Selling in a Recession

A fantastic training resource for all of us is Selling Power's site. They have daily short videos that you can watch to get tips.

I came across this video today about selling during a recession. The key take aways are:

• First, buyers don't purchase based on price. This is never the number one reason why people buy even in a recession. Instead, you need to show and prove that buying from your company is extremely low on the risk scale.
• Second, you cannot come across as afraid that your job is at risk and that you are desperate to make a sale.

So, here's the way I'd approach this.

• First, you need to instill confidence in your customers and prospects. You need to establish key pillars that you can use to show that your company will weather this storm. It could be that you've weathered two recessions. It could be that you have a diverse customer base etc.
  
• Second, ownership/Mgt must instill confidence in their employees. You must show them that you have their backs and that their jobs are not a risk. A wounded animal gets eaten.
• Third, you must be confident and believe that this recession is an opportunity for you and your clients. Work hard, show them value and that you are the guy/gal that will help them get through this tough time. Drive to survive, drive to thrive.
  

Watch the video, it's well worth the 4:30 minutes.

Thanks to Trish Bertuzzi, from the Bridge Group for sharing this video.

Groundswell Blook Report:Chapter Nine – Embracing the Groundswell

Groundswell is broken down into three parts. Part two (chapters 4-9) focus on tapping the groundswell. The authors provide advice and a strategic framework on how to do this.

Chapter 9: Embracing the groundswell

• CASE: Snausages (woof, woof)
• CASE: Credit Mutuel
• CASE:Salesforce.com
• CASE: Dell Ideastorm
• CASE: Loblaw

FriendFeed Room: Chapter Nine reference links and case studies from the book. Join the room and start a conversation.

Feature Video: Procter & Gamble VP Patrick Arlequeeuw talking about using innovation and embracing crowds to create the next $23B brand

This video is from September 2007 and it’s called “Blogging for Business”. This is a very interesting case study on how P&G is transforming itself from being a slow gigantic corporation to an innovative, responsive and collaborative organization.

What I learned:

1) If you reach a level where you can embrace your customers do it! You have willing participants who want to help you shape your company and your products and services.

2) Culture kills Groundswell initiatives and it will kill innovation. If you don’t encourage open communication, sharing and taking risk by putting your ideas “out there” then embracing is not for you.

3) That companies must have succession mechanisms in place in order to ensure their Groundswell program is sustainable. Your management team must be a “groundswell team” and champion all efforts. Don’t leave it to one person to champion. I’m starting to see that some of the companies case studied in the book haven’t continued with their Groundswell initiatives. Loblaws, Credit Mutael and Snausages are three examples in particular. This appears to be because the key Groundswell leader left.

4) Embrace people within your company as well as from the outside.

5) You will start to see interesting ideas evolve and natural cross collaboration begin to take place. People will start to connect the dots with ideas and thoughts that you’d never dreamed of seeing. This is where innovation really starts to come to life.

6) Make sure your online groundswell activities are tied to in real life ones. Case in point. I can rank Presidents Choice products online but when I go to their stores I don’t see any signage identifying their products as “Consumers Top Choice”. What I see instead is “Even Lower Prices”. What exactly is Loblaw positioning their Presidents Choice Product Line as?

Building the Next Generation Company: Innovation, Talent, Excellence

This presentation by John Chambers at MIT took place on October 15th, 2008. Cisco continues to be a very interesting company to watch and learn from.
You’ll need some popcorn when you watch this video but key areas that I found amazing include:

• Cisco is evolving into a collaborative enterprise utilizing web 2.0 and social networking which allows them to scale, increase productivity and speed to market
• They focus on market transitions and listen to customers more then what the competition is doing.
• Typically they have a 3 to 5 year vision of where they are going, and a 2 to 4 sustainable differentiation advantage with a 12-18 month execution timeframe
• They apply “architecture” thinking to every market transition and opportunity they choose to go after. This opens their minds to new ways to tie things together to solve key industry problems

There’s a lot to this video, but I’ll stop here. I’ve put a timeshift timeline for those that may want to fast forward to sections of interest. This video has been shared from MIT's site.

This presentation would be a great supplement to any business course in the accredited online schools. There are additional resources that may be useful.

2:25 Recession now but plan for the recovery
6:48 The future of countries, companies and jobs
9:00 What Cisco does well
10:45 Next Market Transition – Collaboration
13:41 Phase II of the Internet
15:30 Why invest in Information Technology today?
17:30 Cisco changes organizational structure, culture and hierarchy
21:00 Cisco’s transition to a collaborate enterprise
22:00 Focus on architecture when addressing market transition; importance of cross functional collaboration
25:00 I-Prize competition (shameless self promotion: my team was one of the 12 finalists, here’s an overview of what the experience was like for me)
27:30 New public/private partnerships will become more prevalent and important
30:00 Web 2.0 is taking off at Cisco
33:30 Collaboration, Cisco’s definition
34:12 Future Growth…framework for tracking Cisco’s priorities
34:30 Increasing importance of Corporate Social Responsibility
35:18 The new definition of capitalism
36:30 Cisco’s experience working with China
41:00 Closing remarks and Q&A

Integration B2B marketing into your business

UPDATE: My B2B Marketing Integration Framework evolves. For an updated version please check out this post. Thx.

What I find is that many companies rush to market with new solutions, services, partners and divisions without spending the necessary time and resources to put their best foot forwards. Here is a phased approach model that may help you keep on course.

The end goal is to institutionalize b2b marketing into your organization. This can be a big challenge depending on company size, patience, culture etc.

If your company has been adding partners on a whim, or adding solutions to a bloated offering watch out! In markets where you are selling complex solutions going to market “half cocked” is a big mistake. You’ll probably go nowhere. Why? Ask your sales rep! Ask your systems engineer! Both of them will tell you that they will not put their relationship and reputation on the line by introducing a new solution offering to an account if they don’t have the confidence in selling it and supporting it.

