This action might not be possible to undo. Are you sure you want to continue?
Chief Marketing Officer Titan Solutions Group
Objectives Background Marketing defined The marketing organization A Plan of action
± Strategy ± Tactics ± 4 p¶s ± Operation
To explain how to setup marketing at a high-tech startup, which positions and tripwires for when. Startups can be external (started from scratch), or internal (started from existing company with handpicked team).
± External startups usually require self-funding, friends & family, angel investors, VC, or public funding. ± Internal startups are usually new divisions or new companies funded internally²and are often spun off (like my current company). ± All startups use a similar marketing process
By the way, these slides will be a little ³text heavy´ so you can refer back to them later
21 years of marketing. 7 years consumer marketing in entertainment industry. 14 years high-tech marketing. Sold the company²was acquired five times. First high-tech external from scratch startup in ¶89, VP of sales and marketing, original 13 people grew to over 4,000 people. Sold company.
± Executed over 400 product launches from over 150 companies (Sony, Microsoft, Ashton Tate, Compaq, Adobe, Lotus, IBM, Citrix, Aldus, Corel, Autodesk, HP, Intel, Canon, plus many more). Industry mercenaries ± launched entire categories. Sold company.
Later formed an internal startup²´publishing´ software. Helped launch a category called the Internet. Four world-wide top sellers, including Netscape Navigator and AOL. Sold company. Formed another internal startup (1/2 owed by us, and ½ owned by Tom Clancy)--Red Storm Entertainment. Sold company. Senior VP at Metrowerks, sold to Motorola. Sat on 7 person marketing board, headed up $2 billion division. Headed marketing at internal startup division. VP of Marketing at $130 billion GE, highest % growth sector. Responsible for rebooting acquired company marketing. Chief Marketing Officer at Titan Solutions Group. Currently creating a software startup division²intend to take public. Founder of ³Chanimal ± The Ultimate Resource for Software Marketing´ at www.chanimal.com. 8 years old and over 53 meg and 250+ pages of content.
appropriately price. and support that offering. pr. marketers study their target customers to find out what they want. promote. To provide that satisfaction. Basically. distribute. and monitor customer satisfaction to fine tune their product (and then start all over again with the next release). collateral ± the promotional arm of the company Marketing is providing satisfaction. design products or services to satisfy those wants.Marketing Defined Often marketing is referred to as advertising. marketing is finding a need and filling it. .
distribution) Sales is a subset of marketing ± Promotion (PR. positioning) ± Placement (sales.Marketing Defined Marketing includes strategy (determining what to do) and tactics (determining how to do it) The four P¶s of the marketing mix is an easy framework to remember ± Product (definition. profitability) ± Price (margins. events. validation. ads. etc.) . online.
by engineering (usually an engineering founder with an idea). promotions and sales into the market ± Too often the product is created first. and then they build it´ The following org charts show a standard marketing organization. price and profitably drive product through development. before the first marketing person is hired. the stages of startup/marketing dept. position.´ promotes what they¶ve got. If you build it« ± Market driven companies ask. development and tripwires . Marketing then applies ³reality therapy.Organization Always start with the marketing ± period (even before engineering ± so you know what engineering must do and can hire accordingly) ± Initially you must have product marketing/management to define. ³What do you want (and are willing to pay for). and soon starts the real process over to properly refine it ± hence the usual better 2nd release ± Engineering driven companies use ³field of dreams´ marketing. validate.
