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The Global Entrepreneurial Marketing (GEM) Toolkit

Created By Tom Kosnik Fenwick and West Consulting Professor Stanford Technology Ventures Program For

August 14, 2011

Real Time Application of the GEM Marketing Toolkit: Lets apply the Marketing Tools to one of your companys products or services. We will use product to refer to both products and services What you learn on one product you can teach your employees to apply to others in the months ahead.
6/8/2012 2

Marketings Mission: Discover Valuable Prospects & Help Sales Convert them to Valuable Customers
Marketing Activities
Awareness Programs to Condition Market AR, PR, Web/SEM, Social Media DG Programs to Expand Funnel Corp, Bus, & Regional Programs, Response Nurturing, Tele-qual Sales Enablement to Speed Deal Cycle Sales Prospecting Support, Customer References, Case Studies, Collateral, PPT, RFP Support, AR Closing Programs to Enhance Conversion Competitive Intel, Objection Handling Materials, QMI Support, Closing Events, Exec. Presentations

Marketing Funnel
Marketing Qualified Leads Sales Accepted Leads

Sales Qualified Leads

Impressions

Sales Funnel

Deal Sourcing & Qualification

Proposal Creation

Deal Closure

Marketing Involvement Sales Involvement

Sales Prospecting, Tactical Campaigns

Lead Qualification, Opportunity Mngmt, Solutioning

Objection Handling, Contract Negotiation, Closing

Agreement to Purchase

Pre-Contract

Proposal

Inquiries

Sales Activities

Organize Your Marketing Activities with GEMs DE-DART Architecture


DIAGNOSIS Where on the TALC? What market opportunity? EXPERIENCE Why might customers/channels resist? DECISIONS - What is your product/marketing plan?
ANALYSIS - Why is your plan the best alternative? REALITY TEST - How to validate our assumptions by with customers? What are the risks? How to manage them?
Kosnik, Thomas J. (1990) First created DDART for High-Tech Marketing Course, Stanford University, Based on synthesis of Bonoma and Kosnik Marketing Management: Text and Cases (1990) and Kosniks consulting experiences with startups and global technology companies from 1978 1989. DDART became DE-DART with addition of experience in 2010, thanks to Lena Ramfelt.

6/8/2012

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 5 Reality Test

Technology Adoption Life Cycle (TALC)

Main Street Tornado Total Assimilation

Early Market Chasm Innovators Early Adopters


6/8/2012

Bowling Alley Early Late Majority Majority

Laggards

Sources: Moore (1991, 2002), Crossing the Chasm, Moore (1995, 2002), Inside the Tornado.

Types of Adopters
Each adoption type describes individuals With different risk orientations toward technological innovation Who are make decisions about whether and when to adopt the innovation On behalf of: Themselves The organization where they work Their family Their community
6/8/2012 Source: High-Tech Marketing 2005, TCG Advisors LLC 7

Innovators - Technology Enthusiasts


Primary Motivation Learn about new technologies for their own sake Key Characteristics Strong aptitude for technical information Like to alpha test new products Can ignore the missing elements Do whatever they can to help Challenges Want unrestricted access to top technical people Want no-profit pricing (preferably free)
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Text Source: High-Tech Marketing 2005, TCG Advisors LLC

Early Adopters - The Visionaries


Primary Motivation Gain dramatic competitive advantage via revolutionary breakthrough Key Characteristics Great imaginations for strategic applications Attracted by high-risk, high-reward propositions Will commit to supply the missing elements Focused on gains so not price-sensitive Challenges Want rapid time-to-market Demand high degree of customization and support

6/8/2012

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

Early Majority - Pragmatists


Primary Motivation Gain productivity improvements via evolutionary change Key Characteristics Astute managers of mission-critical applications Understand real-world issues & tradeoffs Focus on proven applications Like to go with the market leader Challenges Insist on good references from trusted colleagues Want to see the solution in production at the reference site 10

6/8/2012

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

Late Majority - Conservatives


Primary Motivation Just stay even with the competition Key Characteristics Better with people than technology Risk averse Price-sensitive Reliant on a single, trusted advisor Challenges Need pre-assembled solutions Would benefit from value-added services. Do not want to pay for them

