These need to be completed and ready for posting on
      the Internet by 9/21/07 if not sooner to follow the timeline created above.
   3. Salary & Compensation Plan – These plans need to be finalized and approved before October
      1st in order to discuss with top candidates during the hiring process.
   4. Candidate Interviews & Hiring – Once these are posted (9/21/07) expect the process to take
      (at a minimum) 21 days to find top candidates. The best expectation is an offer can be made by
      October 1st and first day of employment on 10/8/07 however top candidates will most likely
      require at least 2 week’s notice at their current jobs making a more likely start date of 10/16/07.
   5. Initial Training – A basic training course should be assembled immediately to allow for quick
      implementation once new candidates are onboard. Ideally, the training should be done with
      multiple BDM’s (at least the first two SBDM’s) to help create a team environment and allow for a
      support system as the two start through the process of developing new opportunities.
      Note – It is highly recommended that XYZ consider both SBM position ASAP and either hire the
      position externally or fill it internally (at least on an interim basis). The sooner this position is
      created, the faster both the internal and external sales resources will understand and follow the
      designated strategic pricing process to ensure consistency with clients and make necessary
      adjustments to pricing if needed based upon real-time market data. Although not recommended,
      this roll can be handled short-term by the SVP until such time as a full-time resource can be
      brought on board.
November 1 – December 31, 2008
   1. Custom Pricing/Proposal Process – This process itself needs to be agreed upon by XYZ ASAP
      and created early enough for new hires to learn and follow the process starting January 1st.
      Because there are already Agency representatives (Channel) proposing Product 1 and Product 2
      services to their clients, the sooner it is implemented and delivered to the Channel, the sooner
      the process will be followed and XYZ can begin controlling the pricing information delivered to
      clients and expedite the Sales Cycle.
   2. Sales Territories – This is not a critical requirement but should be resolved ASAP as new BDM’s
      come onboard to establish boundaries for each territory to ensure maximum efficiency.
   3. Quota Assignments (2007-2008) – Same as the above since a quota system really not apply
      until January 1, 2008. Any sales made before then should not be expected as it will take at least




DRAFT
      30 days for new BDM’s to ramp-up putting them into December and the holiday season which is
      traditionally slow. It is however important valuable time for building lead lists and a sales
      pipeline to hit the road running in January.
   4. Job Performance and Management Plan – Same scenario as Quotas. Needs to be
      determined by December and “socialized” with each BDM so they understand how they will be
      evaluated starting January 1st.
   5. Sales Support Process – Although a lower priority, establishing this role and hiring before
      YE2007 will greatly enhance success factors for the BDM’s as of January 1st.
1st Quarter, 2008
   1. Long-term Training – Key to long-term retention of top employees and customer satisfaction,
      a more formalized training program should be developed for 2008 to include instructor-led, online
      and self-paced courses to grow skills and knowledge.
      Note – This is an area that companies typical put a low priority on because of the cost and time
      it takes BDM’s out of the field however it is highly recommended that XYZ focus on this when
      considering the larger impact of losing employees after one-year due to career dissatisfaction.

				
DOCUMENT INFO
Shared By:
Categories:
Tags:
Stats:
views:17
posted:8/21/2011
language:English
pages:17