SMA - About Us

WRESTLING THE COMPETITION: HOW TO DIFFERENTIATE YOUR OFFERING AND WIN NEW BUSINESS

This ITAC roundtable was held on Thursday, October 18, 2007.

Panelists:

Jeff Hayward, Vice President, Marketing, CA Inc.
Geoff Cronin, President, Capgemini Canada Inc.
Ann Christie, Vice President, Marketing, Octopz
Rakesh Mistry, Vice President Integrated Marketing Communications, IBM Canada Ltd.
Jeff Watts, Vice President SME All-in-One, North America, SAP

The discussion was moderated by Bob Becker, Principal, SMA.

What competitive factors are driving the need for differentiation and how have these factors changed in the last few years?

Today’s marketplace is more competitive and customers are more sophisticated.
We are being asked to do more with less and to deliver returns faster.
Customers are inundated with information but they also have more control over their information sources. They can choose what, when and where information is gathered.
The information that you provide should help your customers be more competitive in their markets. It should help them deliver more business value and generate more profitable business.
The differentiation strategy process should start with the customer. First, understand your customers’ business challenges and then map your offering to their needs.
Delivering business value is key. You need to be able to demonstrate that you are the best in knowing the business challenges of your customers.
Your differentiation strategy will be influenced by the type of business that you operate.
Differentiation strategies will depend on market readiness. Strategies that are effective within emerging markets will need to change as these markets evolve into commodity environments.
Web 2.0 technologies offer customers the opportunity to help shape solution offerings. Traditional marketing tactics should compliment Web 2.0 activities.

How do you define target markets? How narrowly or broadly should these targets be defined?

It’s about understanding the needs of the customer and then mapping your capabilities to these needs.
Be focused in selecting target markets.
Understand the value proposition that will resonate with your buyers. A message that works with a CEO needs to be modified for LOB executives and for IT executives.
You need to know your cost of sales when evaluating and selecting target markets. This approach allows you to focus on the segments that offer the best return.
Large IT providers are able to apply corporate offerings to local geographies when there is a fit with local market needs.
Emerging companies tend to focus value propositions on solving specific pain-points.
A strategic approach to target market selection offers you the opportunity to be part of the evolution of a market.
It’s important that you continuously refine your strategy.

How do you use market research?

Customers are a great source of information.
Be targeted when implementing these customer discussions since this activity can be expensive.
Account executives can offer perspective on customer perceptions of your company specifically and the market generally. They can also comment on key customer objections.
Local execution strategies need local information to be effective.
Thought leadership pieces like white papers are useful for sharing information.
Primary and secondary research is used as a complimentary tool to validate the perspective derived from customers.
Market research from a quantitative perspective can help size the market for a specific solution. It helps you to plan, determine spending, and measure ROI.
Within Web 2.0, trials are effective tactical tool. It allows the market to try out your software.

What role does competitive intelligence (CI) play in creating an effective differentiation strategy?

The CI function assesses strengths and weaknesses of competitors and develops strategies for attacking or defending against these competitors.
These strategies are about “how to beat” the competition.
It’s important to be specific in differentiating against competitors, especially when competing within markets that are complex and fragmented.
Specific knowledge of customer needs is relevant to getting management support.
Large IT providers regularly set-up internal organizations to execute the CI function. These players use CI “war-rooms”, “tiger teams”, and “playbooks” to track and defend against competitive actions.

How do you use marketing vehicles to support the execution of your differentiation strategy?

Market development can be influenced by getting involved in your target segments. Speaking engagements can be used to demonstrate thought leadership.
Events should be targeted and deliver a focused message highlighting how your solution can help solve their problem.
Engage with customers and prospects within communities, forums, or blogs.
It’s about building trust with customers and prospects.
Customers are interested in collaborating and communicating among their peers or third-parties. Customers use these sources to gather information before approaching the vendor.
Customers require different information at each stage of the buying cycle.

What methods are effective for promoting sales and marketing alignment?

Determining whether you are a sales- or market-driven company is the first step. The answer to this question will influence your strategy.
The role of marketing varies based upon the need within your company.
Depending upon the need, marketing can deliver sales support or it can set direction and take the lead.
You need to identify your target audience since communication strategies will vary by target.
Staying aligned is about keeping the lines of communication open and being consistent.

Questions from the Audience:

How do you change a company culture so that it becomes more “customer intimate”?

This type of change is a challenging strategy to implement.
This strategy needs the support of senior management.
It requires a commitment to compensate differently.
Link rewards to achieving deeper customer intimacy.
Involve and empower employees in the process.
Invest in making change wisely.

Many new technology-based marketing vehicles are now available like forums, blogs, and communities. Is the IT industry ready to adopt these new vehicles?

Using new vehicles can be risky but not all vehicles carry the same level of risk.
A willingness to undertake some risk offers the opportunity to utilize these new technologies to share information.
Focus on the new media options that are getting traction and will be sustainable.
Select options that let customers choose how they wish to communicate.
Preferred communication vehicles will vary by target buyer. CEOs, for example, will tend to rely on more traditional vehicles.

What is the single smartest thing that you have implemented that is different?

Migrate to a customer-focused approach to planning.
Understand the specific needs of markets and customers.
Consistently engage with customers.
Decentralize the marketing strategy process to broaden input and make better decisions.
Apply marketing principles internally to influence and drive change.

How do you consider what non-traditional companies will do and how do you plan for it?

Take a broad view of your customers and capabilities.
Within a global marketplace, competition can emerge from anywhere in the world and has the potential to change the playing field.
Your strategies need to be adaptable to change.
Maintain focus on your customers.
Customer inquiries on new competitive options offer you the opportunity to respond.
Emerging companies are an effective source of innovation.

Wrap Up: Following today’s discussion, what lessons will you take back to the office?

Today’s marketplace is complex. And, the role of marketing within this environment is complex.
Understand your markets, customers and value proposition.
Be focused when implementing your strategies.
Integrating simplicity into your strategies can be effective.
Markets are not static; therefore, listen and adapt.

» top | Back to Menu