6/8/2012

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

11

Laggards - Skeptics
Primary Motivation Maintain status quo Key Characteristics Good at debunking marketing hype Disbelieve productivity-improvement arguments Believe in the law of unintended consequences Seek to block purchases of new technology Challenges Not a customer Can be formidable opposition to early adoption
6/8/2012 Text Source: High-Tech Marketing 2005, TCG Advisors LLC 12

People adopt for different reasons at each phase of the technology adoption life cycle (TALC)

Main Street Tornado Total Assimilation

Early Market Chasm Innovators Early Adopters


6/8/2012

Bowling Alley Early Late Majority Majority

Laggards

Sources: Moore (1991, 2002), Crossing the Chasm, Moore (1995, 2002), Inside the Tornado.

13

The Chasm occurs because pragmatists refuse to follow visionaries in the case of Discontinuous Innovations

Visionaries

vs.

Pragmatists

Adventurous
Early buy-in attitude Think Big Go it alone Spend big

Prudent
Wait-and-see Manage expectations Maintain relationships Spend to budget

First strike capability Think Pragmatists are pedestrian


6/8/2012

Staying power Think Visionaries are dangerous


14

Pragmatists don't trust visionaries as references.

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 15 Reality Test

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

TAM = how big is the universe?

Total Available Market Served Available Market

SAM = how many can I reach with my sales channel?

Target Market
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

16

Team Exercise
Meet with your workshop team mates Where is the product category for each of your products on the Technology Adoption Life Cycle (TALC) in 2011? What is your estimate of the Total Available Market, (TAM), Served Addressable Market (SAM) and Target Market for each of your products?

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17

Diagnosis: Where are your products on the TALC?

Main Street Tornado Total Assimilation

Early Market Chasm Innovators Early Adopters


6/8/2012

Bowling Alley Early Late Majority Majority

Laggards

Sources: Moore (1991, 2002), Crossing the Chasm, Moore (1995, 2002), Inside the Tornado.

18

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 19 Reality Test

Create Personas of your target customers

6/8/2012

Attorney Son Brother Single parent Golfer Baseball Fan Catholic Dog lover

Commercial Banker Daughter Wife Soccer Mom Marathon Runner Board Member of Art Museum Buddhist Cat lover

20

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 21 Reality Test

Customer Development How will you do customer development?


Customer Discovery

Customer Validation

Customer Creation

Company Building

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? How should you adapt this process for different countries?
Model Source: Blank, Steven (2006) Four Steps to the Epiphany, Cafepress.com
6/8/2012 22

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 23 Reality Test

1-to-1 Diagnosis: What are top 3 reasons your customers might not buy your products?
Communication Problems: Professional Silos I didnt know! I dont understand you.

Generation Chasm

Culture Chasms

Gender Chasm

Motivation Factors:
Skill Gaps:

Whats in it for me?

I dont know how.


Its against my principles and values! Thats the way I am. Its hard to change. I dont have the time, money or authority.
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Principles & Values Clash:


Personality Differences: External Constraints:
6/8/2012

Source: Kosnik, Blair, Ramfelt, and Pfeifer (1986, 2000, 2005, 2009) 1 to 1 Diagnosis.

1-to-1 Diagnosis: What are top 3 reasons channel partners might not support you?
Communication Problems: Professional Silos I didnt know! I dont understand you.

Generation Chasm

Culture Chasms

Gender Chasm

Motivation Factors:
Skill Gaps:

Whats in it for me?

I dont know how.


Its against my principles and values! Thats the way I am. Its hard to change. I dont have the time, money or authority.
25

Principles, Ethics & Values Clash:


Personality Differences: External Constraints:
6/8/2012

Source: Kosnik, Blair, Ramfelt, and Pfeifer (1986, 2000, 2005, 2009) 1 to 1 Diagnosis.

Team Exercise
Work in teams Continue with the product from each of your companies Create two personas of different target customers who both have a compelling reason to buy your product. Use 1-to-1 Diagnosis to identify top 3 reasons those customers may not buy.

6/8/2012

26

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 27 Reality Test

What is a Whole Product?


