The Art of Marketing Christina Ellwood, Founder/CEO, Moreland Associates Cleantech Open Academy 2012, San Jose, California
Aug 31, 2014
The Art of MarketingChristina Ellwood, Founder/CEO, Moreland Associates
Cleantech Open Academy 2012, San Jose, California
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Agenda/Overview
Introductions
Market Traction Milestones
The Market
Choosing the Segment
Dominating the Segment – Market Traction
Moore’s Positioning Exercise
Marketing Execution Fundamentals
Building Trust and Generating Interest
Competitors
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Business Milestones: Roadmap to Market Traction
Market TractionMilestones
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Focus on Market Traction
Market Traction = Dominance in a given segment
• Prospects always consider the leader
• Gives you a beachhead
• Accelerates sales
• Reduces the effort required to sell
• Frees up resources and allows expansion into other segments
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Choosing the Segment
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Market Segment
• What is a Market Segment?• Members of a segment reference each other in their buying
process– They see each other as credible references– They are likely to be accessible to each other– They have the same buying criteria
• their needs and requirements are the same• Buyers who distinctly similar• Identifiable
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Market Segment Example
• A network engineer working for an IXC in the USA would consider another network engineer working for an IXC in the USA a credible reference. It is likely they have access to each other through direct relationships, indirect ones, trade show and industry conference attendance, and/or standards body participation
• The same network engineers would not reference:– A network engineer with a PT&T– A network engineer with a USA ISP– A network engineer with a USA Enterprise
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Momentum Stage
Discovery Phase:Sales/Marketing R&Don multiple segments
Choose SegmentBuild revenuemomentum in chosen segment
CSource: Christina Ellwood, www.morelandassoc.com
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Solution - Replicable Sales ASAP
Identification Posits & Purposes
Methods & Metrics Execution
ReplicableSales
Analysis
Systematic method to achieve replicable sales• Correctly identify buyers and the compelling value proposition(s) that drive them to
buy• Determine the buying triggers• Identify the key messages• Determine the actual buying and the true selling processes• Identify the complete product and packaging required• Determine price drivers• Determine metric values• Identify key sales tools
Sales & Marketing R&D Process
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Potential Market Segments
• Prioritize the list of target segment• Identify you key posits about each• Define “repeatable sale” for each target segment• Systematically attempt to reach repeatable sales in each
segment in turn
Repeatable Sales: Multiple sales of ...– The same product
– To the same profile buyer
– For the same price
– Following the same buying/selling process
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A Caution
• Your target market segments are not those that could buy and use your product – Rather, those that require your key differentiation
• Market your strength (sell where you can)– Don’t confuse selling with installing
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A Caution
• Remember the cardinal rule for startups:– Think big – biz strategy– Start small – market entry strategy– Move fast – execution
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Source: Christina Ellwood, www.morelandassoc.com
The Market
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“Market Analysis” Versus “Marketing”
How Big is It?: Market Analysis– Identify a Customer and Market Need– Size the Market– Competitors– Growth Potential
How Do I Create Demand?: Marketing– Positioning – Marketing Objectives– Go-to-Market Strategies (e.g., Pricing, Promotion)– Demand Creation
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Source: Steve Blank, www.steveblank.com
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TotalAvailableMarket
Market Diagnosis: Total Available Market, Served Available Market, Target Market
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ServedAvailableMarket
Target MarketSAM = how many can I reach
with my sales channel?
TAM = how big is the universe?
Target Market = Who are the buyers we will target for the next 12 months?
Adapted from Blank, Steven B. (2009) “How Big Is it?” High Tech Entrepreneurship Class at Stanford
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Technology Adoption Life Cycle and Adopters
Adapted from: Moore (2002), Crossing the Chasm.
Techies Visionaries Pragmatists Conservatives Skeptics
Chasm
Pragmatists won’t follow visionaries
Innovators Early Adopters
EarlyMajority
LateMajority
Laggards
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Types of Adopters
• Each adoption type describes individuals…• With different risk orientations toward technological
innovation…• Who make decisions about whether and when to adopt
the innovation…• On behalf of:
– Themselves– The organization where they work– Their family– Their community
Source: Moore, Geoffrey A., Philip Lay, and Lo-Ping Yeh, TCG Advisors. (2004), Life-Cycle Based Market Development Strategy and Go-to-Market Programs; Section I – Prologue & Principles of High-Tech Market Dynamics.
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Technology Adoption Life Cycle and Adopters
Adapted from: Moore (2002), Crossing the Chasm.
Chasm
CTO Semi-Finalists: Indicate where your market is today on the Technology Adoption Life Cycle Curve below:
Techies Visionaries Pragmatists Conservatives Skeptics
Innovators Early Adopters
EarlyMajority
LateMajority
Laggards
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How do we recognize a good target customer?
