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December 22, 2006

Peering Into The Sales Mindset

As a marketing profesisonal who came out of the sales ranks, I have seen many articles about the "marketing-sales disconnect" ... the running battle between marketing teams and sales teams over strategy and tactics. The root cause of marketing/sales dissonance in most organizations is poor communication and a lack of sensitivity by both sides to the other's plight. Sales is hard work...and requires both mental discipline, energy and an irrepressible ego able to take rejection on a daily basis. Good salespeople know that collaborating with marketing can make their lives easier. Unfortunately, there are lots of less skilled salespeople out there, whose incessant whining drives marketing people to quickly class all salespeople as "fill in your favorite expletive".

My sensitivity to sales challenges is why I found a Seth Godin blog posting from July, titled "Nine things marketers ought to know about salespeople (and two bonuses)" so interesting. If your job involves support for a signficant direct sales organization or dealer channel, this posting is worth reading.

My favorite line..."Selling is interpersonal. I am not moving bits, I'm trying to change people's minds, one person at a time. So, no, I can't tell you when the sale will close. No one knows, especially the prospect."

That point really puts into perspective what it means to sell, especially in complex, B2B sales environments. Sales is about building trust and confidence in a human, not about just "getting a signature on a contract."

Take a moment to read the rest of the article. It adds dimension to the challenge.

Posted by jcioban at 5:35 PM | Comments (0) | TrackBack

Last-Minute Gift Ideas: The Beerbelly

OK, this has nothing to do with channel marketing, but once again, when some things cross your desk, you can't resist commenting.

Here it is...innovation at its finest...the Beerbelly. The perfect gift for the alcoholic in your family who can't sit through an event without 40 oz. of liquid refreshment. Billed as a way to save money on expensive stadium/arena beer, the Beerbelly defies imagination.

In their own words..."A removable spare tire that also serves a stealth beverage. So now you can not only sport the look that’s legit to the touch (and the frisk), but you can also enjoy a tasty beverage wherever you want, whenever you want."

How attractive. I don't even want to speculate what this says about our civilization....

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December 20, 2006

The State of the Channel: Perspectives

The eWeek State of the Channel report for 2006 is out. Continuing a trend established last year, IT channel partners are alive and well. Despite the fact that many large corporations are desperate to establish "direct to customer" relationships, the complexity of the challenge of solution delivery to diverse customer requirements continues to drive vendors to work with channel partners.

The robust SMB market for IT is perhaps the most signficant force driving the channel's strength. Millions of SMB businesses are more dependent on IT than ever...meaning millions of customers needing local support and service.

As channel's go, the IT channel is among the most sophisticated. Both the manufacturers and the VARs are technically-savvy, smart business people. That the IT channel structure remains so robust despite the myriad technologies that enable direct-to-customer relationships should be a signal to dozens of other industries going through painful shifts in strategy and contentious channel relationships.

No industry depicts this conflicted world better than the printer/office machines industry, where giants like Ricoh, Canon, Konica/Minolta, Sharp and Toshiba continue to try to build significant direct sales operations while often alienating crucial channel partners. It is a fascinating struggle to watch as these massive manufacturers work to sustain growth while rebalancing their foundational sales distribution strategy. Unfortunately, often caught in the middle of these channel conflicts is the customer.

Channel relationships are all about trust, mutual respect and a collaborative approach to building business. Many manufacturers continue to treat partners as if all they want are "sales commissions" and "incetive trips." In sophisticated channels like IT, VARs like the commissions, but they crave the support needed to grow their businesses. True VARs are not just "sales partners" -- they deliver real value of their own through their professional services. They augment the base manufacturer offering to create a "whole product" offering that is greater than the either piece individually. It is painful to watch some large corporations still not understand that value-creation logic, and subsequently deliver ineffective support to their channels -- resulting in disloyal partners. And therein lies the vicious circle...disloyalty leads to the desire to "go direct" which creates greater disloyalty, etc...

It really isn't that hard. Just look at IT for a lesson.

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December 16, 2006

DUH: With Increasing Product Parity Among Copier Brands, Sales and Service Become More Important to Customers

In its November 2006 report on customer satisfaction in the business copier industry, JD Power noted the growing importance of sales and service on the overall satisfaction with a brand. It is an interesting report because so many of the current leaders in the copier/multifunction systems category remain fixated on product-centric marketing and technology-focused development.