Product Mgmt Admin Admin Marketing Operations Product Marketing Mgr International Marketing Product Marketing Mgr Promotion Event Marketing Trade Show House Marketing Research Public Relations PR Agency On-line Omsbudsman Ads / Direct Response Webmaster Mgr. multiple functions are handled by one person. each area is handled by a specialist. As the organization grows. MarCom Director. Creative Services Research Assistant Research Firm Build. international. Price Channel Marketing Mgr Markeing Alliance Mgr Director. buy.Marketing Organization VP Marketing Product Definition. Areas ³plump´ from this point on depending on the # of products. In startups. inhouse work. and the workload increases. align Product Training Mgr Chart represents functions that exist within a marketing organization. Production / Traffic Graphics Designer Outside Design Copywriter . etc. channels.
validated and into development Wordsmith positioning. on-line. 4.Early Organization Tit l ti s r Hiring order ft r Tit l ti s Tit r r ic s Tit Tit i ri l ti s & rt Q cs r rk ti r l s ( ir ct l s) 3 ct ( r r ct) 1 r ( r r ti s) 2 rk ti lli ( r ct/ r l c s )4 ct rk ti s rc . 3. define program. early recruiting -li ir ct s s rtisi ts r ic si riti c t ( rk ti l t) . Get the product defined. 5. copywriting) Start pre-sales Formal alliances to ensure complete product Setup channel kit. 2. collateral (packaging. B s I t l 1.
prepare for press release. reseller. B s I t l r ( r rk ti ls ( ir ct l s) 3 ti s) 2 rk ti lli c s ( r ct/ r ) 4 l l rk ti t) . product launch 7. setup and initial promotions come first. setup portals (press. Additional sales to pre-sell product and start long sell-in 6. The rest of the positions are filled as the product is launched. product information. Setup on-line presense. Start recruiting in mass Definition. line up promotions. customer) 8. This is a self-funding model.Next Stage Organization Tit l ti s r Tit l ti s Tit r r ic s Tit ft r Tit i ri l ti s & r rt Q cs r ct r ( r ct) 1 r ct rk ti s rc . External funding may accelerate the process (but actually shouldn¶t ± unless entering a hyper competitive market) .8 l s rs -5 -6 -li / -7 ir ct s s rtisi ts r ic si riti c t ( 5. Start analyst meetings.
Sage Tip: Organizational Chasm Having personally gone through this stage six times (and having consulted multiple companies). the workload is usually too great for the initial marketing individuals. until they get through this transition so they can move to the next level. This is also the time that the original entrepreneurial ³do it all´ skills may bottleneck the company growth if they don¶t evolve. or let go (of 2-3 roles) for the group to specialize. I have found that the marketing generalist (wearing multiple hats) stage typically changes when the company transitions between 12-20 million and between 75 to 110 people. . I have seen some companies move all the way to 50 million and then stick there like glue. The team must diversify and specialist must be hired (or be ready to step up internally). At this time.
interns. Best background. you name it. they can chew up a market and eat competitors for lunch and can easily recognize big holes to capitalize to help their startup succeed. However. Plus. sales and consumer marketing experience²to apply to technical products. most of marketing was from support and engineering²with only 1 business degree within the entire group. customer support. most VPs of Marketing that I work with. and usually only knew marketing communications--no formal pricing. processes and example. At Motorola Semi-Conductor Sector. only a handful had any marketing training. with about 400 marketing people. accounting. Management seems to know the least about the roles of marketing and typically fill the department with engineers. ³Real´ marketing professionals. alliances or channel marketing background. product marketing. the oldest had been out of college for 18 months). graduate degree with marketing emphasis. that are skilled (and practiced) at all 4 of the marketing P¶s are rare. don¶t know much about marketing (having no formal marketing education (school or books). I¶ve spent much of my time mentoring teams²many became world class (such as the team that launched Netscape Navigator. they throw in a graphic artist. technical undergraduate (or aptitude).Observations Marketing has a mixed reputation²often deserved. To top it off. At multiple GE divisions (industrial systems ± not consumer goods). Other ³marketing´ VP¶s were technical lightweights. having come up through the ranks with similar non-marketing backgrounds). since this position has to be specialized. Also. . sales. They can also train and mentor existing folks with templates.
