In July, Frank Albi CEO of BIS gave an informative lecture at Xavier University to the MBA class concerning Sustainable Competitive Advantage.

A PDF version of the lecture outline is available here.

I. Introduction

   A. Professional History
        1. My daughter says I am a storyteller not a conversationalist; one of my entrepreneur pals says I only speak in aphorisms.
        2. Attribution of sources: One difference between scholars and entrepre-neurs is that entrepreneurs feel free to steal good ideas;
            scholars must use footnotes. –Don’t expect any footnotes from me.

   B. History of BIS

   C. Self introduction of students

II. Market Focus vs. Product Focus—“Goods and services are NOT bought, they are SOLD.”

III. Peter Drucker’s Definitions of Marketing vs. Sales.—Marketing is the Five Ps; sales is getting rid of what you’ve got.

     A. Place
           1. Where is the product or service “produced”?
           2. Where is it consumed?

     B. Product
            1. Sellers of goods and services must understand what it is they are REALLY selling: product, price, or service. 
                In today’s globalized world it has become necessary to be good on two of them and GREAT on the other one.

Here is how Michael Tracey and Fred Wiersema summarized it in their 1995 book The Discipline of Market Leaders: Choose Your Customers, Narrow Your Focus, Dominate Your Market. (See if you agree with me, that what they wrote then is still valid all these years later):

   C. Price
        1. Unless you have a monopoly, the value of a product or service can only be measured in terms of 1) quantity, 2) quality, 3) cost, and 4)time.
            Of-ten the last is overlooked despite the fact it is only one that cannot be replenished.
        2. Remember this formula; it is what motivates customers to buy: 
            Value = Results – Resources Expended
        3. Three methods of setting prices:
            a) Cost Plus (cost of production plus a “reasonable profit”)
            b) Market Range (“the going rate”)
            c) Customer Value (i.e., “All the Market Will Bear”)

    D. Packaging—“Sometimes you have to offer more to sell more!”
       1. Boxes and wrappers are for Goods.
       2. Appearance (office décor, uniforms, website, etc.) is for Services.

   E. Promotion
        1. Use the Loyalty Ladder to increase market penetration:
            a) Suspects—Possible buyers who might have a need for what you sell
            b) Prospects—Those who actually have a need for what you sell
            c) Customers—Those that buy from you
            d) Clients—Customers with whom you repeatedly do business and who rely on you to promote their best interests
            e) Advocates—Clients that act as “missionaries” for your business

   F. Positioning
       1. "The best way to get what you want is to help others get what they want,” (Tom Hopkins).
       2. The Big don’t necessarily defeat the Small, but the Fast always beat the Slow.
       3. Dance with the one that brung 'ya, but know when the jig is up.

IV. Concluding Thoughts
   A. Never sell a bad application. If you do, expect to lose the customer to whom you sold it as soon as they find out it was a bad application, 
        and do not be surprised when they tell their friends you cheated them.
   B. For buyers, it is all about WIFM (What’s In It For Me?), and increasing numbers of purchasing decisions—be they for goods or services—
        are be-coming based on the value of the intellectual know-how provided by the seller to the buyer
   C. Get better before trying to get bigger.
   D. There's always room for improvement and you should strive to make meaningful improvements the first chance you get.
   E. Successful entrepreneurs have learned it is better to "Ready, Fire, Aim". The others spend all their time aiming because they are afraid their 
       first shot will miss the target.
   F. I constantly worry the last decision I made was the wrong one, and I agonize about what will happen next.
       Maybe that is what has kept me in business all these years.

   G. My concept of the perfect business:
       1. Recurring revenue to create an “annuity” stream;
       2. Payment in advance so there are no receivables;
       3. Internet based so there are no geographical limitations;
       4. Leveraged labor so I don’t have to spend all my time “drilling teeth”;
       5. Proprietary intellectual property that:
           a) Can be delivered via the Internet so there is nothing to ship (like a video from YouTube);
           b) Has wide appeal (like Harry Potter novels); and
           c) Customers want to use repeatedly (like iTunes for buying music).

   H. What is “success”? 
        1. In business and in life, learn to derive your happiness from the journey not the destination.
        2. Success is achieving ever-changing goals and objectives.