Factors like the sales experience, product reliability and service quality were major factors in differentiating major manufacturers. Once particularly interesting note was when asked to define the major reasons to consider switching copier brands, product reliability (not surprisingly) was mentioned by one-half the respondents. This shows how critical after-sales service and support are in determining repeat purchases. As I have noted before, management of the post-sale customer experience has never been more important in ensuring stable long-term business growth, since it is the primary lever to solidifying the existing customer base.

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A Case of Channel Obsolescence?

Interesting article in the December 4, 2006 issue of CRN titled "Printing Market Red Hot, Distributors Say." In it, the authors talk about the rapidly emerging interest of the traditional VAR channel for higher-end multifunction printers/copiers.

The copier/MFP market was once the domain of the BTA (Business Technology Association) dealers. That dominance is quickly fading as the 140,000+ tech industry VARs muscle into the increasingly technology-driven printing market. It is a fascinating transition to watch, as the old "box pusher" mentality that dominated the copier business is replaced by a solutions-oriented focus.

Just as with auto dealers, book sellers and travel agents, technology is reshaping the structure, purpose and focus of a channel. In the tech sector, a typical "solution" is comprised of 10 or more brands of product (e.g. IBM hardware, HP printers, Oracle databases, Cicso network gear, Hubbell wiring devices, etc...) The VARs are the dominant brand to the customer who turns to the VAR for single point-of-contact support for the final integrated solution.

Perhaps more critically, the majority of successful tech VARs create profit from services, knowledge and skills...and use product margins as a secondary source of revenue. For existing copier/MFP dealers, survival means rapidly growing a professional services skill set and a solution-sales strategy. The window of opportunity will not remain open long.

In an essay in InformationWeek Online written back in July of 2000, consultant and author Michael Hammer predicted, "The notion of a distribution chain is becoming obsolete; in its place is arising the notion of a distribution community, a group of companies that collectively create value for the customer. There's room in this community for many companies besides the manufacturer, as long as they are ready to rethink their roles in customer value terms." How right he was. Those are words of wisdom for dealers in the traditional copier industry. Rethink your role and rebuild your value proposition. Or, face the ignominious fate that many travel agents, bookstore owners, and auto dealers have already been dealt.

Posted by jcioban at 1:11 PM | Comments (0) | TrackBack

December 11, 2006

Mental Break: Real-Time Presentation Feedback

I was reading Scott Adams' Dilbert blog, which if you are not a reader, is an eclectic mix of serious commentary, fun anecdotes and real-world business advice rolled into a wonderfully creative read. Today's post, "How to Know That Your Presentation Isn't Going Well," is quite amusing, as is the endless array of reader comments. My favorite Scott Adams suggestion: Turning a long sleeved shirt into a vest by removing the threads that hold the arms on. My favorite reader suggestion (because I've seen it done...): Doing lines of non-dairy creamer with a rolled up dollar bill.

It all reminded me of a sign hanging from the ceiling in the conference room at one of my clients, "If you're reading this, it is time for the meeting to end."

The fine art (or in Scott's example, not so fine art...) of reading an audience is often lost on speakers. I remember a lecture in college by a Nobel laureate in chemistry...brutal, unlistenable stuff. That professor almost single-handedly caused me to change careers. I also have seen collegues lose a sale over awful presentations in which they plowed forward with their agenda despite the spate of heads lurching downward toward the table.

Another great example of Scott Adams putting real advice into a humorous story.

Posted by jcioban at 7:08 PM | Comments (0) | TrackBack

December 8, 2006

Duct Tape Marketing: The Book

Small business marketing guru John Jantsch has published a new book, unsurprisingly titled "Duct Tape Marketing" -- the name of his rapidly growing Website and popular blog site. The new book compiles many of the authors nuggets on practical small business marketing, and is being promoted in a general online blitz...of which I am now a part!

I cannot say whether the book is a winner since I have not seen a galley of the as-yet unpublished work. But, I can say without reservation that Mr. Jantsch has been delivering creative nuggets and practical business advice across his other media properties, so I would be surprised to see the trend not continue.

For more info or to go to the pre-order page on Mr. Jantsch's Website, click here!

Posted by jcioban at 1:31 PM | Comments (0) | TrackBack