From product creation to marketplace creation - How Indian product companies can create 46th NASSCOM Friday's 2.0 sessio

You have a product?

Great!

Where’s the market?

Vinod Harith

Founder and Director

CMO Axis Marketing Outsourcing

www.cmoaxis.com

Introductions

Name

Title

Company

Product or service

Key marketing challenge

What is go-to-market?

Go-to-market process is the

Strategic and tactical aspects of delivering and supporting a product or service offering in the marketplace

This includes product specification, pricing, distribution, marketing communications, sales, after-market support, and customer experience management

What we will cover

Defining a market (what really is a market?) Fundamental concepts of marketing

Segmentation, Targeting and Positioning Differentiation, Competitive Advantage and Value proposition

Sales vs. Marketing, the fundamental difference Choosing the channel Some key frameworks

SIVA model Blue Ocean strategy Core and extended product

Knowing the ecosystem – your customer does not buy in isolation When does the marketing of the product start? The ‘immutable laws’ Some zero-cost marketing tools to get started Case study discussions

What we will NOT cover

What really is a market?

A place where forces of demand and supply operate

Market research?

Remember, next time you have a gut feel, it could just

be your ulcer!

What will MR do?

Provide you with overview of the industry, opportunity and customers with respect to your product. EXISTING OPPORTUNITY

Information on customer preferences and needs. This will help in planning your product portfolio, diversifications etc., POTENTIAL OPPORTUNITY

Insights on how customers buy and why they buy. INSIGHTS

Essentials of market research

What is the size of the market? What unique need does your GENRE of product/ services meet? How much are customers willing to pay for this product/ service (top/

bottom/average)? Is this a price sensitive/ commodity product or premium product? Who are the other key players? What is the gap un-serviced by current players? What is the REAL available market for you? How is your product different from competition? What is your playing field? (premium/ general/ price warrior) What share of this can you reasonably expect to get?

You always don’t need an MR agency

Talk to the ecosystemo Buyerso Userso Analysts

Industry mediao Competitorso VCs

Where can you find them?o Your peer networko Linked-in/ Facebooko Online communitieso Events and conferences

Fundamental concepts: Segmentation-Targeting-Positioning

Who are we? Who is our product relevant to? Why buy us?/ why not to buy competition

Where to play How to win

Definition

Market Segmentation:

Dividing a market into distinct groups with distinct needs, characteristics, or behavior who might require separate products or marketing mixes.

Segmenting Business Markets

Demographic segmentation Industry, company size, location

Operating variables Technology, usage status, customer capabilities

Purchasing approaches Situational factors

Urgency, specific application, size of order Personal characteristics

Buyer-seller similarity, attitudes toward risk, loyalty

Segmenting International Markets

Geographic segmentation Location or region

Economic factors Population income or level of economic development

Political and legal factors Type / stability of government, monetary regulations,

bureaucracy, etc. Cultural factors

Language, religion, values, attitudes, customs, behavioral patterns

Requirements for Effective Segmentation

Measurable Size, purchasing power, and profile of segment

Accessible Can be reached and served

Substantial Large and profitable enough to serve

Differentiable Respond differently

Actionable Effective programs can be developed

Sample Segmentation

Small Cars Santro, Alto Getz

SedansVerna, Esteem

BMW, Benz, Toyota

SUVs, MUVs

Scorpio, Safari

InnovaEndeavor,

Pajero

Segment Value buyerLifestyle

BuyerNiche Buyer

Target Marketing

Target Market

Consists of a set of buyers who share common needs or characteristics that the company decides to serve

Target Marketing

Evaluating Market Segments Segment size and growth Segment structural attractiveness

Level of competition Substitute products Power of buyers Powerful suppliers

Company objectives and resources

Target Marketing

Selecting Target Market Segments Undifferentiated (mass) marketing Differentiated (segmented) marketing Concentrated (niche) marketing Micromarketing (local or individual)

Shampoo Shampoo for dry hair, long hair etc Shampoo with natural ingredients Hair salons

Company

Company

Company

Choosing a Target Marketing Strategy

Considerations include: Company resources The degree of product variability Product’s life-cycle stage Market variability Competitors’ marketing strategies

Positioning

Positioning

The term 'positioning' refers to the consumer's perception of a product or service in relation to its competitors.