Overview ± Plan of Action Setup (equipment. align. structure. Product offering ± Organizational strategy (adoption cycle. levels) ± Placement (direct.). support ± summarized in Marketing Plan . economy. create plan of action. . ads. strategy. OEM. events) ± Collateral Operations ± Goals. growth strategy) ± Market size. organization. on-line. Market segments. branding approach) ± Pricing (objectives. product positioning Tactics ± Product (product & company. buy. growth potential. internal assessment) Strategy ± Situational analysis ± market strategy Market environment (competition. hook up. regulations. channel) ± Promotions (PR. build. positioning. naming. share (forecast). budget. etc. indirect.
and proceeds to the business and marketing plan (with a lot of definition/validation work up front).Start with a Plan of Action In a start-up (internal or external). The 2nd step estimates the time frames. and require it of each team member. line by line) Note: it contains information to level set the executive team on terms and processes . I always start with a plan of action. It helps level set the team and establishes the stages and high-level target deadlines. could go into a Gantt chart. Personally. I will take you through my actual plan of action for actual live work (nothing confidential. This is a high-level action plan that sets the framework for how you are going to proceed. but this is the ³real´ process ± you are seeing how it is done.
Plan of action. Setup laptop. and product action items to create a commercial software division. (need to review & sign-off). network. filing system Done. budgets. training. sales. access. (setup meeting). Prepare w/Plan. Identify and sequence most of the marketing. password. Done. market size. support.Setup & Plan of Action Done. collateral Done. . alliances. Hook up with John to parse out Business Plan deliverables. organization. Competition. Initial assessment.
placement. promotion) to achieve our overall financial objectives (including sustainable financial growth). and decide how to address them with the items we can control (product positioning. existing segmentation). market demand. . price. economy.Strategy Identify the ³uncontrollables´ (competition. regulations. market size. marketing mix (4 ³P¶s´ (product.
± Marketing plan will dove tail with financials and projections.Formal Plans Business Plan ± Marketing plan is a subset of overall business plan covering the market section. . ± I will work internally to further delegate so we can meet our timeframe.
SWAT analysis ± Technological issues Preferred platforms (. hurt us (financing. Identify holes. etc. where should we play later) ± Competition Identify current and potential competitors . trends ± Economic issues State of the economy. supply chain.) . dynamics of sales to software systems adoption ± Social political issues New regulation that will help. alliances. distribution and sales. OEM¶s.ranked Review product (install.Situational Analysis Market environment ± Define our current and future space (hi-level.net versus Notes). timing. price. usability. features²everything a prospect would see). latest technical options. security installation. current impact on home sales. where do we want to play now. promotions.
sophistication. find and promote to? Individual segments large enough to be profitable? Are all buyers in same segment responsive to similar promotions? ± ± ± ± . 1000 to evaluate size and characteristics Compile secondary research (reports) to validate sizing ± Market segments ± 5 questions to evaluate Smaller homogeneous subsets of overall heterogeneous market (will one product satisfy the wants of everyone within the market? (size. 100. platform)? Easy to identify and characterize? Easy to reach.Situational Analysis ± ± Market size Compile list of top 10. 25.
retrenchment.Organizational Strategy Growth or Consolidation ± Consolidation strategies Determine course of action for existing product (harvesting. divestment) ± Growth strategies Market penetration ± better ingress into existing markets Product development ± change product or perception Market development ± find growth in new markets Diversification ± introduce new products . pruning.
justification ± Gaining Sales forecast ± By product ± By segment ± By region ± By distribution .Strategy .Growth Potential Market share ± Percentage .
Product/Company Positioning The APEX of strategic analysis ± how do we expect to compete and grow in this space? What is our product¶s key differentiators. unique value and positioning? What is our company¶s key differentiators. unique value and positioning? .
Marketing Mix ± 4 P¶s Product ± Product type. events . features. name. etc. benefits. competitive positioning. Structure (which products. buy/build or align Price ± ± ± ± Objectives (marketshare. service and peripherals) Placement ± Direct or indirect Promotions ± PR. penetration. site license. time & conditions) Levels (volume break points. by account. advertising. on-line. by product. sales growth. ROI. direct response. cross-benefit. alliance. parity. long-term profit) Strategy (22 options ± floor.
