Marketing Entrepreneurial and Global Ventures Session 06
Professor Byers "Companies that create the future do more than satisfy customers, they constantly amaze them." ~ Hamel and Prahalad
Copyright 2007 by the Board of Trustees of the Leland Stanford Junior University and Stanford Technology Ventures Program (STVP). This document may be reproduced for educational purposes only.
Slide 1
Agenda and Objectives
A. Entrepreneurial Marketing
1. What Is It? 2. How Can a Venture "Cross the Chasm"? 3. Positioning First, then Go-to-Market Strategies 4. Positioning Exercises
B. Global Ventures
Slide 2
2003 Mark P. Rice, Babson
Slide 3
Why is Marketing So Challenging in a High-Technology Venture?
Jeff Hawkins Palm Founder
Slide 4
What is Marketing Anyway?
Marketing must be more than a sales support function. Not just ad tag lines. In all kinds of businesses, it must satisfy "the needs of the customer by means of the product and the whole cluster of things associated with creating, delivering, and finally consuming it." Especially in high-technology venturing, marketing must "invent complete products and drive them to commanding positions in defensible market segments."
Reference: Levitt and Davidow
Slide 5
"Market Analysis" Versus "Marketing"
Step #1: Opportunity Recognition (Market Analysis) Identify a Market Need Examine the Competitive Dynamics of the Industry Determine Growth Potential Step #2: Marketing as a Strategy Develop a Unique Positioning Develop Marketing Objectives Build a Set of Go-to-Market Strategies (e.g., Pricing, Promotion) Support through Sales and Great Execution
Slide 6
Famous Model ... Geoff Moore's "Technology Adoption Life Cycle"
Tornado Main Street
y a rl rs E s o p te r a to A d v no Source: In
te La rity jo rly y Ma Ea rit jo Ma
s ard gg La
Try to Name a Discontinuous Innovation (or Disruptive Technology) Where Do You Fit When It Comes to New Technologies?
Bowling Alley
Moore (1995), Inside the Tornado
Slide 7
So How Does a Startup Cross the Chasm?
1.Put Your Eggs in One Basket ... Target Market Segments. 2.Then Deliver a 100% Solution To Them ... A Whole Product.
Slide 8
An Example of the Power of Segmentation and Target Marketing: Pedigree Petfoods in UK
Dog's Role
Dog as a substitute child? Dog as a family member Dog as a companion Dog as an animal
Reference: A. Ryans
Segment
Super Premium Premium Moderate Economy
Brand
Price/100 gr.
Chum Pal and Bounce Chappie
8.7 pence 6.4 & 7.9 pence 6.3 pence
Slide 9
Segmentation and the UK Dog Food Market: Pedigree's Super Premium Strategy
Target Market? Intense relationships, own smaller dogs, older and urban females Benefits? Very best product that can be bought, reassurance, confidence, leads to an enhanced relationship Name? Mr. Dog (later Caesar) Product? Very high quality ingredients, wide variety of flavors, special packaging Price? 17.7 to 30.7 pence per 100 grams Advertising? Dog bringing newspaper, slippers, etc. Results: Fours years later, it had a 10% share of the total dog food market. The total super premium segment of the market was about 15% -- about 10% coming from dog food brands and about 5% coming from fresh foods. In addition, Pedigree's premium brand retained its market share.
Slide 10
Whole Product: The 100% Solution ("Ecosystem" of Partners)
Connectivity Platforms
Installation & Training
Support Software Program
Etc.
Consulting
Key Decisions: Which Pieces Do We Do and Which Do Our Partners Do?
Reference: Ted Levitt, Bill Davidow
Slide 11
What is the Single Most Important Concept in a Marketing Strategy?
Positioning (a.k.a. the "Elevator Pitch")
Slide 12
Sentence #1
Positioning Template
For (target customer) who (statement of the need or opportunity), the (product/service name) is a (product/service category) that (statement of benefit). Sentence #2 Unlike (primary competitive alternative), our product (statement of primary differentiation).
Slide 13
Positioning Should Drive Go-to-Market Strategies
Promotion and Communication (including branding) Pricing Business and Model (including viral marketing) Sales and Distribution (including affiliate marketing)
Slide 14
Positioning Example: Palm Treo
For busy individuals who need a way to organize, manage, and communicate, the Palm Treo is an all-purpose handheld computer, camera, and mobile phone, all based on the proven Palm operating system, that offers simplicity of use, portability, personalization, connectivity, and functionality. Unlike pure personal digital assistants, our product offers expandability due to the springboard technology and benefits of an all-in one capability.
Slide 15
Now Give It a Try Please
Sentence #1 For (target customer) who (statement of the need/opportunity), the (product/service name) is a (product/service category) that (statement of benefit). Sentence #2 Unlike (primary competitive alternative), our product (statement of primary differentiation).
Slide 16
A Short Checklist for Effective Entrepreneurial Marketing ... Relationships Matter!
How will the startup get close to customers? How will they leverage alliances and partnerships? How will they influence the market's infrastructure and the industry's key "players"? Going global: what is their international strategy (let's take deep dive right now ...)?
Slide 17
Going Global - Agenda
Who can help us go global? What are some good examples of firms who have gone global? When should we think about going global? Where should we focus? Why should we care about going global? How can we become global entrepreneurs on a shoestring budget?
Source: Professor Kosnik (Stanford)
Slide 18
Who Can Help Us Go Global?
Venture capital firms Angel investors Investment banking firms Stock exchanges around the world Law firms Public accounting firms Consulting firms Executive search firms Universities Global customers who are potential partners Business and technical news media Government agencies
Slide 19
What Are Some Good Examples of Firms Who Have Gone Global That We Can Learn From?
Accenture Acer Amazon.com Applied Materials Ebay Google Hewlett Packard Intel Microsoft Nokia Oracle SAP Sony Softbank TSMC Yahoo!
Slide 20
When Should We Think About This?
1. 2. 3. 4. 5. 6. 7. 8. 9. When we are writing the business plan When we form our founding team When we pick our company and brand names When we pick our headquarters location When we pick our capital sources When we identify the target market When we pick our most important customers Wh...