MARKETING MANAGEMENT CONSULTANCY

Prof. Estuardo Lu

THE CONSULTANT-CLIENT
RELATIONSHIP

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

CLIENTS AND CONSULTANTS

CLIENT-CONSULTANT

The client has

decided to
purchase a
professional
service under
certain terms

The consultant
achieve a valid
result in the
client
organisation

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

CLIENTS AND CONSULTANTS

CONSULTANT CAPACITY.

Consistency with the training and experience of

the consultant.

Consistency
interest.

Existence and accessibility of external staff.

Availability and accessibility of material resources

and infrastructure.

Responsiveness in time.

Responsiveness with an estimated budget.

Financial capacity.

with

the

thematic

and

regional

CLIENTS AND CONSULTANTS

CLIENT CAPACITY.

Human resources.

Managerial,

administrative

and

operational staff.
Formal and informal advisors
Independence in decision-making
Desire or perceived need for changes.

Information and Logistics.

Existing and available information.

Support for the consultancy.

CLIENTS AND CONSULTANTS

Infrastructure and material resources.
Company size.
Age, level of operation, physical status.
Financial.
Financial History
Resources for possible changes.

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

WHO IS THE CLIENT?

Who is the client?
Do you belong to the
public or private sector?
What is your position in
the command structure?
Rama or sector?
What are their interest?
Increase profits, quality,
customer.
Solve a problem.
validate decisions.
Improve a process.

What are their

backgrounds?
Public image.
Leadership.
Employment history.
Dealing with Consultants.

WHO IS THE CLIENT?

Vision of problem or goal.
Previous identification.
Prior delimitation of
liability.
Previous approaches of
solution.
Background to change.
What is the last relevant
change?
When was it made?
How was it done?

Rapid assessment of
the customer profile.
Attitude change.
Opening .
Dogmatism.
Rationality.

WHO IS THE CLIENT?

CLIENT CATEGORIES.
1. Contact clients. Set the initial contact with the consultant.
2. Intermediate clients. Participate of various meetings about

discovering facts,
evaluation
planification of task, etc.

of various

possibilities,

3. Main clients. Have a problem that need and want help and

for which he has used a consultant.

4. Contract clients. Play an essential role in the election

process of the consultant, in the negotiation and signing of the

contract.

WHO IS THE CLIENT?

5. End clients. Their welfare and interests

will looked at the final, affected by the

task
6. Sponsors

clients. Provide financial

resources for the consultancy and may
or may not wish to play a role in
determining the procedure to follow,
choosing the consultant, monitoring
execution and approving the proposal to
be implemented

WHO DO YOU HAVE TO VISIT?

MONEY

MANAUTHORITY
NEED

When you have the MONEY

(Approver)
Who takes the DECISION
(Decision Maker or Influencer)
By having the NEED (User,
Evaluator)

Analyze the Procurement Committee Members

PLANNING OPPORTUNITIES
BUSINESS ANALYSIS

CHOOSE THE FORM OF MANAGEMENT

MAPPING AND MANAGEMENT PLAN

DEVELOPING KEY ACCOUNTS

ACCOUNTS OR
TERRITORY
CHART.

BUSINESS ANALYSIS
Purpose:
Evaluate your business based on the existing sales and future
potential.
Segmenting your accounts or business units.

Benefits:
Understanding the factors that impact your business.
Effectively assess and prioritize efforts on accounts.
Identify all opportunities and level of maturity.

TERRITORY MANAGEMENT

LOYALTY
Hold

PROSPECT
investigate

CUSTOMERS
PLATFORM
Regulars and
continuous customers

PLATAFORMA
DE TRABAJO
Customers with
a low purchase

MARKET PLATFORM
Never visited customers

DEVELOP
Grow

ANALYSIS OF TERRITORY
SEGMENTATION STRATEGY
LOYATY
Sales Level
HIGH

LOW

VOLUME
HIGH

KEEP
PAMPER

LOYALTY
LOYALTY

Potential
Future
LOW

INCENTIVAR CONSUMO
AUMENTAR NIVEL
DE COMPRA

GIVE
GIVETO
TOOTHERS
OTHERS
FORGET
FORGET

SET A FORM OF ACCOUNT MANAGEMENT

Purpose:

Establish the best strategy for each accounts segment or business.