Positioning is all about 'perception'. Perception differs from person to person,

market to market e.g what you perceive as quality, value for

money, etc, is different to my perception

Identifying possible competitive advantages

Differentiation can be based on

Products Services Channels People Image

Differentiators

Which differences make for a competitive advantage?

Criteria include

Important Distinctive Superior Communicable Preemptive Affordable Profitable

Choosing the right competitive advantage

Competitive Advantage

Value propositions represent the full positioning of the brand

Possible value propositions: Saves Money, Effort,

Time More for More More for the Same More for Less The Same for Less Less for Much Less

Choosing a positioning strategy

Value Proposition

Choosing the channel

Choose the right sales channels Direct sales, Online sales, Distributors/ VARs

Alliance marketing Technology alliances, product alliances

GTM partnerships Align with complementary brands for joint go-to-

market

Sales vs Marketing

Sales Individual influence on buyer Knows the customer and their

specific pain points Initiates, manages and closes

the sale Funnels ground knowledge of

customer needs, competitor offerings to help marketing in better product management and value articulation

Marketing Collective influence on the

buyer segment Knows the customer segment,

their ecoystem of influence and what their collective pain points are

Reduces time and cost of sale through effective product/ service differentiation and value articulation

Helps command a price premium through effective brand management

The SIVA Framework

Product→Solution Promotion→Information Price→Value Placement→Access

The four elements of the SIVA model are:

Solution: How appropriate is the solution to the customer's problem/need? Information: Does the customer know about the solution? If so, how and

from whom do they know enough to let them make a buying decision? Value: Does the customer know the value of the transaction, what it will

cost, what are the benefits, what might they have to sacrifice, what will be their reward?

Access: Where can the customer find the solution? How easily/ locally/ remotely can they buy it and take delivery?

The existing space, occupied by firms is called the red ocean – because the competition makes it “bloody”

The blue ocean, on the other hand:• is unexplored territory• has wider scope• has greater potential • can offer cost reduction and value adds• relies on the “value-add” theory

The Blue Ocean Strategy

Core and Extended Product

Core product – what direct need does it meet?

Extended product – what psychological need does it meet

Core product: MP3 Player

Extended product: Lifestyle product, style icon, in-with-the-times

Working the ecosystem

Advocates Alliance Marketing, Awards and

Rankings, Industry associations

Social ChannelsAdvisory Boards, Customer council and forums,

Employee branding, Blogs, Facebook

Marketing ChannelsDemand generation, industry events

Promotions, Brand programsDirect marketing

Thought LeadershipWhite papers, Points of view,

Speaking opps, research, academic partnerships

Expert ChannelsFinancial and industry Analysts,

Media & Deal advisors Identifying your unique ecosystem helps you maximize touch points, improve effectiveness and reduce cost of outreach

Leverage existing partnerships, relationships and best practices

Sample Ecosystem - Helpdesk

Target Events Analysts BlogsMedia/

Journalists Forums/ Associations

ITIM conference Aberdeen Group Datamation Informationweek ITIM Association

IT EXPO AMR Research Techrepublic Computer world HDI, Americas and Europe

Frost and sullivan customer contact Butler Group It Toolbox Network world

Services and support professionals association

PacRim Datamonitor Gartner CIO

Gartner symposium EMA ITIM blog TechTarget

HDI Annual conference Forrester techtarget Silicon

Gartner Forrester

Ovum

Yankee

IDC

Sample Themes - Helpdesk

Help desk optimization Help desk to strategic service desks Smart service desk management - leveraging knowledge base Help desks - from supporting to partnering Smart service desk - Lowering TCO Tools, people, process - delivering collaborative service desks

Why thought leadership?

Because customers now control the buying process

Why thought leadership? Simple. Because your customers are looking for it And 4 of the top 5 effective marketing vehicles AS RANKED BY

CUSTOMERS have to do with thought leadership

Why thought leadership?

