ISV Community DayMarketing 101April 2005

ISV Community DayMarketing 101April 2005

Kathryn SaducasPartner Program Manager

Microsoft Australia

Kathryn SaducasPartner Program Manager

Microsoft Australia

Poll 1 – your businessPoll 1 – your business

Which of the following statements is most true:1. We are an established company that has 1 or more

products/solutions we have been selling to customers for a number of years

2. We are a small company who has recently developed a solution/product. We have sold one or 2 copies and now need to sell a lot more

3. We are a small developer who has nearly finished developing our product/solution and we now need to start thinking about selling it

4. We are still in developing a product but I will need to think about selling it at some point in the not too distant future.

Which of the following statements is most true:1. We are an established company that has 1 or more

products/solutions we have been selling to customers for a number of years

2. We are a small company who has recently developed a solution/product. We have sold one or 2 copies and now need to sell a lot more

3. We are a small developer who has nearly finished developing our product/solution and we now need to start thinking about selling it

4. We are still in developing a product but I will need to think about selling it at some point in the not too distant future.

Poll 2 – marketing experiencePoll 2 – marketing experience

Which of the following statements is most true:

1. We have an internal marketing department who handles most of our marketing and/or I work in that department

2. I am a confident marketer and am responsible for marketing/selling our product

3. I have some marketing experience and am responsible for marketing/selling our product

4. I have little or no marketing experience and I am responsible for marketing/selling our product

Which of the following statements is most true:

1. We have an internal marketing department who handles most of our marketing and/or I work in that department

2. I am a confident marketer and am responsible for marketing/selling our product

3. I have some marketing experience and am responsible for marketing/selling our product

4. I have little or no marketing experience and I am responsible for marketing/selling our product

Product

Customer

Channel

Strategic TriangleStrategic Triangle

Customer StrategyCustomer Strategy

Technology Adoption Life CycleTechnology Adoption Life Cycle

Innovator

“Techies”

Early Adopter

“Visionaries”

Early Majority

“Pragmatists”

Late Majority

“Conservatives”

Laggard

“Skeptics”

•Appreciate architecture

•Endorsers

•Not price sensitive

•Understand competition

•Accept bugs

•Importance of product itself

•See potential

•Risk takers

•Not price sensitive

•Buying a dream

•Start with pilots

•Request changes

•Fairly Price sensitive

•Not Pioneers

•Care about who they buy from

•Don’t want test site

•% improvements/ measurable

•Loyal once won

•Seek references

•Practical

33% 33%

•Traditionalists

•Don’t like change

•Fear high tech

•Very price sensitive

•Trailing edge technology

•De-bugged

•Mature products

•Product features not as important as service offering

“Crossing the Chasm”“Crossing the Chasm”

chas

m

Prove new technology enables a strategic leap forward

Technology must be made increasingly easier to adopt

Articulate compelling application that provides leap in benefits

Focus on customer references

Geoffrey A Moore - “Crossing the Chasm”

Market- Centric Benefits:

•Largest installed base

•Most 3rd party supporters

•Industry Standard

•Cost of ownership

•Quality of Support

•Microsoft tested and approved

Marketing MessagesMarketing Messages

chas

m

Product Centric Benefits:

•Fastest Product

•Easiest to use

•Architecture

•Product

•Platform

•Unique Functionality

Poll 3 – What is this chasm that Geoffrey Moore talks about? Poll 3 – What is this chasm that Geoffrey Moore talks about? • A big trap for new ISVs entering the

market – designed to keep new entrants out

• Disassociation between groups of customers eg. the needs of the early adopter vs the needs of the early majority

• Difference between customers decisions based around product and technology discussions versus decisions based on market share and reputation

• A big trap for new ISVs entering the market – designed to keep new entrants out

• Disassociation between groups of customers eg. the needs of the early adopter vs the needs of the early majority

• Difference between customers decisions based around product and technology discussions versus decisions based on market share and reputation

