Slide 1Session 06Session 06Entrepreneurial MarketingEntrepreneurial Marketingand Going Globaland Going GlobalTom ByersCopyright © 2006 by the Board of Trustees of the Leland Stanford Junior University and Stanford TechnologyVentures Program (STVP). This document may be reproduced for educational purposes only.“Companies that create the future do more thansatisfy customers, they constantly amaze them.”~ Hamel and PrahaladSlide 2Agenda and ObjectivesAgenda and ObjectivesA. Lecture and Discussion1. What is Entrepreneurial Marketing?2. How Can a Venture “Cross the Chasm”?3. Positioning First, then Go-to-MarketStrategies4. Positioning ExercisesB. “Going Global”Slide 3© 2003 Mark P. Rice, BabsonSlide 4Why is Marketing So Challengingin a High-Technology Venture?Jeff HawkinsPalm FounderSlide 5What is Marketing Anyway?What is Marketing Anyway?• Marketing must be more than a salessupport function. Not just ad tag lines. Inall kinds of businesses, it must satisfy “theneeds of the customer by means of theproduct and the whole cluster of thingsassociated with creating, delivering, andfinally consuming it.”• Especially in high-technology venturing,marketing must “invent complete productsand drive them to commanding positions indefensible market segments.” Reference: Levitt and DavidowSlide 6““Market AnalysisMarket Analysis”” Versus Versus ““MarketingMarketing””Step #1: Opportunity Recognition (Market Analysis)–Identify a Market Need–Examine the Competitive Dynamics of theIndustry–Determine Growth PotentialStep #2: Marketing 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 ExecutionSlide 7Most Famous Model Most Famous Model …… Geoff Moore Geoff Moore’’ss““Technology Adoption Life CycleTechnology Adoption Life Cycle””InnovatorsInnovatorsEarlyEarlyAdoptersAdoptersEarly Early MajorityMajorityLateLateMajorityMajorityLaggardsLaggardsBowling AlleyMain StreetTornadoSource: Moore (1995), Inside the TornadoTry to Name aDiscontinuousInnovation (orDisruptiveTechnology)Where Do You FitWhen It Comes toNew Technologies?Slide 8So How Does a StartupSo How Does a StartupCross the ChasmCross the Chasm??1 .Put Your Eggs in One Basket …Target Market Segments.2 .Then Deliver a 100% Solution To Them …A Whole Product.Slide 9Dog’s Role Segment Brand Price/100 gr.Dog as a family member Premium Chum 8.7 penceDog as a companion Moderate Pal and Bounce 6.4 & 7.9 penceDog as an animal Economy Chappie 6.3 penceReference: A. RyansAn Example of the PowerAn Example of the Powerof Segmentation andof Segmentation andTarget Marketing:Target Marketing:Pedigree Petfoods in UKPedigree Petfoods in UKDog as a substitute child? Super PremiumSlide 10Segmentation and the UK Dog Food Market:Segmentation and the UK Dog Food Market:PedigreePedigree’’s Super Premium Strategys Super Premium Strategy• Target Market? Intense relationships, own smallerdogs, older and urban females• Benefits? Very best product that can be bought,reassurance, confidence, leads to an enhancedrelationship• Name? Mr. Dog (later Caesar)• Product? Very high quality ingredients, wide varietyof 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 foodmarket. The total super premium segment of the market was about15% -- about 10% coming from dog food brands and about 5%coming from fresh foods. In addition, Pedigree's premium brandretained its market share.Slide 11Whole Product: The 100% SolutionWhole Product: The 100% Solution((““EcosystemEcosystem”” of Partners) of Partners)SoftwareProgramPlatformsSupportConsultingInstallation& TrainingConnectivityEtc.Reference: Ted Levitt, Bill DavidowKey Decisions:Which PiecesDo We Do andWhich Do OurPartners Do?Slide 12What is the Single MostWhat is the Single MostImportant Concept in aImportant Concept in aMarketing Strategy?Marketing Strategy?Positioning (a.k.a. the “Elevator Pitch”)Slide 13Positioning TemplatePositioning Template• Sentence #1For (target customer)who (statement of the need oropportunity),the (product/service name) is a (product/service category)that (statement of benefit).• Sentence #2Unlike (primary competitive alternative),our product (statement of primary differentiation).Slide 14Positioning Should DrivePositioning Should DriveGo-to-Market StrategiesGo-to-Market Strategies1 . Promotion and Communication(including branding)2 . Pricing and Business Model(including viral marketing)3 . Sales and Distribution(including affiliate marketing)Video of Elon MuskPayPal FounderSlide 15Positioning Example:Positioning Example:Palm Palm TreoTreoFor busy individualswho need a way to organize, manage, andcommunicate,the Palm Treo is an all-purpose handheldcomputer, camera, and mobile phone, all basedon 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 thespringboard technology and benefits of an all-inone capability.Slide 16NowNow Give Give It a Try PleaseIt a Try Please• Sentence #1For (target customer)who (statement of the need/opportunity),the (product/service name) is a (product/servicecategory)that (statement of benefit).• Sentence #2Unlike (primary competitive alternative),our product (statement of primary differentiation).Slide 17A Short Checklist for EffectiveA Short Checklist for EffectiveEntrepreneurial Marketing Entrepreneurial Marketing ……Relationships Matter!Relationships Matter!1 . How will the startup get close to customers?2 . How will they leverage alliances andpartnerships?3 . How will they influence the market’sinfrastructure and the industry’s key “players”?4 . Going global: what is their internationalstrategy (let’s take deeper dive right now …)?Slide 18Going Global - AgendaGoing Global - Agenda1. Who can help us go global?2. What are some good examples of firmswho have gone global?3. When should we think about goingglobal?4. Where should we focus?5. Why should we care about going global?6. How can we become globalentrepreneurs on a shoestring budget? Source: KosnikSlide 19Who Can Help Us Go Global?Who Can Help Us Go Global?• Venture capital firms• Angel investors•