Identify resources available and / or required to implement the strategies.

Benefits:
Improve the knowledge of the business segments and the various
strategies to be applied in each.
Having the strategy of the business coverage .

MAPPING AND PLANNING OF

BUSINESS OPPORTUNITIES
Purpose:

Establish the best strategy for each accounts segment or business.

Identify resources available and / or required to implement the strategies.

Benefits:
Identify solutions improve knowledge of the business segments and the
various strategies to be applied in each.
Understand the objectives for each business
Having the map and segmented Opportunities listing them according to
solutions initiatives

PLANNING OPPORTUNITIES
OPPORTUNITY
ANALYSIS
ESTABLISH THE COMPETITIVE
STRATEGY
IDENTIFICATE KEY PLAYERS
DEFINING THE STRATEGY OF
RELATIONS AND ALIGNMENT
PUT IDEAS IN THE
ACTION PLANS

OPPORTUNITIES
PLAN

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

CLIENT CRITERIA TO SELECT A CONSULTANT

If the client
can
establish a
relationship
with the
consultant

Certification
of
qualification
s and / or
quality of
the
consultant.

Technical
competence

The
consultant
has
understandi
ng of the
problem

Ability to
provide
service

CLIENT CRITERIA TO SELECT A

CONSULTANT
Ability to
mobilize other
resources

Professional
image
consultant.

The service
costs are at
client fingertips.

Professional
integrity.

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

DEFINING EXPECTATIONS AND ROLES

WHOLE PROBLEM DEFINITION.

The problem for which the consultant was brought in needs to

be well defined.
A manager who wants to call for a consultants help should not
merely recognise a need for such help , but also should be
able to define the problem he sees, as precisely as he can.
Before accepting the assigment the consultant must be sure
that he can suscribe to the clients definition of the problem.
There are many reasons why the consultants definition of the
problem might differ from the clients.

DEFINING EXPECTATIONS AND ROLES

Clients
vision

Real
problem

Consultan
ts
vision

CONSULTANTS AND CLIENTS

VISION

The first step in

identifying a valuable opportunity is
identifying the change or gap that
makes the opportunity possible

HOW TO IDENTIFY AN
OPPORTUNITY?
Characteristics of your
Customer organization
Observing
trends:
Economic,
Social,
Technological,
Political forces.

Solving a
Problem

Prior Experience.
Cognitive factors.
Social Networks
Creativity

Business, Product
or
Service
opportunity

New Business,
Product and
service
Ideas.

Traffic Signs and

Signals

HOW TO IDENTIFY A REAL NEED?

SOLVING A PROBLEM
Study current products and customers to see needs and wants.
For a real need to exist, the new product or service cannot just be a little bit

better than the existing alternative.

It is much easier to find a new way to solve a known problem than an unknown

one.
Sources of pain or aggravation are prime opportunities for new

products.
Potential customers often provide clues to indicate the presence of an

unsolved problem.

Best clue is a customer complaint.

Another clue is the expression of an unfulfilled wish.

KEY QUESTIONS TO IDENTIFY A REAL NEED?

SOLVING A PROBLEM
1. Do

customers
have
unsolved problem?

an

2. Is there a significantly better

way of solving a customers

problem than an existing
product or service provides?
3. Can

you
introduce
a
sustainably better price for the
customer?
http://www.youtube.com/watch?v=_5XpeucUz1w

NEEDS ASSESSMENT
My FASHION
INTERES
COMFORT

MICASO

AFFECTION
SECURITY
OrPRIDE

Interests are different because

people and companies are
different and make decisions on
different criteria.

WHAT IS A SOLUTION?
A solution solves a problem, or at least

measurably relieved.
Solutions selling is a way of thinking and acting

that focuses on the customer and their problems.