For a given target customer with a compelling reason to buy The whole product is: the complete set of products and services needed to fulfill that reason to buy
Motorcycle Example The Motorcycle The leathers The customization Warranty Service Replacement Parts The license The insurance Gasoline & Oil An open road What else?

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Whole Product to Deliver the Compelling Reason to Buy. Also known as minimum viable product (MVP). Software Example

Consulting Hardware

Complementary Services

Post-sales service & support Pre-sales services

Software

The Product
Peripherals

Complementary Products

Legacy interfaces Connectivity

The whole product is the minimum set of products and services needed to fulfill the target customer's compelling reason to buy.
6/8/2012
Source: High-Tech Marketing 2005, TCG Advisors LLC

29

Positioning Statement (that you will Validate with your Customers)


Market Definition

For (target customer)


Who (statement of the need
or opportunity)

Executive Summary

Opportunity Need

The (product name) Is a (product category)


That (statement of key benefit Unlike (primary competitive
advantage)

Corporate Presentation

Value/Compelling reason to buy

Competitive analysis

Elevator Pitch

the compelling reason to buy)

Web site, collateral

Differentiated position

Our product (statement of


primary differentiation)
Tagline

6/8/2012 6/8/2012

Source: High-Tech Marketing 2005, TCG Advisors LLC

30 30

Positioning Example: 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 iPod that offers Apples legendary ease-of-use, elegance, & cool factor. Unlike Blackberries & other smart-phones our product offers clearer phone calls, faster browsing, and photos, music and movies that come to life in the palm of your hand.

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

Team Exercise
Continue with one of your companys products Make a diagram of the whole product that enables your company and your partners to deliver the compelling reason to buy to your target customers. The whole product is also known as the minimum viable product (MVP) Draft a Positioning Statement for your product that you can later validate with visits to your customers and Channel Partners.

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Exercise: What is the whole product/MVP for your target customer?


Complementary Services
Complementary Products
Your Core Product

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Exercise: Create a Positioning Statement that you will Validate with your Customers

For (target customer)________________________________________

Who (need )_______________________________________________


The (product name)_________________________________________ Is a (product category)______________________________________

__________________________________________________________

That (compelling reason to buy)_________________________________

____________________________________________________________

Unlike (primary competitors)____________________________________ Our product (statement of


primary differentiation)_________________________________________

____________________________________________________________

6/8/2012

Source: High-Tech Marketing 2005, TCG Advisors LLC

34

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 35 Reality Test

The Value-Pricing Thermometer

Price of Substitutes Marketing Efforts

Objective Value The Ceiling Perceived Value Consumers Incentive to Purchase = [Perceived Value-Price]
Product Price Firms Incentive to Sell = [Price-COGS]

Cost of Goods Sold


The Floor
6/8/2012 Source: Dolan, Robert and John Gourville, Principles of Pricing, HBR, January 12, 2006 36

Business Goals And Pricing


Skim Pricing when...
You can show value to justify a premium You think new entrants/substitutes are unlikely You need high channel margins for push You need funds for R&D/Marketing You want to signal high quality

Penetration Pricing when...


You want to stimulate rapid trial You want market share & long term annuities You want to deter new entrants You must displace low-priced substitutes

6/8/2012

37

Team Exercise
Continue with one of your companys products. Using the pricing thermometer, what do you think is the ceiling and the floor for the price of this product?
Where is your current price on the thermometer? What could you do to raise the price?

Are you currently doing Skim or Penetration pricing?


Is that the right approach to meet your business objectives?

Do you know your customers perceived value for your


product?
If not, how can you find out?

6/8/2012

38

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 39 Reality Test

How to Design a Distribution Channel


Channel Decision 1: Channel breadth (* of outlets)

# of Outlets
Rolls-Royce Phantom @ $380,000

Exclusive
Mercedes 550 SL @ $85,000

Selective
Honda Civic @ $15,665

Intensive

6/8/2012

40

Channel Decision 2: Channel Mix


What is the most effective combination of brick and mortar and internet channels to go to market?
Direct Sales
Systems Integrator, VAR Reseller Distributor

Your Company

Retailer Online Partnerships

Ultimate Customers

Source: Tom Kosnik and Christina Ellwood

Channel Decision 3: Channel Margins


How much does each channel member earn?

