Sales & Marketing Management - November/December 2007 - (Page 22)

the BRAINSbehindtheBRAWN the BRAINS SO HOW DO PERPLEXED SALES AND MARKETING MANAGERS KNOW IF THEIR COMPANY NEEDS HELP? APOLOGIES TO JEFF FOXWORTHY, BUT YOU MIGHT NEED HELP IF: I You set prices based on cost, not value. If your idea of pricing products and services is to isolate costs and then add a constant margin to it, you’re often making a huge mistake. I You are stymied when it comes to creating organic growth. Many markets are only providing 2% to 3% annual growth, and expansion through mergers and acquisitions can’t go on forever. I You think that market segmentation refers to geography. The focus should be on training salespeople to go after the right customers in the most efficient way possible. Some customers just aren’t worth pursuing because even if they buy, they won’t produce a high enough return to justify the time and effort. I You’re trying to apply consumer sales and marketing processes to a B2B marketplace. Techniques that are great for selling toothpaste won’t work for a company that sells specialty chemicals to a paper manufacturer. those people, there is a vibrant community of sales and marketing experts who understand the specific challenges B2B salespeople and marketers face, and why consumeroriented tools and techniques just don’t work for them. One such community can be found on the Penn State University campus, in the Smeal College of Business, nestled in the mountains of central Pennsylvania. Founded in 1983, the Institute for the Study of Business Markets was created not only to expand academic research on the B2B marketplace, but to translate that research into the real world for its member companies, according to Ralph Oliva, executive director of ISBM. Prior to his current role, he spent 23 years with Texas Instruments, most recently as global vice president of market communications and design. The Institute is the hub of a network of researchers in universities around the world, all focused on B2B. “People usually come to us when they decide that they want to add B2B sales and marketing to their set of core competencies and realize they need specific help in doing that,” Oliva says. “It’s easy to get sales and marketing data in the consumer world, but companies that sell to other businesses might be working with a three-year sales cycle that involves salespeople making scores of phone calls. It’s a completely different space and needs a completely different approach. As much as anything else, we’re coaches.” 22 SALES &MARKETING MANAGEMENT NOVEMBER/DECEMBER 2007 I Most of the people in marketing have backgrounds in disciplines such as science, engineering or manufacturing. Their intelligence and skills are above reproach, but they aren’t trained in effective B2B tools and techniques. “For the most part, B2B companies come to us with similar sorts of problems and opportunities, even though their industries go from one end of the spectrum to the other,” Oliva explains. “They need the kind of advice and guidance that isn’t found in a sales and marketing field that focuses more on consumers than it does on businesses.” IMPROVEMENT FOR ALL While most major universities have sales and marketing research departments on campus, Oliva’s organization is different because it is outward-facing and seeks to help member companies improve their B2B sales and marketing practices. Its annual fee for corporations is $15,000, while individuals can join for $1,500. ISBM currently has about 70 members, ranging from corporate giants (DuPont, Xerox, AT&T, General Electric and Sherwin Williams) to one-man consultancies. “Companies often tell us, ‘You probably don’t understand our situation because we make a technical product and most of our marketing people have science and engineering backgrounds.’ When I hear that, I just pull out my Doctorate in solid state physics and say, ‘I feel your pain.’ www.salesandmarketing.com www.salesandmarketingmanagement.com http://www.salesandmarketingmanagement.com

Table of Contents Feed for the Digital Edition of Sales & Marketing Management - November/December 2007

Sales & Marketing Management - November/December 2007 Contents Editor’s Letter Management Strategies What “Tell Me More,” Really Means Sales Strategy Marketing Management Motivation/Incentives Training Technology The Brains Behind the Brawn Are You a Bad Manager? Pipeline = Lifeline Feeling the Squeeze; The Foray Mobile Workmate; Seeking the Sights of Pittsburgh; Testing the Social Media Waters. Gadgets & Gear Books That Improve Strategic Thinking, People Skills and Sales Work/Life Take-Aways

Sales & Marketing Management - November/December 2007

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