Instead of the sales organization and its products.

http://www.youtube.com/watch?v=Jn2InXqPJZ8

SOLUTION SELLING

A solution is equivalent to the client or buyer Vision, is what the

customer is looking after and what you have to deliver.

ADVANTAGES OF SOLUTIONS SELLING PROCESS

Focusing on a complete understanding of the critical business

issues faced by customers.

Developing the potential value to be gained by customers.
Create a strong desire in the customer in order to he buys

products and services provided by your company. Hear what

we hear.

PRINCIPLES OF SOLUTION SELLING

1.

Suffer makes us change.

2.

Suffering from a department or a person affects the whole organization.

3.

First, the diagnosis is made and then the remedy prescription.

4.

There can be or not suffering consciousness. Just when people recognize the
disease, seeks a cure.

5.

Potential customers may be looking for a remedy or not.

6.

Emphasis on reaching potential customers before they decide to seek a remedy.

7.

Buyers need to change from time to time.

8.

The decision to purchase has at least three phases: recognizing a .need,

evaluate options and calculate the risks.

DEFINING EXPECTATIONS AND ROLES

RESULTS TO BE ACHIEVED.

The consultant and the client should clarify

what the assigment should achieve and how
this achieve will be measured.
It is important an exchangue of views onhow
each party regards consulting, how far the
consultant should go on working on an agreed
task, and what his responsibility to the client is.
If possible, the consultant will try to be
involved in implementation, also.

DEFINING EXPECTATIONS AND ROLES

THE CONSULTANTS AND THE CLIENTS ROLES.
1. There are many things that the consultant cannot do at all or

cannot do properly, if the client is reluctant to collaborate.

2. Often higher management is unaware of all the competence

existing in the organisation, and important strengths may be

concealed from it.
3. Collaboration is essential so that the client associates himself

full with the definition of the problem and with the results of
the assigment.
4. Most

importantly, unless the client collaborate

assigment, he is unlikely to learn from it.

in

the

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

BEHAVIOURAL ROLES OF THE

CONSULTANT
BASIC ROLES

Resource role. The consultant helps the client by providing

technical expertise and doing something for an d on behalf of the
client : he or she supplies information, diagnoses the organisation,
undertakes a feasibility study, designs a new system, trains staff in a
new technique, recommends organizational and other changes,
comments on a new project envisaged by management, and the like.
Process role. The consultant as an agent of change attempts to
help the organization solve its own problems by making it aware of
organizational processes, of their likely consequences, and of
intervention techniques for simulating change.

BEHAVIOURAL ROLES OF THE

CONSULTANT

BEHAVIOURAL ROLES OF THE

CONSULTANT

Advocate.
Positional or contact advocacy tries to influence the
client to choose particular goods or solutions or to accept
particular values.
Methodological advocacy tries to influence the client to
become active as problem-solver.

Technical expert.
The traditional role of a consult is that of an expert whouses
special knowledge, skill and professional experience to
provide a service to the client.

BEHAVIOURAL ROLES OF THE

CONSULTANT

Trainer and educator.

Innovative consultation frequently requires the consultant to carry
out the periodic or continious training and education tithin the
client. The consultant can suggest the most appropiate learning
process, depending upon the situation and the need.

Collaborator in problem-solving.
The helping role assumed by the consultant uses synergistic
approach to complementand collaborate with the client in the
percptual,cognitive and action-taking processes needed to solve
the problem.

BEHAVIOURAL ROLES OF THE

CONSULTANT

Indetifier of alternatives.
There are direct costs associated with decision-making. While
the value of a decision is dependent upon the attaitment of a
given set of objectives, in selecting an appropiate solution the
consultant can normally identify several alternatives, along
with their attendant risks.

Fact-finder.
Fact-finding is an integral part of any consulting assigment,
both for developing a database and for resolving intricate
client problems.

