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Service Marketing

Question:

I regularly post out mail to potential commercial customers. I get most of their addresses from the Electronic Yellow Pages on the Internet. For example I posted to 1500 Fruit and Vegetable Wholesalers last month and 50 of them rang me up for further information. Not bad I thought! I presently do the process long hand by typing in all the addresses and producing sticky labels. Does any one know of a simple program that will convert the electronic data from Yellow Pages into a database and then address labels? Jon Thornes Lincoln UK

Response:

>I regularly post out mail to potential commercial customers. I get most of >their addresses from the Electronic Yellow Pages on the Internet.

Great tip! they are at http://www.eyp.co.uk Also other resources would be useful, some associations posts lists of members onthe net. >I presently do the process long hand by typing in all the addresses and >producing sticky labels. Does any one know of a simple program that will >convert the electronic data from Yellow Pages into a database and then >address labels

I tried to do this for future reference. On my computer you can use a program called CMD which diverts output aimed at the parallel port to a file. Then you "print" the page using the browser, and cut and paste the output files. This is not comma deliminated, but can be spaced for labels. I mentioned your tip to a client, he suggested printing the page as normal, then scanning and using optical charactor recognition software. John John Block                         Creative, marketing aware work which Freelance Copywriter               talks rather than blandly bores,                                    actively promotes your product, International                      and aims to be the best Welcomes Dollar and Sterling,      in your market sector.

Response:

George "Herk" Herchenroether wrote in article <snip> >With this said, and leaving out a whole lot more, I pose this question >to you all. How does a medium sized, unknown (yet extremely successful) >software firm continue to develop new opportunity without formally >aligning itself with known vendors.

<snip> With so many firms >forming partnerships to expand their networks, it would seem "obvious" >that by stating our position as a positive differentiator, it is also a >negative in the eyes of many CIOs and CFOs who view us as "clearly being >to small to handle the task".

George, In his book, "Selling the Invisible", by Harry Beckwith, he talks about the McDonalds’ versus Burger King story. People in the fast-food business err in thinking they are selling food. That’s why BK pummels MCD’s with it’s ‘flame-broiled, not fried’ ads – but never grabs market share. The MCD people figure fast-food is a total experience, so they create a carefully crafted service environment that is really very strong. The point is this: if your company is indeed extremely successful (your words), then you need to pointedly ask your current customers what it is they are buying from you! It is certainly not the ‘affiliated with the industry leaders’ benefit, since you don’t fit that. But by focusing on that to prospective new clients ("stating your position as a positive differentiator"), you merely draw attention to the fact that you are not one of, or aligned with, the major players. Instead, find out the TRUE benefits your current customers like: the world’s BEST software, incredibly responsive service, quickly adaptable to shifting business priorities because you are unencumbered by huge commitments, etc., etc. (I don’t know, ask them!) "Find out what your clients are really buying!" Beckwith, "Selling the Invisible" Then sell that in your ongoing marketing. Good luck! WorldWide Guide, Inc.   http://www.WorldWideGuide.com Reports. Internet Instructional materials, Training, Consulting.

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Hey Herk, Sounds like a possible fear of dependency.  As you know, software contains a huge gross profit contribution that some consider, strategic alliances to be a threat to. Selecting the correct strategic partners can present your organization with tremendous marketing and financial leverage, but alas, done poorly the opposite is also true. Two thoughts might help, "people don’t like what they don’t understand" and "they don’t perceive things as they are, they perceive things as they are". Marketing Myopia,  Good luck, it’s a tough spot. Gary – Hide quoted text — Show quoted text – > Allow me to introduce myself. My name is George Herchenroether and I > oversee the marketing efforts for a medium-sized software company. I am > faced with an interesting and challenging opportunity. My firm develops > very large proprietary software systems in the client/server arena for > over a decade. Over the past year of my employment, the chairman has > refused to align the company with any strategic partners. This is > because one of the most important elements of our mission (and part of > the value we provide to our clients) is that we remain objective on what > technology is best used in the development of these systems. > With this said, and leaving out a whole lot more, I pose this question > to you all. How does a medium sized, unknown (yet extremely successful) > software firm continue to develop new opportunity without formally > aligning itself with known vendors. This may seem like an immature > question but let me assure you, it is not a new one. With so many firms > forming partnerships to expand their networks, it would seem "obvious" > that by stating our position as a positive differentiator, it is also a > negative in the eyes of many CIOs and CFOs who view us as "clearly being > to small to handle the task". To put it simply, in order to gain new > opportunity and added "credibility" how does one create partnerships > without anyone knowing (i.e. prospect clients) yet everyone (again > clients) being aware of?   Look forward to your insightful responses.

