10.04.2023

Ebru GökalpFatih Özlü

OUTLINE

10.04.2023

1.MARKETING• Economics of Sales &

Marketing• Traditional Sales & Marketing• E-Mail Marketing• Search Marketing• Social Media Marketing• Summary

2.SALES• Business Models• Contracts• SLA• Sales Compensation• Installed base sales

10.04.2023

MARKETINGPAST

• Hiring Ad man• Ad Campaign• Wall Street Journal• Short & Sweet

Tagline

TODAYAdvent of Internet

& Rich Media

Economics of Sales & Marketing

10.04.2023

• Significant investment in sales&marketing - %35• The explosive growth of web conferencing post September’11

10.04.2023

Traditional Sales & Marketing

Sales is a Team Sport

10.04.2023CRMMore Efficient

E-Mail Marketing

10.04.2023

•Alternative To Direct Mail•Large Growth•Economics are so compelling

Emailing to a list of 1000 people costs $5 versus over $500 to send out direct mail• # of characters in the subject line

(keep <50 ) determines the effectiveness

E-Mail Marketing

10.04.2023

E-Loan Story

An email program remind prospective borrowers to complete their mortgage applications2 phases. • 1st phase, after 30 minutes • 2nd phase, 1 week later

reminded applicants to complete the process, provided a quick link

RESULT: 32% more applications were completed.

Search Marketing

10.04.2023

• Improving the volume & quality of traffic to a Web site from search engines via search results is IMPORTANT

• We click on natural search results more often than the ads

Search Marketing

10.04.2023

ADVICES FOR OPTIMIZING NATURAL SEARCH RESULT

• Build a FAQ into your Web site to capitalize on potential

customers searching for reference or problem solving information• Blogs are great for generating traffic• Have your community create content• Work with a search engine savvy developer to make

sure• the meta content of your Web pages is optimized

Social Media Marketing

10.04.2023

If Facebook were a country it would be the world's 3rd largest in terms of population, that's above the US. 845 million active users worldwide**Social networking now accounts for 22% of all time spent online in the US*FACEBOOK & TWITTER NEXT GENERATION TELEPHONE

*http://en.wikipedia.org/wiki/Social_media**http://www.business2community.com/social-media/the-importance-of-integrating-social-media-marketing-0171531

• Use hyper targeting to test new audiences

• Use the social graph and knowledge e to create a more personalized online community.

• Use social networks to market yourself as an individual to establish your brand.

Get Notorious

10.04.2023

• Be notorious - Don't send a note from "your company.” Reach out as an individual Name. Blogging is personal.

• Use video - but not an overproduced one. No talking heads-show the product. Limit it to 30 seconds. Make me think: “Wow, that's impressive!”

• Check out Digg - Look at the first few pages. See what formats are popular, and use those. (Top 10's, video, photo essays, controversy, "best ever’s, generally "this is so cool!").

Educate& Select

10.04.2023

Cloud service become more specialized and as the price point goes down.

The reason nosales person sold a TV is that most consumers of Plasma TVsdid their research online. Sellingwill be replaced by education and selection.

Summary

10.04.2023

• The Internet changes everything used to be a corporate tagline.

• While communicating to people, whether they find you through search, email, or social networks, you still need marketing.

• In the end, no matter how simple software, the act of matching customer needs and your offer remains the role of a quality marketing organization.

SALES

10.04.2023

•Business Models: Traditional, Outsourcing, Hybrid, SaaS•Transform traditional models to others•Increase your existing sales force •Contracts•SLA•Sales Compensation•Installed base sales

Business Models

10.04.2023

Traditional: software is licensed with a one time up-front fee and support

Hybrid: The company already has products, distribution channels and sellings. The new thing is services

SaaS: find a way to early getting money from customers or volume.

Transforming Traditional Software

Sales

10.04.2023

Every model one software company worries about cannibalization, in case delivery of software over the cloud.