• Has a critical job to do that current solutions don’t address
• Not getting the job done has serious negative consequences
• Our whole product offers an excellent way to get the job done
• Can afford or find the money for our whole product
• Is respected by others who will follow his/her lead
• willing to tell others about your product, brand, & company.
Sources: Moore (2002) Crossing the Chasm, Christensen (2003), The Innovator’s Solution, Godin (2001), Unleashing the Ideavirus, and Hughes (2005), Buzz Marketing
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Customer DevelopmentHow will you do customer development?
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Model Source: Blank, Steven (2006) Four Steps to the Epiphany, Cafepress.com
How will you “get out of the building” to discover and validate the needs of: • Your “end customers”?• Your channel partners?• Your suppliers?• Other stakeholders?
04/07/23
How should you adapt this process for different countries?
CompanyBuilding
CustomerDiscovery Customer
ValidationCustomer Creation
WEBINAR: August 28th at 2:30 PDT
Tell Your Story, Sell Your StoryMaia Nilsson & Hollie Rogin
Posit Partners
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Tell Your Story, Sell Your Story
Moore Positioning Exercise
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Moore’s Positioning Exercise – The Claim
• For (target customer)• Who (statement of the need or opportunity)• The (product name) is a (product category)• That (statement of key benefit – that is, compelling
reason to buy)• Unlike (primary competitive advantage)• Our product (statement of primary differentiation)
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Adapted from: Moore (2002), Crossing the Chasm.
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Positioning: Apple iPhone
For anyone who wants to travel in style who loves to have fun at work and at play the Apple iPhone is a smart phone AND an iPodthat offers Apple’s legendary ease-of-use, elegance, & cool factor.Unlike Blackberries & other smart-phonesour product offers clearer phone calls, faster browsing, and photos, music
and movies that come to life in the palm of your hand.
Adapted from: Moore (2002), Crossing the Chasm.
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Moore’s Positioning Exercise – The ClaimCTO Semi-Finalists: What’s Your Positioning?
• For: ________________________________________________• Who: _______________________________________________• The _________________ is a ___________________• That ________________________________________________• Unlike _______________________________________________• Our product __________________________________________
Adapted from: Moore (2002), Crossing the Chasm.
Marketing Execution Fundamentals
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Business Currency
• Trust is the fundamental currency of business• Every exposure the market has to the company either
builds, maintains, or erodes trust
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Source: Christina Ellwood, www.morelandassoc.com
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Building Trust
• One of marketing’s roles is to communicate the premise for why the company should be trusted and the promise of that trust– Reputation– Image– Experience with the company
• At the corporate/business level, trust is also expressed in– Values– Mission– Hiring practices– Training– Customer service– Policies
Collectively referred to as Brand
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Source: Christina Ellwood, www.morelandassoc.com
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Generating the Interest of Buyers
•A second primary role of marketing is to generate the interest of buyers– Awareness– Primary lead generation– Secondary lead generation (referrals)– Market education– Relationship building
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Source: Christina Ellwood, www.morelandassoc.com
Building Trust and Generating Interest
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Marketing to buyer’s process
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Word of mouthReferralsMediaSearch engineAdvertisingBlogsEventsSpeakersDirect Mail
Web siteMessagingWebinarWhite PaperPresentationGive awayReferral
Demonstration30-day TrialPilotAnalyst reportMedia coverageCase StudyReferencePositioning
ProfessionalismExecutivesInvestorsMedia/AnalystsLeadershipExpertiseAlly
Marketing
PricingSLAWarrantyHelping buyer’s internal champion
Source: Christina Ellwood, www.morelandassoc.com
Buyer process
Interest Learn Evaluate Justify Purchase
Sales Process
Influence Confirm Compete Offer Close
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Marketing Strategy
• How will you go about attracting customers?– How will people become aware of your offering?– How will people find you and your offering?– How will people develop enough trust in you and your
offering to buy?– How will they recognize you v. others?
• Serves as a basis for the marketing plan• Derives from the business strategy
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Source: Christina Ellwood, www.morelandassoc.com
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How will target buyers find out you exist? (Awareness)
• Hear about you from others– Word-of-Mouth– Vendors, partners, channels
• Read about you in the press and other pubs– General and industry press,
analysts, newsletters– Blogs, podcasts, boards
• Receive correspondence from you– Direct mail, letter, email, offer– Event, speaker, trade show invitation
• Find you on-line– Search– Social Media
• See signage or Ad– Advertising, trade show, flyers– Billboard, building
Source: Christina Ellwood, www.morelandassoc.com
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How will people develop enough trust in you and your offering to buy?
