Published on November 16, 2007
E145/STS173Workshop BEntrepreneurial Marketing: E145/STS173 Workshop B Entrepreneurial Marketing Tom Byers and Jeff Rosenberger Stanford University Copyright © 2004 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. Agenda and Objectives: Agenda and Objectives Mini-lecture What is Entrepreneurial Marketing? How Can a Venture “Cross the Chasm”? Positioning and Penetration Strategies Positioning Examples “Companies that create the future do more than satisfy customers, they constantly amaze them.” ~ Hamel and Prahalad “Market Analysis” Versus “Marketing”: “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 Strategy Develop a Unique Positioning Develop Marketing Objectives Build a Set of Penetration Strategies (e.g., Pricing, Promotion) Support through Sales and Execution What is Marketing Anyway?: 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 Slide5: Why is Marketing So Challenging in a High-Technology Start-Up? Most Famous Model … Geoff Moore’s“Technology Adoption Life Cycle”: Most Famous Model … Geoff Moore’s “Technology Adoption Life Cycle” Try to Name a Discontinuous Innovation (or Disruptive Technology) Where Do You Fit When It Comes to New Technologies? So How Does a Startup Cross the Chasm?: So How Does a Startup Cross the Chasm? Put Your Eggs in One Basket … Target Market Segments. Then Deliver a 100% Solution To Them … A Whole Product. An Example of the Power of Segmentation and Target Marketing: Pedigree Petfoods in UK: Dog’s Role Segment Brand Price/100 gr. Dog as a family member Premium Chum 8.7 pence Dog as a companion Moderate Pal and Bounce 6.4 & 7.9 pence Dog as an animal Economy Chappie 6.3 pence Reference: A. Ryans An Example of the Power of Segmentation and Target Marketing: Pedigree Petfoods in UK Dog as a substitute child? Super Premium Segmentation and the UK Dog Food Market: Pedigree’s Super Premium Strategy: 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. Whole Product: The 100% Solution or Ecosystem: Whole Product: The 100% Solution or Ecosystem Software Program Platforms Support Consulting Installation & Training Connectivity Etc. Reference: Ted Levitt, Bill Davidow Key Decisions: Which Pieces Do We Do and Which Do Our Partners Do? What is the Single Most Important Concept in a Marketing Strategy? : What is the Single Most Important Concept in a Marketing Strategy? Positioning (a.k.a. the “Elevator Pitch”) Positioning Template: Positioning Template Sentence #1 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). Positioning Drives Penetration Strategies: Positioning Drives Penetration Strategies Promotion and Communication (including branding and permission-based marketing) Pricing and Business Model (including viral marketing) Sales and Distribution (including affiliate marketing) A Short Checklist for Effective Entrepreneurial Marketing … Relationships Matter!: A Short Checklist for Effective Entrepreneurial Marketing … Relationships Matter! How will you get close to customers? How will you leverage alliances and partnerships? How will you influence the infrastructure or the industry’s key “players”? What is your international strategy (global markets)? Positioning Example: Handspring Visor: Positioning Example: Handspring Visor For busy individuals who need a way to organize, manage, and communicate, the Handspring Visor is an all-purpose handheld computer, based on the proven Palm OS, that offers simplicity of use, portability, personalization, connectivity, and functionality. Unlike the Palm Pilot, our product offers flexibility and expandability due to the springboard technology. Now You Try It: Now You Try It Sentence #1 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).