Market and Communications for

Tech Startups

Beyond the Bench

November 2012

Agenda

Introduction CBA

Objectives for tonight

Questions

Business Consulting, Marketing

We work with our customers on Envisioning new businesses and the products, services, marketing and route

to market. Creating the tools to market, communicate, brand and sell. Engaging organizations and people in dialogues that provide insights into their

needs and move past fears.

Background

Diverse industry experience: health, medical devices, telecom, environmental, sustainability,

kiosks, industrial,

Diverse projects: Market Assessment, Industrial Design, Product Development,

Product Management, Business Strategy, Communications, PR, Marketing, Sales

Diversity of business sizes and models: government, not for profit, private, public, startup, fortune 500

What really matters

Entrepreneurial Geeks, Science Guys Communicators, Engineer, DesignersCatalysts, connectorsAbility to see big picture and connect it to tacticsBeliever in the potential of technology and sustainability We are the guys who took the train set apart to see if we can make it go fasterWe are crazy about great design

Objectives

Basic understanding of what Marketing is Explanation of the three foundational elements to any marketing programExamples of how to establish Key Messages, Research, Target Markets

What gets marketed?

GOODS SERVICESEVENTS

EXPERIENCESPERSONS

PLACES

PROPERTIES ORGANIZATIONSINFORMATION

How can we identify and choose profitable market segments?

How can differentiate our offer from our competition?

Who is our competition and how big is the market?

How should we react to competitors?

What should our message and brand be?

How should we organize our public relations, advertising, social media, website,

Are we selling directly or is someone selling for us?

How much should we sell the product for?

Common marketing problems

Why is marketing important for a startup?

Because your company needs to be “loved” Parents always love you even when the don’t understand what the

heck you are talking about Investor love is conditional: only after they understand you, your

market, the product and how they can make money!

Because your company needs customers Parents will always show off your product to friends, even if it sucks Customers wont let you in the front door if you don’t have a good

value proposition, message, clear brand position

Marketing Definition

Marketing is the Art and Science of choosing target markets and getting, keeping and growing customers through creating, delivering and communicating superior customer value. Philip Kotler

Terms

Communications plan

Marketing plan

Sales plan

Branding

Social media plan

Product strategy

Advertising plan

Product positioning

Common to all the terms

Target market: A group of people who will buy the product

Key Messages: how you describe the value your product and company offers

Value proposition: collection of reasons why a person or company benefits from buying something

Target Market

Pragmatic Questions Market opportunity

Size and location of market The market segment and its demographics Market and Sales Characteristics Distribution Channels barriers (trade, legislative) The trends technology The trend in applications

Competitive position Competing products in the market, what can we learn from them How does the solution compare to other offerings How does it compare to other organizations

Market assessment: opportunity

Where did the information come from (secondary sources)? Research Reports: Articles: Economist, Harvard Business Review, Popular Mechanics Annual Reports: Competitors Patents

What can you do with it Calculated the sales, in units, of the competitors Calculated the total market Calculated the price being paid for cells Determined future demand Determined where the patents were being held Created a customized SWOT

Market assessment: buyer characterization

Where did the information come from (primary sources)? Interviews with potential customers Interviews with competitors

What can you do with it Learned first hand what is needed to sell into market Understood the performance requirements Received input into how the competition sells, and its personality Received input on pricing Value proposition

Value Proposition

Collection of reasons why a person or company benefits from buying something. It is how firms differentiate and position their brands in the marketplace.

What “pain” does your product solve What will motivate them to buy your product? How much are they willing to pay for your product? Where do they get their information about the product? What are the risks to buying your product? How a customer positions your product versus your competitors

Key messagesKey messages are the core message you want your target audiences to hear and remember.

They create meaning and headline the issue. At a high level they are your elevator pitch They sum up your value proposition, company values and vision Criteria for key messages

Be believable — support with evidence Be understood — reflect stakeholders understanding Be distinctive — clear competitive awareness Be agreed — company strategy Drive your agenda Avoid negativity Be credible — know your stuff Enhance positively

Key Messages

Message 1 StoryFacts

Key Messages

Messaging Worksheet

A market-driven model for managing and

marketing technology products

Business

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© 1993-2010 Pragmatic Marketing, Inc. All rights reserved.

Follow a pragmatic model

Answers the common marketing questions. It is a set of controllable, tactical marketing tools that the firm blends to produce the response it wants in the target market

Product: Variety, features, brand name, quality, design, packaging, and services.

Price: List price, discounts, allowances, payment period, and credit terms.

Place: Distribution channels, coverage, logistics, locations, transportation, assortments, and inventory.

Promotion: Advertising, sales promotion, public relations, and personal selling, online, offline

The Marketing Mix

Lessons learned

Product development and marketing is a contact sport The more contact you have with the market, potential competitors,

distributors etc, the better a chance you have succeeding Innovation does not always come from engineering, it comes from listening

to customer needs Don't make it a junior activity- they and your company will take a beating Always be open and honest on interviews

Resources Pragmatic Marketing Model Vancouver Public Library Harvard Business Review, The Economist Dunn and Brad Street Google, Gartner, Ipsos Reid, Marketresearch.com

Contact

Clay Braziller and Associates 604 961 6360 clay@braziller.com

References

http://www.marketingteacher.com/powerpoint

Harvard Business Review Magazine

Ipsos for market studies

Vancouver Public Library for reports

Marketing as holistic system

Holistic Marketing Concept

Internal Marketing

Performance Marketing

Relationship Marketing

Integrated Marketing

CustomersChannel

PartnersSales Revenue

Brand & Customer Equity

EthicsEnvironmentLegal

Commodity

Communications

Products & Services

ChannelsMarketing DeptSenior Mgmt

Other Depts

Implications of marketing

Who are our existing / potential customers?

What are their current / future needs?

How can we satisfy these needs?

Can we offer a product/ service that the customer would value?Can we communicate with our customers?Can we deliver a competitive product of service?

Why should customers buy from us?

Market Segmentation and Targeting

Segmentation:

The process of dividing a market into distinct groups of buyers with different needs, characteristics, or behavior who might require separate products of marketing programs.

Targeting:

Involves evaluating each market segment’s attractiveness and selecting one or more segments to enter.

Evaluating Market Segments

Segment size and growth:

Analyze current segment sales, growth rates, and expected profitability.

Segment structural attractiveness:

Consider competition, existence of substitute products, and the power of buyers and suppliers.

Company objectives and resources:

Examine company skills and resources needed to succeed in that segment.

Offer superior value and gain advantages over competitors.

Market Segmentation

Key segmenting variables:

Geographic

Demographic

Psychographic

Behavioral

Different segments desire different benefits from products.

Differentiation and Positioning

A product’s position is:

The way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.

Perceptual positioning maps can help define a brand’s position relative to competitors.

Evaluating Market Segments

Segment size and growth:

Analyze current segment sales, growth rates, and expected profitability.

Segment structural attractiveness:

Consider competition, existence of substitute products, and the power of buyers and suppliers.

Company objectives and resources:

Examine company skills and resources needed to succeed in that segment.

Offer superior value and gain advantages over competitors.

Differentiation and Positioning

A product’s position is:

The way the product is defined by consumers on important attributes—the place the product occupies in consumers’ minds relative to competing products.

Perceptual positioning maps can help define a brand’s position relative to competitors.

Key Messages