1. 1  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot The PowerPoint Presentations  All did a good job with graphics and presentation skills.  Some “mumbling” in response to questions about the market.  Don’t bother with “table of contents” slide.  Have a punch-line early.  Other feedback given verbally. HA and I will discuss with Phil, who can provide more info (and his opinion).  Or email/ask us.

2. 2  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot The Speaker Surveys  The speaker surveys (posted on SloanSpace after each guest speaker) are a key part of your class participation grade.  We like hearing from you, and your participation helps to build community.  Much of your work for the semester is in a team setting. Surveys are an opportunity for you to shine as an individual, and share insights you’ve gotten out of the in-class material.  Survey responses are recorded for posterity. If you wind up on the fence between two grades and we’re not sure which way to go, reviewing survey responses can help make the decision.

3. 3  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Krasky “Tim gave excellent advice on selling tactics. His comments on the difference between salespeople and Sales Managers got me thinking. I also liked his admonition that salespeople LISTEN to their customers. It reminded me of a Cherokee Indian proverb: ‘Listen! Or your tongue will make you deaf.’ I must admit that he did seem a bit ruthless and aggressive and as a consequence I was hesitant to trust him. Sometimes I felt as though I were listening to a stockbroker or a used car salesman.”

4. 4  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Krasky, cont’d “Tim is clearly an effective salesman, and I feel like I could learn a lot from him, starting as I am from effectively nothing. However, I have to admit I was a bit turned off by the misspellings in and somewhat slipshot nature of his slides. I fear this may be shallow of me, but I can't help wondering how much effort someone put into his slides if he's constantly skipping through entire sections of them and glossing over them with ‘and here's another list of things to remember --- got that? --- ok, next slide.’”

5. 5  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Krasky, cont’d “Speedbumps, potholes, and bluebirds...oh my! I thought his advice was thoughtful and relevant. I wish that we had spent more time on building and managing a sales organization (compensation packages, lead generation, etc.) and less on actually being the salesperson. As an aside,Tim really came off as a (good?) salesperson. He is exactly the type of guy I would *never* take an appointment with when I had purchasing power :^)”

6. 6  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 15.390 class 8 Marketing and Sales

7. 7  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Aspects of Marketing and Sales  Market Analysis and Segmentation  Who might buy it?  Competitive Analysis  Who are they buying from now?  Marketing Strategy  How are you going to identify individual buyers, how are you going to make the product appealing to and get the attention of these buyers?  Sales Strategy and Salesmanship  How do you select a channel? How do you conduct a sales call?

8. US SALES POTENTIAL PER YEAR Incidence (million) Diagnosed (%) X Cases diagnosed (million) Treated (%) X Price per treatment (USD) Number of treatments X Price per patient (USD) Number of treated patients (million) Panacea Market penetration (%) Market potential USD millions Sales potential USD millions XX 3,000 5 150 0.15 20,000 0.2 75 0.5 40 10,000 2 Source:Medical books, Internet research, WHO Global Health statistics PROSTATEC ANCER

9. 9  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Key sales number from that slide:  They claim they will have 5 %of 150,000 (7,500 patients) each paying $20,000.  Here’s when we have to make the leap from market sizing to marketing and sales strategy.  Will customers cough up $20,000 each?  How do we find out specifically which customers these are?  How do we get in front of these customers?  How do we look good in front of them?  PR, advertising, brochures, trade show costs need to tie in to financial model.

10. 10  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot The numbers need to make sense  If you’re claiming you can sell to 7,500 patients, what kind of promotional force or channel development team do you need on staff?  How many hospitals/doctors are involved?  Do the math: how many days are there in a work-week? how many cities can these people visit? how long does a visit take?  Advertising: what’s the hit rate per ad, how often does a doctor read a magazine or go to a trade show, etc.

11. 11  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Your Marketing Strategy  Identifying, understanding, and impressing, customers.  Training equipping your sales force.

12. 12  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Timeline issues  Features selected/developed/ready to go  Beta testing  Brochures printed  Press releases  Appearance at trade show (booth design?)  Sales reps trained  Analysts teased  Analysts briefed

13. 13  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Identifying, Understanding, and Impressing Customers 1.How are you going to present the company as a whole? 2.How are you going to select features for the product(s)? 3.Which customer segment are you going after? 4.How are you going to package/present the product? 5.How are you going to get buyers to look in the direction of your product/company? 6.Lead-generation. leads into... how are you going to convert to sale?

14. 14  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 1. Presenting the company as a whole  Tagline that you’ll use at the beginning of every brochure and press release.  Positioning for analysts.  Reassurance for customers.  Culture-setting internally, mood, attitude, and most importantly: focus.

15. 15  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 2. Feature selection  What do customers want to buy?  What will they pay for (vs. what they say they’ll pay for)?  How do comparable customer spend their money?  How do these customers spend their money on comparable items?  What can be built in a cost-effective way?

16. 16  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 3. Customer Segmentation  Vertical vs. Horizontal  IT department  here’s an inventory management tool that you can use for all the business units requiring inventory management  Line of business  here’s the inventory management tool for aircraft manufacturers, and we specialize in providing tools to aircraft manufacturers

17. 17  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 4. Packaging/Presentation  Important to appeal to the category of buyer:  if selling to a patient, show healthy people dancing in fields  if selling to a doctor, show microscopes and charts  if selling to a health insurance company, show financial analysis  “Bic” pens ($0.39 in a cardboard box at the cash register) vs. Cross pens ($39 in a glass display case at the back of the store)  Fast food vs. 5 star dining

18. 18  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 5. How you’ll get buyers to look  Where do the buyers get their info?  Whose opinions do they trust?  Trade shows/industry meetings/standards groups.  Analysts  Advertising  Personal visits/mails/phone  If you have VC investors, USE THEM...  begin by managing the due diligence process  get introductions to/from VC’s limiteds  work with their other portfolio companies  Why will they buy from a startup?

19. 19  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot 6. Lead Generation  Taking business cards at meetings/trade shows  Hosting “FYI breakfasts” with name- brand speakers or hot topics  Publishing white papers, available upon request  “Send in this card for more info”  Buying lists

20. 20  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Examples

21. 21  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Identifying, Understanding, and Impressing Customers 1.How are you going to present the company as a whole? 2.How are you going to select features for the product(s)? 3.Which customer segment are you going after? 4.How are you going to package/present the product? 5.How are you going to get buyers to look in the direction of your product/company? 6.Lead-generation. leads into... how are you going to convert to sale?

22. 22  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot Tangent... A bit of research published recently  The Goldman Sachs Investment Research analyst that covers McDonalds, Wendy’s, etc summarized a study done by QSR (“Quick Service Restaurant”) Magazine.  It’s all about drive-throughs, which account for approx 60% of sales.  Most sales occur at peak hours, during which throughput is essential.  Slow operators lose sales to competitors given the premium customers place on convenience.

23. 23  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot  Survey looked at four categories:  speed  order accuracy  menuboard appearance  speaker clarity  Speed and Accuracy each comprise 40% of the overall score, while menuboard appearance and speaker clarity each comprise 10%.  Every 10 seconds shaved off the drive- thu process can yield an incremental $1,000 in sales.  Fastest is Wendy’s: 127 seconds http://www.qsrmagazine.com/drive-thru/2002/

24. 24  2000-2003 Copyright – MIT 15.390 New Enterprises, Anderson/Zolot The end