Product Review current product (install. evaluate and contact potential alliances (align or build) New product research (or shortcut and summarize any existing) Decisions ± if we believe we know most of the requirements based on previous product. sales) ± Current customers (CIO. roundtable (person. webinar ± Survey prospects. platform. learn. roundtables. we can proceed until we receive early validation and then move into Market Requirements Document (MRD) Secondary ± reviews and reports Primary ± qualitative and quantitative (to validate frequency) ± Competitive matrix ± Internal assessment (engineering. demo) Product definition ± ± ± ± Existing product fixes (usability. trade show meetings. support. QA. phone calls. installation. webinar). features ± Analyst. test for usability. bugs. resellers and have them prioritize suggested features . enhancement request) Competition (more detailed analysis ± summary) Review. analyst. phone. consultants and resellers ± Prospects » Focus groups.
speed. concurrency Interface/integration requirements w/3rd party hardware and software Prioritized according to a phased roadmap ± Name product (review naming conventions. less time. messaging. follow 5 step process) ± Create brand identity (name. Warning: Never release name until press release. Not necessary until the product is defined. follow 5 step process). usage guidelines) . logos. more hands-on) ± ± ± ± ± ± Functional characteristics Use case scenarios Usability requirements Performance capacity. align.Product Product definition ± Summarize customer business case Identify major problems we need to solve Evaluate which can be solved currently Create roadmap to address overall needs Quantify our savings and $ in pain ± Positioning (transfer this info to strategy section) ± Finalize our build. ± Name division (review naming conventions. buy strategy ± Market Requirements Document (MRD) Formal as necessary to create the product (less formal. look and feel.
Never release name until the press release (or we don¶t have ³news´). look and feel. abstract/descriptive/suggestive (etc. Always use code name. etc. logos. Review naming conventions (budget.Product Brand identity ± Not necessary to name the product. tag lines) Brainstorm for names (that meet objectives and finalized conventions) Narrow the list and do basic name search Conduct basic and quick acid test with prospects/customers Decide final name candidates. division. follow 5 step process). until the product is defined (have not even solidified its positioning until then²which may come into play with the naming). messaging. follow 5 step process) ± Create brand identity (name. usage guidelines) . prioritize and conduct advanced name and trademark search Finalize name ± do not publish until press release ± Name division (review naming conventions.). positioning. ± Name product (review naming conventions.
standards. expandability Review product specification to ensure it maps to MRD Formal sign-off (as needed) Setup beta sites for testing. versus build Review and validate our architecture to ensure modularity.Product Development Get alliance or OEM agreement w/timeline for anything we align. pre-sales Setup initial usability and benchmarking review Product sign-off meeting .
Review pricing for competitive and similar like products Review prospect¶s cost for home grown and alternative application (how have they been getting the job done) Review cost for the entire system (looking for ways to reduce the overall price. support.Strategy Price distinguishes our offering from the competition and similar products. not ours) Understand the overall cost (software. customization. maintenance) .Price . It communicates our value proposition and influences buying behavior.
sample (NFR) pricing. crossbenefit (razor/blade ± software vs. international pricing. installation. support. update price matrix. price versus ³cost´ . sales growth. premium. alliance pricing. competitive upgrades. customization).Pricing Pricing objectives ± Marketshare. return on investment. Pricing strategy ± Floor pricing. short/long-term profit. professional services. OEM pricing. exception policies Price sales dialogues ± price savings build-up. penetration. etc. reseller discounts. price taker/maker (pariy). reduce to simple. maintenance ± Time and conditions Pricing levels ± New customer matrix. etc. Pricing structure ± Which products need to be priced Software. gratis items.
