Entrepreneurial Marketing: An Effectual Approach Prof. Dr. E.J. Nijssen, Eindhoven University of Technology Available from Routledge at: https://www.routledge.com/Entrepreneurial-Marketing-An-Effectual-Approach/Nijssen/p/book/9781138712911 Session 8: The role of sales in customer development

Objectives Explain the principle of the sales learning curve Understand sales knowledge brokering role Specifically sales involvement in NPD May help discover customer needs and better understand customer behavior Discuss the development of a sales message to successfully hunt for prospects Present the sales process and key questions for shaping the sales activities Goal: Customer development

Sales goals Actively build presence and awareness in market place for firm and product/service By Bringing in initial sales with suboptimal product to ensure cash flow/survival Allertness and assertiveness in approaching venturous customers Excellent contact with R&D/NPD colleagues and ability to switch between technology and customer needs Building marketing/sales information system Developing plan to approach and convince subsequent customers

Sales’ involvement with R&D and customers Salesperson involvement Alternative mechanisms Outcome New product advantage + Salesperson’s integration in start- up’s product development + + Sales person’s new product adoption

Sales’ involvement with R&D and customers Salesperson involvement Alternative mechanisms Outcome New product advantage + + Salesperson’s integration in start- up’s product development New product success + + + + Sales person’s new product adoption Competitive intensity + New product innovativeness

Sales’ involvement with R&D and customers Salesperson involvement Alternative mechanisms Outcome Timing Quality of information - New product advantage + + + Salesperson’s integration in start- up’s product development New product success + + + + + Sales person’s new product adoption Recognition Competitive intensity + + Feedback New product innovativeness

Sales’ involvement with R&D and customers Salesperson involvement Alternative mechanisms Outcome Timing New product advantage Quality of information - Sales plan + + + Salesperson’s integration in start- up’s product development Prototype (experimentation) Customer behavior New product success + Customer feedback/needs + + + + Sales person’s new product adoption Recognition Competitive intensity + + Feedback New product innovativeness

Sales people benefit from design perspective In contrast to hard selling there is: Adaptive selling Solution selling Emphathy Customer orientation, build needed knowledge Integration ability

Sales people benefit from design perspective Let’s watch the following video on design (Tom Hulme) Imagine how sales person can use and contribute https://www.youtube.com/watch?v=GzXqG505ORw

Sales process and related elements Prospecting Interacting Persuading Maintaining Prospect list Pass gatekeepers Initiate contact Sales message (customer value, USPs) Sales presentation/ demonstration Educate Present solution per stakeholder in DMU Negotiate Service Feedback Retention Cross-selling

Basic sales message format Our company _______________ offers a new solution ___________. (concept  problem) to _______________. (target customers) Our primary points of difference are____________. Our main benefits include _____________. This is what our customers say about our product and us______________. (references/testimonials) With (our product), you (the customer) will be able to better achieve (customer’s goals) Differentiate message for each member of the decision making unit

Best practices in sales encounters Listen to understand customer frustrations/problems and thus latent needs Show empathy Deliver a short and targeted message Get feedback on your product Positive and negative (opportunities for improvement) Educate customer if necessary; offer information about your product/technology

Sales learning curve Early selling involves serious learning, which unfolds through the experimentation with different market segments and prototypes Process takes time Cannot be short-circuited Needs entrepreneurial sales skills The ability to deal with uncertainty of changing presentations, customers and products on a daily basis The ability to listen to customer objections and understand whether they are issues about the product, the presentation, the pricing, or something else Blank (2006); Leslie and Holloway (2006)

Lessons Early sales requires entrepreneurial (design-oriented) and not regular sales skills Involvement with R&D Requires embracing uncertainy via experimentation Adaptive/solution selling In the process sales learning will result in improved product, sales message and targetting/positioning The sales plan (road map) should evolve to plan for the segment and finally the market Once the initial assumptions are validated can sales ramp-up take place based on the sales road map developed