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Ann Burgraff-Rowell Joe Sutherland-Rouse The Founder Institute June 6, 2010
Grew up US, Marketing degree Arizona Advertising Consultant, Dentsu Osaka, Japan Innovative Start-up Addict (mostly San Francisco based), including ± Salesforce.com VP Marketing (IPO) ± NetGravity / DoubleClick VP Global Marketing (IPO, Merger
Acquired by Google)
± Informative VP Marketing (Purchased by ± Webaroo SMS GupShup VP Marketing (Private. > 25M users) ± Gydget Events Widget VP Marketing (Acquired) ± Startup Advisor NUS Enterprise
Science undergrad, MBA (Queen s U, Canada) Product management ladder at BMS Tundra Semiconductor (Networking IC s-IPO) Philsar Semiconductor (RF IC s-Acq by Conexant) MSBi Capital GridIron Software (SW development tools) Pioneer Capital Partners Back at a startup, some governance & advisory stuff
Your Take-away Tonight
What you need to do:
± Effectively position your company/product, memorably communicate to selected audiences, develop an affordable yet effective marketing mix relative to your marketing goals, execute and evaluate- all on a startup budget
Champagne results on a beer budget are possible
± But you have to research, rehearse, execute, review and adjust course continuously ± Find and keep big, smart, rich friends
A dynamic process Understand the competitive set and individual competitors positioning
± But first, understand your customer needs
Hit em where they ain t
± but make sure it s where the most desirable customers are.
Competitive Positioning, II
Features versus benefits
± relative to validated market needs
Does your positioning answer these three questions
± So what? Who cares? Why you?
Position your company and product effectively, or the market, or worse, the competition, will do it for you.
Characterize the buying process and its players
± Develop the marketing mix with this in mind
Audiences vs. customers Inside a customer: Decision-makers versus influencers External Influencers Beware the Toyshop Exercise!
Get close! And stay close
± Call and meet prospective customers and partners ± Take an analyst or journalist to lunch (They all eat)
Play really nice with, but lead, sales and R&D
± You are the team coach and customer advocate ± Develop, own and evangelize the product spec
Importance of Alpha, Beta programmes
± Lead customers needs represent 80% of the value of your product ± 20% of the spec s features deliver 80% of the value of the user experience
Customer Intimacy, II
Join and seek out leadership roles with standards bodies and other influential tech and marketing associations Understand and have a clear, compelling position on technical and market trends- and communicate that! Make sure your channel strategy makes it easy for the customer to buy, and buy again
Tell Me a (Company) Story
Simple, memorable, actionable and known by all The elevator speech Elements
Personalities and their past achievements (nouns and verbs) Partners and Standards Products Events Strategies
Telling the Story
Following from the What, you must decide
± Who/What tells it ± When and Where ± How and How Often
Make is easy for your audiences to understand, act and tell all their friends The role of great PR counsel
Resourcing the Storytelling
Strategies vs. tactics
± Guerillas are tactical, not strategic ± But sometimes tactics can turn the tide of the war
Concept of the Marketing Mix
± Software versus hardware versus services ± Trends
Consistency of messaging, execution and adjustment
Creating the Right Messages
How will your products impact your customers? Is what you have to say different/unique? Can you say it boldly? Is it memorable? Are your messages defensible? Speak to them where they are don t make them go hunting for you Say it simply & speak in honest language
Develop message cards for everyone
Developing Your Marketing Mix
Marketing Goals should align with Business Goals Great Ideas Rarely Sell Themselves There are a vast array of circumstances that will dictate which elements of the marketing mix are right for you. Put time into accurately defining your marketplace, your market segment, your product positioning, and your unique selling propositions then it becomes much easier to select the right strategy and mix.
Getting the Promotional Mix Right
Plan Marketing strategies & tactics to achieve specific objectives
± Capture 25% global market in 2 years (= 240,000 users)
Acquire 100,000 leads per month with an average cost of $2 Sign up 10,000 new customers per month with average cost of $10
Know Your Marketing ROI (Return on Investment) Create a Dashboard and Report back to organization regularly Don t be afraid to fail
How Much Do you Spend?
