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Preface vii
Acknowledgments ix
Prologue xv
1 What Is Routes-to-Market? 1
The Route Concept 3
Example Routes: Dell, Hewlett-Packard, and Lenovo 4
Optimizing Route Costs 6
Changing the Routes as the Market Evolves 7
Routes for Mobile Phone Headsets 9
Adopting the Routes-to-Market Methodology 12
Roadmap for the Book 13
2 RTM Workshop 15
Preparing for the RTM Workshop 16
Target Market Segment 17
The Whole Solution 18
RTM Life Cycle Phase 19
Financial Data 22
During the RTM Workshop 25
Implementing the Tactical Plan 25
Summary 26
3 Market Segmentation 29
The 360-Degree View 29
Companies with a Single Market Segment 29
Companies with Multiple Market Segments 30
Product Segmentation Integrated with Customer Segmentation 32
Segmenting by Company Size 33
Geographical Segmentation 34
Segmenting by Industry Structure 35
Using Categorization to Understand What Is Behind the Numbers 37
Segmentation and Categorization: Cultural Crossroads 38
Segmentation: An Executive Decision 39
Questioning the "Business Case" 39
Questioning a Segmentation 40
Obstacles to Segmentation 42
Segmentation Is Boring for Action Freaks 43
The 80/20 Myth 43
Absence of Segmentation 44
Product-Driven Versus Market-Driven 45
IBM's Turnaround 46
Summary 48
4 Define Whole Solutions 49
Who Is the Customer? 49
The Ecosystem of Call Centers 52
What Is a Whole Solution? 54
Summary 59
5 RTM Life Cycle 61
The Adoption of Innovation 61
Disruptive Versus Non-Disruptive Innovation 63
Driving the Adoption of Innovative Products and Services 64
The Computer Industry: A Series of Disruptive Innovations 65
Disruptive Invoations inEvery Industry 67
Phases of the RTM Life Cycle 67
RTM Life Cycle Phase 1: Introduction 69
RTM Life Cycle Phase 2: Solution 76
RTM Life Cycle Phase 3: Distribution 84
RTM Life Cycle Phase 4: Commodity 90
RTM Life Cycle and Commoditization 93
Compete on Something Other than Price 96
Sell Complementary Products and Services to the Installed Base 97
Transform Products into Services 98
Innovate to Generate New Products and Services 98
Acquire Direct Competitors 100
Exit the Market 100
Summary 101
6 Constructing a Route 103
How to Construct a Route 103
Progressing Through the Sales Cycle 103
Route Construction 106
Constructing B2B Routes 107
Constructing B2C Routes 115
Routes for Consumer Auto Insurance 115
Choosing and Working with Marketing Agencies 117
Making Media Decisions 119
Marketing to Small and Mid-Sized Businesses 121
Customer Database 122
Choosing and Working with Distribution Channels 124
Choosing and Working with Resources for Step 5 Provide Support 128
How to Monitor the Performance of a Route 129
Demand Generation Campaigns 129
Compare Expense-to-Revenue Rations to Select the Best Resources 130
Marketing Optimization 131
Managing a Route Like a Factory Production Line 131
Summary 133
7 Go-to-Market Performance Assessment 135
Analyzing and Optimizing Go-to-Market Costs 135
Marketing Budget 136
Channel Management Budget 137
Sales Budget 138
Breaking Down the Salesforce's Time 138
Call Center Budget 142
Administrative Budget 142
Expense-to-Revenue Ratios 142
Example Routes (Tables 7.2-7.5) 143
Comparing the Company's Go-to-Market Performance To Best Practices 145
F5 Networks 145
F5 in the dot com Boom and Bust 146
F5's Turnaround 147
Changing F5's Go-to-Market Process and Strategy 147
The Eight Dimensions of Go-to-Market Performance 149
Summary 152
8 Connecting RTM with Corporate Strategy 153
Adobe Adapts Its Go-to-Market Strategy with RTM 153
Milestone 153
Network Publishing 154
Ready to Go to Market 155
Gap Analysis 155
New Routes to Market 157
AlterCast Route Calculations 158
Impact on Adobe's Performance 162
Classic Management Pitfalls Revealed by RTM 163
The Average Cost Pitfall 163
The "New Product, Same Old Channel" Problem 163
The Lack of Alignment Trap 164
The Mistake of Ignoring the Life Cycle 165
The Stockholm Syndrome Hazard 165
The Product Distribution Problem 166
Summary 167
9 Implementing RTM Company-Wide 169
Route Consolidation 169
Evaluating the Company's Go-to-Market Model 171
Budgeting Costs by Department 172
Allocating Costs 173
How to Launch a Shared Resource 174
Adopting the RTM Methodology 175
Launching RTM in Ten Steps 175
Summary 179
References and Resources 181
Author Biographies 187
Index 189
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