Channel StrategyChannel Strategy

“The Channel Advantage”by Lawrence G Friedman and Timothy R

Furey

“The Channel Advantage”by Lawrence G Friedman and Timothy R

Furey

ChannelsChannels

Indirect Channels

Direct

SalesPROS

CONSInternet

Tele-Sales

Sales Force

VAR

Retail

Disti’s

Direct Channels

ChannelsChannels

Indirect Channels

Direct

SalesPROS

CONSInternet

Tele-Sales

Sales Force

VAR

Retail

Disti’s

Direct Channels

ChannelsChannels

Indirect Channels

Direct

SalesPROS

CONSInternet

Tele-Sales

Sales Force

VAR

Retail

Disti’s

Direct Channels

Right Channels for Right ProductsRight Channels for Right Products

highlow

highRetail,

Distributor, Internet

FPPstandardised

Mass standardised

Unique Solutions

VARs, Direct Sales

Direct Sales, Partnering

channel touch

complexity

eg. PC Cillaneg. mobility apps, MS CRM

eg. ERP products + consultants

80% standardised 20% customised

20% standardised 80% customised

DIRECT SALESDIRECT SALES

1. Focus sales force on large account acquisition

2. Use other channels for ‘low value’ selling tasks

3. Provide extensive technology support to field reps

4. Sale force training5. Align performance with

large account focus

1. Focus sales force on large account acquisition

2. Use other channels for ‘low value’ selling tasks

3. Provide extensive technology support to field reps

4. Sale force training5. Align performance with

large account focus

• Only channel that can sell complex products and solutions into large, key accounts with a high degree of control over sales process

• Only channel that can sell complex products and solutions into large, key accounts with a high degree of control over sales process

Capability - Sales TrainingCapability - Sales Training

Sales Training• New Framework

consistent message to customers

• Sales Training Roadshowin March – 437 attendees

– Selling Microsoft Server Infrastructure to the CIO/IT Manager (3hr)

– Creating and Selling Partner Services Opportunities (3 hr)

– Solution Based Selling (1 day)

• New Training Centre on the portal – Partner Learning Centre

https://training.partner.microsoft.com/plc/

Sales Training• New Framework

consistent message to customers

• Sales Training Roadshowin March – 437 attendees

– Selling Microsoft Server Infrastructure to the CIO/IT Manager (3hr)

– Creating and Selling Partner Services Opportunities (3 hr)

– Solution Based Selling (1 day)

• New Training Centre on the portal – Partner Learning Centre

https://training.partner.microsoft.com/plc/

Solution Based Selling Courses: • Cost - $195 (Introductory offer until 30 Sept 05)• Presenter: Carpe Diem (management consultant)• For new and experienced BDMs• Learn/practise/revise key skills and processes

associated with successful solutions based selling

• Next Course Dates Solution Based Selling 1 -– Sydney 26 Sept / 18 Oct – Melbourne 12 Oct– Brisbane 26 Sept / 25 Oct– Adelaide 8 Nov– Perth 10 Nov

• Register now for either Solution Based Selling 1 &/or 2 now and receive the discounted price: http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx

Solution Based Selling Courses: • Cost - $195 (Introductory offer until 30 Sept 05)• Presenter: Carpe Diem (management consultant)• For new and experienced BDMs• Learn/practise/revise key skills and processes

associated with successful solutions based selling

• Next Course Dates Solution Based Selling 1 -– Sydney 26 Sept / 18 Oct – Melbourne 12 Oct– Brisbane 26 Sept / 25 Oct– Adelaide 8 Nov– Perth 10 Nov

• Register now for either Solution Based Selling 1 &/or 2 now and receive the discounted price: http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx

TELE-SALESTELE-SALES• Tele-channels handle

a diverse range of responsibilities ie. technical support, customer service, sales ordering, lead generation, outbound sales, marketing, customer loyalty. It’s a versatile and potent way to do business.

• Tele-channels handle a diverse range of responsibilities ie. technical support, customer service, sales ordering, lead generation, outbound sales, marketing, customer loyalty. It’s a versatile and potent way to do business.

