Archive for Lean Sales and Marketing

Mar
29

The Irrelevancy of List Price

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Rob Doctors, lead author of the book, Contextual Pricing: The Death of List Price and the New Market Reality was my guest on the Business901 Podcast. Rob believes that pricing decisions need to be driven by customer context rather than simple list prices. Pricing is more than just an issue of margin and production costs, but rather a complex set of contextually factors best defined as an outcome. In the podcast, we discussed the outcome of four contextual factors:

  • Situation
  • Objectives
  • Perception
  • Capabilities

An excerpt from the podcast:

Joe:  If I need to change my pricing structure and look at contextual pricing, what would be the compelling reason for me to go that direction, right now?

Rob:  Better margins in a nutshell. Because, think about it, once you’ve set a list price, the traditional way of doing it. It’s really tough for anyone in your organization to sell above that list price. I’ve set a list price on, whatever, my plastic clam shells for holding food in a supermarket. The next moment a customer runs in saying "Rush order, rush order, I desperately need clam shells. I’ll pay you a million dollars per clam shell!" You look in your book and you say "I’m sorry. I can only charge you $0.30 for this clamshell because that’s our list price." You immediately cut off the benefits by setting a list price.


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Download Podcast: Click and choose options: Download Here  or go to the Business901 iTunes Store.

P.S. We had a little trouble with the audio so this is not the norm. We will publish the transcription next week.

Related Information:
The Other Half of the Lean and Sales Marketing Summit
How Lucky are you with Pricing?
Contextual Pricing Book Review
My Engagement Strategy – Appreciative Inquiry

Categories : Product Marketing
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In preparation for this Duane Butcher of the hosting organization, Lean Frontiers wrote this in a recent newsletter:

Marketing activities such as developing promotion programs, branding, developing ads and writing copy are seen as creative processes that don’t lend themselves to systematization without losing the ability to think outside the box.

Most efforts to improve Sales and Marketing so far have come from Six Sigma or Lean Office programs that largely derive their practices from the production environment. The personality style of a star salesperson or an innovative marketer clashes with the type of person who is going to embrace standardized processes and continuous, incremental improvement.

If these arguments sound familiar, they are the same ones used ten years ago to keep lean out of Research & Development: breakthrough innovation cannot be standardized, lean manufacturing practices don’t work and star technologists don’t appreciate process excellence. The solution is to recognize that like R & D, sales and marketing functions are knowledge creation processes.

Product developers add value when they deepen their knowledge about the product design and then convert that knowledge into a product that a customer can buy. Similarly, marketing and sales functions add value when they deepen the company’s knowledge about customers and market needs, and then support R & D as they make decisions that lead to products to meet those needs. They also add customer value when they deepen the customer’s knowledge about the product. In fact, the best sales people are those who take the time to deeply understand an individual customer’s needs so that they can recommend the products and services that will best meet those needs.

We will be able to conquer the final frontier for the lean enterprise when we recognize that when the value a process creates is knowledge, it must be managed as a Knowledge Creation Value Stream to maximize the value we get from the knowledge created, and minimize the wastes of knowledge loss, ineffective decision-making.

P.S. You want a fresh approach to marketing that is something other than just a new set of tools. Consider attending the Lean Sales and Marketing Summit. I have a limited amount of tickets left; please contact me to check availability.

The Lean Sales and Marketing Summit is quickly approaching. It is a two day workshop.

Bill Waddell. On April 17th, Bill will be presenting Aligning the Entire Organization to Achieve the Sales Strategy. He will show you how to devise a sales and marketing strategy built around creating the most value for your customers; how to set prices strategically, rather than on the basis of standard costs, assuring that prices will not cause you to lose a sale.

The next day, I will be presenting Using Lean to Create Repeatable and Scalable Sales and Marketing Systems: A Customer Centric Approach Through Lean. The workshop will be two-thirds presentation and one-third interactive exercises.

Please consider joining us.
Related Information:
Lean Sales & Marketing Summit Announced
The Other Half of the Lean and Sales Marketing Summit
Traditional vs. Emerging Thoughts on Pricing

Categories : Lean, Product Marketing
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Mar
05

Lean Software & Systems Conference

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Three Events, One Venue – 3-Day Conference, Lean Camp & Lean Tutorials
Lean Software & Systems Conference 2012 (LSSC12) May 13-18, 2012, in Boston, MA

LSSC 2012 Boston is bringing three premiere events to one centralized location to facilitate the next wave of ideas in methods, process and organization for software & systems engineering development. Boston is the premiere place to be for those innovating in the Lean community.

The Lean Software and Systems Conference emphasizes Lean concepts representing the next wave of ideas in methods, process and organization for software and systems engineering. It brings together an international community of practitioners, consultants, thought leaders and authors to cross-pollinate ideas and foster a sense of community for those promoting better economic and sociological outcomes in their workplace.

Steven Spear, Gregory Howell, and Yochai Benkler will be appearing as the keynote speakers for LSSC 2012 Boston. As some of the leading minds in today’s ever-expanding lean software & systems landscape, these speakers will inform, engage, and inspire LSSC attendees.More details about these speakers and LSSC12 are available on the conference website at http://lssc12.leanssc.org.

The Lean Software and Systems Conference focuses on Lean, Pull Systems and the Kanban Method and how each can be used to improve predictability, frequency of delivery, risk management and quality. Kanban is a term used to describe a type of pull system and is originally found in lean manufacturing. In Kanban for knowledge work, development processes are streamlined by better coordination driven primarily by improved visibility and greater focus on highest value work. Knowledge work environments such as software development have special challenges since inefficiencies are harder to pinpoint due to the absence of physical inventory and the constant variation in the work produced. lssc12

I have the honor to be one of the invited speakers and I have a very difficult act to follow, Steve Denning’s, author of the book, The Leader’s Guide to Radical Management: Reinventing the Workplace for the 21st Century. My topic will be Is Lean still on the Wagon or is it Ready to Fly?.

Other Speakers that have participated in the Business901 Podcast: David Anderson, Jim Benson, Steve Denning, Alan Shalloway, Yuval Yeret, Dean Leffingwell and Claudio Perrone.

P.S. If you can’t make Boston there are still a few seats left for the Indianapolis Lean Sales and Marketing Summit on April 17th and 18th.

Categories : Lean
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