Introduction to

Solution Marketing
Steve Robins
Product Marketing Leadership
March 2009

[email protected]

© Steve Robins 2009

[email protected]
Steve Robins 2008
 Steve Robins

Nine years in solution marketing

Expertise in product, solution and industry
marketing

Experience: EMC, KANA, the Yankee Group as
well as office products

email: [email protected]

© Steve Robins 2009

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p2
 What Do These Have In Common?

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p3
 Hyundai
Removing the Biggest Obstacle to Car-Buying

© Steve Robins 2009

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p4
 ChuckECheese’s
Party Complete

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p5
 IBM
Thinks Like a Customer

 
 
 

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p6
 Amazon Kindle
The Complete Experience

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p7
 Solutions Everywhere!

© Steve Robins 2009

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p8
 Solutions Everywhere!

© Steve Robins 2009

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p9
 Is This You?

Product Pocket
Pocket Sprocket
Sprocket
• Addresses only part of This
Thisnew
newproduct
productwill
will
customer need revolutionize
revolutionizeyour
yourlife!
business!
business!
life!
• Feature-function 
Best
Bestfeatures!
features!
• Prone to 
Newest
Newestcapabilities!
capabilities!
commoditization 
Technically
Technicallyadvanced!
advanced!

Fastest
Fastestprocessor
processing!
processor speed!
processing!speed!

Pocket
Sprocket

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p10
 Customers Want Solutions

Solution Pocket
Pocket Complete
Sprocket
Complete
Sprocket
• Addresses the entire Sprocket
Sprocket
This new Solution
Solution
This newproduct
productwill
will
customer need revolutionize
Increase
Increaseyour
revolutionize your
your profits
yourbusiness!
profits
business!
• Includes the ecosystem 
Streamlines
Best
Best features!
Streamlines processes.
features!processes.
• Provides unique value 
Improves
Newest
Newest
Improvescapabilities!
customer
customerservice.
capabilities!service.

Lowers
Technically
Lowerscosts.
Technically advanced!
costs.advanced!
Partner 
Ensures
Fastest
Ensuresprocessing!
Fastest compliance.
processing!
compliance.
Services
Products
Sprocket Sprocket
Training
Protector Optimization

Integration Pocket
Sprocket
Sprocket
Strategy

Product Support

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p11
 Comparing
Product Marketing vs. Solution Marketing

Product Marketing Solution Marketing

• Product: features-benefits • Solution: Customer needs
• Promotion: push • Information: Dialog
communications • Value: Cost vs. benefit
• Pricing: cost-plus • Access: Customer choice
* Based on Dev & Schultz in Marketing Management, 2005
• Place: distribution

Sprocket Sprocket
Protector Optimization

Pocket Pocket Sprocket

Sprocket Sprocket Strategy

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p12
 What is a Solution Anyways?

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p13
 Solution Marketing Defined

so·lu·tion mar·ket·ing. Noun.

The process of defining, informing,
and providing access to complete
and integrated solutions that help
customers to solve their problems
and deliver value.

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p14
 Technology Adoption Curve

The Chasm Main Street

Relative % of Customers

The Solution Opportunity

The Tornado

End of Life
Early Life Bowling
Alley

Innovators Early Adopters Early Majority/ Late Majority Laggards Time

Technology Visionaries Pragmatists Conservatives Skeptics
Enthusiasts

Customers want technology Customers want solutions and convenience

and performance Sources: E.M. Rogers, G. Moore

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p15
 Geoffrey Moore’s
Technology Adoption Lifecycle

Early Market – Technology enthusiasts look to be first to get on board.

The Chasm – Early market’s interest wanes but mainstream thinks
technology is immature.

Bowling Alley – Niche-based adoption in advance of the general
marketplace, driven by compelling customer needs and willingness of
vendors to craft niche-specific whole products.

The Tornado – Mass-market adoption as general marketplace switches
over to the infrastructure paradigm.

Main street – Aftermarket development, when base infrastructure has
been deployed and goal is to flesh out potential.

End of Life – New paradigms supplant the leaders.

Adapted from “Inside the Tornado”, G. Moore

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p16
 Solution Marketing –
Answering Four Basic Questions

Solution Customer: “How can I solve my problem?”

Information Customer: “Where can I learn more about it?”

Value Customer: “What is my total sacrifice to get this solution?”

Access Customer: “Where can I find it?”

Adapted from In the Mix (Marketing Management) (Dev & Schultz, 2005)

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p17
 Solution Marketing
What Do Prospects Want?

Solution

Technology

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p18
 Solution Marketing
What Do Prospects Want?
Complete Solution
to Their Problem
Solution People

Technology Services Process

and planning

Information

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p19
 The Complete Solution:
People – Process – Information – Technology - Services

People
• User interfaces
Solution People • Training
• Support
Technology
• Best practices
• Applications • Domain expertise
• Complementary
technologies
• Infrastructure Technology Services Process
• Custom coding and planning Process, Planning,
• Integration services Risk
• Business Strategy
Information • ROI studies
• Data Reengineering
• Content, documents, • Process optimization –
images Information efficiency,
• External data sources effectiveness
• Security • Risk management

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p20
 Solution Marketing
Solution Portfolio Management

Solution Solution
Solution
Strategic
Strategic Plan
Plan
Overview
Overview
..
Market Solution Target Solution
Assessment Strategy Identification Users

• Market sizing • Target markets/ • Use cases Business

• Technology industries • Bill of materials Process
• Competition • Technologies • Users, decision
• Partners makers
Technologies
• Tech/Services • Business value
Mix • Revenue
potential

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p21
 Solution Marketing
Solution - Research

Solution Customer: “How can I solve my problem?”