Response:

|       How does a medium sized, unknown (yet extremely successful) |       software firm continue to develop new opportunity    George    Would you please take us through this step by step.    You say ‘unknown’, which means that you *need more    connections* with the outside world. You then say ‘extremely    successful’ which I understand as *being good at what you do*.    But, this point needs to be fully explained. In other    words, extremely good in what sense, for your own    profitability or from the point of view of competitiveness?    Which implies that, regardless of your connections to the    outside world, you have a very strong *competitive advantage*    in *your own market*, even though your own market is not    that big.    I think there is a risk of misjudging the situation without    exploring the background. I would like to find out how the    company fits in within the market and also its competitive    positioning with respect to other vendors.    The critical points for your success are not apparent to me.    Example, you say: |       it is also a negative in the eyes of many CIOs and CFOs who |       view us as "clearly being too small to handle the task".    OK, my personal response is ’so what?’, who are these CFOs,    what do they know about your *strengths* or your major    *benefits*, ie it all depends on the critical success factors    and how you match them with your competitive positioning.    There is something else that you’ve mentioned:    This as you know we can discuss for hours! Credibility from    whose point of view? Credibility, most of the time is    associated with *knowledge* or *expertise* in    whatever you do. But again it all depends on your    positioning with respect to the competition and also with    respect the relevant ‘critical success factors’.    I will not bore you anymore with saying the obvious. This    was my first reaction to your message. I’m not sure how much    detail you will be able to give us initially. But it will be    very useful at this stage. I will be delighted to help if I    can at least on the strategic issues.    Best wishes    Archie Gatekeeper: ‘My friend Archie, who lives here, is a good man. To speak with him you will need to know that, [com uk arde dear co demon net] is [T E C H D O G]. All good people can find archie at C.O.D.E Open sesame!’

Response:

Hello George, An interesting positioning challenge. . Develop a strong firm identity within a highly competitive marketplace and a backdrop of experienced technical talent shortages and re-enginering frenzy. I am guessing but your situation appears to be one of a weak marketing voice in an engineering driven company. You do not mention timeframe or resources available to you to address the situation. Another factor to consider is the political context of your organization. The minimal information suggests a possible approach to take. A-develop a solution model/ the substance of your solution Finding an optimal solution will require multiple iterations. Start by identifying three (or as many as you see fit) industry niches (industry/process/solution expertise) within your market space which you can aggressively defend from your competitors. Your objective is to become the "premier expert" supplier in these niches. You should consider competitive advantage, engineering talent, market desirability, size matching, etc. Now place these "nuclei" into the larger framework of your customers/clients and vendor/suppliers. A small firm can look very large if you include the larger vendor/supplier framework when describing your company and its services. The key is to have a clearly identifiable "unique/proprietary" component of interest to your customer/client. It is important the customer/client perceive this value. You can now translate this model into the standard corporate components: Marketing, Sales, Operations, Finance, etc. and work with them to develop consistent tactics specific to each area. It is essential the signals broadcast by each department be in harmony with the whole organization. Marketing should develop clear messages for each target prospect category. Your interactions with CIO’s and CFO’s will provide the raw material for your messages.  There are many ways to overcome the "size perception" issue you mention in your posting. The thing to remember about "credibility" is the need to build up awareness with low level promotion over an extended period of time. You should seek the involvement of the engineering department in publishing technical papers illustrating successful solutions.  It can be a challenge to convince engineering oriented individuals on the value of investing in long term "awareness" promotional programs. If you are successful, you should have one or more "anchor" points for all departments to rally around. These will eventually form your industry identity. B-develop your corporate "buy-in" solution/ signing on your decision makers Hopefully your company has a strategic business plan which is communicable, measurable and realistic. If not, you should gain the participation of the top executives within your organization to work with you to harmonize your marketing findings with the strategic business plan. Otherwise, you will find yourself with a great plan but no hope of implementation. C-harmonize A & B This can be the most rewarding yet frustrating part of your task. It requires a lot of political "adroitness". Frequently top management is unable or not willing to take the bull by the horn and prepare a strategic business plan. If the plan says get all the business you can, I suggest you go back to the drawing board and rework it. Strategic direction is necessary for positioning the company within the larger framework of the industry. It appears to me this lack of direction may be the primary reason why your CIO and CFO prospects eye you with suspicion… somewhat like a handyman who can fix anything. If you are good at everything, the perception will be you cannot be excellent in any one area. Hope this gives you a starting point. J.P. Solyom KS Business Development Comments:

