KLAIPEDA 2018.04 - ku · EXPERIENCE WITH STARTUPS 1.447 startups global research 500 in-depth...

KEY PRINCIPLES OF STARTUP MARKETING

KLAIPEDA 2018.04.26

INTRODUCTIONWho am I and why should you trust

EXPERIENCE WITH STARTUPS

1.447 startups global research

500 in-depth interviews with founders

23 startups mentored

AMAZON BEST SELLER

Elon Musk

Eric Ries

Donatas Jonikas

I am an MBA student at California State University, LongBeach, where we use your Startup Evolution Curvebook as the textbook for a new class called "Technologyand Start-ups"

Al Barlevy2017.10.21

BASED ON GLOBAL RESEARCH

SCOPE OF THE RESEARCH

Western Europe 19,2%

North America 18,7%

Africa 0,6%

Australia & Oceania 2,5%

Asia 14,9%

Central & Eastern Europe 23,6%

South America 10,3%

Middle East 6,1%

7 MAIN REASONS OF MISERABLE SALES

1. PRODUCT – building the product that nobody wants

2. SEGMENT – targeting wrong clients

3. PRICING – choose wrong revenue model and pricing

4. MESSAGE – lack of clear and appealing communication

5. PROCESSS – don’t know how to sell and don‘t have a plan

6. ATTITUDE – passive mindset and negative attitude

7. EFFORTS – insufficient efforts or waiting for miracle to happen

CORE PRINCIPLES4 core startup marketing principles

4 CORE STARTUP MARKETING PRINCIPLES

Research matters

Focus on building value

Fail fast in marketing

Start marketing

with a small budget

#1 #2 #3 #4

#1 RESEARCH MATTERS

Research matters

Focus on building value

Fail fast in marketing

Start marketing

with a small budget

#1 #2 #3 #4

#1 RESEARCH MATTERS

Ready to go or already on the

market

80,9%Have evaluated their business environment

33,9/%Did it in the right way and had the

needed data

18,2%

Market research is like a diagnosis before cure

“ “

#1 RESEARCH MATTERS

▶ MARKET SIZE How many potential customersthere are in the market?

Is it realistic to reach all of them? Is it profitable enough?

#1 RESEARCH MATTERS

▶ COMPETITORS – How unique and appealing is your offer? Customers ALLWAYS have alternatives – your direct and indirect competitors!

#1 RESEARCH MATTERS

▶ PRICE LEVEL – Are customers used to pay such amount? Do you have proofs they have money? Are they ready to spend?

#1 RESEARCH MATTERS

▶ CHANNELS - How to sell, through which channels? How much it will cost for us to acquire new customer?

#1 RESEARCH MATTERS

▶ MARKET SIZE ▶ COMPETITORS▶ PRICE LEVEL▶ CHANNELS

IS IT FEASIBLE?

#1 RESEARCH MATTERS

GOSTOP

#2 FOCUS ON BUILDING VALUE

Research matters

Focus on building value

Fail fast in marketing

Start marketing

with a small budget

#1 #2 #3 #4

#2 FOCUS ON BUILDING VALUE

Were trying to address serious problems and create amazing value but didn’t test it in the market or did it in

the wrong way

42,6%

Customers buy value, not products or features!

“ “

Run out of funds... and was closed!

#2 FOCUS ON BUILDING VALUE

▶ $11 million fundraised▶ Entered into 13 country markets▶ Team of more than 150 people▶ Millions of users!

#2 FOCUS ON BUILDING VALUE

▶ CUSTOMER JOURNEY – Howwell do you know your potentialcustomers? What is their usualjourney without your product?

If you don’t, how are you going tocreate value for them?

#2 FOCUS ON BUILDING VALUE

▶ VALUE PROPOSITION – Doyou address what is really importantfor customers, not just fun orinteresting to build?

Will you avoid the trap of “nice tohave benefit”?

X10 RULE

#2 FOCUS ON BUILDING VALUE

▶ CUSTOMER EXPERIENCE –How does customer journey andexperience look like using yoursolution? Is it significantly better?

#2 FOCUS ON BUILDING VALUE

▶ IRRESISTIBLE OFFER -You need to “wrap up” andcommunicate your offer in themost appealing way. Use theformula of irresistible offer.

#3 FAIL FAST IN MARKETING

Research matters

Focus on building value

Fail fast in marketing

Start marketing

with a small budget

#1 #2 #3 #4

#3 FAIL FAST IN MARKETING

Experiments made startup development more structured, saved money, reduced risk, and helped to see new

possibilities

98,6%

#3 FAIL FAST IN MARKETING

▶ PROBLEM – are you solvingreally important problem or justbuilding something “nice to have”?Do they look for solution of thisproblem?

#3 FAIL FAST IN MARKETING

▶ SOLUTION – Is your solutionbetter than current alternatives? Arecustomers willing to switch to yoursolution?

#3 FAIL FAST IN MARKETING

▶ PRICE – Saying is not thesame as paying! 3F doesn‘tcount either.

#3 FAIL FAST IN MARKETING

▶ DISTRIBUTION - Do youhave effective communicationand distribution channels? Howmuch it will cost you to get onecustomer?

EXAMPLE#3 FAIL FAST IN MARKETING

▶ tested search engine marketing (SEM) ▶ found out that acquiring new customer cost $230 ▶ while their product costs only $99▶ focused on viral marketing (referral program) that

finally worked well

#4 START MARKETING WITH A SMALL BUDGET

Research matters

Focus on building value

Fail fast in marketing

Start marketing

with a small budget

#1 #2 #3 #4

#4 START MARKETING WITH A SMALL BUDGET

of those who were already on the market had a consistent marketing plan while most of others were

waiting for...

36,3%

#4 START MARKETING WITH A SMALL BUDGET

▶MVP – Real marketing startswith low fidelity MVP, customerinterviews and real marketexperiments.

#4 START MARKETING WITH A SMALL BUDGET

▶TESTIMONIALS – get realcustomer testimonials evenbefore the launch! Just imaginehow that could change yoursales…

#4 START MARKETING WITH A SMALL BUDGET

▶MARKETING PLAN –Crafting positioning statement,marketing strategy, andmarketing plan requires effort,not money!

#4 START MARKETING WITH A SMALL BUDGET

▶SALES & FEEDBACK –you have to do things that don’tscale: personally reach out potentialcustomers, get the feedback, andadjust your sales process

#4 START MARKETING WITH A SMALL BUDGET

▶ Started a blog about the problems intended to solve▶ Instead of beta testing they asked for a feedback▶ Built a list of 14.000 interested buyers before even

the product was created

Success doesn’t just come and find you. You have to go and get it!“ “

TIME FOR Q&AReady to take your questions