1. Module 4 - Who are your Customers and What do they Need? Shai Vyakarnam and Simon Pratten Breakout is an Epi-V initiative, delivered by Transitions.

2. Totally new Existing Existing Totally new concept new concept A C D B You have to sell something to someone to make a living! Technologies MARKETS and CUSTOMERS Igor Ansoff, 1957

3. Segmenting the market Benefits being sought Technology solution Service levels Pricing Commercials Database of target clients

4. Typical sales curve – 80/20 rule 12345 6 7 8

5. Pile of invoices for top five clients CustomerACustomerBCustomerCCustomerDCustomerE

6. The Seller, the Buyer and the DMU Is it a competitive price? Can this supplier be trusted? BUYER SELLER D M U How about maintenance and spares? Will my customers like it? Can it be upgraded technically? Will unskilled people be able to use it?

7. The networking concept ColleaguesColleagues SuppliersSuppliers FriendsFriends FamilyFamily TradecontactsTradecontacts CustomersCustomers

8. The Seller, the Buyer and the DMU No. of EmployeesAverage no. in DMU Average no. of contacts made 0 – 2003.421.72 201 – 4004.851.75 401 – 10005.811.90 1000 +6.501.85

9. The Seller, the Buyer and the DMU Members of DMU (insert names in boxes). Most important in box 1, thereafter in declining order of importance DMU Member 12345 Statement 1. Is aware of me and the company 2. Is aware of our product/service 3. Understands how products/services will help 4. Believes in the product/service 5. Supports us 100% 6. Has a specialist need 7. It has been demonstrated how specialist needs can be met 8. General relationship is good

10. The Johari Window OPEN AREA BLIND SPOT FAÇADEUNKNOWN SUPPLIER Knows Doesn’t know Knows Doesn’t know Knows Doesn’t know BUYER

11. Example spidergram of relationships Customer G OK at present possible growth Customer F Infrequent but profitable Customer E Not so profitable, but you play golf Customer D Large potential but very bureaucratic Customer C New person has replaced your contract Customer B Highly profitable Customer A Large volume Customer H Large potential customer 1086420 As it is now As it should be

12. From core science/product to solving problems for clients Science Technology Applications Markets – commercial advantage Customers – viable applications May need infrastructure Like electricity, construction industry Manufacturing, trained labour force Distribution channels Unmet needs Push Pull

13. The product/service as a total package GuaranteesPackagingDesignReliability After-sales service Administrative issues Repurchasing procedure Image/ReputationPriceQuality Customer Service etc e.g. CORE The actual product or service and its functional performance

14. Customer Service Analysis Importance to Retailer Low Medium High Elements Performance Poor Satisfactory Good Delivery On-time delivery Information on order status Stockouts Flexibility Order completeness Damage rate Key Competitor Company

15. Marketing mix Summarising a marketing strategy Product Place Price Promotion Processes People Physical Evidence

16. FeatureBenefitBenefit Physicalcharacteristic of the product or service ‘whichmeansthat’ What it does for the customer ‘whichmeansthat’ If required Changing a feature to a benefit

18. Benefit analysis for window cleaner Call regularly Fully insured Long established Keen prices Your house appearance is always top class You have no risk should accidental damage occur Can be trusted to do a good job Value for money Obvious Show certificate Quote neighbours’ comments Quote alternative cleaners’ prices Feature Benefit Proof 1 4 3 2

19. But what are the unmet needs of your customers? Identify new products and services in terms of the benefits to your customers Who are the most likely to be receptive to your new products? Why?

20. When markets are changing

21. Positioning High Low Price relative to competition Value for money relative to competitor High Low Caused by EDLP

22. Looking for new markets with current technologies

23. New markets You have to define what these are What is the scope and scale of them – in other words what is the value chain in the market? How do they “behave” – characteristics Leads to segmentation Gain an understanding of channels Is the market in pain? Can you provide an aspirin?

24. BUYER BEHAVIOUR Rule of thumb Innovators Early Early Late Laggards Adopters Majority Arrivals 2.5% 13.5%34+% 34% 16%

25. Reducing risk through social capital Ed Crawley (MIT) Soren Lund - Lego Family owns Lego Prof at Florida QinetiQ – senior management Rolls Royce BAe Mohan VCs Legal Sen Govt in UK Senior EU JRA Tech Alan Candace Shai