BEHAVIOURAL ROLES OF THE

CONSULTANT

Process specialist.
The consultant focusses chiefly on the
interpersonal and intergroup dynamics
affecting the process of problem-solving
and change.

Reflector.
The consultant stimulates the client to
prepare and make decisions by asking
reflective questions which may help to
clarify, modify or change a given
situation.

CONSULANTS AS SALES REPS

Considering the direction towards the sale and the customer:

CONSULTANTS AS SALES REPS

Consultant as Sales Reps
High customer orientation and sales.
He shows determination to achieve their sales targets and

also in strengthening the relationship with the customer.

Once he close a sale, watch the customer bonding.

He cares about the level of customer satisfaction and

provides a sublime service.

Act as consultant, offering advice to solve customer

problems and increase their profits.

BUSINESS RELATIONSHIPS LEVELS

TRUSTED ADVISOR
PROBLEM SOLVER
CREDIBLE SOURCE

Value

CONSULTANT
Tests solutions offering
benefits to
existing needs.
TACTICAL
Product superiority test.

VENDOR

Information

STRATEGIC
Creates personal value and
business value in the
influencers.
Identifying and providing
solutions to future needs.

Loyalty

ROLES IN THE DECISION MAKING PROCESS

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

METHODS OF INFLUENCING THE

CLIENT

Demostrating technical expertise.

Exhibiting professional integrity and sharing knowledge.

Demonstrating emphaty with the client.

Using assertive persuasion.

Developing a common vision.

Using participation and trust.

Using rewards and punishments.

Using tensions and anxieties.

Persuasion Science
http://www.youtube.com/watch?v=cFdCzN7RYbw

BUSINESS DRIVERS
Financial
Pressure
Customer
s

Supplietrs

Business
Unit
Business
Partners

Competiti
on
Operating
Pressure

Internal or external
business trends that
create problems or
opportunities that push
managers to take action
and respond.

BUSINESS INITIATIVES & CRITICAL

SUCCESS FACTORS
Business Initiatives

Drive
Business

Business
Initiatives

Critical Success Factors

Things that have to happen
or resources to be taken to
ensure the success of the
Business Initiative.

CSF

Business
Unit

Projects, programs or plans

that the Company implement
to address business drivers.

LEVELS OF NEEDS
Latent Pain
Not supported or if it was, their solution is considered impractical.

Pain
Dissatisfaction with a current situation that motivates the purchase of

a feasible solution.
VisiOn
Image solution in which our product may be included.

PAIN IS A DOMINANT DRIVE

Pain to Action Scale
120
100
80
Urgency Factor

60
40
20
0
Low

Moderate

High

Unbearable

Amount of Pain

Prospects are 10 times more likely to take action to avoid the

pain than getting the pleasure of an improvement.

PAIN = ACTION.

Focus on the PAIN.

WHAT IS THE RIGHT SOLUTION?

Effectiveness of Sales Methods
120
100
80
60
40
20
0

Amount pain % Convinced

uncovered right solution

% Prospects
Sold

A prospectus may be only 5% convinced that your

solution is the right one but buy it to avoid pains.

A prospectus can be 95% sure you have the correct
solution to your business but still would not buy.
You must become part of your list of priorities.

DRIVERS - PAINS
Search negative consequences for not acting
Examples of Pains:

Loss of sales and revenues.

Loss of market share.
Loss of opportunity.
Inability to stay competitive.
Policy implications between business
executives to excel or show results.

units

or

between

DISCOVER AND STRESS THE PAIN

1.

Ask questions to made your clients recognize their areas of

pain in Business.

2.

Ask question to help you identify your customer pains.

QUESTIONING TECHNIQUE
TYPES OF QUESTION
CLASSIFICATION 1

Open
* Give information
* Start with:
What, How, Why, When,
Where and Who.
Close
* Obtain the commitment
* Answers: Yes or No

Neutral

CLASSIFICATION 2

Provide Response Freedom.

Influence
* By formulating try to influence
the response

COMPELLING EVENT
1.
2.
3.
4.
5.