There are no averages but startups spend a much higher proportion of budget on marketing. (Generally 8-20% of total company spend in first two years) Industry Averages & Benchmarks can help learn from others Refer back to your objectives & marketplace what are you trying to accomplish? Test, Refine, Repeat
A Few Tips
Make your marketing your own - avoid copying others, unless you see a good idea that you can adapt to your circumstances. Be sure that your promotion fits your image. Consistently communicate your top messages & business values no matter what the medium. Remember - you are marketing through all your business activities. Empower everyone in the organization and leverage their networks.
± If you can t measure it, you can t manage it ± I know that half of my marketing budget is wasted, but I'm not sure which half (sometimes true; depending upon mix)
Accountability leads to credibility, trust and resources There is a cost/price to pay for doing nothing (It is a race!) Confer across the company, but have the courage of your convictions The affordability, precision and scale of emailing lists are not substitutes for customer intimacy and market vision
Ann s Case Study #1
± salesforce.com, an online CRM company, wanted to create awareness, position against big 800lb competitor Siebel, disrupt industry and develop leads
± PR coverage in tier 1 business and industry pubs (> 10M impressions) ± # leads (> 500)
Tactic: Stage Protest at Siebel User Conference Results:
± Significant Press/PRSA Award ± Over 500 A quality leads ± Brand building
Ann s Case Study #2
Situation: ± Launching Webaroo (SMS Gupshup), a new mobile blogging application. Goals: ± Awareness in mobile business and consumer target segments ± PR coverage in tier 1 business and industry pubs (> 100M impressions) ± User signups Tactic: Partner with Acer and Samsung at launch to show momentum & credibility ± Leveraged partners brands & marketing budgets ± Created promotions with major newspapers in India & Europe Results: ± Significant Press first week of launch: Over 500M impressions 1st week, including: WSJ Global Editions, NY Times, CNN, SkyNews, The Economic Times of India at least one article per day for the first 90 days. ± Over 100K Sign ups in first month
Joe s Case Study #1
Tundra Semiconductor (Build-out of the Internet 1996-1999) Spun out of comms switch maker Newbridge Networks Technical expertise in PCI interface and switching fabric technologies Partnered with embedded systems leader Motorola SPS
± Direct-connect datacomms I/F IC s for Cisco, IBM, Nortel, Ericsson
Business model based on design-wins into the above and smaller players
± Heavily leveraged Moto s marketing strategies, plans and programmes, but built and maintained our own identity through technical leadership and earlier adoption of web-based product marketing
Tundra IPO d Feb. 8, 1999 and achieved a market cap of about $1B at its peak
Joe s Case Study #2
Philsar Semiconductor (Bluetooth & wireless comms 1999-2000) Founder s vision: Bluetooth wireless comms juggernaut
± Applied prolific creation of technical content via web, trade pubs, events to carve out a leadership mantle, positioning ourselves as peers with MSFT, Nokia, IBM, Ericsson and other giants ± Filled a market vacuum at the enabling IC level ± Followed lead customer model: Conexant Systems Inc.
Philsar was acquired by Conexant in April 2000 for $200M US
± We had minimal revenues at the time, but lead a hot space and had great timing
Simply put, it all comes down to execution
± But if you do fall, get up fast, to fight another day
Getting (and staying) on the radar screen of your audiences
± Marketing is an investment, not a cost ± Seek to establish and maintain leadership ± Leverage, leverage, leverage
Marketing is a discipline, a craft and a science
Your management team is like a band Since we dream big at the FI, imagine it s 1964 and you re in the Beatles, arriving at JFK Airport and about to change popular music forever
Concluding Exercise, II
Are you Paul?
You re John Lennon
Wrap up and Questions
email@example.com and firstname.lastname@example.org
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