Entrepreneurial Marketing and Global Ventures Session 06 Professor Byers Companies that create the future do more than satisfy customers they constantly amaze them Hamel and Prahalad Copyright 2007 by the Board of Trustees of the Leland Stanford Junior University and Stanford Technology Ventures Program STVP This document may be reproduced for educational purposes only Slide 1 Agenda and Objectives A Entrepreneurial Marketing 1 What Is It 2 How Can a Venture Cross the Chasm 3 Positioning First then Go to Market Strategies 4 Positioning Exercises B Global Ventures Slide 2 2003 Mark P Rice Babson Slide 3 Why is Marketing So Challenging in a High Technology Venture Jeff Hawkins Palm Founder Slide 4 What is Marketing Anyway Marketing must be more than a sales support function Not just ad tag lines In all kinds of businesses it must satisfy the needs of the customer by means of the product and the whole cluster of things associated with creating delivering and finally consuming it Especially in high technology venturing marketing must invent complete products and drive them to commanding positions in defensible market segments Reference Levitt and Davidow Slide 5 Market Analysis Versus Marketing Step 1 Opportunity Recognition Market Analysis Identify a Market Need Examine the Competitive Dynamics of the Industry Determine Growth Potential Step 2 Marketing as a Strategy Develop a Unique Positioning Develop Marketing Objectives Build a Set of Go to Market Strategies e g Pricing Promotion Support through Sales and Great Execution Slide 6 Famous Model Geoff Moore s Technology Adoption Life Cycle Tornado Main Street rds a gg La r ly s a E te r s r dop o t A va o n Source In te La rity y Majo l r Ea rity jo Ma Try to Name a Discontinuous Innovation or Disruptive Technology Where Do You Fit When It Comes to New Technologies Bowling Alley Moore 1995 Inside the Tornado Slide 7 So How Does a Startup Cross the Chasm 1 Put Your Eggs in One Basket Target Market Segments 2 Then Deliver a 100 Solution To Them A Whole Product Slide 8 An Example of the Power of Segmentation and Target Marketing Pedigree Petfoods in UK Dog s Role Segment Brand Price 100 gr Dog as a substitute child Super Premium Dog as a family member Premium Chum 8 7 pence Dog as a companion Moderate Pal and Bounce 6 4 7 9 pence Dog as an animal Economy Chappie 6 3 pence Reference A Ryans Slide 9 Segmentation and the UK Dog Food Market Pedigree s Super Premium Strategy Target Market Intense relationships own smaller dogs older and urban females Benefits Very best product that can be bought reassurance confidence leads to an enhanced relationship Name Mr Dog later Caesar Product Very high quality ingredients wide variety of flavors special packaging Price 17 7 to 30 7 pence per 100 grams Advertising Dog bringing newspaper slippers etc Results Fours years later it had a 10 share of the total dog food market The total super premium segment of the market was about 15 about 10 coming from dog food brands and about 5 coming from fresh foods In addition Pedigree s premium brand retained its market share Slide 10 Whole Product The 100 Solution Ecosystem of Partners Connectivity Installation Training Etc Platforms Support Software Program Consulting Key Decisions Which Pieces Do We Do and Which Do Our Partners Do Reference Ted Levitt Bill Davidow Slide 11 What is the Single Most Important Concept in a Marketing Strategy Positioning a k a the Elevator Pitch Slide 12 Positioning Template Sentence 1 For target customer who statement of the need or opportunity the product service name is a product service category that statement of benefit Sentence 2 Unlike primary competitive alternative our product statement of primary differentiation Slide 13 Positioning Should Drive Go to Market Strategies Promotion and Communication including branding Pricing and Business Model including viral marketing Sales and Distribution including affiliate marketing Slide 14 Positioning Example Palm Treo For busy individuals who need a way to organize manage and communicate the Palm Treo is an all purpose handheld computer camera and mobile phone all based on the proven Palm operating system that offers simplicity of use portability personalization connectivity and functionality Unlike pure personal digital assistants our product offers expandability due to the springboard technology and benefits of an all in one capability Slide 15 Now Give It a Try Please Sentence 1 For target customer who statement of the need opportunity the product service name is a product service category that statement of benefit Sentence 2 Unlike primary competitive alternative our product statement of primary differentiation Slide 16 A Short Checklist for Effective Entrepreneurial Marketing Relationships Matter How will the startup get close to customers How will they leverage alliances and partnerships How will they influence the market s infrastructure and the industry s key players Going global what is their international strategy let s take deep dive right now Slide 17 Going Global Agenda Who can help us go global What are some good examples of firms who have gone global When should we think about going global Where should we focus Why should we care about going global How can we become global entrepreneurs on a shoestring budget Source Professor Kosnik Stanford Slide 18 Who Can Help Us Go Global Venture capital firms Angel investors Investment banking firms Stock exchanges around the world Law firms Public accounting firms Consulting firms Executive search firms Universities Global customers who are potential partners Business and technical news media Government agencies Slide 19 What Are Some Good Examples of Firms Who Have Gone Global That We Can Learn From Accenture Acer Amazon com Applied Materials Ebay Google Hewlett Packard Intel Microsoft Nokia Oracle SAP Sony Softbank TSMC Yahoo Slide 20 When Should We Think About This 1 When we are writing the business plan 2 When we form our founding team 3 When we pick our company and brand names 4 When we pick our headquarters location 5 When we pick our capital sources 6 When we identify the target market 7 When we pick our most important customers 8 When we select our strategic partners 9 When we pick our suppliers talent 10 When we analyze our competition 11 All of the above Slide 21 Where Should We Focus Slide 22 Why Should We Care About Becoming Global Entrepreneurs Access to global customer base maximizes learning innovation