market. sales training) ± Setup field systems (contact mgmt.Placement .) ± Create and populate field database ± Setup field sales lead dissemination and follow-up system ± ± ± ± ± . Indirect ± trip wires Direct sales ± company initiative Hire a ³hands on´ sales director/manager Setup sales compensation. commission.Sales Direct vs. bonus program Recruit appropriate sales people and/or hire rep firm Prepare sales kits (see collateral) Train sales people (product. customers. etc.
contact information. etc.Sales Indirect ± Program setup Program definition ± reseller levels w/benefits and requirements Setup co-op. overview of program. VARVision. ± Recruit resellers Setup distribution agreements (Ingram. training materials. bbs²collaboration. temp firm. lead dissemination and follow-up Contact and recruit (PR. part numbers. Tech Data) Identify target resellers (size. customer PowerPoint. reseller application and agreement.Placement . levels.ongoing . Reseller PowerPoint. reseller prices. product reviews. mdf policies and guidelines Reseller kit w/program descriptions ± Intro letter. training requirements. type. roadshow. collateral samples. alliance resellers. reseller-centric events) ± Reseller training (certification. physical and/or on-line training) ± Reseller promotions and Co-op/MDF management . product info. checklist. markets) Setup contact database and compile list Setup initial reseller database (password protected. direct mail.
database and calendar ± Identify and compile industry influencers (analyst. spokesperson. 15 times more believable ± always start with PR!) ± Setup Determine objectives and measurement Company positioning statements 3-5 key talking points division and product Company backgrounder Internal media training (what to say. routing) Setup crisis management process ± External PR ± hire PR firm ± Internal PR Build target list. cautions) Establish policies (flaming. organizations) ± Identify and compile target publications ± Identify target trade events Create master calendar Create reviewer¶s guide .Promotions PR (1/7th the cost. consultants.
clip books. correct all mistakes ± Setup clipping service.Promotions PR ± Internal PR Proactive campaigning ± ± ± ± ± ± ± ± ± Setup interviews with analyst and key executives Follow-up with executives to stay in contact with press as experts Issue press releases Setup press tour (preferably at trade events) Speak at trade show events ± as the industry expert Write ghost stories and submit to freelance writers Create white papers to validate company¶s unique value Place success and case stories On-line ombsbudsman Follow-up and tracking ± Read. bulletin board ± communicate ± Calculate response and value (Media Quality Quotient Analysis) .
consistent look and feel. announce on-line forums.Promotions On-line marketing ± Definition stage Solidify objectives. Web policy ± Promotion stage Metatags & key search words. PR/reseller/alliance portal. buy domain name ± Building stage Setup lead portal. link to/from alliances. site stats. plan-o-gram and ecommerce CD-ROM version. organizations. submit to search engines. affiliate program . on-line surveys. op-in list. search engine. product information.
process) Setup ³self-serve´ alliance info for non-top 25 and above Alliance kit ± Intro. link web sites. top 25 and self-serve (compile contacts) Define the levels. setup workshop dates. Titan sales script and presentation (cross-selling). order form. sales and promotions stage Complete alliance workshop. etc.Promotions Alliance marketing ± Setup & definition stage Define objectives Identify potential alliances based on product. Prioritize alliances into top 10 (most of your time spent). complimentary sales contacts. contacts. NDA. alliance portal ± Recruiting stage Contact top 10. prepare an alliance promotions plan and follow-up . workshop agenda. exchange demo software/training materials. sign agreement. issue alliance press release. add to alliance portal. hi-level roadmap. calendar. benefits. contact next 25 ± Development. benefits and requirements Create alliance policies (screening criteria. logo usage. alliance PowerPoint. agreement.
direct response w/offer) ± Determine frequency. initial media selection) ± Create ad concept. copy and design (Z format. personal clippings ± Determine target audience (buyers. influencer. negotiate placement.Promotions Advertising ± Determine objectives ± Review competitor¶s campaigns (if any) ± Adscope. submit ads ± Create on-line direct response landing page ± Measure and evaluate media. message and response . review demographics and editorial schedules. resellers) ± Media selection (order trade pubs.
