How to Sell to K-12 - Education Industry Association

Report
John Q. Porter
President, Blue Sky Innovative Solutions, LLC
July 16, 2014
Market Five Force Analysis
FORCE
LOW
Threat of New Entrants
X
Substitute
Products/Services
Supplier Power
MEDIUM
HIGH
X
X
Buyer Power
X
Competitive Rivalry
X
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Market Attractiveness Grid
CATEGORY
WEIGH
T
Profitability (10%=3)
3
Market Growth (10%=3)
2
Niche Size ($100m=3)
1
Threat of new entrants
1
Substitute products/services
1
Supplier Power
2
Customer Power
1
Competitive Rivalry
1
Fit to Core Competency
3
Weighted Average
15
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2015 (1-5)
2020 (1-5)
3
SWOT Analysis
STRENGTHS
1.
2.
3.
4.
5.
6.
7.
OPPORTUNITIES
1.
2.
3.
4.
5.
6.
7.
WEAKNESSES
1.
2.
3.
4.
5.
6.
7.
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THREATS
1.
2.
3.
4.
5.
6.
7.
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Long Term Positioning
Goal: To develop and execute a set of strategic and
supporting plans that sustain a competitive advantage
for the company in existing and new markets.
 Long term plan should not be directed at any one
opportunity.
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Long Term Positioning
Objective:
 Long term positioning activities are continuously
performed and refined
 They set the stage for linking Business Development
planning with the company’s strategic plan
 Positioning is not aligned to a particular milestone in
any individual opportunity or pursuit; rather, it
supports many opportunities across the entire
customer/prospect base.
 These plans lay the groundwork for targeted,
customer/prospect—focused marketing and sales
activities.
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Long Term Positioning
Inputs
Activities
Company corp. objectives
Develop 4-yr.
strategic plan
Company targets of opportunity
Company annual 4-year strategic
plan
Company financial & quality metrics
Develop annual BU
operating plan
Organize marketing
teams
Industry/market reports & trend
forecasts
Explore market areas
Specialized market & tech. studies
Perform market
assessment
Comp. analysis & benchmarking
assessments
Build strategic
relationships
Outputs
Hierarchy of
strategic & other
plans
Annual operating
plans
Functional area
resource plans
Selling & B&P
plans
Lessons learned
Existing business development
plans for specific opportunities
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Position assets
Define business
strategy
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Assessment Phase
Goal: Assess the characteristics of an individual
opportunity and determine its suitability for pursuit.
Objectives:
 How well an opportunity aligns with the strategic plan and
how the company’s capabilities and offerings align with the
customer’s/prospect’s needs.
 Accurate intelligence about the customer’s needs,
requirements, resources and schedule are essential to
determining how well an opportunity aligns with business
plans and objectives.
 Accurate intelligence about potential competitors is
essential to developing a winning strategy.
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Assessment Phase
Inputs
Activities
Assign opportunity lead
Strategic plans
Develop call plan
Annual operating
plans
Develop customer relationship
Understand program requirements
Opportunity info
Outputs
Initial capture plan
Candidate
solutions
Call plan
Assess strategic fit
Business development
database
Accept pipeline entry
Identify competition
Prepare initial win strategy
Develop capture plan
Pursuit review
package
Business
development
database update
Prepare for pursuit review
Pursuit review
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The Benefit to You
 Provides understanding of customer issues and
challenges and an early opportunity to confirm
alignment with company strategy, plans and priorities.
 Provides opportunity to influence customer’s
perception of company and shape the procurement.
 Provides intelligence on firms that could become key
competitors.
 Allows management to assess whether the opportunity
fully aligns with business strategy and provides
reasonable win probability.
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How to Sell to K-12
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K-12 Market Size*
Mkt.
Segment
Mkt. Size
2012
Mkt. Size
2015
Growth 20122017
Mkt. Size
2017
K-12
687 B
788 B
4%
853.1 B
E-learning K12
5.4 B
9.3 B
20%
13.4 B
Child care
65 B
77.4 B
6%
87.0 B
Test prep/
tutoring/
counseling
11 B
13.1 B
6%
14.7 B
Instructional
materials
20.1 B
23.9 B
6%
26.9 B
*GSA Advisors
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SIIA Analysis of the K-12 Technology
Market, 2012
 Education technology (non-hardware) products and services: 7.97 B
 Major segments:
 Content
 Instructional support (including assessment* and professional development)
 Platform & administration software tools (including central office, data and IT)
 Special areas:
 AP
 Special Education**
 ELL materials
 Online courses***
*Testing was largest growth area; instructional support in general, 36% growth
**Highest growth year over year
***Online growth more than 200%
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Key Initiatives in K-12
 Assessment/ diagnostic tools
 Instructional materials focused on high stakes
assessment content areas
 Special education
 Analysis tools
 Hardware
 Professional development
 Instructional support services
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Critical Sales Cycle Timelines
for K-12
 What is the buying season?
 What is the best time to influence budget allocations?
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Key Decision Makers
School
Board
Superintendent
Deputy
Supt./
COO
CAO
Schools
Special Ed
Assessment
Curriculum
MIS
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Facilities
Procurement
Finance
Human
Resources
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Key Decision Makers
School Board
Superintendent
Deputy Supt.
COO
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CAO
17
How to Sell to K-12: The Assessment
Background Research:








