GLG News by Marketing or Advertising Experts

Donald RheaultFounderOurSalesRep

The need for Cloud Selling and Lean Selling

September 7, 2009

Analysis of:How to Stay Relevant in Sales | blog.inc.com

Sales forces are structured now as they have been for decades, even as some of the software management tools have evolved. A basic redesign is necessary.Those companies using reps will come out of the recession with better balance sheets and more orders because of a continual presence at their customers versus companies that have cut their direct sales forces..

Donald RheaultFounderOurSalesRep

Companies losing market share

June 8, 2009

Analysis of:10 companies in trouble | www.eetimes.com

There are many companies selling electronic components that are losing market share quietly and persistently. This will be evident after the rebound. And they are heavily concentrated in the analog IC area. There are several ways to sell your ICs into the OEM market: a direct sales force, through distribution, and through manufacturer's reps. Intel has a fine, dominant direct force with a fairly small, identified account base. The analog/mixed signal and discrete IC companies need to win designs at a broad base of accounts necessitating a large sales force. In a declining market the rep force earns less but keeps their number of sales people intact- a variable cost of sales. Companies such as Analog Devices, National, and Fairchild among others are decreasing their sales people because they don't have a variable cost of sales model. This will result in fewer deign wins now, resulting in a slower emergence from the downturn and a significant loss of market share.

Donald RheaultFounderOurSalesRep

Infineon should gain market share coming out of this downturn.

February 6, 2009

Analysis of:Infineon Gains After Boosting Savings Target, Reducing Spending | www.bloomberg.com

Infineon has recently cut costs by reducing capital spending and layoffs, but it has wisely kept its independent rep force in place. The benefit of this force is in its variable cost of sales: the number of sales people remain constant but cost less and get hungrier. Many of Infineons competitors have a direct, fixed sales cost force. Some of these competitors have even been laying off sales personnel. By capturing design slots during the downturn Infineon should come out quicker and stronger than TI, National etc.

Donald RheaultFounderOurSalesRep

SMIC may have bottomed due to increased demand in China but US semi companies may not benefit.

February 6, 2009

Analysis of:Semi Manufacturing Says Orders May Have ‘Bottomed’ (Update1) | www.bloomberg.com

If there is a turning point in demand ahead for US companies only some will see it because some have been "eating their seed corn". If the market does turn this summer a large number of semi companies ,especially in the analog/mixed signal market, will not be on the new systems being developed because they have cut their sales forces when they should have gone to a variable cost of sales. The one saving grace of this recession is that it has demonstrated the superiority of the manufacturing foundry model-variable, not fixed manufacturing cost. National Semi in the old days always picked up market share on TI and Fairchild because they kept their independent rep sales force in place-although making less money, and hungrier- gathering design wins during the down time. If the semi companies at least haven't aggressively redone their sales budgets and commission plans they will end up with a demoralized and less aggressive sales force.

Donald RheaultFounderOurSalesRep

The short trerm outlook for Taiwan Semi is not good, but the long term looks good.

January 7, 2009

Analysis of:Taiwan Semi Shares Fall on Only ‘Sell’ Recommendation | www.bloomberg.com

Selling Taiwan Semi now would seem to be a bad bet because this might be close to the bottom of the cycle for semi stocks, and particularly for Taiwan Semi, because the outsourcing model is winning.It is predicted that those companies outsourcing their manufacturing are better off now without large, fixed costs. Most analysts argue that the semi market will start to go up by June, and it should go up fast due to lack of a large inventory overhang at customers and distributors. As the feature sizes of semis go below 45nm Taiwan Semi will be in a strong position as their competitors and semi manufacturers slow down capital spending. Apart from normal replacement cycles there is no compelling upgrades to the computer business market. But the emerging Chinese standards and overall demand for mobil phones and small form factor computers should drive the market in 2009.

Donald RheaultFounderOurSalesRep

New opportuniyies open for linear and mixed signal companies due to switch to wireless phones.

