Technology Ventures: From Idea to EnterpriseChapter 11: Summary What is the best way to attract,...

Technology Ventures: From Idea to EnterpriseChapter 11: Summary

What is the best way to attract, serve, and retain customers?

Any new firm needs to build a marketing plan that describes how it will attract, serve, and retain the customers targeted for its products.

Summary

Successful salesmanship is 90 percent preparation and 10 percent presentation.

Bertrand R. Canfield

The Marketing and Sales PlanThe Marketing and Sales Plan

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• Acceptance & recognition in the target market (How to gain? – in sequence)

– Describe the product offering– Describe the target customer– State the marketing objectives– Gather information through market research– Create a marketing plan– Create a sales plan– Build marketing and sales staff

• Marketing vs. sales… Marketing is everything that you do to reach and persuade prospects. The sales process is everything that you do to close the sale and get a signed agreement or contract

marketing is :1. Discovering what product, service or idea customers want. 2. Producing a product with the appropriate features and quality.3. Pricing the product correctly. 4. Promoting the product; spreading the word about why customers should buy it. 5. Selling and delivering the product into the hands of the customer.

Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a customer to buy (actually exchange something of

value for) a product or service.

marketing is :1. Discovering what product, service or idea customers want. 2. Producing a product with the appropriate features and quality.3. Pricing the product correctly. 4. Promoting the product; spreading the word about why customers should buy it. 5. Selling and delivering the product into the hands of the customer.

Selling is one activity of the entire marketing process. Selling is the act of persuading or influencing a customer to buy (actually exchange something of

value for) a product or service.

Chapter 11: Marketing

Marketing is a set of activities with the objective of securing, serving, and retaining customers for the firm’s product offerings.


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Technology Ventures: From Idea to Enterprise

The purpose of the marketing plan is to describe the steps required to achieve marketing objectives.Implementation thru the marketing programme.

Chapter 11: Table 11.1

The Six Elements of the Marketing Plan

•Marketing Objectives

•Customer Target Segments

•Product Offering Description

•Marketing Research and Strategy

•Marketing Mix ( - Price, Product, Promotion, and Place (channels)). - the 4 Ps

•Customer Relationship Management

The Marketing and Sales PlanThe Marketing and Sales Plan1111


Chapter 11: Figure 11.2

Opportunity

Mission & Strategy

Business Model

Target Market & Customer

Marketing Objectives

Marketing Research

Marketing Plan

Sales Plan

Building A Marketing Plan and a Sales Plan


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The Marketing objectives statement is a clear description of the key objectives of the marketing programme.

*quantifiable*given time period

Chapter 11: Market segment

A market segment consists of a group with similar needs or wants and may include geographical location, purchasing power, and buying attitudes.


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market segmentation divides market into segmentations that have different buying needs, wants, and habits. Different segments will require different marketing strategies. Geographic – city, region,

“urban”

Demographics – age, income, gender, social class…Psychographic – lifestyle &

personality that influence customer’s wants and needs.

Chapter 11: Table 11.2 – Crucial questions to ask about target markets


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Four crucial questions to ask about target markets (Mullins, 2006)


A best customer is one who values your brand, buys it regularly whether your product is on sale or not, tell his or her friends about your product, and will not readily switch to a competitor.

Chapter 11: Positioning

Positioning is the act of designing the product offering and image to occupy a distinctive place in the target customer’s mind.


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Positioning Map

Why “positioning”?

•Product can be differentiated to some extend by communicating the most highly valuable benefit to the buyer. •Enables the firm to differentiate the product in mind, of the prospect.e.g. Volvo connotes on Safety, FedEx – “overnight”

A positioning map for personal computers showing the position of a new product, EasyPC.

Chapter 11: Figure 11.3 - Positioning Map

Low Medium High

Ease of Use

High

Medium

Low

X EasyPC

X Apple Mac X HP

X Dell

X Gateway

Performance Price


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*relative to competitors

Chapter 11: Unique selling proposition

The unique selling proposition is a statement of the key customer benefit of a product that differentiates it from its competition.


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A product offering communicates the key values of the product and describes the benefits to customers.

A product offering communicates the key values of the product and describes the benefits to customers.

Hence, the suitable USP for the “hypothetical” EasyPC is?

Chapter 11: Exercise

Create a positioning map for the airline industry and describe the position of a new product that provides regional service using a jet with 72 seats. Describe its unique selling proposition.