Does the district have a strategic plan? If so, read it and know it.
What are the district’s and superintendent’s next 12 month priorities?
Review the district’s budget.
Google all key personnel that could influence your procurement and
create a dossier on each person.
How long has this administration been in place? (It matters whether it
is new or has been in place for a while)
What are the political dynamics between the board, superintendent
and community elected officials?
Look for articles in which key personnel have been cited that could give
you hints on their strategic direction.
Spend time getting to know the district website.
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How to Sell to K-12: The Assessment
Continued Understand how the district is organized.
 What is the “Theory of Action” of the district– centralized, or






decentralized?
Look for outside pressures that your product or service could help to
alleviate.
Does the district have a bias for or against vendors of a particular size?
Do you know anyone that could refer you to senior level personnel in
the organization?
KNOW YOUR COMPETITION!
Are your competitors presently providing services or productions to the
district or its schools?
Understand how the competition positions their products and services.
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Corporate Sales Team
Delivery
Business
Development
Customer
Advocate
Balanced
Perspective
Sr.
Management
Company
Advocate
Proposal
Manager &
Technical
Lead/ Content
Expert
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Responsibilities: Business Development
 Key external face of the organization
 Identifies and qualifies opportunity
 Establishes prospect and customer contact and
assesses competitors’ capabilities
 Overall authority for leading sales process from
strategy phase through post-proposal submittal
 Supports proposal writing team during proposal
development to ensure strategies developed in sales
process are implemented
 Continues to feed market intelligence to proposal
team
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Types of Sales Configurations
 Direct
 Indirect/ channels
 Independent
 Inside
 Hybrid
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Responsibilities: Proposal Manager
 Overall authority and responsibility for leading the
proposal effort
 Responsible for initiating proposal planning
 Manages all proposal development and review
activities
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Responsibilities: Technical Lead
 Develops the winning technical solution, driven by the
overall win strategy.
 Serves as principal member providing support by
understanding customer technical requirements and
assessing competitors’ technical capabilities.
 Identifies technical risk to the proposal and provides
risk mitigation plans to be incorporated into the
proposal.
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Responsibilities: Senior Management
 Should understand all aspects of the proposal.
 Conducts final review of the proposal for strength of
strategy, themes.
 Reviews final details of cost and price recommendations
and technical solution.
 Makes the ultimate decision that the opportunity meets
the strategic direction of the company, with the necessary
ROI.
 Validates that appropriate resources can be engaged to
deliver a winning proposal with successful
implementation.
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How to Identify Sales Talent
Job Factors
Sample Interview Questions
1. Quality of Planning:
Developing strategies to
manage sales consistent with
company objectives and
customer needs.
•What is the sequence of steps you follow in developing
a sales strategy?
•What preparations do you make before visiting a
customer site?
•How do you determine the point at which a sales
strategy needs revision?
2. Forecasting Accuracy:
Forecasting business
accurately and on a timely
basis.
•What procedures do you follow in formulating business
forecasts in terms of value and timing?
•What do you consider to be an acceptable margin of
variation regarding the accuracy of your estimates?
•What factors contribute to a successful forecast?
•How do you identify potential charge backs and
prevent them from occurring?
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Job Factors
Sample Interview Questions
•How do you identify potential leads on new accounts?
3. Prospect Management:
Identifying and contacting new •Do you like “cold” calling?
•How do you determine the appropriate levels for
leads.
making contacts?
•What was your territory and quota on your last sales
job? How did your performance compare with your
quota?
•How do you investigate the potential for expansion of a
current account?
4. Account Management:
Maintaining existing accounts
and obtaining orders of high
quality.
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•How do you prevent being limited to dealing with a
single function or level within a company?
•What measures would you take to protect current
accounts from our competition?
•Describe a situation in which you identified a problem
and took corrective action before a crisis developed.
•What considerations deserve the greatest attention in
maintaining an existing account?
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Job Factors
Sample Interview Questions
5. Administration: Keeping
accurate records,
documenting actions and
managing commitments
effectively.
•What do you feel are the most important
administrative records for a sales representative?
•Describe three kinds of business forms with which you
have experience.
•What steps do you take to keep within administrative
time frames?
•How do you handle a backlog of paperwork?
6. Customer
Communications:
Demonstrating a professional
sales approach with
customers.
•Characterize an effective sales letter.
•Compared to others, would you say you are better at
making telephone calls or in face-to-face contact?
•What do you feel are the most important elements of a
successful sales presentation?
7. Support Organization
Interface: Negotiating and
cooperating with others to
accomplish optimal utilization
of resources.
•How do you go about gaining the support of another
department or organization?
•Describe an occasion when you cooperated well with
others toward the attainment of a common goal.
•What do you consider to be the important factors in
maintaining an effective team relationship?
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Job Factors
Sample Interview Questions
8. Internal Management
Interface: Communicating
effectively with company
management and accepting
management’s overall goals.
•What has been your means of communication with
superiors?
•Describe a situation in which you successfully handled a
set of unclear instructions.
•Compare your written and oral reporting skills.
9. Effort/ Innovation:
Persisting with special effort
and using innovative
problem solving to reach
goals.
•Describe a unique marketing strategy you designed.
•What was the most difficult order you ever won? How did
you do this?
•What kinds of special qualifications are required of a sales
representative as compared with other professionals?
•What length of sales cycle are you most comfortable with?
•In what situations are you most inclined to exert additional
efforts, beyond the usual standard?
10. Self-Development:
Seeking to improve one’s
organizational effectiveness
through formal and informal
channels.
•What activities do you pursue on your own to improve your
sales skills?
•How do you keep current with product changes?
•In what areas would you appreciate help improving your
skills?
•Describe an occasion when you responded favorably to
suggestions for improvement.
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Questions?
John Q. Porter
President, Blue Sky Innovative Solutions, LLC
[email protected]
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