And customers pay a lot of attention to thought leadership

Why thought leadership? Customers will even read junk mail if the message or idea is

compelling

What thought leadership marketing delivers Moving beyond being just a cost player with your customer

Building a strong brand – thereby helping you cut cost/ time of sale

Increasing Marketing’s Business Impact

Improving Competitive Positioning and Differentiation

Implementing Demand Generation Tactics that Work

Sharpening Marketing’s Edge

The Thought Leadership Ecosystem

Thought Leadership Creation Build in-depth research

and compelling content aroundthe identified topics

Thought Leadership PartnershipsIdentify the right fit partners for

joint research and paperswith academia and partners

Thought LeadershipDissemination

Distribution of papers, PPTs, webinars and podcasts though paid and unpaid channels

Thought LeadershipRepurposing

Convert the content into webinars,Podcasts, speaking opps, etc

Niche Identificationand Positioning

Identify the unique space you should occupy in the

Thought Leadership space

1/3rd of organizations don’t have a thought leadership strategy and another 1/3rd don’t communicate it

Identifying your unique ecosystem helps you maximize touch points, improve effectiveness and reduce cost of outreach

Next practices – joint thought leadership with clients, customer councils

When Should You Start Marketing?

Pre-launch PR, test marketing

Launch, building partnerships/ channels, free trials, offers

New features, product upgrades/ versions, brand and awareness building (events, tradeshows), co-marketing

Customer loyalty, referral marketing, PR, communities/ user groups, initiate corporate branding

Move from product to company branding, price wars, mover customers to new product lines

Jack Trout and Al Ries’ ‘Immutable Laws’ The law of leadership: Is there a category where

you can be the first/ only/ #1? First indigenous car, First small car

The law of mindshare and perception: It is important where you are in your customer’s mind and how he/ she perceives your product/ service Santro – modern, Korean, smart, Shah Rukh, Fuel

efficient, good service Indica – indigenous, diesel, taxi, car from a truck maker,

not refined

Jack Trout and Al Ries’ ‘Immutable Laws’The law of focus and exclusivity: What is

the one word you own in the prospect’s mind? Hamam – family soap Pepsi – drink for Gen-Y

The law of division: Lead a category or create a division Mobile phones> Music phones/ Biz (email/

internet) phones/ Touch screen phones

Jack Trout and Al Ries’ ‘Immutable Laws’The law of singularity: What is that one

thing you do really well? Don’t push your luck… Lifebuoy> Germ-killer or beauty soap?

The law of acceleration: Ride a trend, not a fad Sugarfree vs Pro-biotic

Jack Trout and Al Ries’ ‘Immutable Laws’The law of resources: What kind of

resources are you putting behind your product? Money Time Partnerships Working the ecosystem

Zero-cost Tools

Blogs Communities/ forums Industry associations Analysts, influencers Speaking opportunities Awards/ rankings Targeted ‘low cost’ marketing Alliance marketing Co-marketing Pay-for-performance marketing tools

Go-to-Market is still evolving

Global Survey by the CMO Council and BCG involving over 1000 marketeers and sales leaders

Only 6 percent of marketers rated their go-to-market capabilities as "extremely good,"

Another 27 percent rate themselves as "quite effective."

Sales executives also provided notably low self-assessments, with only 6 percent giving their go-to-market capabilities the highest marks and 29 percent calling themselves "quite effective.“

Go-to-Market is still evolving

Short-Term over Long-Term: Most of the executives surveyed said they were focused on selling effectiveness and account management (43 percent), while placing less importance on longer-term capabilities such as customer-data capture, integration, mining, and warehousing (15 percent). Improvements in channel management (14 percent) or multifunctional selling teams (11 percent) also ranked relatively lower

Resting on the "Tried and True": Companies appear to be relying on traditional metrics such as revenue growth (85 percent), acquisition and retention (53 percent), market share (49 percent), and margin improvement (47 percent) for evaluating go-to-market performance. Input and insight from consumers, as well as from the channel, are lower on the list of priorities.

Ideal Go-to-Market Framework

Go-to-market checklist

Clarify the opportunity Sharpen value propositions Engage the entire organization Develop sharp marketing programs Build on initial success – Testimonials Build a strong sales support mechanism Constantly measure

CONQUER THE MARKET

Case study

Risk Management Product Everyone needs risk management Risk Management beyond the bell-curve

Ecosystem Non conventional distribution channels Blogs and communities Evaluation copies to experts Tie-up with Amazon Tie up with CPA institutes PR – more accurate event predictions

[email protected]

http://cmoaxis.blogspot.com

Thank You