If you adopt to model four, nothing changes, but a new delivery option

Dou you want to manage our software or do you want us to manage our software?Do you want to pay for the software, hardware , thirty-party software up-front or expense it over time?

Example:Joe King On-demand

10.04.2023

Joe King who led sales for Oracle On Demand for 7 years and today is Group Vice-President of JDA’s On Demand Business has first-hand experience in how to sell when you are in model 4.

1-Make sure you find a team of sales that have experince in selling both traditional software products and services.2-Organize the sales teams around the current delivery capabilities. Ensure the sales team provides a solution that your company has ability to deliver on time. Don’t sell the futures.3-Train sell person (reps) to find customer challanges that can be solved by your company’s complete solution. Discuss underlying infrastructure that supports solution.

ADVICES FOR HOW TO SELL IN MODEL FOUR

Selling New Application Cloud

Services

10.04.2023

Model six similar to Model one.Difference: the economics of sales process.

•average selling price < up-front license fee

BETTER THINGS:•Your software is always ready to be used or quickly configured.•Deployed - no extra cost for the new customers.

Example:Stratus Computers

10.04.2023

A model one software company offered to do a free 6 week discovery process and scheduled demo for 8 weeks later.But the CIO preferred to go with model six solution and deployed the whole system in 7 weeks.

Stratus Computer is a $250M / a year computer company.It is a big user of application cloud services:Salesforce.com, QuickArrow, Eloqua, Xactly, SpringCM, Ceridian, Halogen, WebEx, and Postini.

TRADITIONAL SOFTWARE COMPANIES Vs NEW MODEL SIX COMPANIES.

Model Six needs more volume

Contracts

10.04.2023

•vary from model to model•Three inches thick•Negatioation

%85 contract negotiation finished less than a year %55 contract negotiation finished less than six months%13 contract negotiation finished less than three months

In Q1 of 2007, Model 6 companies signed 75 large outsourcing deals with a total amount of 5.7B Euro

online click wrap agreements. Ex:Yahoo Terms of Service. The model 6 terms allows customers on pay month-to-month, so contracts can be terminated with 30 days

SLA

10.04.2023

•SLAs are heavily negotiated, In model 3.•what uptime means or what penalties should be paid if the uptime is not met?

Penalties: it lead the company to take attention to keep the system up and running all the day.(Blacbaud On Demand contracts guarantee %99.9 )

Example:Oracle’s Nordstrom’s Guarantee

10.04.2023

•Service levels in availability, security, problem, change, and performance management were published and reported.

If a customer was not satisfied with the service for any reason, they could request a rebate of %20 percent each month, no questions asked.So it guarantees the overall quality of the service and a leading way to improve these services.It is suggested to provide and publish the service levels to your customers.

Sales Compensation

10.04.2023

1-Keep your compensation plans straight forward. Many companies come up with plans with dozens of variables2-Report regularly, transparently. Reports delivered to payees at right frequency , keeps motivation3-Reward sales people for their work

•Keeping salespeople motivated is very challanging.•What motivates one might not motivate another•Sales compensation is a crucial factor

GUIDELINES for sale compensation by Callidus Software

Installed Base Sales

10.04.2023

Example: Computer architecture

-focus on selling is to get new customer-on selling a product for large up-front money than getting revenue on a monthly or yearly period

Focus on learning about the customers and personalize the offering using that knowledge.

Pipelining

10.04.2023

Years ago, every instruction took 5 clock cycles to execute. As a result, 7 instruction would take 35 clock ticks. But some smart guys found an efficient way:If you could seperate instruction execution into 5 stages, you can execute 7 instructions in 11 ticks with the same clock speed..

Marketing&Sales Pipeline

10.04.2023

•Our marketing&sales pipeline is no different than the traditional way of instruction execution.•We finish one deal before we start the next.•But indeed same principle can be applied to sales.•As an example (Model 4), Oracle applications are

used more than 10 000 companies. For each cycle, learn more about the customer, and move customers from one stage to another stage. By providing more services, etc. And also in a more parallel fashion.

Thanks For Listening

10.04.2023