Finding and Understanding the Customer

To Shorten Time to Market Traction
Christina Ellwood, Founder/CEO, Moreland Associates 
Richard Nieset, Sales/Marketing executive
Clean Tech Open Accelerator 2009, San Jose, California 
Agenda/Overview

Introductions (5 min)
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
Business Milestones: 
Roadmap to Market Traction

Market Traction
Milestones

© Moreland Associates

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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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 Business Milestones: 
Roadmap to Market Traction
CTO Semi-Finalists: Circle the Market Traction Milestone
you have reached

Eureka – Turning the idea into

the product
Kaa Ching – Generating the
first revenue
Two Thumbs Up - Earning
marquee customer
references
Momentum – Ramping sales
& selecting your segment
Building Buzz – Raising
awareness in your segment
Market Traction – Segment
preeminence
© Moreland Associates
 The Market

Subtitle

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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 Sizing the Opportunity
How Big is It?

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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
Source: Steve Blank, www.steveblank.com
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Total Available Market, Served Available Market, Target Market

TAM = how big is the universe Total

Available
Market Served
Available
Market
Target
SAM = how many can I reach with my sales channel Market

Target Market (for a startup) = who will be the most likely buyers

Source: Steve Blank, www.steveblank.com

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Segmentation
Show Me the Money

Total
• Geographic Available
• Demographic Market Served
Available
• Psychographic variables Market
• Behavioral variables Target
Market
• Channel
• etc…

Source: Steve Blank, www.steveblank.com

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Customers, Marketing and the Sales Funnel
• Positioning matters

Demand
Total Creation
Available
Served
Market
Available Acquisition
Market

Target Paying
Market Customers

Source: Steve Blank, www.steveblank.com

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Technology Adoption Life Cycle and Adopters

Pragmatists won’t Main

follow visionaries Tornado Street

Early Total
Market Assimilation
Bowling
Chasm Alley

Techies Visionaries Pragmatists Conservatives Skeptics

Innovators Early Early Late Laggards
Adopters Majority Majority

Adapted from: Moore (2002), Crossing the Chasm.

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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

Late Entrants Main

Tornado Street

Fast Followers

First Mover Early Total

Market Assimilation
Bowling
Chasm Alley

Techies Visionaries Pragmatists Conservatives Skeptics

Innovators Early Early Late Laggards
Adopters Majority Majority

Adapted from: Moore (2002), Crossing the Chasm.

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Technology Adoption Life Cycle and Adopters

CTO Semi-Finalists: Indicate where your market is today

on the Technology Adoption Life Cycle Curve below:

Tornado
Main
Street

Early Total
Market Assimilation

Chasm

Techies Visionaries Pragmatists Conservatives Skeptics

Innovators Early Early Late Laggards
Adopters Majority Majority

Adapted from: Moore (2002), Crossing the Chasm.

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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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
• Remember the cardinal rule for startups:
– Think big – biz strategy
– Start small – market entry strategy
– Move fast – execution 
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 Choosing the Segment

Subtitle

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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Momentum Stage

Choose Segment
Build revenue
Discovery Phase: momentum in
Sales/Marketing R&D chosen segment
on multiple segments

© Moreland Associates

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Momentum is the Critical Stage

Today, the principal risk is no

longer the feasibility of the new
technology, it’s the go-to-market
execution

Typically...
– Start‐ups miss the timing of their revenue ramp by a substantial margin
– Require significantly more capital than originally planned to achieve cash flow 
breakeven operations
– The expected target buyer turns out not to be the actual buyer
– Released product is <100% of what’s required for the actual application
– Sales people who are used to selling mature products cannot sell “new” product 
at anywhere close to their usual quota
© Moreland Associates

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Customer Development

Customer Customer Customer Company

Discovery Validation Creation Building

Model Source: Blank, Steven (2006) Four Steps to the Epiphany, Cafepress.com

22
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Solution ‐ Replicable Sales ASAP

Posits
Posits&& Methods
Methods&&
Identification
Identification Execution
Execution Analysis
Analysis
Purposes
Purposes Metrics
Metrics

Sales & Marketing R&D Process

Replicable
Replicable
Sales
Sales

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
© Moreland Associates

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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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How do we recognize a good target customer?

• The 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
• The target customer can afford or find the money for our 
whole product
• The target customer is respected by others who will follow 
his/her lead
• The target customer will be 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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 Dominating the Segment – Market Traction
Subtitle

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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Whole Product ‐ Definition

For a given target customer
With a compelling reason to buy
The whole product is: 
the complete set of products and services needed
To 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?
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Whole Product – Information Technology Example

Consulting Hardware

Post-sales
service Software
Complementary & support The Complementary
Services Product Products
Pre-sales
Peripherals
services

Legacy
interfaces Connectivity

The whole product is the minimum set of products and services

needed to fulfill the target customer's compelling reason to buy.
Source: High-Tech Marketing © 2005, TCG Advisors LLC

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 LS
Whole Product – CTO Semi‐Finalists Fill in your Whole 
Product. Who does what?