• Benefits:– Revenue Growth– Reduced Selling Costs– Improved Customer

Satisfaction• Functions:

– Telesales– Telemarketing– Account Management– Support & Service

• Benefits:– Revenue Growth– Reduced Selling Costs– Improved Customer

Satisfaction• Functions:

– Telesales– Telemarketing– Account Management– Support & Service

PARTNERING – INDIRECT CHANNELSPARTNERING – INDIRECT CHANNELS• Intermediaries who

sell, support or sometimes even build a product for your customers, in return for a commission or other form of payment

• Intermediaries who sell, support or sometimes even build a product for your customers, in return for a commission or other form of payment

7 Best Practises –1. Define scope of channel2. Define partner’s role in the

sales process3. Develop robust channel

policies4. Build a strong base of partners5. Build a strong support

infrastructure • marketing, training, sales and

technical support6. Measure and Manage

Channel Performance7. Get Channel Feedback

7 Best Practises –1. Define scope of channel2. Define partner’s role in the

sales process3. Develop robust channel

policies4. Build a strong base of partners5. Build a strong support

infrastructure • marketing, training, sales and

technical support6. Measure and Manage

Channel Performance7. Get Channel Feedback

Hostingan alternative channel to marketHostingan alternative channel to market

Software As A Service DriversSoftware As A Service Drivers

0% 10% 20% 30% 40% 50% 60%0% 10% 20% 30% 40% 50% 60%

Affordable access to technology

Avoids capital investment

Simplify budgeting

Shorter implementation cycle

Lower cost of entry for applications

Improved total cost/performance

One-stop shopping/support

Focus more on primary business

Scalability to meet business growth

Avoidance of IT staff recruitment/retention

Source: IDC

Internal & External Use Licensing:ISV Application HostingInternal & External Use Licensing:ISV Application Hosting

Scenario 1: In-house Scenario 3: Shared HostingScenario 2: Dedicated Outsourcing

Customer A

ISV App.

Customer B

Customer A

ISV App.

Customer A

ISV App.

Internal Use: Customer can

license ISV App from ISV, MSFT products under

Open or ISV Royalty agreement

Internal Use: Even though ISV App is outsourced, it is

dedicated to Customer A, so Customer A can

use ISV Royalty or Open agreement

External Use: ISV has to sign SPLA, since using same set of licenses to provide App. for

multiple customers

Microsoft Licensing MapMicrosoft Licensing MapInternal UseInternal Use

Remote AccessRemote Access

External UseExternal Use

MBAMBA

EA/Select EnrollmentEA/Select Enrollment

OEM, FPPOEM, FPP

Customer and Customer’s Affiliates or appointed agents only

(Excludes unauthorized, non-employees)

Customer and Customer’s Affiliates or appointed agents only

(Excludes unauthorized, non-employees)

‘You may not rent, lease, lend or host products…’‘You may not rent, lease, lend or host products…’

Outsourcer Enrollment

Outsourcer Enrollment

‘External User’: Any person who is not: an employee, temporary

personnel, or your customer to whom you provide hosted services

‘External User’: Any person who is not: an employee, temporary

personnel, or your customer to whom you provide hosted services

External ConnectorExternal Connector SPLASPLA

Service Provider providing Software Services to its

customers

Service Provider providing Software Services to its

customers

Outsourced scenarios (including Outsourcing, Hosting, Web Services)

Outsourced scenarios (including Outsourcing, Hosting, Web Services)

On-siteOn-site

OpenOpen ISVISV

Authorized User

Authorized Usage

Scenario

Licensing mechanism

Third-party licensing programs (ISV Royalty Licensing program, Service Provider Licensing Agreement)

Service Provider Licensing Program (SPLA)Service Provider Licensing Program (SPLA)

Delivering software services to your customersin outsourcing, hosting, web services scenario’s

Features• Monthly usage• No commitments• Always latest versions• Fixed pricelist• Allows shared usage