6/8/2012

http://hbsp.harvard.edu/multimedia/flashtools/channelmargins/index.html

42

Channel Decision 4: Channel Functions


What functions will each channel member perform?
Selling Activities Personal selling Education Inquiry handling Needs assessment Market intelligence Service & Support Training Technical support Returns & exchanges Spare parts Maintenance/repair

The Value Of the Channel


Logistics Order processing Warehousing Breaking bulk Shipping Assortment building
6/8/2012

Financing & Terms Quantity discounts Credit Leasing options Insurance Taking title
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Team Exercise
Continue with one of your companys products/ Does the product need exclusive, selective or intensive distribution? Which mix of channels are you currently using to reach customers?
What other channels should you consider adding to reach new customers?

What are the profit margins for each channel member?


Can you change those margins to increase your profits?

What functions does each channel member perform?


Should you consider changing who does what?

6/8/2012

44

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 45 Reality Test

Marketing Communications Mix

Make sure you make explicit decisions for the Six Ms. Market Motives Message Media Money Metrics
6/8/2012

Who is our target audience? What is the objective of the communications? What is the point we want them to learn? What media will best get the message across? How much should we invest? When & how will we measure impact?
46

Adapted from: Dolan,Robert J. (1999), Integrated Marketing Communications, HBS Note # 9-599-087

Marketing Communications Mix: The Internet Expands the Marketing Communications Toolkit

6/8/2012

47

Web-Based Media Channels to Communicate with Customers and other Stakeholders


- To bring customers to your website based on search marketing, SEO, & targeted ads
- For info on customer preferences, viral marketing, targeted ads. - To find groups with common interests, do search marketing & targeted display ads - For info about and access to potential enterprise customers

- For viral marketing & sentiment analysis


- Communities where customers gather, to discover needs, improve products/services, create buzz
48

6/8/2012

Team Exercise
Continue with one of your companys products Discuss how you can use the 6 Ms to make decisions about the marketing communications mix for your product in the next year. Look at the new Web-based marketing tools and media channels on previous slides. Which of these tools and media channels are you using to market your company and products? Which you could try out in the next year? What experiments you could run to test the effectiveness of a web-based tool or media channel?

6/8/2012

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Exercise: Six Ms for your Product


Market
Motives

_____________________________________
_____________________________________

Message
Media

_____________________________________
_____________________________________

Money Metrics
6/8/2012

_____________________________________ _____________________________________
50

Adapted from: Dolan,Robert J. (1999), Integrated Marketing Communications, HBS Note # 9-599-087

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 51 Reality Test

Stakeholder Analysis to assess positions of customers or other stakeholders


Current (C) and Desired (D) Position - RE: Whatever you are selling Stakeholder Name Dan Summers Alice Fong Jitendra Singh Maria Gonzales C D C C D D Block Let Help Make C/D 1 to 1 Diagnosis Action Rx. External factor - Ask for help w/ budget constraint M. Gonzales. Cross-Cultural misunderstanding Apologise Ask for help w/ Communication M. Gonzales. Show how I can Motivation help bottom line

6/8/2012

Adapted from: Nader, Fred, (1990), Stakeholder Analysis Tool, National Training Lab.

52

Team Exercise
Work in teams Pick a customer or channel partner who you are currently trying to sell a product. Identify at least three stakeholders who will affect the sale. What is their current position regarding your product? What is their desired position? How will you get them to the desired position?
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Try Stakeholder Analysis for one of your companys customers or channel partners
Current (C) and Desired (D) Position - RE: Whatever you are selling Stakeholder Name Block Let Help Make 1 to 1 Diagnosis Action Rx.

6/8/2012

Adapted from: Nader, Fred, (1990), Stakeholder Analysis Tool, National Training Lab.