•Referrals•Brand•Messaging•Policies•Documents e.g., white papers, data sheets, articles•Employee experiences•Experiences with processes – requests, purchasing,
queries
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Source: Christina Ellwood, www.morelandassoc.com
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How will they recognize you v. others?
•Image/Identity•Positioning•Leadership
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Source: Christina Ellwood, www.morelandassoc.com
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Marketing Plan
• What will be done, over time, to fulfill the strategy?– What tactics will be employed?– What resources will be consumed?– Who will do what?– How will we measure the results?– What processes are needed?– What are the key posits and dependencies?– When will we evaluate results/adjust the plan?
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Source: Christina Ellwood, www.morelandassoc.com
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How do you choose tactics?
• Know thy customer– Where does your customer think s/he would buy or learn
about such an offering?– What is their preferred way to be reached?– What methods do they use today to find, learn about, and
buy similar offerings• Go for only what you need
– Do the minimum to get the game in play– Maximize impact, minimize spending– Don’t generate more than you can handle
• Internet business are global from day one• Dashed expectations are more $ than deferred revenue
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Source: Christina Ellwood, www.morelandassoc.com
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How do you choose tactics?
• Think leverage:– Generate word-of-mouth at every opportunity– Use free methods and opportunities (blogs, podcasting,
etc.)– Leverage your partner, vendor and channel relationships
to co-market and/or co-promote– Make messages short, clever, and memorable (beats
descriptive every time)
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Source: Christina Ellwood, www.morelandassoc.com
Dominating the Segment – Market Traction
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Whole Product - Definition
For a given target customerWith a compelling reason to buyThe whole product is: the complete set of products and services neededTo fulfill that reason to buy
• The Motorcycle• The leathers• The customization• Warranty• Service• Replacement Parts• The license• The insurance• Gasoline & Oil• An open road• What else?
TSource: Tom Kosnik, Global Entrepreneurial Marketing, Stanford University
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Whole Product – Information Technology Example
The whole product is the minimum set of products and servicesneeded to fulfill the target customer's compelling reason to buy.
TheProduct
Hardware
Software
Legacyinterfaces Connectivity
Pre-salesservices
Post-salesservice
& support
Peripherals
Consulting
ComplementaryProducts
ComplementaryServices
Source: High-Tech Marketing © 2005, TCG Advisors LLC
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Whole Product – CTO Semi-Finalists Fill in your Whole Product. Who does what?
The whole product is the minimum set of products and servicesneeded to fulfill the target customer's compelling reason to buy.
TheProduct
Hardware
Software
Connectivity
PeripheralsComplementary
Products
ComplementaryServices
Source: High-Tech Marketing © 2005, TCG Advisors LLC
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ComplementaryProducts
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Managing Partners: Partner Give - Get Analysis
Potential Stakes to bet on the Partnership
Partner can give: Partner can get:
Technology (product, platform, and process technologies)
Resources (money, time, talent, and knowledge )
Relationships (with customers, channels, investors, government)
Reputation (visibility, credibility, brand equity)
Core Competencies (critical capabilities for execution)
Chemistry of Key People (culture, character, personalities, values)
Company Vision (purpose, mission, values) and strategy
Adapted from: Tom Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?” Talk for Stanford Center for Professional Education, January 26, 2000
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Managing Partners: Your Give - Get Analysis
Potential Stakes to bet on the Partnership
You can give: You can get:
Technology (product, platform, and process technologies)
Resources (money, time, talent, and knowledge )
Relationships (with customers, channels, investors, government)
Reputation (visibility, credibility, brand equity)
Core Competencies (critical capabilities for execution)
Chemistry of Key People (culture, character, personalities, values)
Company Vision (purpose, mission, values) and strategy
Adapted from: Tom Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?” Talk for Stanford Center for Professional Education, January 26, 2000
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Sales Strategy
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YourCompany Retailer
Distributor
UltimateCustomers
Utilities
Systems Integrator,VARReseller
How do you choose sales model?
Direct Sales
Online
Source: Tom Kosnik and Christina Ellwood
Competitors
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Every company has competitors
Competitors
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Every company has competitors
Competitors
•Number 1 – status quo•Internal solutions•Other start-ups•Current dominant
players in adjacent/relevant markets
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SWOT Analysis
Strengths (ours)-
Weaknesses (ours)-
Opportunities (for us)-
Threats (to us)
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SWOT Analysis
Strengths (of competitor)-
Weaknesses (of competitor)-
Opportunities (for competitor)-
Threats (to competitor)
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Christina EllwoodFounder/CEOMoreland [email protected] 510-708-4855
Moreland Associates focuses on helping technology companies build market traction. Services include:
– Interim CMO, VP Marketing– Messaging and Positioning– Buyer Cycle Optimization– Product Marketing– Business and Marketing Strategy