December 20, 2008

Analysis of:Fitch: Poor Economy May Boost Pace Of Switch To Wireless | money.cnn.com

People are switching to wireless from land lines in droves, saving money in a bad economy. There are places where that is difficult to do, such as alarm systems in first and second homes. Freeze Alarm is a product made to warn a homeowner  especially in second homes that the furnace is not heating the house properly. It uses the land line connection. The same system is used for home security. The companies that make semiconductor temperature sensors such as National, Maxim,, and Linear Tech can add a second chip or stage for an RF transmitter or a dedicated cell phone to make a call to the homeowner thus eliminating the need for a land line. Frozen pipes are the second leading cause of home damage and rising fast due to unusual weather patterns. Electonic sensors and control mechanisms such as Freeze Valves can cut this damage significantly.

Pat SaignFranchise Marketing DirectorCOIT Services

Communicate, Add Value, and Improve Service

December 16, 2008

Analysis of:More restaurants serve up promotions for these lean times | www.orlandosentinel.com

As traffic slows down in Q1 due to the economy, 2009 diets, and increased competition, restaurants have to execute three basic marketing tactics.  First they have to build up a database of email addresses and then communicate and keep their brand in the guests face twice a month via email blasts, offers, and specials.  A birthday club is the most efficient method of gleaning email addresses.  Second, owners should be adding value rather than just discounting.  Every guest should receive a bounce back certificate with their check encouraging a quick return visit for a free bottle of wine, appetizer, dessert, or family special.  And finally, operators should improve their customer service by 50% through training, suggestive selling, and incentives.  Today's consumers want great service first and will return only if the service, price/value, and experience are outstanding.  It is far easier and more efficient to get an existing guest to return than it is to generate a new customer visit.

Donald RheaultFounderOurSalesRep

The timing is good for Xilinx to add Samsung as its 40nm foundry, but there are risks.

December 8, 2008

Analysis of:Samsung foundry poaches Xilinx 40-nm business, says report | www.eetimes.com

Xilinx can quicken its entry into 40nm FPGA production using Samsung, but risks losing the capacity if and when Samsung gets busier. Obviously, Samsung would rather sell its own branded products as the margin is higher. The risks for Xilinx are mitigated because of the similar foundries offered by IBM and Chartered where Xilinx can move if bumped by Samsung. A significant risk occurs if Xilinx is repaced at UMC by a FPGA start up- this would set up a time line where as business gets better and Samsung needs the 40nm capacity for its own products Xilinx is forced to go to IBM or Chartered because it cant go back to UMC. The timing is good for Xilinx because it should be a long while for business to get better for Samsung, and it gets Xilinx into 40nm process now.

Pat SaignFranchise Marketing DirectorCOIT Services

How's Your 2009 Marketing Plan?

October 29, 2008

Analysis of:Stock market takes dip out of dining | www.freerepublic.com

Hospitality marketing is changing.  How's your 2009 Marketing Plan? Database marketing, special events, bouncebacks, suggestive selling, and positively outrageous service should all be a part of your new marketing. The most efficient and personal strategy to communicate with your customers is with an email blast to your database every two weeks. Start a birthday club as a tactic to glean email addresses and watch your database grow, as well as birthday dinners. Hold weeknight specials for several months and watch weekday business grow.  Encourage lunch and dinner guests to return quicker than usual with bounceback certificates given with every check. Train your staff to increase their suggestive selling skill sets and reward them with incentives. This practice can increase check sizes by 15% or more.  Increase your levels of customer service, using guest names, wowing them with added service, and higher levels of customer satisfaction will result.  Develop a plan today for tomorrow.

Donald RheaultFounderOurSalesRep

The potential is great, but the problems waiting to be overcome may be greater.

October 2, 2008

Analysis of:New technology to make smaller, smarter, faster computer chips | www.business-standard.com

There periodically appears seeming breakthroughs in process that could change the fundamental way semiconductors are made or perform. This new technique could be very significant because of its impact on speed and power Ther have been other "breakthroughs" like GaAs and SOS substrates that have limited success due to cost, performance, or other unforseen problems. The good news is this would use the same existing factories with a change in lithographic process. What is not yet known is performance over temperature, unknown quantum effects, potential frequency resonance, etc. The new techniques major impact would be on niche semi companies nibbling on the speed/power edge using exotic processes, and on end use devices by reducing power and increasing processing power- extending  Moore's Law.                

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