54

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 55 Reality Test

SWOT: Competitors Strengths & Weaknesses Can Create Opportunities & Threats for Us!
Strengths (of competitors) Weaknesses (of competitors) -

Opportunities (for us) -

Threats (to us)

6/8/2012

Novitsky, Donna, (2005) Adapted from: High-Tech Marketing 2005, TCG Advisors LLC

56

Team Exercise
Continue with one of your companys products Pick one leading competitor and do SWOT analysis

6/8/2012

57

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 58 Reality Test

Give-Get Partner Analysis

Potential Stakes to bet on the Partner can give: Partner can get: Partnership What assets will be put at risk in the partnership? 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: Kosnik (2000), Managing a Portfolio of Polygamous Partnerships? Talk for Stanford Center for Professional Education, January 26, 2000

6/8/2012

59

Team Exercise
Continue with one of your companys products Pick one Channel Partner and use the Give-Get partner analysis to discuss what the partner can give to and get from the partnership

6/8/2012

60

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 61 Reality Test

Use Economic Metrics to Create A ClosedLoop System for Value Creation


Employee Recruitment Employee Satisfaction
Employee Development Employee Retention

Employee Productivity

Value of the Whole Product

Customer Satisfaction

Customer Loyalty

A SelfActualizing Company Culture

Market Cap and PE Ratio

Market Share & ROI

Repeat Purchases Less Price Pressure Referrals Viral Marketing Market Intelligence Help with New Products Trust

6/8/2012

Adapted from Heskett, Jones, Loveman, Sasser, and Schlesinger (1994),Putting the Service-Profit Chain to Work, HBR, and Maslow on Management (1998).

62

Economic Analysis/Metrics
Customer
Customer Acquisition Cost, Lifetime Value of a Customer, Net Promoter Score (AKA Reference-ability, Customer Loyalty

Market
TAM (total available market), SAM (served addressable market), growth forecast

Financials
P&L, revenue forecast, gross margins, breakeven analysis, cash burn rate, price per share, market capitalization

Pricing
Margins, profits, elasticity, ROI

Competition
Market share, your performance vs. competitors on metrics above

Budgets
Allocate marketing budget across media
6/8/2012

Do sensitivity analysis on key assumptions in forecasts

63

Economic Analysis/Metrics (Continued) Eight Critical Metrics for your Web Site
Visits: # of visits to your web site per time period (day, week, month) Unique Visitors: # of unique visitors per time period Time on Page: # of minutes spent on a web page Time on Site: # of minutes spent on your web site Bounce Rate: % of visits with only one page view before leaving Exit Rate: % of visits that left website from a specific page Conversion Rate: % of unique visitors who buy, etc. Engagement: Degree of Engagement: from low to high Kind of Engagement: from negative to positive
6/8/2012

Adapted from: Kaushik, Avinash (2010), Web Analytics 2.0, Sybex, Chapter 3

64

Team Exercise
Which of the Economic Metrics on the last two slides does your company use to measure its performance in marketing to your customers? What common metrics could focus all of your employees on creating loyal, profitable customers? Does your company have a dashboard where you can monitor performance on all the key metrics on a daily or weekly basis, and track trends over time? Without the right metrics, a company is driving in the dark without headlights!

6/8/2012

65

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 66 Reality Test

Environmental Analysis: The Triple Bottom Line


Measuring Impact Beyond Profits & Shareholder Value Natural Capital: Benefits for our planet

Social Capital: benefits for the communities where we operate


Economic Capital: Profits for Investors

The Global Entrepreneurial Marketing (GEM) Toolkit


DIAGNOSIS

EXPERIENCE

DECISIONS

ANALYSIS

REALITY TEST

6/8/2012

Technology Adoption Life Cycle (TALC) TAM, SAM, Target Market Customer Personas Customer Development 1-to-1 Diagnosis Whole product & Positioning statement Pricing Distribution Marketing Communications Mix & Web Media Stakeholder Analysis Competitive SWOT Give-Get Partner Analysis Economic Analyses Environmental Analyses 68 Reality Test

Risk Assessment and Management: Do this exercise for your product!


Major Risks Mitigation Strategy Contingency Plan

6/8/2012

69

Team Exercise
Work in teams. Do a Reality Test on at least two of the products that you have been working with today. What are the major risks? What can you do to prevent them? What is your contingency plan if they happen?

6/8/2012

70

Marketing Toolkit Summary


These marketing tools can help improve your performance in any market These are not the only tools! Discover & use others. Adapt the tools to fit your companys situation. Share them with others in your company.

6/8/2012

71

Thank You!
1-650-450-3330 Skype: thomas.j.kosnik
kosnik@stanford.edu

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