1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP
1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP
1. Targets and Tactics Lessons Learned - Chris Powers - NERCOMP
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© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
© Copyright 2013, ClearEdge Partners, Inc. Confidential & Proprietary Information. Do Not Distribute.<br />
SALES TARGETS & TACTICS<br />
How the Other Side Plays the Pricing Game<br />
The Pricing Game: How did we get here?<br />
VALUE BASED PRICING<br />
Discount Level<br />
SALES TARGETS & TACTICS<br />
The Pricing Game<br />
ORACLE CUSTOMER EXPERIENCE<br />
Average Discount 73%<br />
Oracle<br />
“Our job is to figure out what we have to bid to win the deal. No magic here.”<br />
— Oracle CEO Larry Ellison, testifying In U.S.A. vs. Oracle Corporation<br />
<strong>1.</strong> Introduction to the Pricing Game <strong>and</strong> Value Based Pricing Systems<br />
2. Sales teams reinforce a deliberate lack of transparency in IT Pricing<br />
3. Supreme Court Case example of Value Based Pricing Systems at work<br />
4. Key deal characteristics that determine value <strong>and</strong> affect pricing<br />
n<br />
Competition<br />
n<br />
Compensation Models<br />
n<br />
Street Pricing<br />
n<br />
Revenue Recognition<br />
5. Case Study: Output of Value Based Pricing systems from a client survey<br />
Sales Systems: How are sales programs built?<br />
STRATEGIC SELLING PROCESS<br />
NEEDS ANALYSIS<br />
N<br />
Shape & Win<br />
B<br />
DIVIDE & CONQUER<br />
BUDGETS<br />
AGENDA SETTING<br />
A<br />
SALES TARGETS & TACTICS<br />
Neutralize Buyers<br />
Sales Systems<br />
NEGOTIATIONS<br />
N<br />
Strategic Selling Tools: How are they winning?<br />
FIVE SALES STRATEGIES<br />
Frontal<br />
Flank<br />
Fragment<br />
Fortify<br />
Feign<br />
SALES TARGETS & TACTICS<br />
Strategic Selling Tools<br />
<strong>1.</strong> Compelling Event is the single greatest determinant of a client’s price<br />
2. Compelling Event: What are you trying to do? Why? How bad does it hurt?<br />
3. Theory behind the value of sales targets inside buying organizations<br />
4. Overview of the motivations of sales teams <strong>and</strong> sales management<br />
5. Sales strategies drive new marketing strategies to support their unified efforts<br />
6. Contrast the strengths of N-BAN vs. common just-in-time procurement<br />
7. Sales training <strong>and</strong> sales systems provide extremely high ROI<br />
<strong>1.</strong> Introduction to the 5 Sales Strategies employed by suppliers<br />
Direct Strategy<br />
Indirect Strategy<br />
n<br />
Frontal – Take deal off street<br />
n<br />
Feign – Delay<br />
n<br />
Fragment – Foot in the door<br />
n<br />
Fortify – Defend the turf<br />
n<br />
Flank – Change the ground rules<br />
2. One of the primary goals of sales teams is to make the negotiation a non-event<br />
3. Sales Management is hyper focused on driving certainty by uncovering information<br />
4. Complex sales tools developed to monitor progress across repeatable process<br />
5. Sales systems assess opportunity <strong>and</strong> drive predictable revenue streams <strong>and</strong> risk<br />
Winning the Pricing Game: Where do we go from here?<br />
Sourcing Activities<br />
Define Business Case<br />
Define Sourcing Strategy<br />
Develop Action Plan<br />
Complete Analysis<br />
Negotiate Contract<br />
Vendor Management<br />
Time Allocation After<br />
PLAN<br />
BUILD<br />
EXECUTE<br />
SALES TARGETS & TACTICS<br />
Winning the Pricing Game<br />
LATE EXECUTION TO EARLY PLANNING<br />
New Approach<br />
<strong>1.</strong> Focus on Planning <strong>and</strong> analysis<br />
2. Execution on sourcing strategy,<br />
market intelligence, companydriven<br />
initiative<br />
3. Sourcing provides early crossfunctional<br />
strategic leadership<br />
for IT <strong>and</strong> Business<br />
<strong>1.</strong> Neutralize strategic selling strengths with strategic playbook<br />
n<br />
Focus on incumbents<br />
n<br />
Identify & Develop Plan Bs<br />
n<br />
Identify Pricing Gap<br />
n<br />
Set up plan to execute<br />
2. Identify critical information <strong>and</strong> develop a plan to control the Compelling Events<br />
3. Shift balance from late execution to early planning<br />
4. Use checklist to assess <strong>and</strong> monitor activities, like the V.A.L.U.E. Guide to leverage<br />
strengths <strong>and</strong> improve weaknesses<br />
© 2013 ClearEdge Partners, Inc. Confidential & Proprietary Information Do Not Distribute.