Features• Monthly usage• No commitments• Always latest versions• Fixed pricelist• Allows shared usage

Business Benefits• Cost control (OPEX)• Low risk (pay-as-you-go)• Investment protection• Pricing stability• Innovation: THE model

for shared infrastructure (BPO)

Business Benefits• Cost control (OPEX)• Low risk (pay-as-you-go)• Investment protection• Pricing stability• Innovation: THE model

for shared infrastructure (BPO)

Why Customers are choosing Hosting Providers?Why Customers are choosing Hosting Providers?• Limited IT skills to manage services to employees and customers• Reduce TCO by sharing infrastructure with other businesses• Want to stay current with latest hardware and software• Need better integration between business applications

– Messaging linked to CRM, Web site to ERP• Need access from anywhere, anytime and potential from any device

– Mobile device integration, telecomputing• Outsource the license management burden• Move IT from asset based to expense based• Place security in the hands of professionals

• Limited IT skills to manage services to employees and customers• Reduce TCO by sharing infrastructure with other businesses• Want to stay current with latest hardware and software• Need better integration between business applications

– Messaging linked to CRM, Web site to ERP• Need access from anywhere, anytime and potential from any device

– Mobile device integration, telecomputing• Outsource the license management burden• Move IT from asset based to expense based• Place security in the hands of professionals

Useful LinksUseful Links

• Licensing information– http://www.microsoft.com/serviceproviders/licensing– splaaus@microsoft.com

• Register to – the Windows Web Hoster Program

• www.microsoft.com/wwhp– Access the Technical Community

• www.microsoft.com/serviceproviders/hostingcommunity

• Licensing information– http://www.microsoft.com/serviceproviders/licensing– splaaus@microsoft.com

• Register to – the Windows Web Hoster Program

• www.microsoft.com/wwhp– Access the Technical Community

• www.microsoft.com/serviceproviders/hostingcommunity

Poll 4 – what is the best channel strategy for ISVs?Poll 4 – what is the best channel strategy for ISVs?• It depends on your product and the way

your customers are used to ‘buying’ that product

• Direct Sales is the best channel for IT products as they can sell complex products to sophisticated customers

• Hosting is the best options as it is flexible and a cheap way for customers to trial our products

• It depends on your product and the way your customers are used to ‘buying’ that product

• Direct Sales is the best channel for IT products as they can sell complex products to sophisticated customers

• Hosting is the best options as it is flexible and a cheap way for customers to trial our products

Which channel to use?Which channel to use?

Lead generatio

n

Qualificat-ion

Pre-Sales Close Sales

Post Sale Support

Field Sales

Partners/VARs

Tele-Sales

Internet

task

channel

Channel MarketingChannel Marketing

The 4 P’sThe 4 P’s

ProductProduct PricePrice PlacePlace PromotionPromotion

•Promote your value proposition•Leads funnel•Lead Nurturing•Marketing Execution•Campaigns•Offers•PR•Branding•Advertising

•Distribution Channel•Partnering•Warehousing•Target Markets•International markets

•End user cost•Channel Costs•Competitive pricing•Break-even analysis•Commissions•Value added pricing•Margins•Rebates•Discounts

•Product differentiation•Market segment •Vertical focus•Horizontal focus•Competitor analysis•The whole ‘product’•Technology advantage

Elements of the Marketing MixElements of the Marketing MixTypes of Marketing Cost Reach Dialogu

eEasy to Measure

Effective-ness

Direct Mail – direct response

Med Targeted 2-way

1-way1-way2-way2-way1-way

2-way2-way

Trade Show Med-High Targeted 2-way Med

Trade Magazines Med Targeted 1-way Med

2-way

High

PR Low Broad MedAdvertising High Broad LowSales Promotion Med Low MedPersonal Selling High Low HighOnline Marketing & Newsletters