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Chapter 11: Positioning statement

The positioning statement describes the customer, the need, the product, the key benefit and the product differentiation.


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Chapter 11: Figure 11.4 (a)

Positioning Statement

• For (target customer)

• who (statement of need or opportunity)

• that (statement of benefit)

Differentiation

• Unlike (primary competitive alternative)

• our product (statement of primary differentiation


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Chapter 11: Figure 11.4 (b)



Chapter 11: Market Research

Market research is the process of gathering the information that serves as the basis for a sound marketing plan.



Objectives of marketing research – learn how to:

Attract customers Retain customers

Chapter 11: Table 11.3 – Market research process

The Market Research Process

1. Define the product and its unique selling proposition. Identify the customer segment. Develop a set of questions that will provide the necessary data on customer preferences and behavior.

2. Collect the data using surveys, published sources, focus groups, interviews, and other means to secure it. (PRIMARY or secondary sources)

3. Analyze and interpret the data to determine if the product meets the needs or wants of the customers and determine whether they will pay the price you seek.

4. Draw conclusions on the customer and their needs, preferences and behavior.


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Chapter 11: Figure 11.5 – customer development process

Customer development process – the process of discovery, validation, and creation of customers leading to company building.


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An important use of market research is to estimate the market potential for maximum sales under expected conditions. Therefore, the sales forecast can be estimated.

• What is a “brand”?

• A brand is something that resides in the minds of customers. It adds value to the product.

• “Brand Equity” is the perceived worthiness of the brand in the mind of the customer and may be portrayed as the sum of the Four dimensions as shown below:

BRAND EQUITY.BRAND EQUITY.

A brand is a combination of name, sign, or symbols that identify the goods sold by a firm.

Four dimensions:Brand awareness or familiarity.

Perceived quality and vitality of the product.

Brand associations: connects the customer with the brands.

Brand loyalty: a bond or tie to the product.


The Four Elements of the Marketing Mix

Product Price

Product VarietyQualityDesignFeaturesBrand NamePackagingWarrantiesReturns Policy

List PriceDiscountsCredit TermsPayment Period

Promotion Place

Public RelationsAdvertisingSales ForceDirect Messages

ChannelsLocationsInventoryFulfillment


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The marketing plan describes the key methods of differentiating the product.

•Advertising is the art of delivering a sales proposition and positioning the product uniquely in the customer’s mind.

•Word-of-mouth – viral marketing

Chapter 11: Customer Relationship Mgmt.

Customer relationship management (CRM) consists of a set of conversations with the customer.


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“Conversations” consist of

Economic exchanges

The product offerings which is the subject of the exchange

The space in which the exchange takes place

The context of the exchange


Conversations

Design Build Sell Service

Search Acquire Use Maintain Dispose

The Firm

The Customer

The Customer-Firm Relationship as Conversation


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*Create a customer database*Create a customer database




Diffusion of technology and Innovations


The Chasm Model

CHASM


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2.5%

13.5%

34% 34%

16%

The large gaps between visionaries and pragmatists

Chapter 11: Selling

Selling is the transfer of products from one person or entity to another through an exchange mechanism.


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Identify the market

Make initial contact and establish a relationship

Determine customer problems & needs

Create a solution for the problem

Present the solution

Ask for the order

Confirm the order

The solution selling process.

Chapter 11: Principle

A sound marketing plan enables a new firm to identify the target customer, set its marketing objectives, and implement the steps necessary to sell the product and build solid customer relationships.


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Chapter 11: Exercise

Describe a marketing mix for the regional jet airline designed earlier.


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Chapter 11: Venture Challenge

VENTURE CHALLENGE1) Describe the customer and the target segment you have identified.

2) Develop a positioning statement using the template in Figure 11.4.

3) Using the format of Table 11.3, describe the market research plan.

4) Briefly describe the marketing mix for your product.

5) How will your venture sell its product and develop customer relationships?

6) Research an industry and determine the length of the sales cycle in that industry.


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Chapter 11: DVD Videos

DVD Video

“Passion and the Customer”

Vic Verma (Savi Technology)

“Seed the Clouds and Watch the Sales Grow”

Guy Kawasaki (Garage Technology Ventures)


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Technology Ventures: From Idea to EnterpriseChapter 11: Summary What is the best way to attract,...

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