Hardware

Software
Complementary The Complementary
Services Product Complementary
Products
Peripherals Products

Connectivity

The whole product is the minimum set of products and services

needed to fulfill the target customer's compelling reason to buy.
Source: High-Tech Marketing © 2005, TCG Advisors LLC
Managing Partners: 
Partner Give ‐ Get Analysis

Potential Stakes to bet on the Partner can give: Partner can get:
Partnership
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: 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 You can give: You can get:
Partnership
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: Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?”
Talk for Stanford Center for Professional Education, January 26, 2000

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 Moore’s Positioning Exercise 

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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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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 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 iPod
that offers Apple’s legendary ease‐of‐use, elegance, & cool factor.
Unlike Blackberries & other smart‐phones
our product offers clearer phone calls, faster browsing, and photos, 
music and movies that come to life in the palm of your hand.

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Creating and testing Dynamic Positioning  

Create your positioning The CRUDE Test:

For multiple segments Is Your Positioning…
• For: (Target Segments) Credible?
• Who: (Need Statement)
Relevant?
• The (Product Name)
Unique?
• Is a (Product Category)
Durable…AND Dynamic?
• That (Key Benefit)
Emotionally Appealing?
• Unlike (Primary Competitor)
= The CRUDE Test
• Our Product (Differentiation)

Sources: Moore (2002) Crossing the Chasm, and Kosnik (2008) “Dynamic Positioning”
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Moore’s Positioning Exercise – The Claim
CTO Semi‐Finalists: What’s Your Positioning?

• For: ________________________________________________
• Who: _______________________________________________
• The _________________ is a ___________________
• That ________________________________________________
• Unlike _______________________________________________
• Our product __________________________________________

Don’t forget the CRUDE Test

Positioning/audience Map

Engineering Marketing
Operations Business

For Mobile Network Operators who need increased revenues from wireless data networks, Viva is a 

network performance measurement tool that provides application latency and throughput
performance indicators from the network to the handset. Unlike traditional probes that cannot 
measure performance from the end‐user’s perspective our carrier‐class Viva manages end‐to‐end 
application performance allowing carriers to deploy new applications and increase adoption  of 
improved wireless data networks.

Engineering Marketing
Operations Business

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 Marketing Execution Fundamentals
Subtitle

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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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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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 Collectively referred to as Brand
– Training
– Customer service
– Policies
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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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 Building Trust and Generating Interest 

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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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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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How will people become 
aware of your offering?

• 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 during an on‐line search
• See signage or Ad
– Advertising, trade show, flyers
– Billboard, building
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Where will people find you 
and your offering?

•Referrals
•Website
•Search
•Partners, channels, vendors
•Catalogs
•Directories

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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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How will they recognize you v. others?

•Image/Identity
•Positioning
•Leadership

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Marketing tool kit has expanded with social media

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Marketing to buyer’s process
Buyer

Need Research Validation Trust Purchase

Seller
Awareness Lead Evaluation Relationship Close

Marketing

Word of mouth Web site Demonstration Professionalism Pricing

Referrals Messaging 30-day Trial Executives SLA
Media Webinar Pilot Investors Warranty
Search engine White Paper Analyst report Media/Analysts Helping buyer’s
Advertising Presentation Media coverage Leadership internal
Blogs Give away Case Study Expertise champion
Events Referral Reference Ally
Speakers Positioning
Direct Mail

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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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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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 Competitors 

The California Clean Tech Open is under the fiscal and administrative sponsorship of Acterra: Action for a Sustainable Earth,
a California 501(c)3 non-profit public benefit corporation. Acterra is located at 3921 East Bayshore Road, Palo Alto, CA94303-4303.
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Competitors

•Number 1 – status quo
•Internal solutions
Every company
•Other start‐ups
has competitors
•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 Ellwood Richard Nieset
Founder/CEO Founder
Moreland Associates Electric Funnel
christina@morelandassoc.com http://www.electricfunnel.com
www.morelandassoc.com richard@electricfunnel.com
510‐708‐4855  408‐828‐1952

Moreland Associates focuses on  Electric Funnel focuses on converting early
helping technology companies build  stage interest to loyal customers.
market traction. Services include: Using the best of on‐line digital technologies
–Market research to attract, engage, sell and keep more 
–Messaging and Positioning customers.
–Product Marketing
–Business and Marketing Strategy
–Interim CMO, VP Marketing