TiE Institute – Oct 09 – Slide 1

Marketing on a Shoestring Budget

TiE Institute – Oct 09 – Slide 2

AGENDA

• 4Ps of Marketing• Where is your Elephant?• Product Segmentation• Pricing and Distribution•----------------------------------------------• Promotion & its 3 Pillars• Awareness & Social Media• Lead Generation

TiE Institute – Oct 09 – Slide 3

Select Core 4Ps of Marketing

Product Process People

Positioning Place Prayer

Promotion Packaging Pricing

TiE Institute – Oct 09 – Slide 4

What is “Marketing”?

•For a marketing plan to be successful, the mix of 4Ps must reflect the desires of the consumers in the target market – Philip Kotler

•Peter Drucker --- Marketing is – creating a product that sells itself– creating a product people want to buy– creating an environment that encourages people to buy

TiE Institute – Oct 09 – Slide 5

Where is your Elephant?

BA

C

TiE Institute – Oct 09 – Slide 6

Where is your Elephant?

• Staying ahead of the Elephant (A)–Difficult strategy to execute–Need at least 2 years lead–Some examples – Borland, Gupta Software, Harvard

Graphics

• Staying below the Elephant (B)– Starting with a niche – Some examples – F5, Packeteer, Portal Software

• Riding the Elephant (C)– Bumpy but the safest of the three alternatives– Some examples – Airespace, Google, Thousands of

app developers for Apple, Goog, MS, Oracle

TiE Institute – Oct 09 – Slide 7

What is your Product like?

• Is your Product– Physical– Services– Software

• Is your Product– Pain Killer – Vitamin

• Does your Product– Fit an existing market category– Creating a new market segment

TiE Institute – Oct 09 – Slide 8

Segmenting & Finding your Customers

• Yahoo Vs Google• MySpace Vs Facebook• Packet 8 Vs RingCentral

TiE Institute – Oct 09 – Slide 9

Choosing the Place/Distribution

• Demand Creation is always done direct by the vendor

• Product Delivery can be done Direct by the company or Indirect through Channels (Agent, VAR, Distributor)

TiE Institute – Oct 09 – Slide 10

Pricing for Software has changed

• Software Licensing model moving to Subscription• Think of Business model while designing Products• Touch with Customer is not always desirable

TiE Institute – Oct 09 – Slide 11

Thanks / Q&A / Contacting Me

• R. Paul Singh: EIR, Lightspeed Ventures

• Email: rps@thesinghs.com

• Twitter/Facebook/Linkedin: rpaulsingh

• Blog: mobilepov.wordpress.com

TiE Institute – Oct 09 – Slide 12

What is “Promotion”?

• Explain • to people who should care about what you’re selling• in the way they want to hear about it (radio, print, etc)• in words and concepts they will understand• why what you’re selling meets their needs.

TiE Institute – Oct 09 – Slide 13

What is “Promotion”?

In short: Marketing Promotion is Education.

TiE Institute – Oct 09 – Slide 14

How has the internet changed promotion?

Old• News outlets limited• General demographics• Big $, fewer viewers . . .

New• News free, but too much• Specialized audiences• Less $ per viewer – but lots

Costs less to make noise, but / so there’s more.

How do you stand out?

TiE Institute – Oct 09 – Slide 15

Marketing Promotion: Three Pillars

15

TiE Institute – Oct 09 – Slide 16

Marketing Promotion: Three Pillars

16

X

TiE Institute – Oct 09 – Slide 17

Awareness

• Was: Direct Mail, Television, Radio, Print Ads, Articles in Magazines…

• Is now also: “Social Media Marketing”…

TiE Institute – Oct 09 – Slide 18

Viral / Social Media, Defined

• Viral = historical term• (A) Transmissible person-to-person• (B) Grows at an exponential rate

• Social Media = current systematized use of viral tactics, through formalized mechanisms• Twitter• YouTube• Facebook• LinkedIn• Digg• …and the world of RSS, blogs, email, and word of mouth

TiE Institute – Oct 09 – Slide 19

Viral / Social Media, Defined• Viral = historical term

• (A) Transmissible person-to-person• (B) Grows at an exponential rate

• Social Media = current systematized use of viral tactics, through formalized mechanisms• Twitter• YouTube• Facebook• LinkedIn• Digg• …and the world of blogs, email, and word of mouth

aka “Communicating with lots of people without spending lots of money,

by getting them to do the work for you.”

TiE Institute – Oct 09 – Slide 20

Primer: 8 Steps to Buzz via Social MediaThe Eight Commandments…

• Understand what you’re trying to sell, to whom, how they prefer to hear about it, and in what terms. Target – don’t sell Nuke Reactors on twitter?

• Craft the message(s). What do you want each audience (purchasers, media, mass audience) to hear?

• Set up your infrastructure: Twitter Account(s), Facebook App, RSS tags on blog on your site, Digg Link buttons, Video… what’s appropriate?

• Craft content. What’s the story around your message that makes it socially transmissible? Is it cool, new, funny, controversial, insightful…?

• Be ready to respond, reciprocate (have space to link back, time to reply)

• Be proactive. Don’t just post; submit. Participate. Comment on others!

• Reward good behavior. Feature your customers, make ‘em heros.

• Do not spin. Do do lots of news and “press releases”

TiE Institute – Oct 09 – Slide 21

Lead Generation

• Was: Trade Shows, Direct Mail, 800-numbers, Yellow Pages…

• Is Now Also: Keywords, Landing Pages, Social Media Destination…

TiE Institute – Oct 09 – Slide 22

Example Lead Generation Process

SuspectNo indication of interest or potential / Cold lead

ProspectContact made / Indication of interest

OpportunityIdentified project, or VMware use case

Qualified“decision criteria” known / “buying process” known / Funds or budget available

ValidatedTechnical fit confirmed by prospect /Business fit confirmed by prospect

SelectedCustomer confirms that you are selected vendor / “Reverse timeline(RTL)” done

NegotiationBusiness terms being negotiated

ClosedContracts signed / PO in hand / No “hair” on deal

Lists from industry groups, cold-calling, ads, & direct email,

keywords, referrals

“Opt-In”: responses to ads & email, trade show leads, evals

Solutions Guides, Webinars, Customer Case Studies

Datasheets, Pricing Guides, Powerpoint Prod. Presos, Demo

Whitepapers, Reviewers guides, guided evaluations & demos

Comparitive documents, competitive guides

Incentive (“buy now”) programs

TCO and ROI studies

TiE Institute – Oct 09 – Slide 23

Starter Example: VMware as Haiku

• Grabber– An intriguing opening line that addresses a problem you have– ex: “Give Rebooting the Boot!” (rebooting is bad, annoying, timewasting)

• Value– What unique and valuable thing YourCo does to address that problem– ex: “Run multiple operating systems on a single machine without rebooting”

• Call to Action– Identifier and command to do something– ex: “Free 30-day trial, click here!” [VMware logo constant through all 3 lines]

TiE Institute – Oct 09 – Slide 24

Summary

Product

Customer

Place

Promotion Pricing

TiE Institute – Oct 09 – Slide 25

Thanks / Q&A / Contacting Me

• Email: kevin@stupidmarketing.com

• Twitter: virtualkev

• Facebook & Linkedin: only if you’re a friend (no offense)

• Web: http://blog.stupidmarketing.com

• Stanford Class: http://stanford.stupidmarketing.com

• Amazon: http://amazon.stupidmarketing.com