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Generating Business to Business Opportunities

Market Opportunities:
DEVELOP MARKETS FIND OPPORTUNITIES
Current and Potential Customers AMONG CURRENT WITH EXISTING
CUSTOMERS CUSTOMERS

NEW
MARKET OPPORTUNITIES

ACQUIRE DEVELOP
NEW A RESEARCH
CUSTOMERS PROGRAM

B2BM_05_SG ( S. Goswami) Slide No. 1 B2BM_05_SG ( S. Goswami) Slide No. 2

DEVELOP MARKETS
AMONG CURRENT CUSTOMERS FIND OPPORTUNITIES WITH
EXISTING CUSTOMERS
FOUR STEP PROCESS
FOUR STEP APPROACH
1. RATE YOUR BEST CUSTOMERS

2. MAXIMIZE REVENUES THROUGH COLLABORATION 1. ESTABLISH A FORMAL FEEDBACK PROGRAM WITH

CUSTOMER CONTACT POINTS (SALES, SUPPORT)
3. DEVELOP CUSTOMER SPECIFIC PRODUCTS
2. DEVELOP DATABASES
4. LEARN FROM YOUR CUSTOMER’S CUSTOMERS
3. COMPILE DECILE REPORTS

Awareness ≠ Interest 4. DEVELOP CUSTOMER RESEARCH ASSISTANCE PROGRAM

Credibility => New Product trials
Customers => New Product Ideas
B2BM_05_SG ( S. Goswami) Slide No. 3 B2BM_05_SG ( S. Goswami) Slide No. 4
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Exhibit 5-4 ScheduTrax Lifetime Value Analysis

Expected customer migrations following acquisition

ACQUIRE NEW CUSTOMERS 1st Yr. 2nd Yr. 3rd Yr. 4th Yr.
Yrs. since the Purchase Expected $ Account Service Acquisition after after after after
Last Purchase Probability Purchases Costs Period acquisition acquisition acquisition acquisition
0 0.60 $20 $90 100 60.0 36.0 31.2 27.4
Customers 16.0 9.6 8.3
1. Calculate your current customer’s lifetime value 15.0 4.8 2.9
45.6 1.9

(LTV) to serve as yardstick for planning 40.5

1 0.40 $60 $10 40.0 24.0 20.8 18.2
2 0.20 $50 $ 4 24.0 14.4 12.5
2. Find customers in a new segment who “look like” 3 0.10 $50 $ 2 19.2 11.5
17.3
Profit forecasts
your existing customers Acq+1 [60 buyers ($90)]×.8 gr. profit–[100 accts×$20 service/acct] =
Acq+2 [36 buyers ($90)+16 buyers ($60)] .8 gr. profit- [60 accts×$20+40 accts×$10] =
Acq+3 [31.2 buyers($90)+9.6 buyers($60)+4.8 buyers($50)] .8 gr. profit- [52 accts×$20+24×$10+$24×$4] =
3. Get into some new geographic territory Acq+4 [27.4 buyers ($90)+8.3 buyers ($60)+2.9 buyers ($50)+1.9 buyers ($50)]-
[45.6×$20+20.8×$10+14.4×$4+19.2×$2] =
Discounting profits NPV @ 10 NPV @ 10% NPV @ 20%
4. Modify existing products for new industries Acq+1 $2,109 $2.017 $1,933
Acq+2 $1,455 $1.331 $1,222
Acq+3 $1,144 $1,002 $ 881
Acq+4 $ 919 $ 769 $ 649
LTV/100 customers $5,627 $5,119 $4,686

B2BM_05_SG ( S. Goswami) Slide No. 5 B2BM_05_SG ( S. Goswami) Slide No. 6

DEVELOPING OPPORTUNITIES THROUGH

MARKETING RESEARCH Positioning
PURPOSE OF RESEARCH
C
1 2 Reasonable price
CUTOMER MANAGEMENT ACQUIRE NEW CUTOMERS Order process A
efficiency & accuracy After-sale service
Rapid delivery
ACHIEVED BY
1. CUSTOMER RESEARCH - through focus groups and surveys B

Helpful / informative
2. INTERACTING WITH CUSTOMERS - through joint product
development and product testing
D Technical
performance
3. DEVELOPING ON-SITE VISITATION PROGRAMS

B2BM_05_SG ( S. Goswami) Slide No. 7 B2BM_05_SG ( S. Goswami) Slide No. 8

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SEGMENTATION AND OPPORTUNITY ANALYSIS

CRITERIA FOR SUCCESSFUL SEGMENTATION
IDENTIFY SEGMENTS THROUGH INDUSTRY CLASSIFICATION (SIC /
SEGMENT MUST BE IDENTIFIABLE-
NAICS/ ISIC)
enumerated and evaluated
+
CHOOSE YOUR INDUSTRY TARGETS

SEGMENT MUST BE ACCESSIBLE-
can be reached by marketing activity
CHOOSE YOUR SPECIFIC COMPANY TARGETS BY:
+

1. HOW THEY BUY
SEGMENT MUST BE SUBSTANTIAL-

2. THE BENEFITS THEY SEEK
3. MEMBERSHIPS IN PROFESSIONAL / TRADE enough to justify efforts
ORGANIZATIONS

B2BM_05_SG ( S. Goswami) Slide No. 9 B2BM_05_SG ( S. Goswami) Slide No. 10

TOOLS FOR MARKET ASSESSMENT MARKET SHARE ASSESSMENT

SCENARIOS
MARKET SHARE DEVELOPMENT TREE

BUILD-UP/ FACTORING APPROACH
Commn Strategies: Awareness - NO(0.40)/ YES

STATISTICAL FORECASTING Prouct Mgt.:
Pricing:
Like Product -
Acceptable -
NO(0.65)/ YES
NO(0.40)/ YES
Distribution: Supplies Available - NO(0.30)/ YES

Current levels: as above:

Desired Responses: .40/ .45/ 0.20/ 0.10

Share Development index: Current/ Desired

B2BM_05_SG ( S. Goswami) Slide No. 11 B2BM_05_SG ( S. Goswami) Slide No. 12