The_art_marketing_C_Ellwood_CleantechOpen_Academy_2012

The Art of MarketingChristina Ellwood, Founder/CEO, Moreland Associates

Cleantech Open Academy 2012, San Jose, California

2 Cleantech Open Confidential Information – All Rights Reserved

Agenda/Overview

Introductions

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 TractionMilestones

© 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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Choosing the Segment


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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Momentum Stage

Discovery Phase:Sales/Marketing R&Don multiple segments

Choose SegmentBuild revenuemomentum in chosen segment

CSource: Christina Ellwood, www.morelandassoc.com


Solution - Replicable Sales ASAP

Identification Posits & Purposes

Methods & Metrics Execution

ReplicableSales

Analysis

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

Sales & Marketing R&D Process

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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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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

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A Caution

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

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Source: Christina Ellwood, www.morelandassoc.com

The Market


“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

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Source: Steve Blank, www.steveblank.com


TotalAvailableMarket

Market Diagnosis: Total Available Market, Served Available Market, Target Market

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ServedAvailableMarket

Target MarketSAM = how many can I reach

with my sales channel?

TAM = how big is the universe?

Target Market = Who are the buyers we will target for the next 12 months?

Adapted from Blank, Steven B. (2009) “How Big Is it?” High Tech Entrepreneurship Class at Stanford


Technology Adoption Life Cycle and Adopters

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

Techies Visionaries Pragmatists Conservatives Skeptics

Chasm

Pragmatists won’t follow visionaries

Innovators Early Adopters

EarlyMajority

LateMajority

Laggards

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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


Chasm

CTO Semi-Finalists: Indicate where your market is today on the Technology Adoption Life Cycle Curve below:

Techies Visionaries Pragmatists Conservatives Skeptics

Innovators Early Adopters

EarlyMajority

LateMajority

Laggards


How do we recognize a good 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

• Can afford or find the money for our whole product

• Is respected by others who will follow his/her lead

• 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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Customer DevelopmentHow will you do customer development?

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

How will you “get out of the building” to discover and validate the needs of: • Your “end customers”?• Your channel partners?• Your suppliers?• Other stakeholders?

04/07/23

How should you adapt this process for different countries?

CompanyBuilding

CustomerDiscovery Customer

ValidationCustomer Creation

WEBINAR: August 28th at 2:30 PDT

Tell Your Story, Sell Your StoryMaia Nilsson & Hollie Rogin

Posit Partners


Tell Your Story, Sell Your Story

Moore Positioning Exercise


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 iPodthat offers Apple’s legendary ease-of-use, elegance, & cool factor.Unlike Blackberries & other smart-phonesour product offers clearer phone calls, faster browsing, and photos, music

and movies that come to life in the palm of your hand.



Moore’s Positioning Exercise – The ClaimCTO Semi-Finalists: What’s Your Positioning?

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


Marketing Execution Fundamentals


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– Training– Customer service– Policies

Collectively referred to as Brand

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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


Marketing to buyer’s process

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Word of mouthReferralsMediaSearch engineAdvertisingBlogsEventsSpeakersDirect Mail

Web siteMessagingWebinarWhite PaperPresentationGive awayReferral

Demonstration30-day TrialPilotAnalyst reportMedia coverageCase StudyReferencePositioning

ProfessionalismExecutivesInvestorsMedia/AnalystsLeadershipExpertiseAlly

Marketing

PricingSLAWarrantyHelping buyer’s internal champion


Buyer process

Interest Learn Evaluate Justify Purchase

Sales Process

Influence Confirm Compete Offer Close


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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How will target buyers find out you exist? (Awareness)

• 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 on-line– Search– Social Media

• See signage or Ad– Advertising, trade show, flyers– Billboard, building


http://images.google.com/imgres?imgurl=http://www.aintreehospitals.nhs.uk/Library/hospital_services_images/Ear.jpg&imgrefurl=http://www.aintreehospitals.nhs.uk/hospital_services/audiology.asp&usg=__W6PrT-NhSBRzUYH5WW_b2U8kooI=&h=856&w=546&sz=220&hl=en&start=2&um=1&tbnid=R_kp1PG-SIfWFM:&tbnh=145&tbnw=92&prev=/images%3Fq%3Dear%26hl%3Den%26rls%3Dcom.microsoft:*:IE-SearchBox%26rlz%3D1I7WZPA_en%26sa%3DN%26um%3D1

http://images.google.com/imgres?imgurl=http://www.altgate.com/email.jpg&imgrefurl=http://www.altgate.com/blog/2009/02/&usg=__FKCoDDWHq_CofjWxdGz6p1OJqH4=&h=402&w=396&sz=34&hl=en&start=7&tbnid=enbeDF7KiOJzUM:&tbnh=124&tbnw=122&prev=/images%3Fq%3Demail%26gbv%3D2%26hl%3Den%26sa%3DG


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 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 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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Dominating the Segment – Market Traction


Whole Product - Definition

For a given target customerWith a compelling reason to buyThe whole product is: the complete set of products and services neededTo 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?

TSource: Tom Kosnik, Global Entrepreneurial Marketing, Stanford University


Whole Product – Information Technology Example

The whole product is the minimum set of products and servicesneeded to fulfill the target customer's compelling reason to buy.

TheProduct

Hardware

Software

Legacyinterfaces Connectivity

Pre-salesservices

Post-salesservice

& support

Peripherals

Consulting

ComplementaryProducts

ComplementaryServices

Source: High-Tech Marketing © 2005, TCG Advisors LLC

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

The whole product is the minimum set of products and servicesneeded to fulfill the target customer's compelling reason to buy.

TheProduct

Hardware

Software

Connectivity

PeripheralsComplementary

Products

ComplementaryServices

Source: High-Tech Marketing © 2005, TCG Advisors LLC

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ComplementaryProducts


Managing Partners: Partner Give - Get Analysis

Potential Stakes to bet on the Partnership

Partner can give: Partner can get:

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: Tom 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 Partnership

You can give: You can get:

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: Tom Kosnik (2000), “Managing a Portfolio of Polygamous Partnerships?” Talk for Stanford Center for Professional Education, January 26, 2000

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Sales Strategy


YourCompany Retailer

Distributor

UltimateCustomers

Utilities

Systems Integrator,VARReseller

How do you choose sales model?

Direct Sales

Online

Source: Tom Kosnik and Christina Ellwood

Competitors


Every company has competitors

Competitors

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Every company has competitors

Competitors

•Number 1 – status quo•Internal solutions•Other start-ups•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 EllwoodFounder/CEOMoreland [email protected] 510-708-4855

Moreland Associates focuses on helping technology companies build market traction. Services include:

– Interim CMO, VP Marketing– Messaging and Positioning– Buyer Cycle Optimization– Product Marketing– Business and Marketing Strategy