Low Targeted Med-High

Telesales High Targeted HighSeminars/Events Low Targeted High

Referral Program Low Targeted High

Marketing Mix and Leads FunnelMarketing Mix and Leads Funnel

Adv

ertis

ing

PR

Sale

s Pr

omot

ion

Pers

onal

Sel

ling Ev

ents

Dir

ect M

ail

WO

M/R

efer

rals

Onl

ine

Mar

ketin

g

3

Prospects

500

25

5

nSynergy InternationalnSynergy InternationalACTIVITY:• Developed a “Demo

CD”• Sent to 2000

prospects – Corporate Legal

Council and Law Firms in Australia & UK

• Followed up with telesales

ACTIVITY:• Developed a “Demo

CD”• Sent to 2000

prospects – Corporate Legal

Council and Law Firms in Australia & UK

• Followed up with telesales

OUTCOME:• 120 prospects• Closed 40 deals

(over last 12 months)

• Value = $3 million• Likely deals over

next 24 months = $10 million

OUTCOME:• 120 prospects• Closed 40 deals

(over last 12 months)

• Value = $3 million• Likely deals over

next 24 months = $10 million

Gary Ray – Global Distributor

Poll 5 – What is the key to successful marketing?Poll 5 – What is the key to successful marketing?• Broad based advertising like TV is the best

way to build brand awareness• Marketing is very hard to do so make sure

you hire professionals to do the work for you

• Try to focus on marketing that generates 2-way dialogue with your customers

• Know your customers and understand your value proposition

• Broad based advertising like TV is the best way to build brand awareness

• Marketing is very hard to do so make sure you hire professionals to do the work for you

• Try to focus on marketing that generates 2-way dialogue with your customers

• Know your customers and understand your value proposition

Ripening the Right BananasRipening the Right Bananas

Lead NurturingLead Nurturing

Ripening the Right BananasRipening the Right Bananas

• Effective lead generation is biggest issue for B2B marketers – but 80% of marketing expenditure is wasted

• AMR Research reveal that small businesses do not follow up on up to 70 percent of all leads, representing as much as 14–22% of annual revenue.

• Effective lead generation is biggest issue for B2B marketers – but 80% of marketing expenditure is wasted

• AMR Research reveal that small businesses do not follow up on up to 70 percent of all leads, representing as much as 14–22% of annual revenue.

Process

ProcessProcess

“Lead nurturing is all about having consistent and meaningful dialogue with viable prospects regardless of their timing to buy. It's about building trusted relationships with the right people. In the end, it's the act of maintaining mind share and building solid relationships with economic buyers. It's not a salesperson calling up every few months to find out if a prospect is ‘ready to buy yet’."

MarketingProfs.com 14 Dec 2004

Lead Nurturing Builds TrustLead Nurturing Builds Trust

• 1000’s of leads don’t always more sales• Lead nurturing program includes regular

communication– Letters, emails, newsletters, webinars, live

meetings, advertising, PR, workshops, blogsetc.

• Benefits: Close ratios higher and sales cycles shorten

• Marketing efforts are better spent on generating and following leads

• 1000’s of leads don’t always more sales• Lead nurturing program includes regular

communication– Letters, emails, newsletters, webinars, live

meetings, advertising, PR, workshops, blogsetc.

• Benefits: Close ratios higher and sales cycles shorten

• Marketing efforts are better spent on generating and following leads

QuestionsQuestions

Thank YouThank You

• Partner Website– www.microsoft.com.au/partner/salesandmarketing

• Email: ksaducas@microsoft.com• Resources –

– “Crossing the chasm” by Geoffrey Moore

– “The Channel Advantage” by Lawrence G Friedman and Timothy R Furey

– www.marketingprofs.com– Register now for Solution Based Selling courses:

http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx

• Partner Website– www.microsoft.com.au/partner/salesandmarketing

• Email: ksaducas@microsoft.com• Resources –

– “Crossing the chasm” by Geoffrey Moore

– “The Channel Advantage” by Lawrence G Friedman and Timothy R Furey

– www.marketingprofs.com– Register now for Solution Based Selling courses:

http://www.microsoft.com/australia/partner/salesmarketing/solutionselling.aspx