<< I oversee the marketing efforts for a medium-sized software company.>> what size? You say develop very large proprietary software systems…. lots of code/relational dbase development or geographical size? <<My firm develops very large proprietary software systems in the client/server arena for over a decade.>> When you say proprietary….. writing code and/or industry customization (process re-engineering) of leading client server solutions. <<chairman has refused to align the company with any strategic partners. This is because one of the most important elements of our mission (and part of the value we provide to our clients) is that we remain objective on what technology is best used in the development of these systems.>> Top down design: Client Company’s Business Mission – Process Engineering – IT Solution Identification and Implementation. What part does your firm undertake? Smaller firms should be higher up on the totem pole with industry specific business and/or process expertise and acting as primary contractor/project mgmt. <<With this said, and leaving out a whole lot more, I pose this question to you all. How does a medium sized, unknown (yet extremely successful) software firm continue to develop new opportunity without formally aligning itself with known vendors. This may seem like an immature question but let me assure you, it is not a new one. With so many firms forming partnerships to expand their networks, it would seem "obvious" that by stating our position as a positive differentiator, it is also a negative in the eyes of many CIOs and CFOs who view us as "clearly being to small to handle the task". To put it simply, in order to gain new opportunity and added "credibility" how does one create partnerships without anyone knowing (i.e. prospect clients) yet everyone (again clients) being aware of?>>

Response:

Allow me to introduce myself. My name is George Herchenroether and I oversee the marketing efforts for a medium-sized software company. I am faced with an interesting and challenging opportunity. My firm develops very large proprietary software systems in the client/server arena for over a decade. Over the past year of my employment, the chairman has refused to align the company with any strategic partners. This is because one of the most important elements of our mission (and part of the value we provide to our clients) is that we remain objective on what technology is best used in the development of these systems. With this said, and leaving out a whole lot more, I pose this question to you all. How does a medium sized, unknown (yet extremely successful) software firm continue to develop new opportunity without formally aligning itself with known vendors. This may seem like an immature question but let me assure you, it is not a new one. With so many firms forming partnerships to expand their networks, it would seem "obvious" that by stating our position as a positive differentiator, it is also a negative in the eyes of many CIOs and CFOs who view us as "clearly being to small to handle the task". To put it simply, in order to gain new opportunity and added "credibility" how does one create partnerships without anyone knowing (i.e. prospect clients) yet everyone (again clients) being aware of? Look forward to your insightful responses. George "Herk" Herchenroether         [ModSpeak: Welcome George! -JG]

Response:

Have you thought about making partnerships with companies in allied industries eg telecom or distribution. Something that does not harm your independence but gives you access to muscle. Alternatively why not ally with a major provider to one business segment eg develop a specialist solution for the paper industry with say International Paper. You develop the product for them but then market the solution to the rest of the industry, giving you the credibility of a AAA customer Regards Mike Trup

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