resellers 2nd half ± Trade shows Attempt to exhibit in alliance booth If own: ± ± ± ± ± ± ± Determine who will coordinate Booth size Rent or buy a booth Pre-show activities Post-show follow-up Lead dissemination and follow-up Show report .Promotions Event marketing ± Roadshow for resellers and prospects Prospects 1st half.
jpg of key executives and products Logo usage guidelines . Web versions Hi-res .Collateral Price list and matrix Customer PowerPoints Reseller program PowerPoints Alliance PowerPoints Alliance kit Product demo script Folders w/sticker space Product packaging Product slick Sell sheet (resellers) Family brochure (if applicable) Press reprints Customer testimonials Business plan .investors Demo CD-ROM / Video Case stuides White paper Sample RFI and RFQ templates Competitive matrix (sales version) 3rd party add-on book Branded give-away items PR Reviewer¶s guide 35 mm slides.
then we get sign-off Note: Be prepared to sell your budget.Marketing Budget To be added. by first selling and getting agreement that your promotions are needed. first we create the promotions with the expected ROI. Under funding (and over funding) is death to your product ± you must cost justify . depending on programs and ability to use existing resources Process.
reseller and press meetings²only ASIS µ03.Budget Summary ± Expense/ROI Channel Marketing ± recruit new resellers. Expense: $160k + Channel Mgr Return $4. Return $2. consultant. Promotional PR ± generate leads. generate leads for sales and resellers. credibility and awareness. reseller sales kits.9 million.3 million. CD¶s (support material). Expense: $394. Required to sell the products. consultant and reseller support. Expense: $338. Expense: $320k ($320 CASI. customer. Expense: $416k (50% new verticals) Return $1. Return: Cost. $110 other divisions). .8 million. sell more through existing resellers (increase recommendation rate). data sheets. etc. presell on-going releases. price lists. Return: $513k Customer & Reseller Conference ± customer. Events ± generate leads. Collateral ± product catalog. Expense: $144k + PR Manager (contractor). Advertising ± new product announcements.
$25k ± ROI: 10 cities x 25 resellers/each x 10% conversion = 25 resellers x $100k = $2.000 targeted locations ± $8k ± ROI: 2.$5k ROI: Needed to run campaign ± Events Reseller Roadshow (10 cities.Channel Marketing Promotions ± Direct Response 2. binders) (2.5 million ± Reseller Collateral ((brochure.000 x $50/ea)) $100k ROI ± Necessary to run the program.000 x 5% response = 100 leads x 10% conversion = 10 resellers x $100k/reseller/1st year = $1 million Reseller database list . . $80k less contribution) .
it was condensed). Corel. Microsoft. The process is not secret. This process helped create the world¶s largest services company (launching over 400 products and over 1 million promotions) This process helped companies like HP. but it works and should be helpful in jump-starting your future startup efforts. Motorola. and GE There is still a lot of expertise involved in knowing how to execute each phase of this plan and get a high-tech startup off the ground. and not particularly brainy (besides. .Summary This process is exactly how products like Netscape Navigator were published and launched.
Chanimal ± The Ultimate Resource for Software Marketing at www.´ Some of us lived through many of the mistakes this book references.). Also. packaging guidelines. It has over 53 megabytes and 250+ pages of FREE real-world startup tips and tricks (sample marketing plans.com. visit my industry resource. etc. real-world books like. examples of how to do product research. Also. budget templates. check out practical.chanimal. check out ³In Search of Stupidity. ³The Product Marketing Manager¶s Handbook for Software Marketing´ by Rick Chapman. .Resources To find out more. We can all learn a lot from seeing what didn¶t work. 20 years of high-tech marketing disasters. It is compiled content from some of the best high-tech marketing folks in the world and is all free.
Any Questions? .
This action might not be possible to undo. Are you sure you want to continue?
We've moved you to where you read on your other device.
Get the full title to continue listening from where you left off, or restart the preview.