,*,Click to edit Master title style,Click to edit Master text styles,Second level,Third level,Fourth level,Fifth level,Ch3:Targeting the right markets,Go To Market Strategy,Overview,Review of Chapters 1&2,Chapter 3:targeting the right markets,1.Common targeting pitfalls,What not to do:Enconix,2.Six steps to successful targeting,What to do:Marriott International,3.What we learned,4.Critique,5.Questions,Review:(Ch 1)Go-to-market Strategy,Choice and alternative:increasing channel availability,(P.7)Today,its no longer just about,what,you sell;,its also about,how,you sell it,Go-to-market strategy,:,A game plan for reaching and serving the,right,markets,through,right,channels,with the,right,products,and the,right,value proposition,Total Customer,Experience,Purpose,Attract and retain the,most desirable customer,Increase sales with lower,cost,4 ingredients of a winning go-to market strategy,Ch6:,The product,and,The value,proposition,Ch5:,Channels,and,Partners,Ch3:,Market,Ch4:,Customers,Review:(Ch 2)The ten commandments of going to market,Go-to-Market strategy must start with the customer,Exact information can gather from customer:,product,channel,value proposition,markets,Aggressive use of low-cost channels will have a dramatic impact on profits,How you sell has to fit with what you are selling,Customer,Economics,Complexity,There is Always a tradeoff between market coverage,and control,The high-control strategy vs.The high-coverage strategy,3 reasons why e-channel is not work,Getting channel cooperation is more important than,preventing channel conflict,You cannot be everywhere at all times for every customer,The business model has to be sound for a go-to-market,strategy to succeed,Not Every go-to-market solution has an e in it,It takes time for new channels to become productive.,Patience is necessary,12 to 24 months to build and roll out a new go-to market strategy:,To win big a go-to-market strategy must be innovative,and different,Targeting the,right,markets,“Its impossible to choose a successful mix of channels,until you determine which markets those channels are supposed to reach,.”,Pg73,Chapter3:Targeting the right market,Ch3:,Market,Picked the wrong market:,Enconix,(1998)246 employee and over$55 million in sales,Disciplines and savvy business development,focus,Niche of small-to-mid sized industrial manufactures,with$50 to 250 million in revenue,Developed understanding of the needs and information technology requirement of their market:(1990s)ERP SCM CRM,Developed new software and service to meet the,expanding needs,What not to do:Enconix,(1998)Change the direction:,Y2K focus,Software developers Y2K specialist,Less impact of Y2K:the failure of Y2K focus,ERP business had changed dramatically,Customers reduce the IT spending due to Economic slow down,Change the direction:,PRM focus,Y2K specialists PRM consultants,Consumer goods manufactures,Food distributor,Computer hardware vendors,Insignificant and biased marketing research,New target markets,(Aug 2001)Sales:$28M,=,No experience,No understanding,The Four Pitfalls of Market Targetingand How to Avoid Them,Trap#1:Chasing untried and unproven“blue sky”marketsand neglecting solid,available business thats close to home(p.81),Trap#2:Putting too much weight on 3,rd,party market research reports,which often have inaccurate,agenda-driven estimates,Trap#3:Assuming that markets can be“good”or“bad”,outside of the context of your unique offerings and your business goals,Trap#4:Ignoring crucial,internal,sources of information when evaluating new market opportunities,Market targeting trap#1,Chasing untried and unproven“blue sky”marketsand neglecting solid,available business thats close to home,Usually,the pursuit of entirely new market opportunities is the slowest,most expensive,least effective,and least certain way to increase revenues,-,Reasons Why?,1:Customers:New customers in new markets are difficult to reach,2:Products:New products are much more difficult to sell than existing ones,Companies fall into two basic camps:,1:The“Blue Sky”approach(e.g.Enconix),From the established to the uncharted,2:The“Build on your strengths”approach,Grab the low hanging fruit first,then go higher,To avoid this trap remember:Most Companies have more potential business then they could,ever,handle,Market targeting trap#2,Putting too much weight on 3,rd,party market research reports,which often have inaccurate,agenda-driven estimates,Recently,many market research firms have been publishing highly inflated estimates,At the minimum,get multiple,independent sources of information when evaluating a market,Take the time to learn how these conclusions are being made,In the end,you can eliminate the risks of over-reliance on 3,rd,party market research by doing some of the work yourself,The bottom-line is that you should,never,make the decision to participate in a market based solely on the basis of 3,rd,party research,Market targeting trap#3,Assuming that markets can be“good”or“bad”,outside of the c