Solution Research – Solving the Problem

– Determine target use case, users, purchasers
– Industry/functional issues and regulations
– Business challenges
– Operational challenges with current process
– Legacy systems
– Training requirements
– Other business and system requirements

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p22
 Solution Marketing
Solution – Develop the Solution

Solution Customer: “How can I solve my problem?”

Action - Develop the Solution!

– Product – enhancements required?
– Partner technologies
– Services – strategy, process reengineering, integration, training,
support
– Beta – partners, prospects and customers

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p23
 Solution Marketing
Information – Research

Information Customer: “Where can I learn more about it?”

Research
– Functional/industry terminology and buzzwords
– Target job titles and companies
– Optimal communication channels.. live events, podcasts, web, most
popular publications, etc.
(e.g., government employees often lack web access)

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p24
 Solution Marketing
Information – Message

Information Customer: “Where can I learn more about it?”

Message – It’s About Relevance

– Use language the prospect understands…
 Industry/function terms
 Common business issues and challenges
 Remember – this is all about how your solution solves their business problems
– Benefits: business-oriented rather than technical…
 Higher profits, lower expense, higher revenue, better customer service, ensures
compliance

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p25
 Solution Marketing
Information - Tuning the Message
Technical
Message

Information
GeekSpeak High Credible
“Shortens mortgage

A B
cycle time”

“SOA architecture
enables integration
with legacy systems”
Business
IT Mgr.
Business
Message
Low High
Janitor CFO
“Helps your
company”

Vague
D C “Increases
profitability”

Low Does it exist?

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p26
 Solution Marketing
Information – the “Solution Paradox”

Information Customer: “Where can I learn more about it?”

Beware “the Solution Paradox” Dang

Customer
e r

The customer wants out-of-box Expectations
offerings… Message
….but no one company can provide
Solution
everything out of the box

Even a fully integrated and “complete”
solution cannot possibly solve all of a
customer’s problems due to:
Ask:
Ask:
– Unique environments • • Does
Doesthe
thesolution
solutionmeet
meetcustomer
customerrequirements?
requirements?
– Specific industry requirements • Is the message backed up by the solution?
• Is the message backed up by the solution?

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p27
 Solution Marketing
Information – Create a Dialog

Information Customer: “Where can I learn more about it?”

Action – Create a Two-Way Dialog with the Market

– “Give customers the right information on the right subject at the right time on
their terms” *
– Enable prospects to find your solutions
– Enable market education
– Use Web 2.0 tools – Blogs, Podcasts, Twitter, Facebook, etc.
– Provide recent customer references, who are most likely to advocate *

Go beyond one-sided “push” promotion

* In the Mix (Marketing Management) (Dev & Schultz, 2005)

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p28
 Solution Marketing
Information - Sales

Information Customer: “Where can I learn more about it?”

SALES
– Sales training:
 Solution selling methodology, consultative selling
 Business problems, industry/functional issues
 Business solutions
 Company and solution messaging
 Partner engagement models – system integrators, tech partners etc.
– Sales tools:
 Collateral, references
 ROI models and value tools
 Pricing

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p29
 Solution Marketing
Value

Value Customer: “What is my total sacrifice to get this solution?”

Value = Benefit - Cost

Research
– Identify and place value on significant customer purchase drivers *
– Common ROI models/”before-afters”
– Purchasing habits
– Budget trends

Action!
– Articulate value in terms of price, ROI, TCO
– Develop ROI assessments with consulting/system integrator partners
– Reference customers – value achieved
* In the Mix (Marketing Management) (Dev & Schultz, 2005)

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p30
 Solution Marketing
Value

Value Customer: “What is my total sacrifice to get this solution?”

Value-
Business Benefit ($)
Lost Just Right
revenue -
Based opportunity price
matches

Pricing Price benefit

Customer
overpaid

A B C

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p31
 Solution Marketing
Access

Access Customer: “Where can I find it?”

Research
– Common purchasing channels?
– Do they prefer to buy through VAR’s? Through SI’s? Direct? On contract?
– Preferred delivery models… Software? SaaS? Business Process
Outsourcing?

Action!
– Enable the customer to purchase the solution through the channels that they
want
– New channels – beyond the traditional
– Marketer provides fastest, least-expensive access
– Successfully complete the sale
– Ensure customer success through “the last mile”

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p32
 Ensure Alignment
Throughout the Extended Enterprise

Suppliers/ Back Front

Customers
Partners Office Office
Tech, SI Manufacturing Marketing
Partners Engineering Sales
Service

Goal: Customers get what they were promised

How Do You Achieve This?
– Consistent messages across entire company and ecosystem
– Sales – longer sales cycles; solution training; specialized sales teams
– Support from engineering/product management, services, tech support,
consulting teams
– Executive support

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p33
 Conclusion

Solutions meet customer needs

Solution Marketing - SIVA
– Solution
– Information
– Value
– Access

Benefits
– 3-7% return (increase) on sales (McKinsey, 2003)
– Higher margins - price based on value rather than cost-plus
– More differentiated offering
– Increased customer satisfaction

© Steve Robins 2009

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p34
 Continue the Dialog!

Steve Robins
Product Marketing Leadership
[email protected]
LinkedIn.com/in/steverobins1

solutionmarketing.wordpress.com
LinkedIn.com/groups?gid=1826720
(Solution Marketing Pros)

Thank solutionmarketing.wordpress.com

You
solutionmarketing.wordpress.com

© Steve Robins 2009

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p35
 Introduction to
Solution Marketing
Steve Robins
Product Marketing Leadership
March 2009

[email protected]

© Steve Robins 2009

[email protected]
Steve Robins 2008