Why does the customer have to act?

What is the deadline of the client to make the decision?
What are the implications if the project is delayed?
What is the return for the client if the project is completed on time?
What will be the measurable impact on the client's business?

Describe the sense of urgency at the executive, managerial and

operational level of the Business Initiative Implementation.

COMPELLING DRIVER
Examples:

Increase the level of customer satisfaction.

Respond to new customer requirements and competition.
Improve the "time to market" launch improvements.
Seize new opportunities new products.
Better staff productivity.
Reduce wait times and / or tail.
Reduce process costs.

POLICY DECISION PROCESS

Advantages of the Analysis
His understanding allow shortens the sales cycle, having the right
people in the discussion.
Avoids surprises.
Lets have a better presence and expand the influence area or the
coverage of an account.

It is important to know the formal and informal Flowchart of the

organization

POLICY DECISION PROCESS

Formal Roles in Purchase Decision
User.
Appraiser.
Decisor.
Approver.

Change Adaptability
Innovative - The last.
Visionaries Revolution.
Pragmatic - Evolution Solve.
Conservatives - Do not want to stay.
Laggards - Status quo.

POLICY DECISION PROCESS

Roles Coverage in the Purchase Decision
Contactless.
Brief contact.
Multiple contacts.
Deep.
Roles against the proposal
Enemy neutralizing.
Not Withstand motivate.
Neutral motivate.
Mentor leverage.
Sponsor leverage.

AUTHORITY vs INFLUENCE

CHANGE ADAPTABILITY

SIX PRINCIPLES OF PERSUASION

TO HELP YOU INCREASE YOUR INFLUENCE TO SELL

p://www.youtube.com/watch?v=cFdCzN7RYbw

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

COSTS AND FEES

INCOME-GENERATING ACTIVITIES.

A precise definition of services for which clients

can be charged is essential to the costing and
pricing of consulting services.
If only chargeable services generate income,
every other service and activity of the consulting
firm will have to be financed out of this income.

Chargeable services. Generally speaking, a

chargeable service is one performed directly for
a particular client on a contract basis.

COSTS AND FEES

Services that are not directly chargeable. General

management and administration of a consulting firm, and
marketing and promotional activities, as well as research, product
development and staff training.
Those are activities that are not directly related to a particular
client assignment.

Free client services. Strictly speaking, in a self-supporting

professional practice there is no place for free client services.

Fee-earning days. Services to clients are costed and, in many

cases, charged on the basis of consultant-days (or hours or weeks).

COSTS AND FEES

The consultant can work for

free only if, for some reason,
he has decided to do the work
in his leisure time, if he
accepts a reduction in income,
or if the service is subsidized.

COSTS AND FEES

Principal
feesetting
methods

Fee per unit of time.

Fee plus royalty.
Fees contingent on
results.
Equity participation.
Percentage fee.
Retainer (ongoing) fee.

CONTENT
CLIENTS AND CONSULTANTS.
WHO IS THE CLIENT?
CLIENT CRITERIA TO SELECT A CONSULTANT.
DEFINING EXPECTATIONS AND ROLES.
BEHAVIOURAL ROLES OF THE CONSULTANT.
METHODS OF INFLUENCING THE CLIENT.
COSTS AND FEES.
COUNSELLING AND COACHING AS TOOLS.

COUNSELLING AND COACHING AS TOOLS

COUNSELLING.

Counsellig is a method whereby individuals

are helped to discover, understand, face
and resolve their own personal problems,
wich may be related to education, health,
employment, competence, career, relation
with colleagues, family relations and so on.
A cosunsellor is consistently concerned in
a very personal way with the problem and
opportunities facing a particular individual.

COUNSELLING AND COACHING AS

TOOLS
COACHING.

Some professional groups refer to

coaching, by which they mean
individualized
and
non-directive
assitance to people to discover and
realice their full potential, set and
reach better goals, become more selfconfident,
and
overcome
various
personal problems and barriers to
performance and achievement.