If you don’t believe your rep or engineer ask your customer! B2B buyers weigh their purchase decisions on three core things: 1) Risk, 2) Knowledge/Good information and 3) Value add. A company flying by the seat of its pants is high risk, ignorant and can’t articulate a defendable value proposition.

The solutions and services being offered must be backed by all stakeholders and a collective effort and commitment must be made by everyone to bring these solutions to market over a sustained period of time. You must have the fortitude to develop domain expertise, competency and capacity to market, sell, implement and support the solutions being brought to market. You need to ensure you have in place programs that communicate, educate and promote these solutions and customer success stories.

A thoughtful approach is to take some time and work your way through a phased process like the one above. You can apply this approach to new services, solutions and practice areas you plan to bring to market.

Assessment – this is where you assess the business, the market, the competition and your customers to determine whether there is a market opportunity (by the way, this is ongoing!). It also establishes a baseline and gap analysis (where you are and where you need to be). This stage is the hardest and most time consuming. It involves extensive listening and collaboration with key people in your company, partners, with customers and prospects. It will create friction, uncover old wounds but it is absolutely necessary in order to bring teams together to bring something meaningful to market. It is the beginning part of forming a collaborative within your business.

Plan – The plan is your playbook of what you are going to do and how much it will cost.

Execute/Manage – Here’s where strategy and tactics meet and you are executing the key tactics identified in the plan. You are monitoring your results, using feedback loops to gather information and tweaking your efforts along the way.

Optimize/Automate – This phase is all about improvement and automating as much as possible (without de-personalizing relationships with customers though). Knowledge needs to be institutionalized and a marketing system starts to take hold in the organization.

It can take 12 to 18 months for your company to become a Phase 4 organization. Using a methodology combined with the two previous planks can help you get there.

Crowdsourced Ad

This 2007 Super Bowl video is mentioned in Groundswell. Doritos had a contest where the public could submit their ads in a contest. The winner would have their ad aired during the Super Bowl.

The silver lining for business?

Below is a presentation by Umair Haque, Director of the Havas Media Lab, entitled Constructive Capitalism. He blogs for Harvard Business Publishing. Umair was a guest speaker at the Daytona sessions. Daytona is a marketing agency in Sweden. The fact that Daytona has a “Ted” like conference is simply amazing.

The video below is about 70 minutes long. It is well worth the time to listen and learn about Umair’s beliefs about where companies need to go in order to grow. He uses examples to set context. This helps you see how his theories are “in play” today.

Below the video is a timeshift timeline and links to the reference examples he uses in his presentation. I’ve invited Umair to add any comments or thoughts to this post. But, more importantly, is getting you to provide your thoughts and comments to create a conversation around this really interesting take Umair has on “Constructive Capitalism” and the next revolution which he calls “Institutional Revolution”.

Umair Haque @ Daytona Sessions vol. 2 - Constructive Capitalism from Daytona Sessions on Vimeo.

UPDATE: For some reason an embedded Vimeo video doesn't show the slider. Just open a second browser if you want to use the timeshift timeline below.

1:47 What’s wrong with the economy? “Qualitative Difference”. “A shock”
3:15 We are at a crises crossroads with respect to strategy, how institutions interact and exist (the places we work that organize people, processes and deliver value)
10:00 New rules for Institutions and Capitalism are driven by Ideals
11:15 Ideal #1: Exploitation to Renewal

• Crisis of Depletion
• Case Studies on Sustainability: Wal-Mart, Nike, Interface and Pepsico
• Take-away: “Tomorrow is Today”

15:15 Ideal #2: Command to Democracy

• Crisis of Rigidity
• Case Studies: Threadless T-Shirts, Walkers Crisps, Lego Factory, Super Future, Whitehouse.gov and Etsy
• Take-away: “People, not Product

21:25 Ideal #3 War to Peace

• Crisis of Conflict
• Case studies on Guiding Principles: Google and Barack Obama’s 3 guiding principles for the Election
• Take-away: “Connections, not Transactions”

29:20 Ideal #4: Domination to Equity

• Crisis of Stagnation
• Case Studies: Wii, Tata’s Nano Car, Better Place, Compartamos, Unilever’s Shakti programme and Grameen Health
• Take-away: Creativity, not Productivity

38:40 Ideal #5: Value to Meaning

• Crisis of Nihilism (perceived value has no meaning)
• Case Studies: Nike, Wii Fit and Guiding Stars Nutritional program, Vanish (products) and Vanish (ruining shoes)
• Take-away: Outcomes, not Incomes

44:30 Where to start and where to head?

• Case Study: Fairtrade

50:42 Question and Answer

• What cultures/countries equipped to handle this change?
• Won’t Tata become like GM, Ford and Chrysler eventually?
• Does GDP matter when new models and markets like this emerge?
• Is sustainable growth a realistic outcome? How is it different then today’s growth aspirations? What does growth mean?
• Is it possible for large corporations to revolutionize themselves?
• Will these new institutions produce products and services that are are tools and utilities to deliver on these ideals?
• Can this “institutional revolution” take hold realistically? Will old ways and thinking be too big a barrier for this to take root?
• How will protectionism and de-globalization affect your theories and beliefs on Constructive Capitalism

Has anything changed? Does this sound familiar?

My blog focuses on things that matter from a marketing and social media perspective. After watching this video I wonder to myself how can/are companies addressing the concerns that 12 year old Severn Cullis-Suzuki talks about in this video. A video that is 16 years old! Listen to what she is saying and ask yourself what has changed since then. Here’s what she’s up to today. 

Severn: How can we help you? You are a hero.